Under the UCC, If an Agent Enters into a Contract

question 72

Multiple Choice

Under the UCC, if an agent enters into a contract that is an negotiable instrument, the principal cannot be held liable unless the principal's name is on the instrument or the agent's signature indicates that it was made in ________.

• A) a representative capacity.
• B) the presence of a notary.
• C) the presence of the disclosed or undisclosed principal.
• D) a bank or an institution that would accept the negotiable instrument.
• E) connection with an auxiliary promise to the contract.

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Definitions:

Indirect Expense

Costs that are not directly attributable to a specific product or service, such as utilities or administrative salaries.

Rent

A periodic payment made by a tenant to a landlord in exchange for the use of land, a building, or other property.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue contributes to fixed costs and profits.

Gross Sales

The total amount of sales generated by a business before any deductions like returns, discounts, and allowances.