Question 1

Which of the following is true about the tests used to determine whether a principal is responsible for the intentional torts of his agent?

Accepted Answer

A)  The "work-related" test and the "motivation" test are two names for the same test. 
B)  In most states, the plaintiff can choose which test to use. 
C)  Application of the "work-related" test will result in employer liability more frequently than through use of the "motivation" test. 
D)  Under either test, the plaintiff must also prove that the agency was fully disclosed in order to recover. 
E)  Application of the "motivation" test will result in employer liability more frequently than through use of the "work-related" test. 
A)  The "work-related" test and the "motivation" test are two names for the same test. 
B)  In most states, the plaintiff can choose which test to use. 
C)  Application of the "work-related" test will result in employer liability more frequently than through use of the "motivation" test. 
D)  Under either test, the plaintiff must also prove that the agency was fully disclosed in order to recover. 
E)  Application of the "motivation" test will result in employer liability more frequently than through use of the "work-related" test.

Question 2

Principal has entered into a six-month contract during which Agent will sell Principal's products on a commission basis.Although Agent is complying with all terms of the agreement,during the third month Principal tells Agent she is no longer is authorized to sell his products,and will receive no further commissions if she does.Which of the following is true?

Accepted Answer

A)  Agent continues to have a duty to sell, because the six-month period has not yet expired. 
B)  Principal has the power, but not the right, to terminate the agency. 
C)  Principal has the right, but not the power, to terminate the agency. 
D)  Principal has both the right and the power to terminate the agency. 
E)  Principal has neither the right nor the power to terminate the agency. 
A)  Agent continues to have a duty to sell, because the six-month period has not yet expired. 
B)  Principal has the power, but not the right, to terminate the agency. 
C)  Principal has the right, but not the power, to terminate the agency. 
D)  Principal has both the right and the power to terminate the agency. 
E)  Principal has neither the right nor the power to terminate the agency.

Question 3

Why can an apparent agency be created only through the representations of the principal,but not those of the apparent agent?

Accepted Answer

From the standpoint of fairness,if a pri

Question 4

An agency is a fiduciary relationship.

Accepted Answer

A) True 
 B)False

Question 5

The fact that Holly may hire employees to work at a lingerie shop that she manages,despite the fact that her employment agreement with the owner says nothing about Holly's right to hire employees,is an example of:

Accepted Answer

A)  express authority. 
B)  implied authority. 
C)  apparent authority. 
D)  ratification authority. 
E)  intentional authority. 
A)  express authority. 
B)  implied authority. 
C)  apparent authority. 
D)  ratification authority. 
E)  intentional authority.

Question 6

Soft Stuff,Inc.contracted to sell Mike's Mart five hundred cotton blankets.There is an agency relationship between Soft Stuff,Inc.and Mike's Mart.

Accepted Answer

A) True 
 B)False

Question 7

Assume Tom hires Mike as an independent contractor "security guard" for his apartment complex,but does not perform a background search,which would have revealed Mike's past "sexual predator" convictions.If Mike attacks Kathy,a tenant,Tom would not be liable,since Mike is an independent contractor.

Accepted Answer

A) True 
 B)False

Question 8

A ________ power of attorney limits the agent to those acts specifically enumerated by the agreement.

Accepted Answer

A)  limited 
B)  qualified 
C)  special 
D)  conditional 
E)  truncated 
A)  limited 
B)  qualified 
C)  special 
D)  conditional 
E)  truncated

Question 9

Unless otherwise agreed,the principal owes a duty to cooperate with and assist the agent in the performance of the agent's duties and the accomplishment of the agency.

Accepted Answer

A) True 
 B)False

Question 10

If the principal and agent enter into an "exclusive" agency contract,the principal cannot employ any agent other than the exclusive agent.

Accepted Answer

A) True 
 B)False

Question 11

Bankruptcy filed by an agent automatically terminates the agency.

Accepted Answer

A) True 
 B)False

Question 12

A special power of attorney limits the agent to those acts specifically enumerated by the agreement

Accepted Answer

A) True 
 B)False

Question 13

Often even an express agency agreement does not provide enough detail to cover contingencies that may arise in the future regarding the performance of the agency.In this case,the agent possesses certain implied authority to act.This implied authority is sometimes referred to as supplemental authority.

Accepted Answer

A) True 
 B)False

Question 14

Someone who is authorized to act on behalf of another is generally known as a(n):

Accepted Answer

A)  agent. 
B)  independent contractor. 
C)  employee. 
D)  surety. 
E)  principal. 
A)  agent. 
B)  independent contractor. 
C)  employee. 
D)  surety. 
E)  principal.

Question 15

What is the tort liability of an agent if the tort was committed within the "course and scope" of the agency?

Accepted Answer

A)  The agent is released from liability. 
B)  The agent and the principal will be held equally liable. 
C)  The agent is liable for his or her own tortuous conduct. 
D)  The agent will be liable, but only if the principal is unable to pay the victim's damages. 
E)  The principal can assert the contributory negligence defense. 
A)  The agent is released from liability. 
B)  The agent and the principal will be held equally liable. 
C)  The agent is liable for his or her own tortuous conduct. 
D)  The agent will be liable, but only if the principal is unable to pay the victim's damages. 
E)  The principal can assert the contributory negligence defense.

Question 16

All of the following are duties of the agent to the principal except:

Accepted Answer

A)  loyalty. 
B)  notification. 
C)  performance. 
D)  indemnification. 
E)  accountability. 
A)  loyalty. 
B)  notification. 
C)  performance. 
D)  indemnification. 
E)  accountability.

Question 17

Ann has contracted to be Paul's agent for the sale of Paul's home.The contract provides that the duration of this agency is 120 days.Within the first week,Ann has found a potential buyer and is involved in negotiations.The following week,Paul notifies Ann that he is terminating the arrangement,but Ann proceeds to negotiate a sale with the potential buyer.These negotiations became very tense,and Ann became frustrated with the buyer's unwillingness to move on the price and hit the buyer in the face,injuring her.Because the buyer liked the home very much,Ann and the buyer did negotiate a contract.Discuss the legal issues in this situation.

Accepted Answer

Paul had the power to terminate the agen

Question 18

Principals are bound by the unauthorized contracts of their independent contractors.

Accepted Answer

A) True 
 B)False

Question 19

Mike,a league official,calls Beth,asking her to referee a soccer game.Beth is not obligated to serve as a game referee.If she accepts the assignment,Mike will tell her the exact start time of the game,the fact that she must wear an approved uniform,and the amount of compensation she will be paid for serving as referee.Once on the field,Beth is in complete control of fulfilling her responsibilities.Beth is considered an:

Accepted Answer

A)  agent in a undisclosed agency. 
B)  agent in a partially disclosed agency. 
C)  agent in a disclosed agency. 
D)  independent contractor. 
E)  Incidental contractor. 
A)  agent in a undisclosed agency. 
B)  agent in a partially disclosed agency. 
C)  agent in a disclosed agency. 
D)  independent contractor. 
E)  Incidental contractor.

Question 20

If an agent is driving his car to work from home and negligently causes an accident,the principal will not be liable for injuries caused by the agent's negligence.

Accepted Answer

A) True 
 B)False

Exam 25: Agency Law

Which of the following is true about the tests used to determine whether a principal is responsible for the intentional torts of his agent?

Why can an apparent agency be created only through the representations of the principal,but not those of the apparent agent?

An agency is a fiduciary relationship.

The fact that Holly may hire employees to work at a lingerie shop that she manages,despite the fact that her employment agreement with the owner says nothing about Holly's right to hire employees,is an example of:

Soft Stuff,Inc.contracted to sell Mike's Mart five hundred cotton blankets.There is an agency relationship between Soft Stuff,Inc.and Mike's Mart.

Assume Tom hires Mike as an independent contractor "security guard" for his apartment complex,but does not perform a background search,which would have revealed Mike's past "sexual predator" convictions.If Mike attacks Kathy,a tenant,Tom would not be liable,since Mike is an independent contractor.

A ________ power of attorney limits the agent to those acts specifically enumerated by the agreement.

Unless otherwise agreed,the principal owes a duty to cooperate with and assist the agent in the performance of the agent's duties and the accomplishment of the agency.

If the principal and agent enter into an "exclusive" agency contract,the principal cannot employ any agent other than the exclusive agent.

Bankruptcy filed by an agent automatically terminates the agency.

A special power of attorney limits the agent to those acts specifically enumerated by the agreement

Someone who is authorized to act on behalf of another is generally known as a(n):

What is the tort liability of an agent if the tort was committed within the "course and scope" of the agency?

All of the following are duties of the agent to the principal except:

Principals are bound by the unauthorized contracts of their independent contractors.

If an agent is driving his car to work from home and negligently causes an accident,the principal will not be liable for injuries caused by the agent's negligence.

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