Exam 32: Liability to Third Parties and Termination

In considering the scope of an agent's implied authority, the test is whether the agent reasonably believed that he or she had the authority.

An partially disclosed principal is liable to a third party for contracts made by the agent acting within the scope of his or her authority.

Jen, an agent for Kip, enters into a contract on Kip's behalf with Leon that must be in writing to be enforceable under the Statute of Frauds. Under the equal dignity rule, Jen's authority to enter into this contract

An undisclosed principal is liable to a third party for contracts made by the agent acting within the scope of his or her authority.

Iggy hires Joy to act as his agent to purchase Kup-a-Koffee Kompany. Iggy tells Joy to reveal only that she is buying the firm on behalf of a third party, without telling Kup-a-Koffee's seller who that third party is. Iggy is

A principal whose identity is known by a third party with whom an agent contracts on the principal's behalf is an apparent principal.

A principal is not liable for an agent's crime simply because it was com?mitted while the agent was acting within the scope of employment.

A principal whose existence-but not specific identity-is known by a third party with whom an agent contracts on the principal's behalf is an implied principal.

Bud approves on behalf of Cody-but without authorization-a contract with Dik to build a new silo. Cody does not ratify the contract. Later, Dik tries to enforce the deal. This attempt will be

A principal is not liable to a third party for any contract made by the agent acting outside the scope of his or her authority.

Oberon is a salesperson for Precision Instruments, Inc. He tells Quad, a customer, that a device has a certain ca?pability when, as Oberon knows, it does not. In reliance, Quad buys the device. Liable for this misrepresen?ta?tion is

Security Armored Car Corporation employs Theo as an agent. Without Security's knowledge but otherwise acting within the scope of em?ployment, Theo commits a crime. The state can successfully prosecute

Brenda is a purchasing agent for Commodities Exchange Corporation. Dennis, a Commodities corporate officer, gives Brenda written authority to buy for the firm as many computers and peripheral devices as necessary. The next day, Dennis calls Brenda and tells her to buy only fifty note?book computers and nothing else. Brenda shows the written authority to E-Products, Inc., and enters into a contract with E-Products to buy sixty note?book computers and a selection of printers, scanners, and extra storage media. E-Products ships the order to Commodities. Is Commodities li?able to E-Products under the contract? Is Brenda liable? In each case, if so, why? If not, why not?

Picabo drives a truck as an employee for Quik Delivery, Inc. Picabo would most likely be considered acting outside the scope of her employment if she

Before a principal can ratify a contract, the principal must know all of the material facts involved in the deal.

If a principal does not ratify an authorized contract, the prin?cipal is not bound.

A power of attorney is a written document.

Clive is a purchasing agent for Double D Ranch with the authority to buy cat?tle at a certain auction. After the cattle are bought, the agency rela?tionship terminates

An agent's authority must be implied for the agent's act to bind a principal.

Geoff serves in a representative capacity for Huck. To accomplish the objectives of this relationship, Geoff's authority can be implied