In Which One of the Following Situations Will the Transaction

question 96

Multiple Choice

In which one of the following situations will the transaction not be binding on the principal?

• A) A salesperson at a men's clothing store has heard a rumor that the store will be going out of business. The boss is out of the store when a customer who has heard the same thing comes in and offers to purchase all of the stock, display cases, and fixtures. The salesperson accepts on behalf of the employer.
• B) A real estate salesperson, after disclosing the fact to his client, purchases the house the client is selling for himself.
• C) An employee of a flower shop is sent to the flower market every week to make purchases. This week he is told to buy only roses, but he can't pass up a tremendous deal on daisies and purchases a large quantity of them for the store.
• D) A chauffeur, going against specific instructions, purchases a new car for his employer. The employer has done nothing to lead the seller to believe the chauffeur has such authority, but is persuaded by the chauffeur to go for a drive before returning the car.
• E) A truck driver who is not an agent (no actual, implied, or apparent authority) enters into a contract on behalf of his employer to sell his cargo of ripe tomatoes after the truck breaks down and he can't get hold of the boss.

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Definitions:

Full Employment

The condition in which all available labor resources are being used in the most economically efficient way, typically characterized by the absence of cyclical unemployment.

Policymakers

Individuals or groups responsible for making decisions on public policy in various areas like economy, education, and health.

Stabilize

To make or become stable or more stable; in economic terms, to reduce fluctuations in economic activity.

Federal Reserve Act

A U.S. legislation in 1913 that established the Federal Reserve System as the central banking system of the United States, designed to provide the country with a safer, more flexible, and more stable monetary and financial system.