Which of the Following Agents Would Not Have Authority to Contract

question 35

Multiple Choice

Which of the following agents would not have authority to contract with third parties on behalf of the principal?

• A) A salesman who sells his employer's goods.
• B) A manager who hires employees for the store owner.
• C) A factory worker hired to operate a machine.
• D) A buyer who regularly buys merchandise for a store.
• E) All agents have authority to contract with third parties on behalf of their principals.

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Definitions:

Circulating Security Interests

A security interest in movable assets that change in quantity or value, allowing the debtor to buy, sell, or exchange the collateral without changing the secured status.

Administrator

An independent and suitably qualified person appointed to take full control of a company in an attempt to save either the company or the company’s business.

Execute a Document

The act of signing a document or contract officially, thereby making it legally binding.

Members' Voluntary Winding Up

A process initiated by the shareholders of a solvent company to voluntarily dissolve and liquidate its assets under the supervision of a liquidator.