Asked by Kaitlyn Simon on Jun 26, 2024
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Larry works for Shannon as a salesperson.Shannon gave Larry a credit card with Larry's name on it so that Larry could charge necessary business expenses to Shannon's business account.Larry charged $1,000 in personal expenses,wholly unrelated to Larry's employment.Does apparent authority exist? Discuss.
Apparent Authority
Apparent authority refers to a situation where a reasonable person would understand that an agent has the authority to act on behalf of a principal, even if the agent does not have actual authority.
Business Expenses
Costs incurred in the operation of a business, which are typically deductible from the business income for tax purposes.
Personal Expenses
Outlays or expenditures that individuals make for personal, non-business activities, goods, or services.
- Comprehend the notion of apparent authority and the conditions leading to its cessation.
- Understand the moral and judicial consequences in situations where there is a discord between the agent's and principal's obligations or interests.
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Learning Objectives
- Comprehend the notion of apparent authority and the conditions leading to its cessation.
- Understand the moral and judicial consequences in situations where there is a discord between the agent's and principal's obligations or interests.
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