Supplies Company requires its customers to pay by check. Tylo, a Supplies driver, tells customers on her route that they can pay her with cash. When Supplies learns of Tylo's collections, it takes no action to stop it. Tylo steals some of the cash. Supplies may suffer the loss under the doc?trine of
A) apparent authority.
B) equal authority.
C) express authority.
D) implied authority.

Question

Quizplus · Accepted Answer

Apparent authority arises when a principal's actions lead a third party to believe that an agent has authority to act on the principal's behalf. By not taking action to stop Tylo, Supplies Company may have created apparent authority, making them liable for Tylo's actions.

Supplies Company Requires Its Customers to Pay by Check