Josh is an authorized agent for the Dark Beer Corporation.He orders ingredients on behalf of the corporation and signs the check in payment for the ingredients solely by signing his name.In terms of liability for the amount owed on the check:
A) Dark Beer is liable, but Josh has no liability because he is only an agent.
B) Josh is liable, but Dark Beer is not liable.
C) both Dark Beer and Josh are liable on the entire instrument.
D) neither Dark Beer nor Josh is liable.
E) both Dark Beer and Josh are liable, but each is liable for only 50% of the check.

Question

Quizplus · Accepted Answer

As an authorized agent, Josh has the authority to act on behalf of Dark Beer in ordering ingredients and signing the check. Therefore, both Dark Beer and Josh are liable on the entire instrument. The fact that Josh signed the check using only his name doesn't absolve Dark Beer of liability, as long as it can be proven that he was acting within the scope of his authority as an agent when he ordered the ingredients and signed the check.

Josh Is an Authorized Agent for the Dark Beer Corporation