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Jack Sent a Cover Letter with His New Purchasing Agent,Kuan

Question 32

Multiple Choice

Jack sent a cover letter with his new purchasing agent,Kuan Huo,advising suppliers of Kuan's authority to transact purchases under $33 000.A court considering a dispute in which a plaintiff alleges Kuan had apparent authority to enter into a $42 000 purchase contract would most likely resolve this dispute based on which of the following?


A) Deny the third-party's claim based on the principal's stated limitation.
B) Deny the second-party claim as the agent's limited authority was reasonably known.
C) Deny a first-party claim on grounds it ought to have known of the reasonable limitation.
D) Deny the outsider's claim based on the agent's unenduring authority.

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