Prism Corporation orally contracted with Angela, an independent consultant, for Angela to work part-time as Prism's agent to perform Prism's customers' service calls. Angela, a computer programmer and software designer, was authorized to customize Prism's software to the customers' needs, on a commission basis, but was specifically told not to sell Prism's computers. On September 15, Angela made a service call on Terra Firma Co. to repair Terra Firma's computer. Angela previously had called on Terra Firma, customized Prism's software for Terra Firma, and collected cash payments for the work performed. During the call, Angela convinced Terra Firma to buy an upgraded Prism computer for a price much lower than Prism normally would charge. Terra Firma previously had purchased computers from other Prism agents and had made substantial cash down payments to the agents. Terra Firma had no knowledge that the price was lower than normal. Angela received a $1,000 cash down payment and promised to deliver the computer the next week. Angela never turned in the down payment and left town. When Terra Firma called the following week to have the computer delivered, Prism refused to honor Terra Firma's order. Indicate whether each statement is true or false.

- 1. 2.	Prism's agreement with Angela had to be in writing for it to be a valid agency agreement.
- 1. 2.	Prism's agreement with Angela empowered Angela to act as Prism's agent.
- 1. 2.	Terra Firma was entitled to rely on Angela's implied authority to customize Prism's software.
- 1. 2.	Terra Firma was entitled to rely on Angela's express authority when buying the computer.
- 1. 2.	Prism's agreement with Angela was automatically terminated by Angela's sale of the computer.
- 1. 2.	Prism must notify Terra Firma before Angela's apparent authority to bind Prism will cease.
- 1. 2.	Prism is not bound by the agreement made by Angela with Terra Firma.
- 1. 2.	Prism may unilaterally amend the agreement made by Angela to prevent a loss on the sale of the computer to Terra Firma.
- 1. 2.	Prism, as a disclosed principal, is solely contractually liable to Terra Firma.
- 1. 2.	Both Prism and Angela are contractually liable to Te