Question 1

Regarding the effect of termination of agency on authority, the general rule of the Third Restatement is that:

Accepted Answer

A)  the termination of actual authority automatically terminates any apparent authority held by the agent. 
B)  it is reasonable for third parties to assume that an agent's actual authority continues unless and until the third party has notice of circumstances that make it unreasonable to continue that assumption. 
C)  apparent authority continues until the third party with whom the agent has previously dealt on credit receives constructive notice of termination. 
D)  apparent authority ends only upon actual notice, either oral or written, to the third party. 
A)  the termination of actual authority automatically terminates any apparent authority held by the agent. 
B)  it is reasonable for third parties to assume that an agent's actual authority continues unless and until the third party has notice of circumstances that make it unreasonable to continue that assumption. 
C)  apparent authority continues until the third party with whom the agent has previously dealt on credit receives constructive notice of termination. 
D)  apparent authority ends only upon actual notice, either oral or written, to the third party.

Question 2

Under the Third Restatement, an agent representing an undisclosed principal is discharged from liability if the third party:

Accepted Answer

A)  He is never discharged from liability. 
B)  gets a judgment against the agent. 
C)  becomes aware of the principal. 
D)  gets a satisfied judgment against the principal. 
A)  He is never discharged from liability. 
B)  gets a judgment against the agent. 
C)  becomes aware of the principal. 
D)  gets a satisfied judgment against the principal.

Question 3

The court in the Schoenberger v.Chicago Transit Authority case held that:

Accepted Answer

A)  the actual authority of an agent may be founded on the acts or words of the agent. 
B)  ZuChristian had neither actual nor apparent authority to make an offer of a specific salary or to make a promise of additional compensation. 
C)  implied authority is such authority as the principal knowingly permits the agent to assume. 
D)  actual authority is such authority as a reasonable, prudent person, exercising diligence and discretion, in view of the principal's conduct, would naturally suppose the agent to possess. 
A)  the actual authority of an agent may be founded on the acts or words of the agent. 
B)  ZuChristian had neither actual nor apparent authority to make an offer of a specific salary or to make a promise of additional compensation. 
C)  implied authority is such authority as the principal knowingly permits the agent to assume. 
D)  actual authority is such authority as a reasonable, prudent person, exercising diligence and discretion, in view of the principal's conduct, would naturally suppose the agent to possess.

Question 4

For a ratification to be effective, the principal:

Accepted Answer

A)  must have knowledge of all material facts concerning the transaction. 
B)  must communicate her intent to ratify to the third party. 
C)  must have been in existence when the act was done. 
D)  M ust have knowledge of all material facts concerning the transaction and  must have been in existence when the act was done. 
A)  must have knowledge of all material facts concerning the transaction. 
B)  must communicate her intent to ratify to the third party. 
C)  must have been in existence when the act was done. 
D)  M ust have knowledge of all material facts concerning the transaction and  must have been in existence when the act was done.

Exam 29: Relationship With Third Partiespart Vii: Business Associations

Regarding the effect of termination of agency on authority, the general rule of the Third Restatement is that:

Under the Third Restatement, an agent representing an undisclosed principal is discharged from liability if the third party:

The court in the Schoenberger v.Chicago Transit Authority case held that:

For a ratification to be effective, the principal:

Introduction to Law

Business Ethicspart Ii: the Legal Environment of Business

Civil Dispute Resolution

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Negligence and Strict Liabilitypart Iii: Contracts

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

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Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remediespart Iv: Sales

Introduction to Sales and Leases

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Product Liability: Warranties and Strict Liability

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