Agency

In Alaska, the doctrine of 'apparent authority' can bind a principal when:

AThe agent explicitly acts beyond their authority
BA third party reasonably believes the agent has authority based on the principal's conduct or representations✓ Correct
CThe agent has been licensed for more than 5 years
DThe Commission has approved the agent's conduct

Explanation

Apparent authority (also called ostensible authority) is created when the principal's conduct or representations lead a third party to reasonably believe the agent has authority to act. The principal may be bound even if the agent acted beyond actual authority — because the principal's conduct created the reasonable belief.

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