As a Result of Dealing with Barry,Zita Believes That She

question 21

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:

Nucleus

The central and most important part of an atom, containing protons and neutrons, or a membrane-bound organelle in cells containing the genetic material.

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Structures made of DNA and protein found in the nucleus of cells that carry genetic information from one generation to the next.

DNA

Deoxyribonucleic acid, a molecule that carries the genetic instructions used in the growth, development, functioning, and reproduction of all known living organisms and many viruses.

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