Questions: The deeds and actions of a producer indicate what kind of authority?
- Express
- Apparent
- Implied
- Conditional
Transcript text: Question 1
The deeds and actions of a producer indicate what kind of authority?
Express
Apparent
Implied
Conditional
29 of 29 Questions Remaining
Solution
The answer is: Apparent
Explanation for each option:
Express: This type of authority is explicitly granted to an agent by the principal, usually in written or spoken form. For example, a contract might explicitly state the duties and powers of the agent. Since the question refers to the "deeds and actions" of a producer, express authority is not the correct answer because it is not based on actions but on explicit instructions.
Apparent: Apparent authority arises when a third party reasonably believes that an agent has the authority to act on behalf of the principal, based on the principal's actions or the agent's conduct. The deeds and actions of a producer can create an impression of authority, leading third parties to assume that the producer has the power to act in certain ways. Therefore, apparent authority is the correct answer.
Implied: Implied authority is not explicitly stated but is assumed to be granted as necessary to carry out express authority. It is derived from the position of the agent or the nature of the tasks assigned. While implied authority can be inferred from actions, it is more about what is necessary to fulfill express authority rather than the perception created by the agent's actions.
Conditional: Conditional authority is not a standard term in the context of agency law. It might refer to authority that is contingent upon certain conditions being met, but this is not relevant to the concept of authority derived from the deeds and actions of a producer.
In summary, the deeds and actions of a producer indicate apparent authority because they can lead third parties to reasonably believe that the producer has the authority to act on behalf of the principal.