1. Which of the following is true of the requirements for ratification to be effective?
1. The principal can accept certain parts of the agents act and reject others.
2. An individual must avoid misrepresenting himself or herself as an agent for another party.
3. The principal must have complete knowledge of all material facts regarding the contract.
4. The principal can avoid ratifying the unauthorized act.
2. If a principal is partially disclosed:
1. Only the agent would be liable in accordance with the contract.
2. The third party would not know that an agent is acting on behalf of the principal.
3. The third party would be aware of the principal’s existence but not his or her identity.
4. The third party would not know that an agent is acting on behalf of the principal.
3. When an agent commits a crime:
1. The principal cannot be held liable for the crime under any circumstance.
2. The principal can be liable for the crime if he or she authorized the criminal act.
3. He or she would be relieved from liability if the crime was committed to accomplish the objectives of the agency.
4. He or she would be relieved from liability if the crime was committed within the scope of employment.
4. Constructive notice:
1. Is received by parties directly related to the agency agreement.
2. Is rarely used to announce the termination of an agency agreement.
3. Must be given to third parties who have had business interactions with the agent; it directly informs them about the termination, orally or in writing.
4. Usually consists of publication in a generally circulating newspaper for the area where the agency agreement existed.