Maco CorpIs a Real Estate Development Firm and Regularly Engages Real

question 67

Multiple Choice

Maco Corp.is a real estate development firm and regularly engages real estate brokers to act on its behalf in acquiring parcels of land.The brokers are authorized to enter into such contracts,but are instructed to do so in their own names without disclosing Maco's identity or Maco's relationship to the transaction.If a broker enters into a contract with a seller on Maco's behalf:

• A)Maco will be bound by the contract because of the broker's apparent authority.
• B)the broker will not be personally bound by the contract because the broker has express authority to act.
• C)Maco will not be liable for the intentional torts of the broker committed while acting on Maco's behalf.
• D)the broker will be held liable on contracts he/she signs without disclosing Maco as the principal.

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Definitions:

Confederate

An individual who is part of a group with a shared goal, often used in psychological experiments to play a specific role without the subject's knowledge.

Majority Judgment

A decision-making process where the choice supported by the majority of members is selected.

Truth

The quality or state of being in accordance with fact or reality.

Social Pressure

The influence exerted by others in one's social group that encourages conformity to group norms and values.