Caterina Valente is given a job as a buyer in a department store. While nothing is specifically said to Caterina, a buyer normally has authority to act as agent for the business. What is this type of authority called?

Question

Quizplus · Accepted Answer

Apparent authority occurs when a third party reasonably believes that an agent has authority to act on behalf of the principal, even if the agent does not have express authority. In this case, Caterina's role as a buyer typically implies she has the authority to act as an agent for the store.

Caterina Valente Is Given a Job as a Buyer in a Department