How can a principal extinguish an agent's apparent authority?
What will be an ideal response?
If a principal fails to give the proper notice of termination to a third party, the agent still has apparent authority to bind the principal to contracts with these third parties. To avoid this liability, the principal needs to provide the following notices:
1. Direct notice of termination to all persons with whom the agent dealt. The notice may be oral or written unless required to be in writing.
2. Constructive notice of termination to any third party who has knowledge of the agency but with whom the agent has not dealt.
You might also like to view...
The hypotheses for the test for significance of the coefficient of determination are: H0: R2pop = 0 ; H1: R2pop > 0
Indicate whether the statement is true or false
For the last two years BRC Company had net income as follows: Year 1Year 2Net Income$160,000$200,000What was the percentage change in income from Year 1 to Year 2?
A. 25% decrease B. 20% decrease C. 25% increase D. 20% increase
In the context of situation analysis, which of the following is a category for analysis in the internal environment?
A. technological B. firm resources C. threat of new entrants D. sociocultural/demographic E. political, legal, and ethical
A creative environment requires
a. that everyone's ideas be implemented. b. that leaders resist change. c. that followers are encouraged to suggest innovations. d. all of these choices.