A principal is bound by contracts that an agent enters into with authority. Discuss the various types of contractual authority an agent may have
Authority is the legal ability of an agent to bind a principal. The types of authority include: express, implied, and apparent authority. Express Authority is when the principal, by words or conduct reasonably interpreted, actually gives the agent the authority. Implied Authority is the authority to do the things reasonably necessary to carry out the expressly authorized tasks. Apparent Authority arises when the principal does something to make a third party believe that a person has authority to act. Express and implied authority are categories of actual authority. In apparent authority, the principal is liable for the agent's actions even though the agent was not authorized.
You might also like to view...
Jaguar produced so few cars that it couldn't get volume discounts from components suppliers. Jaguar managers sometimes could not even determine the "fair" price for a particular part
In terms of Porter's competitive forces framework, Jaguar's strategic disadvantage stemmed from low: A) buyer power. B) supplier power. C) threat of new entrants. D) threat of substitute products. E) access to distribution channels.
Information from formal networks is __________ than information from informal networks.
a. less efficient and more accurate b. less efficient and less accurate c. more efficient and more accurate d. more efficient and less accurate
Pope, Inc has life insurance policies on its officers' lives. Annual premiums amount to $5,000. At the end of 2017, the cash surrender value of the policies totaled $18,200. Dividends received by Pope from the insurance company amounted to $500 in 2017. The insurance expense recognized by Pope in 2017 was $3,500. What was the amount of cash surrender value of these policies on January 1, 2017?
A) $17,200 B) $14,200 C) $16,200 D) $10,200
To capture key employees from competitors, firms may attract the symbolic leader of a group within a competing firm and hope others will follow. This has been termed
A. the 'Columbus effect.' B. strategically competitive hiring. C. the 'Pied Piper effect.' D. the 'tech exit' effect.