Richard Writes a Letter to Sarah Authorizing Her to Sell

question 24

Multiple Choice

Richard writes a letter to Sarah authorizing her to sell his car and sends a copy of the letter to Saxton, a prospective purchaser. The next day, Richard sends a letter to Sarah revoking her authority, but he fails to notify Saxton . Sarah:

• A) has actual authority to sell the car to Saxton .
• B) has implied authority to sell the car to Saxton .
• C) has apparent authority with respect to Saxton to sell the car.
• D) is empowered under the doctrine of respondeat superior to negotiate the contract.

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Definitions:

Empathic Understanding

The ability to understand and share the feelings of another person from their perspective as a means to better cater to their needs and expectations.

Business Analysis

The practice of identifying business needs and determining solutions to business problems.

Product Development

The process of bringing a new product from concept to market, involving idea generation, design, development, and commercialization stages.

Demand

The desire or need for goods and services by consumers at a given price point and time.