Agency
Apparent authority (ostensible authority) arises when:
AAn agent is granted express authority in a written contract
BA principal's words or conduct lead a third party to reasonably believe the agent has authority✓ Correct
CAn agent acts on behalf of the principal after the agency expires
DA subagent is authorized to perform a specific task
Explanation
Apparent authority arises when the principal's representations (words, actions, or inaction) cause a third party to reasonably believe the agent has authority to act on their behalf, even if no such authority was expressly granted.
Related Arkansas Agency Questions
- An implied agency relationship can be created by:
- In an Arkansas real estate transaction, the agent who represents the seller is typically called the:
- A listing agent learns that the seller is willing to accept $10,000 less than the asking price. Under seller agency, the agent:
- An agent who makes unauthorized commitments on behalf of the principal may create which type of agency?
- Which type of listing agreement is generally considered most advantageous to the listing broker?
- Under Arkansas law, when must agency disclosure be provided to a prospective buyer or seller?
- Which action by an agent would constitute a breach of the duty of loyalty?
- When a buyer tells an agent they will pay up to $300,000 but want to start at $270,000, the agent should:
Practice More Arkansas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arkansas Quiz →