Question 1

The work-related test puts liability on the employee if the intentional torn is committed within work-related time and space.

Accepted Answer

A) True 
 B)False

Question 2

The principal is liable for all torts of independent contractors.

Accepted Answer

A) True 
 B)False

Question 3

Middlemen and finders are not considered dual agents.

Accepted Answer

A) True 
 B)False

Question 4

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?

Accepted Answer

A) Stacey 
B) Harold 
C) Stacey's colleague 
D) the firm that represents Harold 
A) Stacey 
B) Harold 
C) Stacey's colleague 
D) the firm that represents Harold

Question 5

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 6

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

Accepted Answer

A) True 
 B)False

Question 7

A partially disclosed agency can be created by mistake.

Accepted Answer

A) True 
 B)False

Question 8

Vicarious liability is liability with fault.

Accepted Answer

A) True 
 B)False

Question 9

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.

Accepted Answer

A) work-related 
B) motivation 
C) promotional 
D) dual agency 
A) work-related 
B) motivation 
C) promotional 
D) dual agency

Question 10

The principal is liable for the innocent misrepresentation made by an agent acting within the scope of employment.

Accepted Answer

A) True 
 B)False

Question 11

Dual agency is permitted if all parties to a transaction agree to it.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

In which of the following cases is a motivation test used to establish the employee's motive?

Accepted Answer

A) An employee commits a tort to promote the principal's business, outside work premises. 
B) An employee commits an intentional tort against another employee at work premises. 
C) An employee commits an unintentional tort that helps promote the principal's business. 
D) An employee assaults another employee due to personal reasons. 
A) An employee commits a tort to promote the principal's business, outside work premises. 
B) An employee commits an intentional tort against another employee at work premises. 
C) An employee commits an unintentional tort that helps promote the principal's business. 
D) An employee assaults another employee due to personal reasons.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is true of dual agency?

Accepted Answer

A) An undisclosed dual agent is allowed to retain compensations of the transaction provided he or she discontinues the dual agency. 
B) Examples of dual agents are finders and middlemen. 
C) Dual agency is permitted if all parties in the transaction agree to it. 
D) Dual agency is permitted as long the interests of both principals are similar. 
A) An undisclosed dual agent is allowed to retain compensations of the transaction provided he or she discontinues the dual agency. 
B) Examples of dual agents are finders and middlemen. 
C) Dual agency is permitted if all parties in the transaction agree to it. 
D) Dual agency is permitted as long the interests of both principals are similar.

Question 16

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.

Accepted Answer

A) True 
 B)False

Question 17

If a casting agent works for two Hollywood actors, the agent is liable for ________.

Accepted Answer

A) dual agency 
B) competing with the principal 
C) usurping an opportunity 
D) self-dealing 
A) dual agency 
B) competing with the principal 
C) usurping an opportunity 
D) self-dealing

Question 18

Which of the following is true of an undisclosed agency?

Accepted Answer

A) The third party has no knowledge of the agency. 
B) The third party knows the agent, not the principal. 
C) All transactions with the third party are made by the principal without involving the agent. 
D) Transactions under such an agency are considered unlawful. 
A) The third party has no knowledge of the agency. 
B) The third party knows the agent, not the principal. 
C) All transactions with the third party are made by the principal without involving the agent. 
D) Transactions under such an agency are considered unlawful.

Question 19

The party that employs an independent contractor is called an agent.

Accepted Answer

A) True 
 B)False

Question 20

Does an agent competing with the principal breach his or her duty of loyalty? What is the course of action for the principal in such a case?

Accepted Answer

Agents are prohibited from competing wit

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

The work-related test puts liability on the employee if the intentional torn is committed within work-related time and space.

The principal is liable for all torts of independent contractors.

Middlemen and finders are not considered dual agents.

Which of the following is considered an intentional tort?

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

A partially disclosed agency can be created by mistake.

Vicarious liability is liability with fault.

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.

The principal is liable for the innocent misrepresentation made by an agent acting within the scope of employment.

Dual agency is permitted if all parties to a transaction agree to it.

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

In which of the following cases is a motivation test used to establish the employee's motive?

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

Which of the following is true of dual agency?

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.

If a casting agent works for two Hollywood actors, the agent is liable for ________.

Which of the following is true of an undisclosed agency?

The party that employs an independent contractor is called an agent.

Does an agent competing with the principal breach his or her duty of loyalty? What is the course of action for the principal in such a case?

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

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