Corine Engaged Datz as Her Agent

question 64

Multiple Choice

Corine engaged Datz as her agent.It was mutually agreed that Datz would not disclose that he was acting as Corine's agent.Instead he was to deal with prospective customers as if he were a principal acting on his own behalf.In accordance with this agreement,he made several contracts for Corine.If a third party filed a lawsuit on one of the contracts,which of the following statements would be true?

• A)Corine is disallowed from ratifying Datz's contracts in order to transfer liability.
• B)Datz has no liability once he discloses that Corine is the real principal.
• C)The third party can hold only Datz liable since the third party believed that Datz was the principal.
• D)The third party may choose to hold either Datz or Corine liable.

---

Definitions:

Legitimate Power

This refers to the authority someone has due to their position or role within a formal organizational setting.

Accumulate

To gather or pile up something gradually as time passes, often leading to a large quantity.

Exert Influence

The act of using one's power, authority, or personal appeal to affect or change someone's beliefs, attitudes, or actions.

Situational Control

The extent to which individuals can influence or manipulate the conditions or environment of a given situation to achieve desired outcomes.