2. (a) That's right. A principal may be liable under s 18 of the ACL for misleading or deceptive conduct engaged in by their agent. B has made the misleading statements about the nature of A's business. Although B is not authorised to make such statements, his doing so is clearly incidental to the authorised act of soliciting orders, and A is therefore liable for this conduct. It is no defence for A to claim that he was unaware of the wrongdoing of his agent.