Which of the following is NOT a form of authority an agent may possess?

Prepare for the Conference National Board – Arts Exam with flashcards and multiple choice questions. Each question includes reliable explanations. Gear up to ace your exam!

An agent may possess several forms of authority in their role, which are integral to their ability to act on behalf of another party, usually a principal. Express authority refers to the explicit powers granted to an agent, typically articulated through a written or verbal agreement. Implied authority encompasses the powers that are not specifically stated but are necessary for the agent to effectively carry out their responsibilities. Statutory authority arises from laws or regulations that grant specific powers to agents within certain contexts.

In contrast, experimental authority is not recognized as a legitimate form of authority in an agency relationship. It does not adhere to the established categories of authority and lacks the legal backing that other forms possess. This distinction highlights the importance of understanding the recognized types of authority necessary for agents to perform their duties effectively and within the bounds of the law.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy