Question 1

What factors do courts consider in determining whether an act of an agent was within the scope of employment?

Accepted Answer

Courts consider (1)whether the employee'

Question 2

Which of the following is false regarding an agency relationship?

Accepted Answer

A) The most common form of agency relationship is the employer-employee relationship. 
B) An agent may not be in independent contractor. 
C) An agency agreement may be implied. 
D) Agency may be established by estoppel. 
A) The most common form of agency relationship is the employer-employee relationship. 
B) An agent may not be in independent contractor. 
C) An agency agreement may be implied. 
D) Agency may be established by estoppel.

Question 3

A master-servant agency is a type of agency that is illegal.

Accepted Answer

A) True 
 B)False

Question 4

Unless state law is to the contrary,an agent may lawfully conceal ________ of the principal.

Accepted Answer

A) the existence 
B) the identity 
C) the existence and identity 
D) nothing regarding 
A) the existence 
B) the identity 
C) the existence and identity 
D) nothing regarding

Question 5

If an agent enters into an agreement with a third party that must be in writing to be enforceable,then the principal will not be bound unless the agency relationship itself is created by a(n)

Accepted Answer

A) law 
B) writing 
C) employment 
D) duty 
A) law 
B) writing 
C) employment 
D) duty

Question 6

Under which of the following circumstances may an employer be liable for an employee's action outside the scope of employment?

Accepted Answer

A) The employer intended the employee's conduct or its consequences. 
B) The employee's high rank in the company makes him or her the employer's alter ego. 
C) The employee's action can be attributable to the employer's own negligence or recklessness. 
D) All of the responses are correct. 
A) The employer intended the employee's conduct or its consequences. 
B) The employee's high rank in the company makes him or her the employer's alter ego. 
C) The employee's action can be attributable to the employer's own negligence or recklessness. 
D) All of the responses are correct.

Question 7

Under the duty of ____________ an agent has a duty to act solely for the benefit of his or her principal in all matters directly connected with the agency undertaking.

Accepted Answer

A) loyalty 
B) subservience 
C) trust 
D) obedience 
A) loyalty 
B) subservience 
C) trust 
D) obedience

Question 8

An independent contractor is also considered an employee of the person for whom work is being done.

Accepted Answer

A) True 
 B)False

Question 9

What was the result in Smith v.Sears,Roebuck & Co.,the case in the text involving whether an employer would be held liable under the Fair Credit Reporting Act for its employee's actions in obtaining a consumer credit report for other than permissible purposes?

Accepted Answer

A) That the employer was liable because it had the primary responsibility for ensuring the sanctity of credit reports. 
B) That the employer was strictly liable based on an agency theory. 
C) That an employer could never be held liable for such an offense. 
D) That under the facts presented,the employer would not be held liable. 
A) That the employer was liable because it had the primary responsibility for ensuring the sanctity of credit reports. 
B) That the employer was strictly liable based on an agency theory. 
C) That an employer could never be held liable for such an offense. 
D) That under the facts presented,the employer would not be held liable.

Question 10

The Electronic Signatures in Global and National Commerce Act provides that contracts executed by electronic agents are invalid.

Accepted Answer

A) True 
 B)False

Question 11

Carl is a contractor that is building a home for Orel.Pam is one of Orel's neighbors.One day Pam was walking in the neighborhood.As she passed the construction site,a piece of lumber fell from the partially finished garage roof and hit her in the head,injuring her severely.The lumber was left negligently on the roof by Carl.Pam now wishes to sue Orel.Should Orel be held liable to Pam? Discuss.

Accepted Answer

Carl would likely be considered an indep

Question 12

An ________ occurs if a principal approves or accepts the benefits of the actions of an otherwise unauthorized agent.

Accepted Answer

A) agency by ratification 
B) agency by estoppel 
C) agency by independent action 
D) agency by intervention 
A) agency by ratification 
B) agency by estoppel 
C) agency by independent action 
D) agency by intervention

Question 13

Fact pattern 5-2
Billy owns a used car lot.Samantha works for Billy selling used cars.Billy fully directs and controls her work,sets her hours,and pays her an hourly salary as well as a commission.Belinda comes to the lot to buy a used car.Samantha,however,tells Belinda that she needs to sell her mother's used vehicle and that if Belinda will meet her after hours,she will give Belinda an excellent deal.Belinda meets Samantha after work and ends up buying the car belonging to Samantha's mother.The next day,Samantha is moving a car and negligently backs it over the foot of Wesley another customer.While waiting for the ambulance to come for Wesley,Belinda storms onto the lot complaining about the condition of the vehicle she purchased from Samantha's mother.Billy fires Samantha on the spot.Samantha informs him that she has been an excellent employee and that he has not reason to be unhappy with her.
-Refer to fact pattern 5-2.Who is liable for Billy's injured foot?

Accepted Answer

A) Only Billy 
B) Only Samantha 
C) Both Billy and Samantha with Billy having he right to recover from Samantha any amounts paid 
D) Both Billy and Samantha with Samantha having he right to recover from Billy any amounts paid 
A) Only Billy 
B) Only Samantha 
C) Both Billy and Samantha with Billy having he right to recover from Samantha any amounts paid 
D) Both Billy and Samantha with Samantha having he right to recover from Billy any amounts paid

Question 14

Fact pattern 5-2
Billy owns a used car lot.Samantha works for Billy selling used cars.Billy fully directs and controls her work,sets her hours,and pays her an hourly salary as well as a commission.Belinda comes to the lot to buy a used car.Samantha,however,tells Belinda that she needs to sell her mother's used vehicle and that if Belinda will meet her after hours,she will give Belinda an excellent deal.Belinda meets Samantha after work and ends up buying the car belonging to Samantha's mother.The next day,Samantha is moving a car and negligently backs it over the foot of Wesley another customer.While waiting for the ambulance to come for Wesley,Belinda storms onto the lot complaining about the condition of the vehicle she purchased from Samantha's mother.Billy fires Samantha on the spot.Samantha informs him that she has been an excellent employee and that he has not reason to be unhappy with her.
-Refer to fact pattern 5-2.Did Samantha breach any fiduciary duties owed to Billy?

Accepted Answer

A) Yes,only the duty of loyalty 
B) Yes,only the duty of care 
C) Yes,both the duty of loyalty and the duty of care 
D) No 
A) Yes,only the duty of loyalty 
B) Yes,only the duty of care 
C) Yes,both the duty of loyalty and the duty of care 
D) No

Question 15

An agency by ________ occurs when a person leads another to believe that someone else is his or her agent and is thereafter prevented from denying it.

Accepted Answer

A) ratification 
B) conduct 
C) agreement 
D) estoppel 
A) ratification 
B) conduct 
C) agreement 
D) estoppel

Question 16

In all cases,an agency agreement must be written in order to be enforceable.

Accepted Answer

A) True 
 B)False

Question 17

An agent is always a fiduciary.

Accepted Answer

A) True 
 B)False

Question 18

Agency relationships can be formed without agreement by

Accepted Answer

A) estoppel 
B) ratification 
C) estoppel and ratification 
D) neither estoppel nor ratification 
A) estoppel 
B) ratification 
C) estoppel and ratification 
D) neither estoppel nor ratification

Question 19

Agency by estoppel creates an agency relationship where one does not actually exist.What elements are necessary for an agency by estoppel? What are the legal consequences to the principal,agent,and third party? Discuss.

Accepted Answer

An agency by estoppel occurs when a pers

Question 20

Which of the following is true regarding situations in which an agent enters into a contract without authority?

Accepted Answer

A) The principal is not bound nor is the agent bound. 
B) The principal is bound and the agent may be personally liable. 
C) The principal is not bound,but the agent may personally liable. 
D) Neither the principal nor the agent is bound if the contract is oral; but if the contract is written, both the principal and agent are bound. 
A) The principal is not bound nor is the agent bound. 
B) The principal is bound and the agent may be personally liable. 
C) The principal is not bound,but the agent may personally liable. 
D) Neither the principal nor the agent is bound if the contract is oral; but if the contract is written, both the principal and agent are bound.

Exam 5: Agency

What factors do courts consider in determining whether an act of an agent was within the scope of employment?

Which of the following is false regarding an agency relationship?

A master-servant agency is a type of agency that is illegal.

Unless state law is to the contrary,an agent may lawfully conceal ________ of the principal.

If an agent enters into an agreement with a third party that must be in writing to be enforceable,then the principal will not be bound unless the agency relationship itself is created by a(n)

Under which of the following circumstances may an employer be liable for an employee's action outside the scope of employment?

Under the duty of ____________ an agent has a duty to act solely for the benefit of his or her principal in all matters directly connected with the agency undertaking.

An independent contractor is also considered an employee of the person for whom work is being done.

What was the result in Smith v.Sears,Roebuck & Co.,the case in the text involving whether an employer would be held liable under the Fair Credit Reporting Act for its employee's actions in obtaining a consumer credit report for other than permissible purposes?

The Electronic Signatures in Global and National Commerce Act provides that contracts executed by electronic agents are invalid.

An ________ occurs if a principal approves or accepts the benefits of the actions of an otherwise unauthorized agent.

An agency by ________ occurs when a person leads another to believe that someone else is his or her agent and is thereafter prevented from denying it.

In all cases,an agency agreement must be written in order to be enforceable.

An agent is always a fiduciary.

Agency relationships can be formed without agreement by

Agency by estoppel creates an agency relationship where one does not actually exist.What elements are necessary for an agency by estoppel? What are the legal consequences to the principal,agent,and third party? Discuss.

Which of the following is true regarding situations in which an agent enters into a contract without authority?

law, value creation, and risk management

Ethics ant the law

Courts, sources of law, and dispute resolution

Constitutional bases for business regulation

Administrative Law

Contracts

sales, licensing, and e-commerce

Torts and Privacy protection

product liability

Intellectual property

The employment agreement

civil rights and employment discrimination

executive compensation and employee benefits

Criminal law

Environmental law

Antitrust

Consumer Protection

real property and land use

Forms of business organizations

Directors, Officers, and Controlling Shareholders

Public and Private Offerings of Securities

Securities Fraud and insider trading

Debtor-Creditor Relations and Bankruptcy

International Business

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