An Agency Relationship Created When One Party Adopts a Contract

question 72

True/False

An agency relationship created when one party adopts a contract entered into on his behalf by another who acted without authority at the time is legally known as an agency by estoppel.

Recognize the significance of the relationship between behavior and its consequences.

Analyze real-life scenarios to identify examples of operant conditioning.

Understand the impact of reinforcement magnitude, timing, and frequency on the strength of learned behaviors.

Compare and contrast negative reinforcement and punishment.

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Definitions:

Market Interest Rate

The prevailing rate of interest determined by supply and demand in the money market that borrowers must pay and lenders receive.

Operating Lease

A contract that allows the use of an asset but does not convey rights of ownership, typically used for short-term leasing arrangements.

Capital Lease

A lease classified as a financial transaction where the lessee gains substantial control over an asset, treated like an asset purchase.

Bond Indenture

A legal document specifying the terms and conditions under which a bond is issued, including the interest rate, maturity date, and other covenants.