Carleton Computer Sales Inc Carries on a Business of Buying

question 63

Multiple Choice

Carleton Computer Sales Inc carries on a business of buying and selling computers.Tara is negotiating to sell her computer to Carleton but no agreement has been reached between Tara and Carleton.In anticipation of selling it to Carleton,Tara agreed to leave her computer on a display rack at Carleton's store.Carleton sells Tara's computer to Eli for $1000,telling Eli that Carleton owned the computer.Which of the following best describes Tara's legal position based on the law of agency?

• A)Tara is entitled to get her computer back because she never gave Carleton authority to sell it to Eli.
• B)Tara may not be able to get her computer back because by leaving her computer with a computer dealer on its display rack,she represented to anyone who came into the store,including Eli,that Carleton had authority to sell the computer for her.
• C)Tara will not be able to get her computer back because Eli reasonably relied on the statement by Carleton that it owned the computer.
• D)Tara is entitled to get her computer back because Eli cannot rely on the statement by Carleton that it owned the computer.
• E)Tara has no remedy of any kind.

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Definitions:

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, typically associated with government bonds.

Capital Allocation Line

A line on a graph that represents the risk-reward ratio of investments, showing the optimal portfolio mix between risk-free assets and risky assets.

Reward-to-Volatility Ratio

A measure of the return on an investment relative to its risk, often used to compare the performance of investment strategies.

Efficient Frontier

A graphical representation of the set of optimal portfolios that provides the best possible expected return for a given level of risk.