With Respect to the Formation of Agency by Estoppel,which of the Following

question 93

Multiple Choice

With respect to the formation of agency by estoppel,which of the following statements is true?

• A)If the principal tells an agent specifically not to sell something and the agent,in disobedience of those instructions,sells it anyway,the principal may be bound by the contract because of estoppel.
• B)The issue of apparent authority arises only if a person acts as an agent when he or she has express or implied authority.
• C)When a party terminates an express agency agreement with an agent and notifies third parties with whom that agent normally dealt,that party will be liable on a contract made for it by that "fired" agent.
• D)When a third party suspects that the agent it deals with has no authority,there is no obligation on it to question the agent's alleged authority.
• E)When a party represents,by words or conduct,that someone is its agent,that party can later deny liability on a contract made for it by that agent on the basis that no express agency agreement existed.

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Definitions:

Inventories

Producers’ stocks of finished and in-process goods.

Economic Fluctuations

Variations in the economic activity of a country over time, including periods of growth (expansions) and decline (recessions).

Synchronized

The process of operating or occurring at the same time or rate, ensuring coherence and coordination.

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy, reflecting inflation or deflation.