Meals n' More,Inc.,a catering company,requires its customers to pay by check.Lyra,a Meals n' More driver,tells customers that they can pay her with cash.When Meals n' More learns of Lyra's collections,it takes no action to stop it.Lyra steals some of the cash.Meals n' More may suffer the loss under the doc?trine of

Question

Quizplus · Accepted Answer

Apparent authority is when an agent (Lyra), who does not have actual authority to act on behalf of a principal (Meals n' More), behaves in a way that suggests to third parties (customers) that they have the authority to act on behalf of the principal. In this case, Lyra is acting outside the scope of her actual authority by accepting cash payments, but Meals n' More's failure to take action to stop her creates the appearance of authority to customers. Therefore, under the doctrine of apparent authority, Meals n' More may be held responsible for Lyra's actions and any losses incurred as a result.

Meals N' More,Inc