Exam 18: Agency Law

A(n)________ is a fiduciary relationship which results from the manifestation of consent by one person to another that the other shall act in his behalf and subject to his control, and consent by the other so to act.

What is an implied agency?

Harrison hires an agent to look for a three-bedroom house in Atlanta. Elaine, the agent, finds a three-bedroom house in Harrison's budget but buys it herself without informing Harrison. This is an instance of the agent's ________.

Fiona works for Open Heart Hospital and lives 10 miles away from her place of work. The hospital has provided her with a car to commute and also pays for its upkeep. If she accidentally injures a person while driving to work in the morning, which of the following would be true?

Only a lawyer can become an attorney-in-fact.

A principal can authorize an independent contractor to enter into contracts.

The principal is not liable for an agent's negligence while the agent is on a dual-purpose mission.

Who is an agent?

A principal-agent relationship exists when an employer hires an employee to perform some form of physical service.

Which of the following is true of a general power of attorney?

The bankruptcy of the principal is not a valid reason to terminate an agency.

Marcus employs a real estate broker, Dean, to sell his house. Dean's express powers are to advertise and market the house for sale, show the house to prospective buyers, and accept offers from persons who want to purchase the house. He is not allowed to seal a deal without Marcus' consent. Marcus goes away on a month-long trip where he cannot be contacted. During this time, a short circuit in the house causes a power outage. Dean uses his authority to hire an electrician to repair the circuits and restore electricity in the house. Marcus then comes back and pays Dean for the electricity repair. What is the nature of the agency that Dean used to fix the electricity problem in the house?

Marlon intends to sell a piece of real estate he owns and contracts Nita, a real estate broker, to make the sale. In the contract, Marlon authorizes Nita to make the sale at or above a minimum price he wants and the date by which he wants the sale to be completed. The contract also stipulates that Marlon should not hire another broker to sell that piece of land till the expiry of the contract period. Nita finds a suitable buyer, makes the sale in time, and is paid by Marlon for her services. -Which of the following types of agency had Marlon and Nita entered into?

The coming and going rule says that a principal is generally not liable for injuries caused by its agents and employees while they are on their way to or from work.

A principal owes a duty to indemnify the agent for any losses the agent suffers because of the principal's conduct.

If an agent exceeds his or her scope of authority, a principal is bound on the contract only if he or she ratifies the contract.

Most jurisdictions hold the ________ liable for injuries caused on a dual-purpose mission.

Which of the following is a course of action for a principal if an agent is found competing with him or her?

If an agent competes with the principal without the principal's permission, the principal may recover profits made by the agent.

Minksine Corporation employs Sandy as its marketing manager. Sandy is driving her automobile to attend a meeting with a client on behalf of her employer. On her way to the meeting, Sandy is involved in an automobile accident that is caused by her negligence. Several people are seriously injured in the accident. Which of the following is true of this case?