When the Principal Is Trying to Avoid Being Bound by the Acts

question 44

Multiple Choice

When the principal is trying to avoid being bound by the acts of the agent after the agency has ended, constructive notice is sufficient for:

• A) persons who have dealt with the former agent.
• B) persons who knew of the agency but had never dealt with it before termination.
• C) persons who never knew of existence of the agency.
• D) everyone who the principal was in contract with before the termination.

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Definitions:

Momentum Effect

The tendency for securities that have performed well in the past to continue performing well in the future.

Martingale Effect

A theory in probability suggesting that past events do not influence future ones, often discussed in the context of gambling or investment strategies.

Fad Effect

A temporary period of high demand for a certain product or service, often without a basis in the product's qualities or utility.

Liquidity Effect

The impact that changes in the supply of money have on interest rates, typically where an increase in money supply leads to a decrease in interest rates.