In LeRuyet v. Stenner, Stenner defrauded LeRuyet, who gave him money to purchase a Great West annuity. LeRuyet claimed that Great West was vicariously liable. What did the Court determine?
A) The Court determined that Stenner had apparent authority to act for Great West, despite the fact that Great West had made no representations to that effect.
B) The Court dismissed the claim of apparent authority because there were no representations made by Great West that would lead a reasonable person to assume Stenner acted as an agent.
C) The Court held that the test used to determine the existence of authority is whether the victim actually believed the person in question was a representative of another.
D) The Court confirmed that the principle of apparent authority no longer exists; only actual authority will suffice.
E) The Court held Great West vicariously liable because the defrauded victim had no way to recover the money from Stenner directly.
Correct Answer:
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