Marissa, the CEO of Carmine Laboratories, appointed Raphael as a marketing manager and gave him express authority to hire other people to help him carry out his duties. Raphael hired Dana as his secretary. Based on these facts, which of the following statements is true?
A) Only Marissa is bound to a third party by Dana's actions.
B) Neither Marissa nor Raphael is bound to a third party by Dana's actions as an employee.
C) Between Marissa and Raphael, it is Raphael who is ultimately liable for Dana's actions as an employee.
D) Dana is solely bound to third parties for her actions as an employee.

Question

Quizplus · Accepted Answer

Between Marissa and Raphael, it is Raphael who is ultimately liable for Dana's actions as an employee. A subagent is an agent of the agent. If the agent is found to have express authority, both the principal and the agent are bound to a third party by acts of the subagent. Between the agent and the principal, however, it is the agent who is ultimately liable for the acts of the subagent.

Marissa, the CEO of Carmine Laboratories, Appointed Raphael as a Marketing