14)

Randy, a realtor, instructs one of his associates to tell potential buyers that a home has the newest and most efficient insulation on the market. The home does not and Randy knows that. If a buyer buys the house and later brings suit against Randy, the suit will likely ______ under the doctrine of ____________. Assume that the agreement included an exculpatory clause that attempts to immunize Randy from any liability for statements inconsistent with the contract.

Multiple Choice

• fail; misrepresentation

• succeed; misrepresentation

• succeed; respondeat superior

• fail; direct liability

• succeed; direct liability

15)

Terry and Timmy both work for Alert, a coffee distributor. Terry, who is Timmy's boss, asks Timmy to handle purchasing a shipment of coffee from Colombia. This will require entering into contracts with several coffee farms. Entering into the contracts is an example of:

Multiple Choice

• Express authority.

• Disclosed authority.

• Apparent authority.

• Implied authority.

• Undisclosed authority.