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:

Entitativity

The extent to which a group is perceived as a cohesive and singular entity, distinguished by the uniformity and interdependence of its members.

Cheerleaders

Individuals or a group who provide vocal, and sometimes physical, support and encouragement for a team or event.

Tuckman's Model

A theory of group development outlining stages: forming, storming, norming, performing, and adjourning, through which groups tend to progress.

Storming

A stage in group development characterized by conflict and competition as group members adjust to their roles and relationships.