Agency
5 practice questionsBusiness LawStep-by-step solutions
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1
In an agency relationship, the party on whose behalf the agent acts is called the:
A.Principal
B.Broker
C.Third party
D.Trustee
2
In an agency relationship, an agent:
A.Acts on behalf of a principal with authority to bind them
B.Owns the business outright
C.Is always an employee
D.Cannot make contracts
3
Authority that an agent reasonably appears to have to a third party, even if not actually granted, is called:
A.Express authority
B.Apparent (ostensible) authority
C.No authority
D.Sole authority
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