As a Result of Dealing with Barry, Zita Believes That

question 74

Multiple Choice

As a result of dealing with Barry, Zita believes that she has entered into a contract with Primus Inc.Zita claims that Barry, who is the president of Primus, acted as the corporation's agent.Which of the following statements is TRUE?

• A)Primus can avoid liability by demonstrating that its by-laws prohibited Barry from incurring liability on its behalf.
• B)The indoor management rule states that Primus cannot be held liable on the basis of Barry's actions unless, as a matter of the company's internal affairs, it had actually authorized him to act as its agent.
• C)The concept of ostensible authority means that it is not enough for Zita to prove that Barry appeared to have been authorized to act as the company's agent.
• D)Primus cannot deny that Barry had the authority that is usually held by the president of a corporation.
• E)Zita can only enforce the contract if she searched all the corporation's public records and found no restriction on Barry's authority.

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Definitions:

Participating

In finance, it often refers to securities or policies that allow owners to receive dividends, or share in profits beyond a specified amount.

Cumulative

Refers to something increasing in quantity, degree, or force by successive additions, often used in the context of cumulative dividends or interest.

Non-cumulative

A term, often referring to preferred shares or dividends, indicating that if a dividend is not declared, it does not accumulate and is not owed in future periods.

Participating

In the context of financial securities, participating refers to the characteristic of a security that allows its holder to receive additional dividends or profits beyond a specified amount.