When Is a Principal Directly Liable for Misrepresentations Made by an Agent

question 23

Multiple Choice

When is a principal directly liable for misrepresentations made by an agent?

• A)During all authorized transactions
• B)During authorized transactions if the principal intended the agent make the misrepresentations
• C)During authorized transactions if the principal ratified the misrepresentations
• D)Never

---

Definitions:

Power

The ability or capacity to do something or act in a particular way, often involving the control over resources or people.

Negative Emotions

Feelings that are generally considered to be displeasing or unfavorable, such as sadness, anger, fear, and guilt, which can impact mental and physical well-being.

Bad News

Information that is unwelcome, unpleasant, or disappointing.

Duration

The length of time that something continues or exists.