16)

A principal is _______ if a third party knows or has reason to know that the agent is acting for a principal, and the principal's identity.

Multiple Choice

• undisclosed

• partially disclosed

• nonexistent

• disclosed

• fully disclosed

17)

Josh is the Executive Director of Feed America, a non-profit foundation fighting hunger. Recently, the Board of Directors of Feed America limited Josh's authority to make certain purchases, particularly of trucks. Despite this restriction, Josh purchases a truck from a local dealer to deliver food. It is customary for Executive Directors to have the authority to make purchases like trucks. When the Board learns of Josh's purchase, they decide to do nothing since Josh got such a good deal on the truck leading the dealer to believe that the Board consented to the purchase. Three years later, the truck breaks down, and the Board seeks to hold both Josh and the dealer liable. The Board's lawsuit will likely be _____________, due to _______________.

Multiple Choice

• successful; ratification

• successful; a disclosed principal

• successful; a partial disclosed principal

• unsuccessful; ratification

• unsuccessful; an undisclosed principal