If an Agent Is Sued for Breach of Implied Warranty

question 13

Multiple Choice

If an agent is sued for breach of implied warranty of authority by a third party, none of the following are defenses except: ______.

• A) the agent acted in good faith.
• B) the agent misunderstood the scope of authority.
• C) the third party knew the agent was acting beyond her authority.
• D) the agent had written authorization.

---

Definitions:

Behavior

Pertains to the actions or reactions of an individual or a group in response to external or internal stimuli, encompassing physical movements and psychological processes.

Desirable Social Qualities

The traits or characteristics that are generally appreciated and sought after in social interactions and contexts, such as kindness, empathy, and respectfulness.

LMX Theory

Stands for Leader-Member Exchange Theory, suggesting that leaders develop unique one-to-one relationships with each of the people reporting to them.

High-Exchange Relationship

A type of relationship between leader and follower characterized by high levels of trust, respect, and mutual obligation.