AgencyIntermediateAlaska Exam

Which statement about 'implied agency' is most accurate?

AIt is created by a written contract specifying the agent's duties
BIt arises from the conduct of the parties rather than an express agreementCorrect
CIt occurs only when the agent acts without the principal's knowledge, in general
DIt is not recognized under Alaska law

Why It arises from the conduct of the parties rather than an express agreement Is Correct

Answer B: It arises from the conduct of the parties rather than an express agreement

Implied agency arises from the words, conduct, and circumstances of the parties rather than an explicit written or verbal agreement. For example, if a licensee consistently advises a buyer and negotiates on their behalf without a formal agreement, an implied agency relationship may be created.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

Key Agency Terms in This Question

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