When determining whether an agent has apparent authority, the focus is on words or conduct by the agent directed to the third party. the third party's subjective belief. words or conduct by the principal directed to the third party. express instructions given by the principal to the agent. Question 2 What is the most important factor in considering whether an agent is an employee? The express authority vested in the agent. The beliefs of the agent regarding the relationship. The principal's right to control the agent's work. The intention of the principal regarding the relationship. Question 3 Ratification creates an agent's authority from acts that are necessary and incidental to an agent carrying out the agent's express authority. authorization of an agent's unauthorized act by the principal after the fact. the third party's conduct. specific language in the agency contract. Associated Investments employs Owen as its agent to buy property for a future commercial development. Owen secretly buys some of the property and sells it to Associated Investments inflated price. Owen has breached the duty of indemnification. notification. respondeat superior. loyalty. Question 5 Regional Investment Corporation (RIC) hires Sam, a real estate agent, to locate investment properties for RIC. Sam learns of a warehouse available for $100,000 and informs RIC, which instructs Sam to make an offer of $100,000 on RIC's behalf. Sam fails to submit the offer and another company buys the property. Sam has breached his duty of loyalty. no duty. his duty of obedience. his duty of accounting