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A Principal Ordinarily Does Not Have Liability to Third Parties

question 11

True/False

A principal ordinarily does not have liability to third parties for contracts made within the actual or the apparent scope of an agent's authority. ​


Definitions:

FICA Taxes

Taxes imposed by the Federal Insurance Contributions Act on both employees and employers to fund Social Security and Medicare.

Federal Withholding

The process by which an employer withholds a portion of an employee's income to cover federal income taxes.

COBRA Premium Assistance

COBRA Premium Assistance refers to a subsidy for the health insurance premiums under the Consolidated Omnibus Budget Reconciliation Act, providing temporary continuation of health coverage at group rates.

Form 941-X

A form used by employers to correct mistakes made on a previously filed Form 941, which reports quarterly federal tax returns.

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