Apparent authority · Select two

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Fennimore Dental Group, P.C. employed Rosa Delgado as its office administrator from 2021 until it terminated her on June 5, 2026. For five years Rosa had ordered supplies from Northgate Medical Supply, and Fennimore paid every invoice. Fennimore did not tell Northgate about the termination. On June 12, Rosa, angry about her firing, called Northgate from her personal phone, identified herself as Fennimore's administrator, and ordered $9,400 of supplies for delivery to the group's office. Northgate delivered them on June 15. On June 16, Fennimore emailed all of its vendors, including Northgate, that Rosa no longer worked there. On June 20, Rosa placed a second order with Northgate for $3,000, which Northgate shipped the same day.

Which two of the following statements are correct?

Choose exactly two answers.

A. Fennimore is bound on the June 12 order because Rosa believed she was entitled to keep placing orders.B. Fennimore is bound on the June 12 order because Northgate reasonably believed Rosa was authorized, that belief was traceable to Fennimore's five years of honoring her orders, and Northgate had no notice of the termination.C. Fennimore is not bound on the June 12 order because Rosa's actual authority ended on June 5 when she was fired.D. Fennimore is bound on the June 20 order because a vendor may rely on a longstanding course of dealing until it receives a written notice signed by an officer.E. Fennimore is not bound on the June 20 order because Northgate had notice of the termination before that order was placed.F. Fennimore is not bound on either order because apparent authority requires proof that the principal intended to mislead the third party.

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Question ID: business-associations-mcq-c1-03 · Report an issue with this ID · Coverage and review status