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C is corrent because a third person’s reasonable interpretation of a principal’s representations measures apparent authority. Express limitations on Marcross’ authority, which were not known by Sowinski, are called secret limitations. These limitations do not alter an agent’s apparent authority since the third party can assume there are no limits on the agent’s normal authority unless informed to the contrary.
A is incorrect since previous acquiescence will influence a third party’s interpretation of an agent’s authority.
B is incorrect since an agent’s normal authority is measured in relation to the custom and usages of the business.
D is incorrect because apparent authority may be inferred from the position or status of the agent.