Final answer:
Joe likely believes his insurance agent has apparent authority based on the business card and letterhead, which indicate the agent's connection to the insurer. The Tenth Amendment's creation of a class of powers exclusive to state governments is known as reserved powers.
Step-by-step explanation:
Joe walks into his insurance agent's office and notices his agent's name on a business card and the insurer's name on letterhead. If an agency agreement exists, Joe would likely believe his agent has apparent authority to enter into an insurance contract. Apparent authority arises when the principal (the insurer) creates the appearance that the agent has authority to act on its behalf, even if the agent does not have actual authority. The presence of the agent's name on a business card and the insurer's letterhead gives Joe the impression that the agent is authorized to act on behalf of the insurer.
As for the second question regarding the Tenth Amendment, it created a class of powers exclusive to state governments known as reserved powers. These are powers not delegated to the United States by the Constitution, nor prohibited by it to the States, and are reserved to the States respectively, or to the people. Therefore, the answer to the second question is C) reserved powers.