Ch 33 Exam Questions With 100% Correct Answers

Kim hires Michelle to go to the art gallery and purchase a specific painting for him. The painting costs $1,500. Because this is the purchase and sale of goods for more than $500, the contract for the painting must be in writing. In order to have a legal purchase of the painting, Kim: - ANSWER-may have Michelle sign on his behalf if the agency agreement is in writing. Selma, an elderly widow, gives her young neighbor Steven written power of attorney. This means that Steven now: - ANSWER-has express authority to act as Selma's agent. Yakov hires Melina to be his Vice President for Marketing. The job description is pretty broad but does not include the ability to hire or terminate lower level employees in the Marketing division. If Melina has this power, it is based on her: - ANSWER-implied authority. Dean is not Paul's agent, but Paul tells Charlie that Dean has always been a good friend and can "handle any of my business affairs." If Dean were to later enter into a contract with Charlie on Paul's behalf, Dean would be acting under an: - ANSWER-apparent authority.