Exam 18: Agency Law

Constructive notices are not valid against strangers who assert claims of apparent agency.

The outbreak of a war between the principal's country and the agent's country is grounds for terminating an agency.

In a fully disclosed agency, the contract is between ________.

An agent does not violate his or her duty of loyalty by serving two parties with the same interest.

According to the coming and going rule, what is the liability of the principal for injuries caused by its agents and employees while they are on their way to or from work?

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. -Who performs the role of the agent in this land sale transaction?

Battery committed by an agent in the principal's premises and during the scope of employment is considered an unintentional tort.

Ratification of a contract is a situation in which a principal accepts an agent's unauthorized contract.

Frank Hannigan sees a grand piano that his musician friend Scott Kristoff had been looking for in an antique store. Frank enters into a contract to purchase the grand piano from the antique seller and signs the contract, "Frank Hannigan, agent for Scott Kristoff." But because Frank is not Scott's agent, Scott is not bound by the contract. If Scott decides to accept the contract, what kind of agency would be created?

On the advice of her colleague, Stacey hires Harold, a lawyer and an independent contractor, to represent her in a court case. While driving to the courthouse to represent Stacey at trial, Harold negligently causes an automobile accident in which a bystander, Mildred, is severely injured. Who is liable to Mildred?

Which of the following is true of an independent contractor's liability?

The ________ is the party who employs another person to act on his or her behalf.

Under the ________ test, if the agent committed an intentional tort to promote the principal's business, the principal is liable for any injury caused by the tort.

An agent who has negligently or intentionally failed to perform his express duties is also liable to tort laws.

An agency by ratification occurs when the principal ________.

A power of attorney where a principal confers powers on an agent to act in specified matters on the principal's behalf is referred to as ________.

Ashley owns a piece of vacant real estate through which a small river runs. Ashley hires Warren, a licensed real estate broker, to list the property for sale and help sell the property. While inquiring in the neighborhood, Ashley's neighbor Lenny tells Warren that a chemical plant upstream has polluted his property and that Warren should have environmental engineers test the soil on Ashley's property as well. Warren does not tell Ashley about Lenny's suggestion. Warren manages to find a buyer for Ashley's property in Martha. It is later discovered that the property Martha bought from Ashley is also polluted. What important agent's duty has Warren failed to perform?

The agent is not liable on the contract in a fully disclosed agency.

Which of the following is true of an apparent agency?

A(n)________ is a contract a principal and agent enter into that says the principal cannot employ another agent other than the one stated.