Question 1

Unless otherwise agreed upon,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 2

Which of the following statements best defines a partially disclosed agency?

Accepted Answer

A)  It refers to an agency in which a contracting third party does not know of either the existence of the agency or the principal's identity. 
B)  It refers to an agency in which a contracting third party knows that the agent is acting for a principal but does not know the identity of the principal. 
C)  It refers to an agency in which a contracting third party does not know the identity of the principal. 
D)  It refers to an agency in which a contracting third party knows that the agent is acting for a principal. 
A)  It refers to an agency in which a contracting third party does not know of either the existence of the agency or the principal's identity. 
B)  It refers to an agency in which a contracting third party knows that the agent is acting for a principal but does not know the identity of the principal. 
C)  It refers to an agency in which a contracting third party does not know the identity of the principal. 
D)  It refers to an agency in which a contracting third party knows that the agent is acting for a principal.

Question 3

The agent's liability under the going and coming rule is based on the logic that principals do not control where their agents and employees live.

Accepted Answer

A) True 
 B)False

Question 4

________ occur when an agent makes statements that he or she knows are not true.

Accepted Answer

A)  Intentional misrepresentations 
B)  Innocent misrepresentations 
C)  Negligent misrepresentations 
D)  Frolic misrepresentations 
A)  Intentional misrepresentations 
B)  Innocent misrepresentations 
C)  Negligent misrepresentations 
D)  Frolic misrepresentations

Question 5

It is the agent's actions,not the principal's actions,which create an apparent agency.

Accepted Answer

A) True 
 B)False

Question 6

Agents are always personally liable for their tortious conduct in situations involving frolic and detour.

Accepted Answer

A) True 
 B)False

Question 7

Discuss the importance of providing a notice of termination for an agency.

Accepted Answer

The termination of an agency extinguishe

Question 8

If a person employs an architect to design the layout of his or her own home,it would constitute a(n)________ relationship.

Accepted Answer

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

Question 9

Principals are bound by authorized or unauthorized contracts made by their independent contractors.

Accepted Answer

A) True 
 B)False

Question 10

Why is an agent not liable to the contracting party in a fully disclosed agency? Discuss the significance of an agent's signature.

Accepted Answer

A fully disclosed agency results if a th

Question 11

Why is a principal not liable for injuries caused by its agents and employees while they are on their way to or from work? Discuss with an example.

Accepted Answer

Under the common law,a principal is gene

Question 12

________ is a situation that occurs when a principal requests an employee or agent to run an errand or do another act for the principal while the agent is on his or her own personal business.

Accepted Answer

A)  Coming and going rule 
B)  Frolic and detour 
C)  Vicarious mission 
D)  Dual-purpose mission 
A)  Coming and going rule 
B)  Frolic and detour 
C)  Vicarious mission 
D)  Dual-purpose mission

Question 13

Taylor gives a power of attorney to his twin brother Corey,permitting Corey to make all decisions on his behalf while he is abroad.As per the terms of the power of attorney,Corey is allowed make decisions to purchase or sell stocks on Taylor's behalf,sell Taylor's real estate if he deems it to be in Taylor's best interest,pursue or defend lawsuits on Taylor's behalf,and make all other relevant decisions for Taylor.Which of the following is a kind of power of attorney that would confer such powers to Corey?

Accepted Answer

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

Question 14

Which of the following statements best describes an agent's duty of loyalty?

Accepted Answer

A)  It refers to a fiduciary duty an agent owes not to act adversely to the interests of the principal. 
B)  It refers to a duty that an agent has to maintain an accurate accounting of all transactions undertaken on the principal's behalf. 
C)  It refers to a duty that an agent owes to notify the principal of important information concerning the agency. 
D)  It refers to a duty that an agent owes to meet the standards of reasonable care, skill, and diligence implicit in all contracts. 
A)  It refers to a fiduciary duty an agent owes not to act adversely to the interests of the principal. 
B)  It refers to a duty that an agent has to maintain an accurate accounting of all transactions undertaken on the principal's behalf. 
C)  It refers to a duty that an agent owes to notify the principal of important information concerning the agency. 
D)  It refers to a duty that an agent owes to meet the standards of reasonable care, skill, and diligence implicit in all contracts.

Question 15

An agency that occurs when a principal and an agent categorically agree to enter into an agency agreement with each other is known as an ________.

Accepted Answer

A)  agency by ratification 
B)  implied agency 
C)  apparent agency 
D)  express agency 
A)  agency by ratification 
B)  implied agency 
C)  apparent agency 
D)  express agency

Question 16

The principal is not liable for tortious conduct of its employees committed while acting within the scope of their employment as the employee may not have contracting authority.

Accepted Answer

A) True 
 B)False

Question 17

The crucial factor in determining whether someone is an independent contractor or an employee is the ________.

Accepted Answer

A)  amount of time the worker has been associated with the principal 
B)  degree of control the principal has over the worker 
C)  degree of skill necessary to complete the assigned task 
D)  job title the principal assigns to the worker 
A)  amount of time the worker has been associated with the principal 
B)  degree of control the principal has over the worker 
C)  degree of skill necessary to complete the assigned task 
D)  job title the principal assigns to the worker

Question 18

Which of the following is a similarity between a partially disclosed and an undisclosed agency?

Accepted Answer

A)  The principal and the agent are jointly liable to the third party. 
B)  The principal's identity is disclosed to the third party. 
C)  The agent's identity is disclosed to the third party. 
D)  The method of payment by the third party is the same. 
A)  The principal and the agent are jointly liable to the third party. 
B)  The principal's identity is disclosed to the third party. 
C)  The agent's identity is disclosed to the third party. 
D)  The method of payment by the third party is the same.

Question 19

Why are principals liable for the torts committed by agents when they are acting within the scope of their employment? Discuss with an example.

Accepted Answer

Principals are liable for the negligent

Question 20

Agency relationships are formed by the mutual consent of a principal and an agent.

Accepted Answer

A) True 
 B)False

Exam 25: Agency law

Unless otherwise agreed upon,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.

Which of the following statements best defines a partially disclosed agency?

The agent's liability under the going and coming rule is based on the logic that principals do not control where their agents and employees live.

________ occur when an agent makes statements that he or she knows are not true.

It is the agent's actions,not the principal's actions,which create an apparent agency.

Agents are always personally liable for their tortious conduct in situations involving frolic and detour.

Discuss the importance of providing a notice of termination for an agency.

If a person employs an architect to design the layout of his or her own home,it would constitute a(n)________ relationship.

Principals are bound by authorized or unauthorized contracts made by their independent contractors.

Why is an agent not liable to the contracting party in a fully disclosed agency? Discuss the significance of an agent's signature.

Why is a principal not liable for injuries caused by its agents and employees while they are on their way to or from work? Discuss with an example.

________ is a situation that occurs when a principal requests an employee or agent to run an errand or do another act for the principal while the agent is on his or her own personal business.

Which of the following statements best describes an agent's duty of loyalty?

An agency that occurs when a principal and an agent categorically agree to enter into an agency agreement with each other is known as an ________.

The principal is not liable for tortious conduct of its employees committed while acting within the scope of their employment as the employee may not have contracting authority.

The crucial factor in determining whether someone is an independent contractor or an employee is the ________.

Which of the following is a similarity between a partially disclosed and an undisclosed agency?

Why are principals liable for the torts committed by agents when they are acting within the scope of their employment? Discuss with an example.

Agency relationships are formed by the mutual consent of a principal and an agent.

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