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Source Actual and Apparent Authority Wisconsin Bar Exam Topic Index Matched to this deck.

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During a conference call, a customer asked a company's owner, "Can your account manager finalize this renewal today?" The account manager answered, "Yes, I have authority." The owner stayed on the call, said nothing, and then told the customer, "We look forward to continuing the relationship." The customer signed the renewal immediately after the call.
Which statement best describes the customer's apparent-authority argument?

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The principal's silence matters only if the agent was a public official. The principal's silence always creates unlimited authority for every future transaction. The principal's silence can never be considered in an apparent-authority analysis. The principal's silence during the call can support apparent authority if, in context, it caused the customer reasonably to believe the agent had authority to finalize the order.

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