Regarding the Effect of Termination of Agency on Authority, the General

question 81

Multiple Choice

Regarding the effect of termination of agency on authority, the general rule of the Third Restatement is that:

• A) the termination of actual authority automatically terminates any apparent authority held by the agent.
• B) it is reasonable for third parties to assume that an agent's actual authority continues unless and until the third party has notice of circumstances that make it unreasonable to continue that assumption.
• C) apparent authority continues until the third party with whom the agent has previously dealt on credit receives constructive notice of termination.
• D) apparent authority ends only upon actual notice, either oral or written, to the third party.

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Definitions:

Ammonia

A colorless gas with a pungent smell, composed of nitrogen and hydrogen (NH3), commonly used in fertilizers.

Nitrogen

A colorless, odorless, tasteless, nonmetallic element that constitutes 78 percent of the Earth's atmosphere; vital for all living organisms as a component of proteins and nucleic acids.

Protein Breakdown

The cellular process of breaking down proteins into their amino acid components, often for recycling or energy production.

Tubular Secretion

A biological process within the nephrons of the kidneys where substances are secreted from the blood into the tubular fluid to be eliminated in urine.