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Source Freedom of Association Complete Constitutional Law List Showing the closest available flashcard practice.

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0 tracked cards Business Associations

A corporation's president regularly signs routine customer contracts. Without a board vote, the president signs an agreement to sell the corporation's only factory.
Which statement best describes the president's apparent authority?

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The president may have apparent authority for ordinary transactions in the corporation's business, but extraordinary transactions usually require stronger authorization facts. The president binds the corporation only when all shareholders are present at signing. The president can never bind the corporation without a board resolution shown to the other party. The president has no more authority than an outside salesperson in all cases.

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