An Agent Who Makes a Contract for a Disclosed Principal

question 20

Multiple Choice

An agent who makes a contract for a disclosed principal whose contracts are voidable for lack of contractual capacity:

• A) is never liable to the third party.
• B) can be liable to the third party under certain circumstances.
• C) is liable to the third party only if the agent warrants the principal has capacity.
• D) is ordinarily personally liable to the third party if the principal avoids the contract.

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Definitions:

OEMs

Original Equipment Manufacturers; companies that produce parts and equipment that may be marketed by another manufacturer.

Aftermarket Diesel Fuel Conditioners

Products added to diesel fuel to improve engine performance, fuel efficiency, and reduce emissions.

OOS Criteria

Stands for Out Of Service Criteria, which are regulations determining when a vehicle or component is considered unsafe and must be removed from service.

CVSA

The Commercial Vehicle Safety Alliance (CVSA) is an organization that promotes commercial vehicle safety and security by setting inspection standards and practices.