Agents May Expose Themselves to Personal Liability on a Contract

question 54

Multiple Choice

Agents may expose themselves to personal liability on a contract by entering into an agreement with a third party

• A) without disclosing the fact that they are an agent.
• B) by expressly describing themselves as an agent, but without disclosing the identity of the principal.
• C) on behalf of a fictitious principal.
• D) on behalf of a principal for whom the agent did not have authority to act.
• E) all of the responses are correct.

---

Definitions:

P-Charts

Control charts used for monitoring the proportion of defective items in a process over time.

Statistical Process Control (SPC)

A method of quality control which employs statistical methods to monitor and control a process, helping to ensure that it operates at its fullest potential.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, calculated as the square root of the variance.

Process Control Limits

Boundaries in a control chart within which a process operates normally, and outside of which the process may need correction.