Agency
Apparent authority in an agency relationship arises when:
AThe principal gives the agent written authority
BA third party reasonably believes the agent has authority based on the principal's conduct✓ Correct
CThe agent acts outside the scope of their agreement
DThe agent has power of attorney from the principal
Explanation
Apparent authority (ostensible authority) is created when a principal's actions lead third parties to reasonably believe an agent has authority, even if no actual authority was granted.
Related Nebraska Agency Questions
- Which of the following best describes the duty of loyalty in an agency relationship?
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