If an Agent Is Acting Within His or Her Authority

question 76

Multiple Choice

If an agent is acting within his or her authority on a contract involving an undisclosed principal,which of the following is true regarding the agent's liability?

• A)The law would not hold the agent liable on the agreement.
• B)The law will likely hold the agent liable for the agreement.
• C)The law will hold the agent liable for the agreement unless the contract the agent had with the principal impliedly or expressly provided that the agent would not be held liable in such cases.
• D)The law will hold the agent liable for the agreement unless a contract for under $1,000 is involved in which case only the principal would be held liable.
• E)The law will hold the agent liable for the agreement unless the contract the agent had with the principal expressly provided that the agent would not be held liable in such cases.

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Definitions:

Legal Principle

Fundamental guideline or established norm accepted within a legal system as a basis for decision-making.

Ideological Reasoning

The process of forming judgments and decision-making based on a set of beliefs or ideologies.

Prosecuting Attorney

A legal representative who brings charges against a suspect in a court of law and tries to prove the case against them.

Value Judgments

Evaluations based on personal or social standards of what is important, good, or desirable.