Where the Actions of a Person Convey the Impression to Third

question 5

Multiple Choice

Where the actions of a person convey the impression to third parties that he or she has given authority to a particular person to act as an agent,

• A)the authority is real and of binding legal effect.
• B)a contract negotiated by such an agent may not be adopted by the principal at a later time.
• C)third parties may assume that the agent has authority to bind the principal until notice to the contrary has been given to the third parties.
• D)the agent may be liable to the principal for acting under implied but not actual authority.
• E)All of the responses are correct.

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Definitions:

Value

The importance or worth that is attached to something by individuals or society, often reflected in what people are willing to exchange or pay for it.

Producer Surplus Gain

The difference between what producers are willing to accept for a good versus what they actually receive, often resulting from higher market prices.

Consumer Surplus Loss

The reduction in consumer surplus due to changes in market conditions such as price increases or decreases in available goods.

Individual Seller

A single entity or person engaged in the act of selling goods or services, typically on a small scale or directly to consumers.