Charles Blake Told Wendy That He Was an Agent for Easy

question 47

Multiple Choice

Charles Blake told Wendy that he was an agent for Easy Pay Life Insurance Company. He presented no credentials. He asked Wendy some questions about her health and activities, and recorded the answers on scrap paper. He collected a $250 cash premium from Wendy. When Wendy did not receive a policy from Easy Pay, she contacted the company. Easy Pay said they do not have an agent named Charles Blake. Easy Pay is not responsible for Wendy's loss of $250 because

• A) the principal is never responsible for the acts of its agents.
• B) there is no presumption of an agency relationship.
• C) limitations can be placed on the powers of agents.
• D) knowledge of the agent is assumed to be knowledge of the principal.

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Definitions:

Delusional Disorder

A psychiatric condition characterized by the presence of non-bizarre delusions—firm yet unfounded beliefs—without other psychotic symptoms.

False Believes

Incorrect convictions or interpretations of reality, often held despite evidence to the contrary.

Conspiring

Planning secretly with one or more people to do something illegal or harmful.

Elderly People

Individuals, often defined as being 65 years of age or older, who may experience various health and social challenges related to aging.