Question

QUESTION 38 An agent has implied Authority when: a. The principal has ratified past actions, leading third persons to believe authority exists b. The principal fails to give written notice to past customer after terminating the agency C. An emergency makes necessary prompt action by the agent in order to safeguard the property interests of the principal d. Any of the above one cher 2 points Save Answer Click Save and Submit to save and submit. Click Save All Answers to save all answers Save As Answers Save and Submit 8 9 0 delet LUI O P

Answer 1

Answer to the question:

Option c: An emergency makes necessary prompt action by the agent in order to safeguard the property interest of the principal.

Explanation: Implied authority is created in a situation where the agent has the the authority to act on behalf of the principal. In such case the agent wears the tag of the principal (company) and attend the customers, and to attract the customers the agent may promise something. This promise may sometime costs the principal. For example, in a car showroom, the salesman may offer some benefits to the customer to buy the car that may not be promised by the company. But the third person, the consumer, will beleive that this offer is given by the car company, and thus, he/she will buy the car.

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