What commercial inconvenience involving corporations was resolved by the abolition of the doctrine of constructive notice?

Question

Quizplus · Accepted Answer

The doctrine of constructive notice required third parties to investigate the authority of corporate agents to contract, even if those agents appeared to have the authority. This created an inconvenience for commercial transactions, as it was difficult and time-consuming for third parties to verify the actual authority of each agent. The abolition of this doctrine allows third parties to rely on the apparent authority of corporate agents, making it easier and more efficient for commercial transactions to take place.

What Commercial Inconvenience Involving Corporations Was Resolved by the Abolition