According to the law of agency,the legal authority of a buyer:

A) is the same as that of a salesperson.
B) includes apparent authority.
C) includes implied authority.
D) includes apparent authority and includes implied authority.
E) is the same as that of a salesperson,includes apparent authority and includes implied authority.

Question

Jimena Macal · Accepted Answer

Final Answer : D, Explanation :  The legal authority of a buyer includes both apparent authority (authority created by the actions of the principal that reasonably lead a third party to believe that the agent has authority) and implied authority (authority that is not specifically granted but is necessary to carry out the express authority given to the agent). Therefore, the best choice is D, which includes both apparent and implied authority.

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