Based on Esteban's Conduct, Floyd Reasonably Believes That Glynis Has

question 38

Multiple Choice

Based on Esteban's conduct, Floyd reasonably believes that Glynis has the authority to act on Esteban's behalf even though Glynis does not have the actual authority to do so. Floyd makes a payment to Glynis for Esteban. Glynis keeps the money and disappears. Esteban​

• A) ​can demand that Floyd make a repayment directly to Esteban.
• B) ​can obtain damages from Floyd for Glynis's misconduct.
• C) ​may be estopped from denying that Glynis had authority.
• D) ​must repudiate Glynis's misconduct to avoid liability.

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Definitions:

Deadweight Losses

The loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved, leading to a net loss in societal welfare.

Incentives

Motivational factors or mechanisms that encourage individuals or groups to behave in a certain way or to take specific actions.

Lump-Sum Taxes

Taxes that are the same amount for everyone, regardless of the taxpayer’s income level or ability to pay.

Marginal Tax Rates

The percentage of tax applied to the last dollar earned, indicating the fraction of any additional income that will be taken in taxes.