Seed Packets, Inc., a garden seed company, requires its customers to pay by check. Taylor, a Seed Packets driver, tells customers that they can pay her with cash. When Seed Packets learns of Taylor's collections, it does not act to stop them. Taylor steals some of the cash. Under the doctrine of apparent authority, Seed Packets will most likely

Question

Seed Packets, Inc., a garden seed company, requires its customers to pay by check. Taylor, a Seed Packets driver, tells customers that they can pay her with cash. When Seed Packets learns of Taylor's collections, it does not act to stop them. Taylor steals some of the cash. Under the doctrine of apparent authority, Seed Packets will most likely​

Quizplus · Accepted Answer

The doctrine of apparent authority holds a principal liable for the actions of an agent that the principal has allowed to appear to have authority, even if the agent did not have actual authority. In this case, Seed Packets did not take any action to stop Taylor from collecting cash payments, which appeared to give her apparent authority to do so. Therefore, Seed Packets will likely be held liable for the loss caused by Taylor's theft.