Farms Inc. is not an agent for Naturaz Inc, but it sells Naturaz's products on its lot. To the average buyer, it may look like Farms is an agent for Naturaz. In this scenario, Farms Inc. assumes _____ authority.
A) implicit
B) apparent
C) express
D) implied

Question

Quizplus · Accepted Answer

Farms Inc. assumes apparent authority as it may appear to the average buyer as an agent for Naturaz Inc. Apparent authority is the authority that a principal holds an agent to possess due to the conduct of the principal that causes a third party to reasonably believe that the agent has such authority.

Farms Inc Is Not an Agent for Naturaz Inc, but It