Which scenario exemplifies apparent authority?

Study for the LEGL 2700 Hackleman 3 Exam with comprehensive questions, each accompanied by detailed explanations and hints. Ace your exam preparation today!

Apparent authority occurs when a principal (in this case, the employer) gives the impression, through their actions or communications, that an agent (the employee) has the authority to act on their behalf, even if the agent does not have actual authority to do so.

In the scenario where a former employee places an order after being fired, it suggests that the party receiving the order might reasonably believe that the former employee still had the authority to act on behalf of the employer based on the previous relationship and any previous dealings. The key element of apparent authority is that the third party relies on the belief that the agent has the authority to make such orders.

The other scenarios either do not involve an impression of authority or concern actions taken outside the realm of perceived or implied authority. For instance, an employee acting without approval from their boss suggests a lack of authorization, rather than an appearance of authority; monitoring employee performance relates to oversight rather than representation; discussing contract terms openly does not necessarily convey any authority unless those discussions are understood by others to imply that the employee has the power to negotiate or agree to those terms on behalf of the employer.

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