Question 1

If an agent's motivation in committing an intentional tort is personal,the principal is not liable,even if the tort takes place during business hours or on business premises.

Accepted Answer

A) True 
 B)False

Question 2

Independent contractors are personally liable for their own torts.

Accepted Answer

A) True 
 B)False

Question 3

A(n)________ is a fiduciary relationship which results from the manifestation of consent by one person to another that the other shall act in his behalf and subject to his control,and consent by the other so to act.

Accepted Answer

A)  assignment 
B)  garnishment 
C)  accommodation 
D)  agency 
A)  assignment 
B)  garnishment 
C)  accommodation 
D)  agency

Question 4

A principal is not liable for the intentional and innocent misrepresentations made by an agent acting within the scope of employment.

Accepted Answer

A) True 
 B)False

Question 5

Principals cannot avoid liability for inherently dangerous activities that they assign to independent contractors.

Accepted Answer

A) True 
 B)False

Question 6

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.Which of the following roles does ReNowait Goodhouses perform?

Accepted Answer

A)  agent 
B)  independent contractor 
C)  principal 
D)  trustee 
A)  agent 
B)  independent contractor 
C)  principal 
D)  trustee

Question 7

Marlon intends to sell a piece of real estate he owns and contracts Nita,a real estate broker,to make the sale.In the contract,Marlon authorizes Nita to make the sale at or above a minimum price he wants and the date by which he wants the sale to be completed.The contract also stipulates that Marlon should not hire another broker to sell that piece of land until the expiry of the contract period.Nita finds a suitable buyer,makes the sale in time,and is paid by Marlon for her services.What kind of contract existed between Marlon and Nita?

Accepted Answer

A)  an apparent agency contract 
B)  a ratified contract 
C)  an exclusive agency contract 
D)  an exclusive principal contract 
A)  an apparent agency contract 
B)  a ratified contract 
C)  an exclusive agency contract 
D)  an exclusive principal contract

Question 8

An agency that occurs when a principal and an agent do not expressly create an agency,but is inferred from the conduct of the parties is known as ________.

Accepted Answer

A)  apparent agency 
B)  agency by ratification 
C)  implied agency 
D)  agency coupled with an interest 
A)  apparent agency 
B)  agency by ratification 
C)  implied agency 
D)  agency coupled with an interest

Question 9

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.Which of the following commercial relationship exists between Martin and William?

Accepted Answer

A)  employer-employee relationship 
B)  agent-agent relationship 
C)  agent-independent contractor relationship 
D)  principal-agent relationship 
A)  employer-employee relationship 
B)  agent-agent relationship 
C)  agent-independent contractor relationship 
D)  principal-agent relationship

Question 10

In a fully disclosed agency,an agent is fully liable on the contract with the third party.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements is true of an apparent agency?

Accepted Answer

A)  The authority of an apparent agent is implied from the conduct of the parties. 
B)  The principal is bound to the contracts entered into by an apparent agent. 
C)  The third-party is not bound to a contract created by an apparent agent. 
D)  The actions of an apparent agent create an apparent agency. 
A)  The authority of an apparent agent is implied from the conduct of the parties. 
B)  The principal is bound to the contracts entered into by an apparent agent. 
C)  The third-party is not bound to a contract created by an apparent agent. 
D)  The actions of an apparent agent create an apparent agency.

Question 12

Canton has listed his house for sale,but cannot be present to take care of the sale as he needs to go out of town.He intends to give his brother,Stratham,the power of attorney to just make decisions regarding selling of his house while he is gone.What kind of power of attorney should Canton execute?

Accepted Answer

A)  a general power of attorney 
B)  a special power of attorney 
C)  a universal power of attorney 
D)  an implied power of attorney 
A)  a general power of attorney 
B)  a special power of attorney 
C)  a universal power of attorney 
D)  an implied power of attorney

Question 13

Which of the following types of relationship exists when a person hires another person to perform some form of physical service but does not authorize that person to enter into contracts on behalf his or her behalf?

Accepted Answer

A)  employer-employee relationship 
B)  employer-agent relationship 
C)  principal-third party relationship 
D)  principal-agent relationship 
A)  employer-employee relationship 
B)  employer-agent relationship 
C)  principal-third party relationship 
D)  principal-agent relationship

Question 14

________ is a rule that says an employer is liable for the tortious conduct of its employees or agents while they are acting within the scope of the employer's authority.

Accepted Answer

A)  Restatement 
B)  Vicious rule 
C)  Respondeat superior 
D)  Coming and going rule 
A)  Restatement 
B)  Vicious rule 
C)  Respondeat superior 
D)  Coming and going rule

Question 15

A duty that a principal owes to pay an agreed-upon amount to the agent either upon the completion of the agency or at some other mutually agreeable time is known as a principal's ________.

Accepted Answer

A)  duty to reimburse 
B)  duty to cooperate 
C)  duty to indemnify 
D)  duty to compensate 
A)  duty to reimburse 
B)  duty to cooperate 
C)  duty to indemnify 
D)  duty to compensate

Question 16

An express agency agreement that is often used to give an agent the control to sign legal documents on behalf of the principal is known as a(n)________.

Accepted Answer

A)  assignment 
B)  accommodation 
C)  power of attorney 
D)  letter of credit 
A)  assignment 
B)  accommodation 
C)  power of attorney 
D)  letter of credit

Question 17

Which of the following statements is true about a notice of termination?

Accepted Answer

A)  A principal is under an obligation to give a notice of termination to strangers who have no knowledge of the agency. 
B)  Constructive notice is valid against strangers who assert claims of apparent agency. 
C)  Constructive notice of termination has to be provided to all persons with whom the agent dealt. 
D)  Direct notice of termination has to be provided to any third party who has knowledge of the agency but with whom the agent has not dealt. 
A)  A principal is under an obligation to give a notice of termination to strangers who have no knowledge of the agency. 
B)  Constructive notice is valid against strangers who assert claims of apparent agency. 
C)  Constructive notice of termination has to be provided to all persons with whom the agent dealt. 
D)  Direct notice of termination has to be provided to any third party who has knowledge of the agency but with whom the agent has not dealt.

Question 18

Which of the following statements is true of an employer-employee relationship?

Accepted Answer

A)  An employee has implied power of attorney towards the principal. 
B)  An employee has authority to act on behalf of the principal. 
C)  An employee can enter into contracts on behalf of the employer. 
D)  An employee is hired to perform a task or service. 
A)  An employee has implied power of attorney towards the principal. 
B)  An employee has authority to act on behalf of the principal. 
C)  An employee can enter into contracts on behalf of the employer. 
D)  An employee is hired to perform a task or service.

Question 19

Compare and contrast the termination of an agency by impossibility of performance and termination of an agency by operation of law.

Accepted Answer

An agency relationship terminates if a s

Question 20

How is an agency formed? Discuss why an express agency is considered to be the most common form of agency.

Accepted Answer

An agency and the resulting authority of

Exam 25: Agency law

If an agent's motivation in committing an intentional tort is personal,the principal is not liable,even if the tort takes place during business hours or on business premises.

Independent contractors are personally liable for their own torts.

A(n)________ is a fiduciary relationship which results from the manifestation of consent by one person to another that the other shall act in his behalf and subject to his control,and consent by the other so to act.

A principal is not liable for the intentional and innocent misrepresentations made by an agent acting within the scope of employment.

Principals cannot avoid liability for inherently dangerous activities that they assign to independent contractors.

An agency that occurs when a principal and an agent do not expressly create an agency,but is inferred from the conduct of the parties is known as ________.

In a fully disclosed agency,an agent is fully liable on the contract with the third party.

Which of the following statements is true of an apparent agency?

Which of the following types of relationship exists when a person hires another person to perform some form of physical service but does not authorize that person to enter into contracts on behalf his or her behalf?

________ is a rule that says an employer is liable for the tortious conduct of its employees or agents while they are acting within the scope of the employer's authority.

A duty that a principal owes to pay an agreed-upon amount to the agent either upon the completion of the agency or at some other mutually agreeable time is known as a principal's ________.

An express agency agreement that is often used to give an agent the control to sign legal documents on behalf of the principal is known as a(n)________.

Which of the following statements is true about a notice of termination?

Which of the following statements is true of an employer-employee relationship?

Compare and contrast the termination of an agency by impossibility of performance and termination of an agency by operation of law.

How is an agency formed? Discuss why an express agency is considered to be the most common form of agency.

Legal Heritage and the Digital Age

Constitutional Law for Business and E-commerce

Courts and Jurisdiction

Judicial Alternative Administrative and E-Dispute Resolution

Intentional Torts and Negligence

Criminal Law and Cyber Crimes

Intellectual Property and Cyber Piracy

Ethics and Social Responsibility of Business

Nature of Traditional and E-Contracts

Agreement and Consideration

Capacity and Legality

Genuineness of Assent and Statute of Frauds

Third-Party Rights and Discharge

Breach of Contract and Remedies

Digital Law and E-Commerce

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties and Product Liability

Creation and Transfer of Negotiable Instruments

Holder in Due Course and Liability of Parties

Banking System and Electronic Financial Transactions

Credit, Real Property Financing, and Secured Transactions

Bankruptcy and Reorganization

Small Business, Entrepreneurship, and Partnerships

Corporate Formation and Financing

Corporate Governance and the Sarbanes-Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Companies and Limited Liability Partnerships

Franchise and Special Forms of Business

Investor Protection, E-Securities, and Wall Street Reform

Antitrust Law and Unfair Trade Practices

Consumer Safety and Environmental Protection

Labor, Worker Protection, and Immigration Laws

Equal Opportunity in Employment

Personal Property, Bailment, and Insurance

Real Property, Landlord-Tenant Law, and Land Use Regulation

Family Law, Wills, and Trusts

Accountants' Duties and Liability

International and World Trade Law

Filters