Question 1

Principals are liable for negligence caused by an agent during substantial frolic and detour.

Accepted Answer

A) True 
 B)False  False

Question 2

The ________ is a principal's duty to cover the agent for any losses the agent suffers because of the principal's conduct.

Accepted Answer

duty to indemnify

Question 3

Which of the following is true about a special power of attorney?

Accepted Answer

A)  It is an implied form of power of attorney. 
B)  It limits the agents powers to those enumerated in the agreement. 
C)  It allows the agent to act in any matters on the principal's behalf. 
D)  It only allows certified lawyers to be agents. 
A)  It is an implied form of power of attorney. 
B)  It limits the agents powers to those enumerated in the agreement. 
C)  It allows the agent to act in any matters on the principal's behalf. 
D)  It only allows certified lawyers to be agents. B

Question 4

Sometimes, principals request that agents run errands or conduct other acts on their behalf while the agent or employee is on personal business. This is an instance of ________ for the agent.

Accepted Answer

dual-purpo

Question 5

Which of the following is true of a principal-independent contractor relationship?

Accepted Answer

A)  Principals are bound by the authorized contracts of their independent contractors. 
B)  Independent contractors cannot be authorized by principals. 
C)  Independent contractors are employees of the principals. 
D)  Principals cannot directly employ independent contractors. 
A)  Principals are bound by the authorized contracts of their independent contractors. 
B)  Independent contractors cannot be authorized by principals. 
C)  Independent contractors are employees of the principals. 
D)  Principals cannot directly employ independent contractors.

Question 6

Which of the following statements is true of an agent taking an opportunity?

Accepted Answer

A)  An agent can legally take an opportunity that is entitled to the principal. 
B)  A third-party offer to an agent need not be conveyed to the principal. 
C)  An agent cannot appropriate an offer for himself or herself once the principal rejects it. 
D)  A principal is permitted to recover a usurped opportunity from an agent. 
A)  An agent can legally take an opportunity that is entitled to the principal. 
B)  A third-party offer to an agent need not be conveyed to the principal. 
C)  An agent cannot appropriate an offer for himself or herself once the principal rejects it. 
D)  A principal is permitted to recover a usurped opportunity from an agent.

Question 7

Which of the following is an instance of misuse of confidential information?

Accepted Answer

A)  An agent gives the seller the principal's name and phone number in a fully disclosed transaction. 
B)  A principal gives the contact details of an agent to a third-party without the agent's knowledge. 
C)  An agent withholds critical information from the principal about the agency. 
D)  An agent divulges details of his past employer to his principal. 
A)  An agent gives the seller the principal's name and phone number in a fully disclosed transaction. 
B)  A principal gives the contact details of an agent to a third-party without the agent's knowledge. 
C)  An agent withholds critical information from the principal about the agency. 
D)  An agent divulges details of his past employer to his principal.

Question 8

Martin, who wants to sell a house he owns, authorizes his concierge, Wilhelm, to find a potential buyer, and finalize a deal above a stipulated price. Wilhelm contracts Chris, a real estate broker, and intends him to only find a potential buyer and send them over to Wilhelm for the sale. Martin then contracts ReNowait Goodhouses, a home improvement company to renovate the house. ReNowait completes their work and Martin pays them. Chris then searches for a suitable buyer and finds one in George. George buys the house and Chris is paid for his services.
-What sort of commercial relationship exists between Martin and William have?

Accepted Answer

A)  employer-employee relationship 
B)  agent-agent relationship 
C)  agent-independent contractor relationship 
D)  principal-agent relationship 
A)  employer-employee relationship 
B)  agent-agent relationship 
C)  agent-independent contractor relationship 
D)  principal-agent relationship

Question 9

Dual agency is permitted if all parties to a transaction agree to it.

Accepted Answer

A) True 
 B)False

Question 10

A duty that a principal owes to pay an agreed-upon amount to the agent either upon the completion of the agency or at some other mutually agreeable time is known as a principal's ________.

Accepted Answer

The answer of A duty that a principal owes to...

Question 11

A fully disclosed agency results if a third party entering into a contract knows the actual identity of the principal.

Accepted Answer

A) True 
 B)False

Question 12

The party that employs an independent contractor is called an agent.

Accepted Answer

A) True 
 B)False

Question 13

List the circumstances that can lead to termination by impossibility of performance.

Accepted Answer

An agency relationship terminates if a s

Question 14

An express agency agreement that is often used to give an agent the control to sign legal documents on behalf of the principal is known as a(n)________.

Accepted Answer

A)  assignment 
B)  accommodation 
C)  power of attorney 
D)  letter of credit 
A)  assignment 
B)  accommodation 
C)  power of attorney 
D)  letter of credit

Question 15

Which of the following best describes a partially disclosed agency?

Accepted Answer

A)  an agent with multiple principals who do not know each other's identities 
B)  a transaction in which the third party does not know the identity of the agent 
C)  a transaction in which the third party knows the agent, not the principal 
D)  an agent who discloses only the name of his or her principal in a transaction 
A)  an agent with multiple principals who do not know each other's identities 
B)  a transaction in which the third party does not know the identity of the agent 
C)  a transaction in which the third party knows the agent, not the principal 
D)  an agent who discloses only the name of his or her principal in a transaction

Question 16

Which of the following is true about a durable power of attorney?

Accepted Answer

A)  It is only effective as long as the principal is able. 
B)  It remains effective even though the principal is incapacitated. 
C)  It is effective even when the agency is an oral agreement. 
D)  It is only effective if the agent is a certified lawyer. 
A)  It is only effective as long as the principal is able. 
B)  It remains effective even though the principal is incapacitated. 
C)  It is effective even when the agency is an oral agreement. 
D)  It is only effective if the agent is a certified lawyer.

Question 17

An agent is not liable to the principal for any injuries resulting from a breach of duty to notify.

Accepted Answer

A) True 
 B)False

Question 18

A special power of attorney empowers the agent to act in any matters on the principal's behalf without limitation.

Accepted Answer

A) True 
 B)False

Question 19

Taylor gives a power of attorney to his twin brother Corey, permitting Corey to make all decisions on his behalf while he is abroad. As per the terms of the power of attorney, Corey is allowed make decisions to purchase or sell stocks on Taylor's behalf, sell Taylor's real estate if he deems it to be in Taylor's best interest, pursue or defend lawsuits on Taylor's behalf, and make all other relevant decisions for Taylor. What kind of power of attorney would confer such powers to Corey?

Accepted Answer

A)  a special power of attorney 
B)  a limited power of attorney 
C)  an implied power of attorney 
D)  a general power of attorney 
A)  a special power of attorney 
B)  a limited power of attorney 
C)  an implied power of attorney 
D)  a general power of attorney

Question 20

Canton has listed his house for sale, but cannot be present to take care of the sale as he needs to go out of town. He intends to give his brother Stratham the power of attorney to just make decisions regarding selling of his house while he is gone. What kind of power of attorney should Canton execute?

Accepted Answer

A)  a general power of attorney 
B)  a special power of attorney 
C)  a limited power of attorney 
D)  an implied power of attorney 
A)  a general power of attorney 
B)  a special power of attorney 
C)  a limited power of attorney 
D)  an implied power of attorney

Exam 18: Agency Law

Principals are liable for negligence caused by an agent during substantial frolic and detour.

The ________ is a principal's duty to cover the agent for any losses the agent suffers because of the principal's conduct.

Which of the following is true about a special power of attorney?

Sometimes, principals request that agents run errands or conduct other acts on their behalf while the agent or employee is on personal business. This is an instance of ________ for the agent.

Which of the following is true of a principal-independent contractor relationship?

Which of the following statements is true of an agent taking an opportunity?

Which of the following is an instance of misuse of confidential information?

Dual agency is permitted if all parties to a transaction agree to it.

A duty that a principal owes to pay an agreed-upon amount to the agent either upon the completion of the agency or at some other mutually agreeable time is known as a principal's ________.

A fully disclosed agency results if a third party entering into a contract knows the actual identity of the principal.

The party that employs an independent contractor is called an agent.

List the circumstances that can lead to termination by impossibility of performance.

An express agency agreement that is often used to give an agent the control to sign legal documents on behalf of the principal is known as a(n)________.

Which of the following best describes a partially disclosed agency?

Which of the following is true about a durable power of attorney?

An agent is not liable to the principal for any injuries resulting from a breach of duty to notify.

A special power of attorney empowers the agent to act in any matters on the principal's behalf without limitation.

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