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

question 79

Multiple Choice

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

• A) 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.
• B) the termination of actual authority automatically terminates any apparent authority held by the agent.
• C) apparent authority ends only upon actual notice, either oral or written, to the third party.
• D) apparent authority continues until the third party with whom the agent has previously dealt on credit receives constructive notice of termination.

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Definitions:

Time Period

Refers to a specific duration or interval in which certain events or processes take place.

Net Requirements

The actual amount of materials or resources needed for production, calculated after considering the on-hand inventory and pending orders, to meet the production schedule.

Part B

Often associated with Medicare, Part B refers to medical insurance coverage for certain services and products not covered by Part A.

Gross Material Requirements Plan

A comprehensive schedule that projects the raw materials needed to meet production demands, factoring in inventory levels and supply lead times.