Question 1

Based on the doctrine of respondeat superior, principals are liable for the negligent conduct of agents acting within the scope of their employment.

Accepted Answer

A) True 
 B)False

Question 2

If an independent contractor enters into a contract with a third party on behalf of the principal without express or implied authority from the principal to do so, who among the following is liable on the contract?

Accepted Answer

A)  the principal 
B)  the independent contractor 
C)  the third party 
D)  both the principal and independent contractor 
A)  the principal 
B)  the independent contractor 
C)  the third party 
D)  both the principal and independent contractor

Question 3

Which of the following is true of a fully disclosed agency?

Accepted Answer

A)  The third party does not know the identity of the principal. 
B)  The third party knows the name of the principal, but all transactions are done with the agent. 
C)  The contract is between the principal, agent, and the third party. 
D)  The principal is liable on the contract with a third party. 
A)  The third party does not know the identity of the principal. 
B)  The third party knows the name of the principal, but all transactions are done with the agent. 
C)  The contract is between the principal, agent, and the third party. 
D)  The principal is liable on the contract with a third party.

Question 4

A power of attorney gives an agent the power to sign legal documents on behalf of the principal.

Accepted Answer

A) True 
 B)False

Question 5

Under the ________ test, the principal is liable for any intentional torts committed by an agent during working hours on the principal's premises.

Accepted Answer

The answer of Under the ________ test, the principal is...

Question 6

The termination of an agency contract in violation of the terms of the agency contract is referred to as ________.

Accepted Answer

A)  termination by an unusual change in circumstances 
B)  termination by impossibility of performance 
C)  terminated by operation of law 
D)  wrongful termination 
A)  termination by an unusual change in circumstances 
B)  termination by impossibility of performance 
C)  terminated by operation of law 
D)  wrongful termination

Question 7

A partially disclosed agency can be created by mistake.

Accepted Answer

A) True 
 B)False

Question 8

The principal's duty to reimburse says that the principal should pay the agent all expenses prior to start of the agency.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following torts committed by an agent is the liability of the principal?

Accepted Answer

A)  substantial frolic and detour 
B)  accidents caused by an agent on the way to work 
C)  accidents caused by an agent on the way from work 
D)  negligence 
A)  substantial frolic and detour 
B)  accidents caused by an agent on the way to work 
C)  accidents caused by an agent on the way from work 
D)  negligence

Question 10

Undisclosed self-dealing by an agent is not regarded as violation of the duty of loyalty.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is considered an intentional tort?

Accepted Answer

A)  negligence 
B)  innocent misrepresentation 
C)  fraud 
D)  dual-purpose mission 
A)  negligence 
B)  innocent misrepresentation 
C)  fraud 
D)  dual-purpose mission

Question 12

The principal is bound legally to pay a gratuitous agent.

Accepted Answer

A) True 
 B)False

Question 13

The legal rule of imputed knowledge means that the principal is assumed to know what the agent knows.

Accepted Answer

A) True 
 B)False

Question 14

Principals do not control the means by which independent contractors achieve results.

Accepted Answer

A) True 
 B)False

Question 15

If a person employs an architect to design the layout of his or her own home, it would constitute a(n)________ relationship.

Accepted Answer

principal-

Question 16

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 role does ReNowait Goodhouses perform?

Accepted Answer

A)  agent 
B)  independent contractor 
C)  principal 
D)  trustee 
A)  agent 
B)  independent contractor 
C)  principal 
D)  trustee

Question 17

Which of the following is true of an employer-employee relationship?

Accepted Answer

A)  An employee has implied power of attorney towards the principal. 
B)  An employee has authority to act on behalf of the principal. 
C)  An employee can enter into contracts on behalf of the employer. 
D)  An employee is hired to perform a task or service. 
A)  An employee has implied power of attorney towards the principal. 
B)  An employee has authority to act on behalf of the principal. 
C)  An employee can enter into contracts on behalf of the employer. 
D)  An employee is hired to perform a task or service.

Question 18

The agent is compulsorily liable for any intentional or innocent misrepresentation made by the principal in a transaction.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is true of an express agency?

Accepted Answer

A)  The agency involved is allowed to have multiple agents if necessary. 
B)  The agency is implied from the conduct of the parties. 
C)  The agency comes to effect when the principal ratifies an unauthorized act. 
D)  The agency arises when a principal creates the appearance of an agency that does not exist. 
A)  The agency involved is allowed to have multiple agents if necessary. 
B)  The agency is implied from the conduct of the parties. 
C)  The agency comes to effect when the principal ratifies an unauthorized act. 
D)  The agency arises when a principal creates the appearance of an agency that does not exist.

Question 20

Middlemen and finders are not considered dual agents.

Accepted Answer

A) True 
 B)False

Exam 18: Agency Law

Based on the doctrine of respondeat superior, principals are liable for the negligent conduct of agents acting within the scope of their employment.

If an independent contractor enters into a contract with a third party on behalf of the principal without express or implied authority from the principal to do so, who among the following is liable on the contract?

Which of the following is true of a fully disclosed agency?

A power of attorney gives an agent the power to sign legal documents on behalf of the principal.

Under the ________ test, the principal is liable for any intentional torts committed by an agent during working hours on the principal's premises.

The termination of an agency contract in violation of the terms of the agency contract is referred to as ________.

A partially disclosed agency can be created by mistake.

The principal's duty to reimburse says that the principal should pay the agent all expenses prior to start of the agency.

Which of the following torts committed by an agent is the liability of the principal?

Undisclosed self-dealing by an agent is not regarded as violation of the duty of loyalty.

Which of the following is considered an intentional tort?

The principal is bound legally to pay a gratuitous agent.

The legal rule of imputed knowledge means that the principal is assumed to know what the agent knows.

Principals do not control the means by which independent contractors achieve results.

If a person employs an architect to design the layout of his or her own home, it would constitute a(n)________ relationship.

Which of the following is true of an employer-employee relationship?

The agent is compulsorily liable for any intentional or innocent misrepresentation made by the principal in a transaction.

Which of the following is true of an express agency?

Middlemen and finders are not considered dual agents.

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