Sam Hires Joe to Negotiate and Sign a Contract with Ken

question 124

Multiple Choice

Sam hires Joe to negotiate and sign a contract with Ken on Sam's behalf.Which of the following is true?

• A)If Joe acts outside express,implied,and apparent authority,Sam is not bound by the contract,even if he ratifies the contract.
• B)If Joe acts within his apparent authority,but outside his express or implied authority,Sam will be bound by the contract.
• C)If Joe acts outside his express authority and negotiates and signs the contract with Ken,Sam may not be a party to that contract.
• D)If Joe acts outside his express,implied,and apparent authority,he could be sued by Sam,but not by Ken,because he has no contractual relationship with Ken.
• E)If Joe acts outside his implied and express authority,Sam will owe him for his services.

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Definitions:

Horizontal Merger

Merger that joins firms in the same industry for the purpose of diversification, increasing customer bases, cutting costs, or expanding product lines.

Vertical Merger

Merger that combines firms operating at different levels in the production and marketing process.

Joint Venture

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task, project, or other business activity.

Conglomerate Company

A Conglomerate Company is a large corporation composed of several companies with diverse or unrelated business interests.