If an Agent Appointed Under a Power of Attorney Acts

question 20

Multiple Choice

If an agent appointed under a power of attorney acts on behalf of a principal after the principal dies but before the agent has been informed of the death, power of attorney legislation in each state provides that:

• A)the agent's act will not bind the principal's estate and any contracts entered into by the agent on the principal's behalf are void.
• B)the agent will be personally liable for any contracts entered into.
• C)the agent's actions will bind the estate of the principal.
• D)any contracts entered into on behalf of the principal by the agent are voidable and may be terminated at the discretion of the executors of the principal's estate.

---

Definitions:

Production Increase

refers to a rise in the quantity of goods or services produced over a specific period.

Interdependent

The mutual reliance between two or more entities, where changes in one affect the others.

Perfect Competitors

Refers to businesses in a market structure where they sell homogenous products, face no barriers to entry or exit, and none of them can influence the market price.

Smaller Output

Production of fewer goods or services, often indicating a reduction in manufacturing or business activity levels.