Question 1

Which of the following is true of an agent's undisclosed self-dealing?

Accepted Answer

A) It does not violate the duty of loyalty. 
B) The principal cannot rescind purchases made. 
C) The principal can ratify the purchase. 
D) The principal must accept liability. 
A) It does not violate the duty of loyalty. 
B) The principal cannot rescind purchases made. 
C) The principal can ratify the purchase. 
D) The principal must accept liability.

Question 2

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

Accepted Answer

A) The agent is liable for torts committed by an independent contractor. 
B) The contractor is personally liable for all his or her torts. 
C) The principal is liable for the independent contractor's torts. 
D) Both the principal and the independent contractor are liable for the contractor's torts. 
A) The agent is liable for torts committed by an independent contractor. 
B) The contractor is personally liable for all his or her torts. 
C) The principal is liable for the independent contractor's torts. 
D) Both the principal and the independent contractor are liable for the contractor's torts.

Question 3

The duty of loyalty is a fiduciary duty owned by an agent not to act adversely to the interests of the principal.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

What is vicarious liability?

Accepted Answer

A) non-liability 
B) liability for multiple torts 
C) liability without knowledge 
D) liability without fault 
A) non-liability 
B) liability for multiple torts 
C) liability without knowledge 
D) liability without fault

Question 6

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?

Accepted Answer

A) complete liability 
B) vicarious liability 
C) limited liability 
D) no liability 
A) complete liability 
B) vicarious liability 
C) limited liability 
D) no liability

Question 7

Gerard wants to get some land cleared in Texas.With the help of a consulting agency, he hires Carlos, an independent contractor.Carlos procures dynamite from a legitimate dealer, to be used in clearing the land.However, the explosion of dynamite causes cracks to appear in the outer walls of a nearby house.Who is liable to the owner of the damaged house?

Accepted Answer

A) Gerard 
B) Carlos 
C) both Gerard and Carlos 
D) the consulting agency 
A) Gerard 
B) Carlos 
C) both Gerard and Carlos 
D) the consulting agency

Question 8

A client hires a lawyer as an independent contractor to represent her in a civil lawsuit against a defendant to recover monetary damages.If the client authorizes the lawyer to settle a case within a certain dollar amount and the lawyer does so, which of the following would be true?

Accepted Answer

A) The agreement is invalid after the lawyer's contract with the principal terminates. 
B) The agreement is void because independent contractors cannot enter into contracts. 
C) The agreement is binding only when there is no financial settlement involved. 
D) The settlement agreement is binding for the client. 
A) The agreement is invalid after the lawyer's contract with the principal terminates. 
B) The agreement is void because independent contractors cannot enter into contracts. 
C) The agreement is binding only when there is no financial settlement involved. 
D) The settlement agreement is binding for the client.

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

An independent contractor cannot represent more than one principal at a time.

Accepted Answer

A) True 
 B)False

Question 11

A principal has no course of action if an agent discloses his or her confidential information to a third party.

Accepted Answer

A) True 
 B)False

Question 12

Jamie is a lawyer who runs her own law firm specializing in real estate law.Raymond, a real estate developer, hires Jamie to represent him in the purchase of land.Jamie is the ________.

Accepted Answer

A) principal 
B) agent 
C) third-party 
D) independent contractor 
A) principal 
B) agent 
C) third-party 
D) independent contractor

Question 13

Which of the following is a fiduciary duty owed by an agent not to act adversely to the interests of the principal?

Accepted Answer

A) duty of loyalty 
B) duty of undertaking 
C) duty of discharge 
D) duty of resolution 
A) duty of loyalty 
B) duty of undertaking 
C) duty of discharge 
D) duty of resolution

Question 14

Explain in brief the liability for an independent contractor's torts.

Accepted Answer

Generally, a principal is not liable for

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

A dual-purpose mission is a situation that occurs when ________.

Accepted Answer

A) an agent works for two or more principals with conflicting interests 
B) a principal requests an agent to run an errand when the agent is on his or her own personal business 
C) an agent who works for more than two principals but has similar agency relationships with both 
D) an agent competes with the principal in a business with interests similar to the principal's business, after their agency has ended 
A) an agent works for two or more principals with conflicting interests 
B) a principal requests an agent to run an errand when the agent is on his or her own personal business 
C) an agent who works for more than two principals but has similar agency relationships with both 
D) an agent competes with the principal in a business with interests similar to the principal's business, after their agency has ended

Question 17

Explain in brief the occurrence of an undisclosed agency.What are the liabilities involved in such an agency?

Accepted Answer

An undisclosed agency occurs when a thir

Question 18

A third-party offer to an agent must be conveyed to the principal.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) principal 
B) agent 
C) principal and the agent 
D) injured party 
A) principal 
B) agent 
C) principal and the agent 
D) injured party

Question 20

If an agent reveals confidential information of a principal to a third party, the principal's course of action is to obtain an injunction against the third party.

Accepted Answer

A) True 
 B)False

Exam 30: Liability of Principals, Agents, and Independent Contractors

Which of the following is true of an agent's undisclosed self-dealing?

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

The duty of loyalty is a fiduciary duty owned by an agent not to act adversely to the interests of the principal.

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

What is vicarious liability?

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?

A client hires a lawyer as an independent contractor to represent her in a civil lawsuit against a defendant to recover monetary damages.If the client authorizes the lawyer to settle a case within a certain dollar amount and the lawyer does so, which of the following would be true?

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

An independent contractor cannot represent more than one principal at a time.

A principal has no course of action if an agent discloses his or her confidential information to a third party.

Jamie is a lawyer who runs her own law firm specializing in real estate law.Raymond, a real estate developer, hires Jamie to represent him in the purchase of land.Jamie is the ________.

Which of the following is a fiduciary duty owed by an agent not to act adversely to the interests of the principal?

Explain in brief the liability for an independent contractor's torts.

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

A dual-purpose mission is a situation that occurs when ________.

Explain in brief the occurrence of an undisclosed agency.What are the liabilities involved in such an agency?

A third-party offer to an agent must be conveyed to the principal.

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

If an agent reveals confidential information of a principal to a third party, the principal's course of action is to obtain an injunction against the third party.

Legal Heritage and the Digital Age

Courts and Jurisdiction

Judicial,Alternative,and E-Dispute Resolution

Constitutional Law for Business and E-Commerce

Intentional Torts and Negligence

Product and Strict Liability

Intellectual Property and Cyber Piracy

Criminal Law and Cyber Crimes

Nature of Traditional and E-Contracts

Agreement

Consideration and Promissory Estoppel

Capacity and Legality

Genuineness of Assent and Undue Influence

Statute of Frauds and Equitable Exceptions

Third-Party Rights and Discharge

Remedies for Breach of Traditional and E-Contracts

E-Commerce and Digital Law

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties

Creation of Negotiable Instruments

Holder in Due Course and Transferability

Liability, Defenses, and Discharge

Banks, E-Money, and Financial Reform

Credit,Mortgages,and Debtor's Rights

Secured Transactions and E-Filing

Bankruptcy and Reorganization

Agency Formation and Termination

Employment, Worker Protection, and Immigration Law

Labor Law and Collective Bargaining

Equal Opportunity in Employment

Small Business, Entrepreneurship, and General Partnerships

Limited Partnerships and Special Partnerships

Corporate Formation and Financing

Corporate Governance and the Sarbanes-Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Companies and Limited Liability Partnerships

Franchises and Special Forms of Businesses

Investor Protection, E-Securities, and Wall Street Reform

Ethics and Social Responsibility of Business

Administrative Law and Regulatory Agencies

Consumer Protection and Product Safety

Environmental Protection

Antitrust Law and Unfair Trade Practices

Personal Property and Bailment

Real Property

Landlord-Tenant Law and Land Use Regulation

Insurance

Accountants' Duties and Liability

Wills Trusts and Estates

Family Law

International and World Trade Law

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