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When the Principal Intentionally or Negligently Causes a Third Party

Question 4

Multiple Choice

When the principal intentionally or negligently causes a third party to reasonably believe that an individual is acting as the principal's agent, and the third party relies on that belief, then


A) no agency relationship exists.
B) an express agency agreement is created.
C) the purported agent assumes personal liabil- ity for his or her actions.
D) an apparent agency may exist.

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