Which of the Following Is a Defense to an Action

question 16

Multiple Choice

Which of the following is a defense to an action against an agent for breach of the implied warranty of authority?

• A) The agent acted in good faith.
• B) The agent misunderstood the scope of authority.
• C) The third person knew that the agent was acting beyond the authority given by the principal.
• D) All of the above are correct.

---

Definitions:

Constraints

Limitations or restrictions that affect decision-making or the execution of plans.

Lower-level Managers

Managers at the lower ranks of an organizational hierarchy, directly supervising non-managerial employees and handling day-to-day operations.

Authority

denotes the power or right to give orders, make decisions, and enforce obedience, typically within organizational or societal structures.

Constraints

Limitations or restrictions that affect the feasibility or development of something.