Jonathan Waa Used-Car Enthusiast

question 38

Multiple Choice

Jonathan waa used-car enthusiast.He entered into an agency agreement with Andrea.She owned a used car lot.The agency agreement limited Jonathan's authority to purchase used vehicles for under $25 000 and to ship them by flatbed to Andrea's lot.When passing through Toronto one Saturday morning,Jonathan stopped at an auto auction and saw a 1985 Jaguar that he wanted to bid on for Andrea.He was successful and purchased the vehicle for $24 000.However,he had no flatbed trailer and as such decided to drive the vehicle to Andrea's lot in London.He immediately arranged for automobile insurance on her behalf but without her authority.Near Kitchener he was involved in an automobile accident which resulted in the Jaguar being a total write-off.No one was injured.He contacted Andrea and informed her of the situation.She immediately contacted the insurance company to ratify the insurance contract.In these circumstances:

• A)so long as the initial call made by the agent was prior to the accident,the insurance contract can be ratified.
• B)given that there was no personal injury,the insurance contract can be ratified.
• C)Andrea was unable to ratify the contract because at the time she attempted to do so,the accident had already occurred.
• D)because Jonathan had apparent authority to enter into the insurance contract,it is binding on Andrea.
• E)a principal can only ratify an agreement entered into by an agent if his or her name has not been used.

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Definitions:

Severe Epilepsy

A form of epilepsy characterized by frequent, severe seizures that are difficult to control with medication.

Hemispheres

Refers to either of the two symmetrical halves of the brain, each responsible for specific functions and processes.

Sensation

Sensation is the process by which our sensory receptors and nervous system receive and represent stimulus energies from our environment.

Mean

A statistical measure representing the average of a set of numbers, calculated by dividing the sum of all values by the number of values.