Roberta Introduces Steve to Her Friends as "My Associate

question 45

Multiple Choice

Roberta introduces Steve to her friends as "my associate." Steve purports to act as Roberta's agent in several business transactions with those friends. If Roberta is liable for Steve's actions, it will be because their relationship is​

• A) ​an agency by agreement.
• B) ​an agency by estoppel.
• C) ​an agency by operation of law.
• D) ​not an agency relationship.

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Definitions:

Comprehensive General Liability

Insurance that covers a business for bodily injury, personal injury, and property damage caused by the company's operations, products, or injuries that occur on the company's premises.

Financial Support

Funding or monetary assistance provided to help an individual, organization, or project.

Physical Injuries

Harm or damage inflicted to a person's body, excluding mental or emotional harm.

Good Faith

The sincere intention to deal fairly with others, without taking advantage of them, especially in a contractual or negotiation context.