1. After Bart and Veronica were involved in an automobile accident, Bart retained Rhonda as an attorney to negotiate an out-of-court settlement. After a lengthy discussion with Veronica's insurance company, Rhonda settled the case for $5,000. However, Bart personally rejected the $5,000 offer. Veronica filed suit to enforce the settlement, claiming that Rhonda was authorized to accept the settlement on behalf of Bart. Discuss Rhonda's express, implied, and apparent authority.
2. Explain the concept of apparent authority.
3. Ralph and Aisha engaged Emma, a realtor, to sell their variety store. Emma represented to buyer Pavel that "this was a typical general store," selling gas, oil, hardware, beer, and groceries. She reported that the store had an annual gross income of over $1 million. Emma failed to inform Pavel that one-third of the store's profit was attributable to an accompanying lawn and garden equipment distributorship that Ralph and Aisha were not including in the sale. When Pavel visited the business, Emma directed him away from the garage area where the lawn and garden equipment was stored. Throughout all of these negotiations, Ralph and Aisha were unaware of Emma's misrepresentations. After purchasing the store, Pavel learned of the importance of the equipment sales from Ralph and Aisha. Are Ralph and Aisha liable for Emma's misrepresentation?
4. Is a principal liable for the acts committed by the employees of an agent? Discuss.
5. Briefly describe the doctrine of responde at superior.
6. Apply an interesting concept in the chapter to a real-life situation.