Question 1

The loss or destruction of the subject matter of the agency will result in the termination of an agency by ________.

Accepted Answer

A)  operation of law 
B)  an act of the parties 
C)  unusual change in circumstances 
D)  impossibility of performance 
A)  operation of law 
B)  an act of the parties 
C)  unusual change in circumstances 
D)  impossibility of performance

Question 2

Which of the following statements is true of a principal-independent contractor relationship?

Accepted Answer

A)  Principals are bound by the authorized contracts of their independent contractors. 
B)  Independent contractors cannot be authorized by principals. 
C)  Independent contractors are employees of the principals. 
D)  Principals cannot directly employ independent contractors. 
A)  Principals are bound by the authorized contracts of their independent contractors. 
B)  Independent contractors cannot be authorized by principals. 
C)  Independent contractors are employees of the principals. 
D)  Principals cannot directly employ independent contractors.

Question 3

Which of the following statements best describe an agency by estoppel?

Accepted Answer

A)  It refers to an agency that arises when a principal ratifies a contract created by an unauthorized agent. 
B)  It refers to an agency created when a principal and an agent expressly agree to enter into an agency agreement. 
C)  It refers to an agency that is not expressly stated but is implied and inferred in the conduct of the parties. 
D)  It refers to an agency that arises when a principal creates the appearance of an agency that in actuality does not exist. 
A)  It refers to an agency that arises when a principal ratifies a contract created by an unauthorized agent. 
B)  It refers to an agency created when a principal and an agent expressly agree to enter into an agency agreement. 
C)  It refers to an agency that is not expressly stated but is implied and inferred in the conduct of the parties. 
D)  It refers to an agency that arises when a principal creates the appearance of an agency that in actuality does not exist.

Question 4

Termination of an agency by ________ is a situation where the parties to an agency contract terminate their contract by mutual agreement or when a previously agreed upon event occurs.

Accepted Answer

A)  an act of the parties 
B)  an unusual change in circumstances 
C)  impossibility of performance 
D)  operation of law 
A)  an act of the parties 
B)  an unusual change in circumstances 
C)  impossibility of performance 
D)  operation of law

Question 5

Labeling someone an independent contractor is only one factor in determining whether independent contractor status exists.

Accepted Answer

A) True 
 B)False

Question 6

In a vicarious liability,a principal is liable owing to his or her employment contract with the negligent agent because the principal was personally at fault.

Accepted Answer

A) True 
 B)False

Question 7

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.Who among the following perform the role of the agent in this land sale transaction?

Accepted Answer

A)  Wilhelm 
B)  Martin 
C)  Chris 
D)  George 
A)  Wilhelm 
B)  Martin 
C)  Chris 
D)  George

Question 8

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

Accepted Answer

A)  The agency involved is allowed to have multiple agents if necessary. 
B)  The agency is implied from the conduct of the parties. 
C)  The agency comes to effect when the principal ratifies an unauthorized act. 
D)  The agency arises when a principal creates the appearance of an agency that does not exist. 
A)  The agency involved is allowed to have multiple agents if necessary. 
B)  The agency is implied from the conduct of the parties. 
C)  The agency comes to effect when the principal ratifies an unauthorized act. 
D)  The agency arises when a principal creates the appearance of an agency that does not exist.

Question 9

In a partially disclosed agency,if the agent is made to pay the contract,the agent can sue the principal for indemnification.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following qualifies as termination of an agency by impossibility of performance?

Accepted Answer

A)  the loss of a required qualification 
B)  the bankruptcy of the principal 
C)  the insanity of either the principal or the agent 
D)  the conviction of either the principal or the agent 
A)  the loss of a required qualification 
B)  the bankruptcy of the principal 
C)  the insanity of either the principal or the agent 
D)  the conviction of either the principal or the agent

Question 11

Analyze a principal's duties toward an agent.

Accepted Answer

The principal owes certain duties to an

Question 12

Which of the following statements is true of a general power of attorney?

Accepted Answer

A)  A power of attorney can be oral. 
B)  Only lawyers can be agents of a power of attorney. 
C)  A power of attorney cannot be claimed once the principal is incapacitated. 
D)  It allows the agent to sign legal documents on the principal's behalf. 
A)  A power of attorney can be oral. 
B)  Only lawyers can be agents of a power of attorney. 
C)  A power of attorney cannot be claimed once the principal is incapacitated. 
D)  It allows the agent to sign legal documents on the principal's behalf.

Question 13

Ronald,the purchasing manager of Tellys Supermarket in Georgia,was asked to buy an order of the latest videogame console,FunCase,to keep in the supermarket.However,due to a truckers' strike,he had to make a trip to the FunCase warehouse,which was in Florida.Ronald paid for the trip himself,went to the warehouse,procured the shipment,and returned.After he got back,Tellys Supermarket paid Ronald for the trip he made to Florida.Which of the following duties of the principal did Tellys Supermarket perform here when they paid Ronald for the trip to Florida?

Accepted Answer

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

Question 14

The termination of an agency contract in violation of the terms of the agency contract is referred to as ________.

Accepted Answer

A)  termination by an unusual change in circumstances 
B)  termination by impossibility of performance 
C)  termination by operation of law 
D)  wrongful termination 
A)  termination by an unusual change in circumstances 
B)  termination by impossibility of performance 
C)  termination by operation of law 
D)  wrongful termination

Question 15

Keith appoints Peter,a real estate agent,to sell his house for him,but Peter's real estate agency license is revoked before he can sell Keith's house.This would result in the agency being ________.

Accepted Answer

A)  terminated by an unusual change in circumstances 
B)  terminated by impossibility of performance 
C)  terminated by operation of law 
D)  wrongfully terminated 
A)  terminated by an unusual change in circumstances 
B)  terminated by impossibility of performance 
C)  terminated by operation of law 
D)  wrongfully terminated

Question 16

Undisclosed agencies are usually considered unlawful.

Accepted Answer

A) True 
 B)False

Question 17

A party who employs another person to act on his or her behalf is known as a(n)________.

Accepted Answer

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

Question 18

An agency by ratification occurs when the principal ________.

Accepted Answer

A)  accepts an unauthorized act created by an unauthorized agent 
B)  accepts an authorized act created by an authorized agent 
C)  creates the appearance of an agency that in actuality does not exist 
D)  accepts an act carried out under the implied authority of an agent 
A)  accepts an unauthorized act created by an unauthorized agent 
B)  accepts an authorized act created by an authorized agent 
C)  creates the appearance of an agency that in actuality does not exist 
D)  accepts an act carried out under the implied authority of an agent

Question 19

Principals are not bound by the authorized contracts of their independent contractors.

Accepted Answer

A) True 
 B)False

Question 20

Analyze the duties that an agent owes to a principal.

Accepted Answer

The agent owes certain duties to a princ

Exam 25: Agency law

The loss or destruction of the subject matter of the agency will result in the termination of an agency by ________.

Which of the following statements is true of a principal-independent contractor relationship?

Which of the following statements best describe an agency by estoppel?

Termination of an agency by ________ is a situation where the parties to an agency contract terminate their contract by mutual agreement or when a previously agreed upon event occurs.

Labeling someone an independent contractor is only one factor in determining whether independent contractor status exists.

In a vicarious liability,a principal is liable owing to his or her employment contract with the negligent agent because the principal was personally at fault.

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

In a partially disclosed agency,if the agent is made to pay the contract,the agent can sue the principal for indemnification.

Which of the following qualifies as termination of an agency by impossibility of performance?

Analyze a principal's duties toward an agent.

Which of the following statements is true of a general power of attorney?

The termination of an agency contract in violation of the terms of the agency contract is referred to as ________.

Keith appoints Peter,a real estate agent,to sell his house for him,but Peter's real estate agency license is revoked before he can sell Keith's house.This would result in the agency being ________.

Undisclosed agencies are usually considered unlawful.

A party who employs another person to act on his or her behalf is known as a(n)________.

An agency by ratification occurs when the principal ________.

Principals are not bound by the authorized contracts of their independent contractors.

Analyze the duties that an agent owes to a principal.

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