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

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?

In an undisclosed agency, the principal is solely liable on the contract with the third party.

A ________ is a deceit in which an agent makes an untrue statement that he or she knows is not true.

The principal is liable for the tortious conduct of an agent who is acting within the scope of his or her authority.

An agent is liable for the tortious conduct of the principal if he or she has knowledge of the principal's conduct.

The agent is compulsorily liable for any intentional or innocent misrepresentation made by the principal in a transaction.

In a partially disclosed agency, the contracting third party transacts directly with the principal and does not know the identity of the agent.

Describe the operation of a fully disclosed agency.

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?

Under the ________ test, the principal is liable for any intentional torts committed by an agent during working hours on the principal's premises.

An employee motivated by jealousy injures a colleague who dated her boyfriend, on work premises and during work hours.Based on the ________ test, the principal is liable.

An actor asks an agent to place an order for a couch on the agent's way back to work.This is an instance of ________.

Dan asks his agent Jude to drop off some medicines at his mother's house.On his way back, Jude decides to have lunch at a diner two blocks away from his workplace.While walking back to work, he jaywalks at a green signal on the road, causing a motorcyclist to hit the kerb and injure himself while attempting to avoid hitting Jude.Under the concept of ________, Dan is liable for the injuries caused to the motorcyclist.

In a fully disclosed agency, an agent is not liable on the contract if he or she guarantees that the principal will perform the contract.

Which of the following is true of misrepresentation?

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.

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

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 ________.

Which of the following statements is true of an agent taking an opportunity?

Dual agency occurs when an agent acts for two or more different principals in the same transaction.