A.S.M.E. v. Hydrolevel Corp

In A.S.M.E. v. Hydrolevel Corp., 456 U.S. 556, 102 S.Ct. 1935, 72 L.Ed.2d 330 (1982), the Court, in an anti-trust case, discussed general agency law and noted that "a principal is liable for an agent's fraud though the agent acted solely to benefit himself, if the agent acts with apparent authority." Id. at 566, 102 S.Ct. at 1942. It pointed out that, "the apparent authority theory has long been the settled rule in the federal system." Id. at 567, 102 S.Ct. at 1943. The Court then held that "the apparent authority theory is consistent with the Congressional intent to encourage competition," Id. at 570, 102 S.Ct. at 1944, and applied it to the anti-trust case before it.