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MMLU / A businessperson sent his employee, an administrative assistant to represent him…

Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

A businessperson sent his employee, an administrative assistant to represent him at a conference where business deals are often negotiated. The principal gave the assistant all of the materials to set up a table with the principal's cards, brochures, promotional materials, price lists and even some order forms with businessperson's logo on them. In addition, the assistant represented to third parties that she was there officially representing the principal and that she was authorized to execute contracts on his behalf. The assistant negotiated a deal for the businessperson with a third party, which the businessperson refused to honor because he did not like the terms that were negotiated. Will the third party likely prevail in enforcing the contract against the businessperson?

choices

  1. Yes, because the furnishing of the indicia of authority to act to the employee was sufficient proof to bind the principal.
  2. Yes, because the principal is bound to the employee's actions whenever he sends an employee to attend a convention on his behalf.
  3. No, because people dealing with an assistant at a convention have a duty to determine whether that person is in fact an authorized agent.
  4. No, because the technological revolution makes it easy these days for a potential customer to first confirm the existence of actual authority.

subject

professional_law

Discussion

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Source and history

task_id
05aea9b2-0001-5138-8c2f-b9b088e86f0a
task_key
all--test--05aea9b2-0001-5138-8c2f-b9b088e86f0a
task_revision_id
1
config / split
all / test

Official source

initial import