Author Question: Apparent authority arises when: a. the principal creates an appearance of authority in an agent ... (Read 170 times)

tth · **on:** Jun 24, 2018

Apparent authority arises when:
a. the principal creates an appearance of authority in an agent that leads a third party to conclude reasonably that the agent has authority to act for the principal
b. the agent creates an appearance of authority in a principal that leads a third party to conclude reasonably that the agent has authority to act for the principal
c. the agent forges documents conferring authority on himself d. the principal gives the agent implied authority
e. none of the other choices are correct

Question 2

Contracts by Minors. Sergei Samsonov is a Russian and one of the top hockey players in the world. When Samsonov was seventeen years old, he signed a contract to play hockey for two seasons with the Central Sports Army Club, a Russian club known by the abbreviation CSKA. Before the start of the second season, Samsonov learned that because of a dispute between CSKA coaches, he would not be playing in Russia's premier hockey league. Samsonov hired Athletes and Artists, Inc (A&A), an American sports agency, to make a deal with a U.S. hockey team. Samsonov signed a contract to play for the Detroit Vipers (whose corporate name was, at the time, Arena Associates, Inc). Neither A&A nor Arena knew about the CSKA contract. CSKA filed a suit in a federal district court against Arena and others, alleging, among other things, wrongful interference with a contractual relationship. What effect will Samsonov's age have on the outcome of this suit?

annierak · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

a

Answer to Question 2

Contracts by minors
On this issue, the court ruled in favor of the defendants. The court reasoned that because Samsonov signed the CSKA contract before he turned eighteen years old, the agreement is voidable. There is no liability for interference with such an agreement absent employment of wrongful means, unlawful restraint of trade, or lack of competitive motive. There was no evidence the defendants acted with 'wrongful means' or without justification. Indeed, nothing shows that these defendants acted in an unlawful, unethical, unfair, dishonest, or fraudulent manner. Rather, all their actions were undertaken with the justifiable business motive of securing a business assetin this case, a star hockey player. Specifically, the evidence does not suggest that A&A surreptitiously sought to steal the Russian athlete from the CSKA, but shows that they acted only after Samsonov engaged their agency with intent to enter the American hockey world. Similarly, Arena and the Vipers did not engage in any improper conduct when signing Samsonov, but understood that he was free from other obligations.