Which of the following statements is true about apparent authority?

Question

Quizplus · Accepted Answer

The test used for determining the extent of an agent's apparent authority is the justifiable belief of a third party dealing with the agent.It is important to note that if the agent justifiably believed she had authority,her authority would be implied,not apparent.This distinction can be very important because an agent's exercise of apparent authority,in the absence of actual authority,is in violation of the agent's duty to the principal.

Which of the Following Statements Is True About Apparent Authority