The Decision in the Case Of: Tooth & Co V

question 34

Multiple Choice

The decision in the case of: Tooth & Co v Laws (1888) 9 LR (NSW) 154 was based on the fact that:

• A)the dealings of the secretary appeared to be within the scope of their authority even though they lacked actual authority.
• B)the defendant's previous conduct in paying for the jewellery amounted to a representation of the agent's authority.
• C)the defendant's failure to notify the suppliers of the sale of business prohibited him from denying that the purchasers were his agents.
• D)buying and selling cars was a normal practice of that kind of business.

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Definitions:

Factor Portfolio

A portfolio constructed to have a high sensitivity to a specific factor or factors, used to capture returns associated with those factors.

Well-Diversified

A portfolio strategy involving the mix of different investments to reduce exposure to risk.

Beta

A scale for determining the level of fluctuation or consistent risk in a security or portfolio compared with the overall market.

Risk Premium

The additional return an investor expects to receive for taking on additional risk compared to a risk-free asset.