Business Law

1 / 24
Question

Why can apparent authority bind a principal even without actual authority?

Tap to flip
Answer

The principal’s manifestations reasonably cause third-party reliance.

Tap to flip back
Question

Why is an LLC often chosen over a C corporation?

Tap to flip
Answer

It gives limited liability with pass-through taxation and flexibility.

Tap to flip back
Question

When is a disclosed principal liable on a contract with a third party?

Tap to flip
Answer

Usually the principal is liable; the agent generally is not.

Tap to flip back
Question

What does the FCPA prohibit?

Tap to flip
Answer

Bribing foreign officials to obtain or retain business.

Tap to flip back