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[High Maintenance] Malcolm, Who Runs a Retail Jewelry Store, Went

Question 60

Multiple Choice

[High Maintenance] Malcolm, who runs a retail jewelry store, went to a wholesale jewelry store with Ashley, to whom he was engaged to be married. Malcolm had no express, written agreement with Ashley by which she was his agent. The wholesaler jeweler, Rebecca, asked Malcolm if Ashley was buying for him. Malcolm did not want to embarrass Ashley so he nodded in agreement. A few minutes later Malcolm whispered to Ashley, outside the hearing of the wholesaler, that she should not make any purchases. Malcolm and Ashley had a big disagreement over money that evening, and Ashley broke off their engagement. The next day Ashley went back to the wholesale jeweler and purchased a string of pearls for $2,000. Ashley also purchased a fur jacket for $3,000 from a store next door to the jewelry store owned by Harry. She told Harry that Malcolm wanted a fur jacket for a model in his store and that Malcolm would be glad to pay Harry for the jacket.
-What type of agency, if any, did Ashley have to act on behalf of Malcolm as far as Rebecca is concerned?


A) No type of agency was in effect because no written agreement was in place by which Ashley was Malcolm's agent.
B) No type of agency was in effect because, in fact, Ashley was not Malcolm's agent.
C) An express agency.
D) An implied agency.
E) An apparent agency.

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