Agency

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 agreement✓ Correct
CIt occurs only when the agent acts without the principal's knowledge
DIt is not recognized under Alaska law

Explanation

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.

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