Wayne and two partners own a venture that imports electrical products that must receive CSA approval before they can be sold in Canada.Wayne has a personal business mentor who strongly advises him to be wary of his two partners due to agency power.What is Wayne's mentor concerned about?

Question

Quizplus · Accepted Answer

The mentor is likely concerned about the concept of agency power, which refers to the legal principle that allows one person to legally bind another person or entity to a contract or agreement. In this case, if one partner were to illegally sell unapproved products, they could potentially bind the entire partnership to legal consequences. This could be detrimental to the business and all three partners involved.

Wayne and Two Partners Own a Venture That Imports Electrical