The three forms of authority in agency relationships are collectively referred to as what?

• A. Powers of Authority
• B. Agency Authority
• C. Legal Authority
• D. Principal Authority

Answer: (A)

The idea being tested is that an agent’s authority in agency relationships comes in three forms—express, implied, and apparent—and these forms are collectively known as powers of authority. This label captures that the agent can act on behalf of the principal through a direct grant (express), through duties and circumstances that imply authority (implied), or through the principal’s actions that lead others to believe the agent has authority (apparent). The other choices don’t fit as the standard collective term: “Agency Authority” is not the commonly used label for this trio, “Legal Authority” is too broad, and “Principal Authority” would refer to the authority of the principal, not the agent.