John has been hired by Bubbaweiser Beer Company to purchase an airplane. He approaches
Sam who has a Cessna for sale. John does not mention that he is making this purchase on behalf
of someone else. He negotiates a deal.
Two weeks later, Sam learns that John did not negotiate
the deal for himself, but was acting as an agent. Bubbaweiser declares bankruptcy and cannot
buy the plane. John:
A) Can be held liable on the contract because this was a partially disclosed agency.
B) Can be held liable on the contract because this was an undisclosed agency.
C) Can be held liable on the contract unless he was on a frolic and detour.
D) Can be held liable on the contract simply because he is an agent.
E) Cannot be held liable on the contract.
B
You might also like to view...
The two kinds of supplies with respect to industrial goods classification are maintenance and repair items, and ________
A) installations B) operating supplies C) processed materials D) component materials E) equipment
The direct labor time variance measures the efficiency of the direct labor force
Indicate whether the statement is true or false
An organization’s strategy is not primarily designed to consider which of the following?
a. How the organization intends to provide value to its customers in the future b. How the organization makes decisions on a day-to-day basis c. How the organization intends to compete in the future d. How the organization provides value and competes at present
Which is NOT a correct statement concerning a liquidated damages clause?
A) If the clause is enforced, the injured party can collect no more than the amount specified. B) If the clause is enforced, the injured party has a choice between compensatory damages or liquidated damages. C) It must be possible to determine actual damages. D) The amount of liquidated damages are established by the parties to the contract.