Question

Which of these ends apparent authority?

Group of answer choices
Public notice of the termination
Retirement of the agent
Termination of the agent
Departure of the agent

Answer 1

Public notice of termination, retirement of the agent, termination of the agent, and departure of the agent can all end apparent authority.

Step-by-step explanation:

Apparent authority is a legal concept that occurs when a third party reasonably believes an agent has the authority to act on behalf of another party, even if that authority does not actually exist. Apparent authority can end in different ways:

1. Public notice of the termination: When a third party receives notice that the agent's authority has been terminated through a public announcement, they will no longer consider the agent to have apparent authority.
2. Retirement of the agent: If the agent retires and there is no indication that they still have authority to act on behalf of the principal, their apparent authority ends.
3. Termination of the agent: When the agent's authority is terminated, either by the principal or by operation of law, their apparent authority ceases to exist.
4. Departure of the agent: If the agent leaves the position without indicating ongoing authority, their apparent authority ends.

In summary, public notice of termination, retirement of the agent, termination of the agent, and departure of the agent can all end apparent authority.

Answer 2

Public notice of the termination effectively ends an agent's apparent authority by informing third-parties that the agent no longer has the authority to act on behalf of the principal.

Step-by-step explanation:

The question is asking what action or event ends the apparent authority of an agent. Apparent authority refers to a situation where a third party reasonably believes that an agent has the authority to act on behalf of the principal, even if such authority has not been expressly granted. In the options provided, the correct answer is public notice of the termination. This is because apparent authority is based on the perceptions of third parties, and a public notice is an effective way to communicate to everyone that the agent no longer has the authority to act on behalf of the principal. Termination of the agent privately within the company does not necessarily end apparent authority, because third parties might still believe the agent is authorized.