When the Principal Intentionally or Negligently Causes a Third Party

question 1

Multiple Choice

When the principal intentionally or negligently causes a third party to reasonably believe that an individual is acting as the principal's agent, and the third party relies on that belief, then

• A) no agency relationship exists.
• B) an express agency agreement is created.
• C) the purported agent assumes personal liabil- ity for his or her actions.
• D) an apparent agency may exist.

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Definitions:

Formal Communication

The structured flow of information through the officially recognized channels within an organization.

Grapevine Communication

Informal channels of communication within an organization, often based on rumors or gossip.

Active Listening

A communication technique that involves fully concentrating, understanding, responding, and remembering what is being said.

Sales Staff

Employees or personnel dedicated to selling and promoting products or services of a business.