apparent authority

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apparent authority

n. since under the law of agency the employer (the principal) is liable for the acts of his employee (agent), if a person who is not an agent appears to an outsider (a customer) to have been given authority by the principal then the principal is stuck for the acts of anyone he allows to appear to have authority. This "apparent authority" can be given by providing Joe Slobovia (who has no authority to contract) with materials, stationery, forms, a truck with a company logo, or letting him work out of the company office, so that a reasonable person would think Joe had authority to act for the company. Then the contract or the price quote given by Joe and accepted by third party is binding on the company. Apparent authority may also arise when Joe works for the company, has no authority to contract, but appears to have been given that authority. Beware of the salesman who exceeds his authority or the hanger-on who claims to work for the boss. (See: agency, ostensible authority)

apparent authority

the situation where, objectively looked at, it seems that an agent does have the authority of his principal. Where an agent has apparent authority to enter into a transaction, the fact that he lacks real authority will not necessarily render the transaction void; the appearance of authority will operate to create an ESTOPPEL or bar preventing the principal from denying the existence of such authority. See AGENCY.
References in periodicals archive ?
The court held that a franchisee's mere use of a brand through mechanisms such as "logos, signage and marketing materials" was not enough to create an apparent agency relationship.
2d at 208-09 (acknowledging the existence of apparent agency authority); Smith v.
The court granted the plaintiff's petition for review to resolve the question of when a nonnegligent person or entity may be held vicariously liable on an apparent agency theory for physical injuries negligently inflicted by a medical professorial.
It is interesting to note that Minnesota is one of the few states which fail to recognize the doctrine of apparent agency, which is also known as the doctrine of ostensible agency.
The trial lawyers' proposal includes apparent agency language that provides that hospital representations such as advertising may be considered in medical liability cases against hospitals even if a patient has been advised that a physician is not a hospital employee.
After Parker had presented her case, Freilich moved to dismiss the claim against him, arguing that the theory of apparent agency applied only to hospitals and HMOs, not doctors.
An apparent agency relationship exists if a principal (the accounting firm) creates the reasonable impression in a third party (the investors) that the agent (brother-in-law) has the authority to act on its behalf.
The issue with which the appellate court was faced in this case was whether or not the hospital was responsible for the ostensible or apparent agency of physicians who worked at the hospital but were not employed by the hospital.
Based on our understanding of the proposal, apparent agency language in the proposal provides that hospital representations (e.
Because these advertisements permit or even encourage patients to believe that independent-contractor physicians are agents of the hospital, courts around the country are holding hospitals vicariously liable for physicians' negligence under the theory of apparent agency.
Ingalls filed a motion for partial summary judgment on the claim for liability against it, based on the apparent agency of Dr.