When the Parties to a Transaction Have Access to Different

question 99

Multiple Choice

When the parties to a transaction have access to different information:

• A)markets will be efficient.
• B)parties will voluntarily share information truthfully in order to achieve efficiency.
• C)some markets may fail to exist.
• D)parties will blindly trust one another.

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Definitions:

Express Authority

Actual authority that the principal has manifested to the agent in very specific or detailed language.

Implied Authority

Actual authority given to an agent to bind his or her principals and to act in a way that the agent reasonably believes is necessary to perform his or her duties.

Indemnify

To reimburse or promise to reimburse another from loss. To act as security or protection against a loss.

Special Agent

An agent that is employed to conduct a single transaction or a small, simple group of transactions.