In Which of the Following Circumstances Will an Agent's Act

question 58

Multiple Choice

In which of the following circumstances will an agent's act not generally be binding on the principal because the agent has no authority (leaving aside contexts in which the agent has apparent authority) ?

• A)When the agent was given verbal authority by the principal to do the act.
• B)When the principal has ratified the act verbally.
• C)When the act was something necessary or appropriate given the scope of the agent's actual authority although they had no express authority.
• D)When the agent's authority was given verbally in circumstances in which legislation required the authority to be given in writing.

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Definitions:

Social Proof

A tendency to conform to what we believe respected others think and do.

Lowball

A sales technique where an item or service is initially offered at a lower price than is actually intended to be charged, after which the price is raised to increase profits.

Disney Vault

A term referring to the practice by The Walt Disney Company of putting its films into moratorium, making them unavailable for purchase for a specified period.

Scarcity

A condition of limited resources available, making them more valuable or desirable.