When the Principal's Words or Conduct Leads a Third Person

question 36

Multiple Choice

When the principal's words or conduct leads a third person to reasonably believe that a party is authorized to act as his or her agent but this is not true, and the third person relies on that appearance, this creates a case of __________ authority.

• A) express
• B) apparent
• C) customary
• D) incidental

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Definitions:

Wrongfully Terminated

Dismissed from employment for illegal reasons or in ways that breach the terms of the contract or labor laws.

Franchisor

The party in a franchising agreement that grants the franchisee the right to operate a business under its trademark or trade name.

Arbitrary

Based on random choice or personal whim, rather than any reason or system.

Mandate Retail Prices

The enforcement of fixed prices for goods and services that retailers must adhere to, often set by manufacturers or regulatory bodies.