. The Individual Indemnity Insurance company hires Audrey Agent to se insurance
ID: 375078 • Letter: #
Question
. The Individual Indemnity Insurance company hires Audrey Agent to se insurance for it Audrey makes her own hours and drives her own automobile to see prospects. While hurrying to see a customer, Audrey drives a little too fast for the weather conditions and negligently injures a pedestrian. The pedestrian sues Individual Indemnity for his injuries. a- The pedestrian can recover from Individual Indemnity. b. Audrey was an independent contractor for whose physical acts Individual Indemnity was not liable. c. Audrey's authority to sell insurance policies means that Individual Indemnity will be liable for policies which Audrey sells on its behalf. d. Two of the above are correct, (b) and (c) 12. Ratification by a principal of an unauthorized act may occur by: a. silence that indicates consent. b. express statements c. acceptance of the benefits of the contract. d. all of the above.Explanation / Answer
Ans:
11) Option C
Audreys authority to sell insurance policies means that Individual Indemnity will be liable for policies which Audrey sells on its behalf.
In case of principle agent relationship the principle will be liable for the acts of the agents which are authorized by the principle. In this case agent Audrey is authorized only for the sale of insurance policies and the principle(Individual Indemnity) is liable only for the policies which Audrey sells on its behalf.
12) Option D
all of the above
Ratification means an act done by agent who is not authorized to do it, but who purports to act as an agent of principal, can retrospectively ratified by the principal. In all the three specified cases the act of ratification by a principal may occur.
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