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

question 50

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:

Conversion Disorder

A mental condition where psychological stress manifests as physical symptoms, lacking a medical cause.

Secondary Gains

Unintended benefits or advantages a person may receive from being sick or assuming a patient role, such as sympathy or attention.

Trusting Relationship

A bond between people characterized by mutual trust, respect, and honesty.

Depersonalization

An experience of feeling detached from one's thoughts, body, or sensations, often described as feeling like an outside observer to one's own life.