Agency
Apparent authority of an agent arises when:
AThe principal expressly grants the agent authority
BThird parties reasonably believe the agent has authority based on the principal's conduct✓ Correct
CThe agent acts without any authorization
DThe agent is expressly prohibited from acting
Explanation
Apparent (ostensible) authority arises when a principal's actions or representations cause a third party to reasonably believe the agent has authority, even if no express authority was granted.
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