As a Result of Dealing with Barry, Zita Believes That

Multiple Choice

As a result of dealing with Barry, Zita believes that she has entered into a contract with Primus Inc.Zita claims that Barry, who is the president of Primus, acted as the corporation's agent.Which of the following statements is TRUE?

A) Primus can avoid liability by demonstrating that its by-laws prohibited Barry from incurring liability on its behalf.
B) The indoor management rule states that Primus cannot be held liable on the basis of Barry's actions unless, as a matter of the company's internal affairs, it had actually authorized him to act as its agent.
C) The concept of ostensible authority means that it is not enough for Zita to prove that Barry appeared to have been authorized to act as the company's agent.
D) Primus cannot deny that Barry had the authority that is usually held by the president of a corporation.
E) Zita can only enforce the contract if she searched all the corporation's public records and found no restriction on Barry's authority.