Actual Authority of an Employee May NOT Arise as a Result

question 24

Multiple Choice

Actual authority of an employee may NOT arise as a result of which of the following?

• A)a term in an employee's contract with the corporation
• B)a provision in a resolution of the directors
• C)the employee being appointed to an office, such as president, which has authority attached to it
• D)the employee being orally delegated authority by a person authorized by the corporation to delegate it
• E)the employee telling third parties that they have authority even though this is obviously untrue to any reasonable person

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Definitions:

Consequential Damages

Compensation awarded in a legal case for losses that do not directly arise from the wrongful act but are a secondary result of the act, such as lost profits or loss of opportunity.

Unconscionable

Referring to a contract or deal that is so unjust or overwhelmingly one-sided in favor of the party with superior bargaining power that it is deemed unenforceable under the law.

Seller's Remedies

Legal actions or steps that a seller can take if a buyer fails to fulfill their part of a purchase agreement.

Breaches

Acts of breaking laws, rules, agreements, or promises, leading to legal consequences.