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Questions
1. Gracie owns a horse that she stables at a farm in Baltimore County, Greenside Farms. Gracie pays a monthly fee for the farm to look after her horse, and includes services like stable cleaning, horse feed, and an assigned stall for her horse. Gracie rides her horse on the weekends, but otherwise is not at the farm regularly. Jamie works as the manager of the farm and is there during normal business hours each week. Karla visited the farm and talked to Gracie about purchasing Gracie's horse. Without discussing it with Gracie, Jamie makes a sales agreement with Karla. If Jamie is an agent for horse owners that use the Farm's services, what authority did Jamie have to sell Gracie's horse?
statutory authority
implied authority
express authority
apparent authority
2. Gracie can disaffirm the agreement that Jamie made on her behalf because Jamie did not have the actual authority to make the agreement.
True
False
3. Jamie is not liable on the agreement with Karla because he had the actual authority to sell Gracie's horse.
4. Jamie's failure to confirm that Gracie wished to sell her horse before making the agreement means that Jamie can be liable to Gracie.
5. If Gracie decides to go along with the sale of her horse to Karla, Gracie has ratified the agreement made by Jamie.
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