From Which of the Following Does a Third Party Typically
From which of the following does a third party typically derive an agent's ostensible authority?
A) the conduct of the principal
B) reasonable inference of usual authority
C) an expression of the limitations of authority
D) inferring typical authority
Jack sent a cover letter with his new purchasing agent, Kuan Huo, advising suppliers of Kuan's authority to transact purchases under $33 000. How would a court considering a dispute in which a plaintiff alleges Kuan had apparent authority to enter into a $42 000 purchase contract most likely resolve this dispute?
A) Deny the third party's claim based on the principal's stated limitation.
B) Deny the second-party claim because the agent's limited authority was reasonably known.
C) Deny a first-party claim on the grounds it ought to have known of the reasonable limitation.
D) Deny the outsider's claim based on the agent's unenduring authority.
Which of the following is particularly relevant and therefore will most strongly support a plaintiff whose funds have been misappropriated by an investment advisor?
A) the doctrine of apparent authority
B) the doctrine of implied authority
C) the doctrine of actual authority
D) the doctrine of enduring authority
Which of the following would a court require confirmation of in order to establish the validity of an agency relationship where circumstances involve agency by estoppel?
A) the adoption by the principal of a contract the agent lacked authority to enter at the time
B) circumstances that necessitated acting without authority from the principal
C) an agreement by the third party to be bound by commitments made to the agent
D) the principal's actions are readily viewed by outsiders as denoting an existing agency relationship