In the Process of Assembling Land for Ace Construction Ltd

question 135

Multiple Choice

In the process of assembling land for Ace Construction Ltd.to build a supermarket,Joe entered into a contract with the seller Sam.In which of the following situations would Sam be able to sue the principal,Ace?

• A)Sam would be able to sue Ace where Joe exceeded his apparent and actual authority.
• B)Sam would be able to sue Ace where Joe revealed that he was acting as an agent,but did not disclose that he was acting for Ace in particular,and exceeded both his apparent and actual authority.Ace did not ratify the contract.
• C)Sam would be able to sue Ace where Joe was acting outside his authority and did not disclose that he was acting for Ace.Sam was aware of Joe acting independently at the time he entered into the contract.
• D)Sam would be able to sue Ace where Joe exceeded his actual authority but where Ace had led Sam to believe that Joe had the authority.
• E)Sam would be able to sue Ace where Joe disclosed that he was acting for Ace but made the contract "subject to ratification."

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Definitions:

Barriers to Entry

Obstacles involving economic, process-related, or legal factors that deter the entry of new firms into a specific industry or business field.

Government-Created Monopoly

A market situation where a government grants exclusive rights to a single entity to provide a particular good or service, limiting competition.

Exclusive Right

Exclusive right refers to a legal provision granting someone the sole authority to exploit a particular property, product, or service for a specified purpose.

Natural Monopoly

A situation in which a single firm can supply a product or service to an entire market more efficiently than multiple companies, often due to high fixed costs.