When a Third Party Is Aware That an Agent Who

question 67

True/False

When a third party is aware that an agent who exceeds his or her authority does not represent the principal, the law does not hold the agent liable for an agreement in cases in which the agent exceeds his or her authority to act on behalf of the principal.

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Definitions:

Merchantable

A legal term referring to goods that meet basic quality standards and are fit for the purpose for which goods of that kind are usually purchased.

UCC

Represents the Uniform Commercial Code, a broad series of legal provisions that regulate commercial activities across the United States.

Enacted Values

The values and norms that are actually exhibited or converted into employee behavior within an organization.

Organizational Members

Individuals who belong to and participate in the functioning of an organization, including employees, managers, and stakeholders.