True or False: Implied actual authority can be inferred from the position of an agent.

Implied actual authority refers to the power that an agent possesses to act on behalf of a principal, which is not expressly stated but can be inferred from the position of the agent. If an agent holds a certain position within a company, it is often understood that they have the authority to undertake specific actions that are typically associated with that role. For example, a manager in a retail store has implied authority to make decisions regarding employee scheduling and customer service standards based on their job description. This authority is based on the assumptions made by third parties regarding what a person in that role would reasonably be able to do.

The correctness of the answer emphasizes the understanding that an agent's title or position can lead to certain expectations about their capabilities, thereby granting them implied authority. This authority is essential in ensuring that the business operates smoothly, allowing agents the autonomy to perform necessary functions without needing explicit approval for every action they take.

In situations where this authority is present, it streamlines operations and fosters trust between agents and third parties who might interact with them, as they can reasonably rely on the agent's ability to act within their defined role.