Question 1

Under the duty of ____________ an agent has a duty to act solely for the benefit of his or her principal in all matters directly connected with the agency undertaking.

Accepted Answer

A)  loyalty 
B)  subservience 
C)  trust 
D)  obedience 
A)  loyalty 
B)  subservience 
C)  trust 
D)  obedience A

Question 2

Leased workers are precluded from being considered employees of the company for which they are doing work because they are on the payroll of an employment agency.

Accepted Answer

A) True 
 B)False  False

Question 3

The term "customary authority" refers to authority that agents must have by law.

Accepted Answer

A) True 
 B)False  False

Question 4

An ________ occurs if a principal approves or accepts the benefits of the actions of an otherwise unauthorized agent.

Accepted Answer

A)  agency by ratification 
B)  agency by estoppel 
C)  agency by independent action 
D)  agency by intervention 
A)  agency by ratification 
B)  agency by estoppel 
C)  agency by independent action 
D)  agency by intervention

Question 5

Carl is a contractor that is building a home for Orel.Pam is one of Orel's neighbors.One day Pam was walking in the neighborhood.As she passed the construction site,a piece of lumber fell from the partially finished garage roof and hit her in the head,injuring her severely.The lumber was left negligently on the roof by Carl.Pam now wishes to sue Orel.Should Orel be held liable to Pam? Discuss.

Accepted Answer

Carl would likely be considered an indep

Question 6

Which of the following is true?

Accepted Answer

A)  A principal cannot be bound on contracts made by an agent if the principal's identity is not disclosed to the third party. 
B)  A principal cannot through ratification be bound on contracts made by an agent. 
C)  A principal can be bound on contracts made by an agent even if the principal's identity is not disclosed to the third party. 
D)  A principal cannot through ratification be bound on contracts made by an agent, but a principal can be bound on contracts made by an agent even if the principal's identity is not disclosed to the third party. 
A)  A principal cannot be bound on contracts made by an agent if the principal's identity is not disclosed to the third party. 
B)  A principal cannot through ratification be bound on contracts made by an agent. 
C)  A principal can be bound on contracts made by an agent even if the principal's identity is not disclosed to the third party. 
D)  A principal cannot through ratification be bound on contracts made by an agent, but a principal can be bound on contracts made by an agent even if the principal's identity is not disclosed to the third party.

Question 7

Fact Pattern 5-1
Candy owns a nail and hair salon. She reaches an agreement with Todd, an independent contractor, allowing him to do nails in her salon three days per week. Todd has a sign on his desk informing his customers that he is an independent contractor of the shop. After working for a month, Todd asks Candy if she has been paying appropriate social security taxes for him. He also informs Candy that Phyllis, a customer, is preparing to sue both Todd and Candy based upon a nasty nail fungus she developed after having her nails done by Todd.
-Refer to fact pattern 5-1. Which of the following is true regarding legal responsibility to Phyllis assuming negligence on the part of Todd can be established?

Accepted Answer

A)  Both Candy and Todd are responsible to Phyllis with Candy being primarily responsible meaning that if Todd pays then he can recover any payments from Candy. 
B)  Both Candy and Todd are responsible to Phyllis with Todd being primarily responsible meaning that if Candy pays then she can recover any payments from Todd. 
C)  Candy owes 50% of any payments due Phyllis, and Todd owes 50%; but neither Candy nor Todd can recover against the other. 
D)  Candy does not owe Phyllis any amounts. 
A)  Both Candy and Todd are responsible to Phyllis with Candy being primarily responsible meaning that if Todd pays then he can recover any payments from Candy. 
B)  Both Candy and Todd are responsible to Phyllis with Todd being primarily responsible meaning that if Candy pays then she can recover any payments from Todd. 
C)  Candy owes 50% of any payments due Phyllis, and Todd owes 50%; but neither Candy nor Todd can recover against the other. 
D)  Candy does not owe Phyllis any amounts.

Question 8

Apparent authority may be based on which of the following?

Accepted Answer

A)  Only words of the principal or acts of the principal. 
B)  Only words of the principal or knowledge that the principal has allowed its agent to engage in certain activities on its behalf over an extended period of time. 
C)  Words of the principal, acts of the principal, or knowledge that the principal has allowed its agent to engage in certain activities on its behalf over an extended period of time. 
D)  Express contractual authority only. 
A)  Only words of the principal or acts of the principal. 
B)  Only words of the principal or knowledge that the principal has allowed its agent to engage in certain activities on its behalf over an extended period of time. 
C)  Words of the principal, acts of the principal, or knowledge that the principal has allowed its agent to engage in certain activities on its behalf over an extended period of time. 
D)  Express contractual authority only.

Question 9

Implied ratification of an agent's unauthorized acts can occur through the silence of the principal.

Accepted Answer

A) True 
 B)False

Question 10

The term "usual authority" refers to the authority that an agent has been allowed to exercise in the past.

Accepted Answer

A) True 
 B)False

Question 11

An undisclosed principal will be bound by any contract the agent enters into with actual authority.

Accepted Answer

A) True 
 B)False

Question 12

Unless state law is to the contrary,an agent may lawfully conceal ________ of the principal.

Accepted Answer

A)  the existence 
B)  the identity 
C)  the existence and identity 
D)  nothing regarding 
A)  the existence 
B)  the identity 
C)  the existence and identity 
D)  nothing regarding

Question 13

The respondeat superior doctrine typically applies to the actions of independent contractors.

Accepted Answer

A) True 
 B)False

Question 14

In all cases,an agency agreement must be written in order to be enforceable.

Accepted Answer

A) True 
 B)False

Question 15

Fact Pattern 5-1
Candy owns a nail and hair salon. She reaches an agreement with Todd, an independent contractor, allowing him to do nails in her salon three days per week. Todd has a sign on his desk informing his customers that he is an independent contractor of the shop. After working for a month, Todd asks Candy if she has been paying appropriate social security taxes for him. He also informs Candy that Phyllis, a customer, is preparing to sue both Todd and Candy based upon a nasty nail fungus she developed after having her nails done by Todd.
-Refer to fact pattern 5-1. Which of the following is true regarding the duty of Candy,if any,to pay social security taxes for Todd?

Accepted Answer

A)  Candy must pay all of Todd's social security taxes. 
B)  Candy is responsible for 50% of Todd's social security taxes, and he is responsible for 50%. 
C)  Candy is responsible for all of Todd's social security taxes only if he works at least 30 hours per week; otherwise, Todd is responsible for all of the taxes. 
D)  Candy is not responsible for any of Todd's social security taxes. 
A)  Candy must pay all of Todd's social security taxes. 
B)  Candy is responsible for 50% of Todd's social security taxes, and he is responsible for 50%. 
C)  Candy is responsible for all of Todd's social security taxes only if he works at least 30 hours per week; otherwise, Todd is responsible for all of the taxes. 
D)  Candy is not responsible for any of Todd's social security taxes.

Question 16

Which of the following was the result in O'Shea v.Welch,the case in the text involving whether an employee was acting within the scope of his employment when,while driving to deliver a vendor's gift (football tickets)to his employer's office,he turned into a service station to obtain an estimate regarding nonemergency maintenance on his car?

Accepted Answer

A)  The court found that as a matter of law the employee was not acting within the scope of his employment because he was involved in a frolic of his own. 
B)  The court found that as a matter of law the employee was not acting within the scope of his employment because he was involved in a detour. 
C)  The court found that as a matter of law the employee was acting within the scope of his 	 employment because he was involved in only a detour, not a frolic on his own. 
D)  The court found that the jury should determine whether the employee was acting within the scope of his employment during the time period at issue. 
A)  The court found that as a matter of law the employee was not acting within the scope of his employment because he was involved in a frolic of his own. 
B)  The court found that as a matter of law the employee was not acting within the scope of his employment because he was involved in a detour. 
C)  The court found that as a matter of law the employee was acting within the scope of his 	 employment because he was involved in only a detour, not a frolic on his own. 
D)  The court found that the jury should determine whether the employee was acting within the scope of his employment during the time period at issue.

Question 17

Which of the following is not a duty of an agent to a principal?

Accepted Answer

A)  Loyalty 
B)  Due care 
C)  Maximizing profits 
D)  Obedience 
A)  Loyalty 
B)  Due care 
C)  Maximizing profits 
D)  Obedience

Question 18

What is the meaning of the term "respondeat superior"?

Accepted Answer

A)  Let the master answer 
B)  Let the servant respond 
C)  Let both the master and servant respond 
D)  The agreement must be in writing 
A)  Let the master answer 
B)  Let the servant respond 
C)  Let both the master and servant respond 
D)  The agreement must be in writing

Question 19

As referenced in the case in the text involving Hewlett-Packard in the text,what is "pretexting"?

Accepted Answer

A)  A practice whereby a person pretends to be someone else, typically over the telephone, in order to obtain information. 
B)  A practice whereby a person pretends to be someone else, typically through a personal visit, in order to obtain information. 
C)  A practice whereby a person induces someone, often an elderly person, to sign a contract purchasing unneeded services. 
D)  A practice whereby a person induces someone, often an elderly person, to sign a contract purchasing unneeded goods. 
A)  A practice whereby a person pretends to be someone else, typically over the telephone, in order to obtain information. 
B)  A practice whereby a person pretends to be someone else, typically through a personal visit, in order to obtain information. 
C)  A practice whereby a person induces someone, often an elderly person, to sign a contract purchasing unneeded services. 
D)  A practice whereby a person induces someone, often an elderly person, to sign a contract purchasing unneeded goods.

Question 20

Which of the following are autonomous computer programs that can be dispatched by the user to execute certain tasks?

Accepted Answer

A)  Electronic agents 
B)  Software identifiers 
C)  Click programs 
D)  Fortran identifiers 
A)  Electronic agents 
B)  Software identifiers 
C)  Click programs 
D)  Fortran identifiers

Under the duty of ____________ an agent has a duty to act solely for the benefit of his or her principal in all matters directly connected with the agency undertaking.

Leased workers are precluded from being considered employees of the company for which they are doing work because they are on the payroll of an employment agency.

The term "customary authority" refers to authority that agents must have by law.

An ________ occurs if a principal approves or accepts the benefits of the actions of an otherwise unauthorized agent.

Which of the following is true?

Apparent authority may be based on which of the following?

Implied ratification of an agent's unauthorized acts can occur through the silence of the principal.

The term "usual authority" refers to the authority that an agent has been allowed to exercise in the past.

An undisclosed principal will be bound by any contract the agent enters into with actual authority.

Unless state law is to the contrary,an agent may lawfully conceal ________ of the principal.

The respondeat superior doctrine typically applies to the actions of independent contractors.

In all cases,an agency agreement must be written in order to be enforceable.

Which of the following is not a duty of an agent to a principal?

What is the meaning of the term "respondeat superior"?

As referenced in the case in the text involving Hewlett-Packard in the text,what is "pretexting"?

Which of the following are autonomous computer programs that can be dispatched by the user to execute certain tasks?

law, value creation, and risk management

Ethics ant the law

Courts, sources of law, and dispute resolution

Constitutional bases for business regulation

Administrative Law

Contracts

sales,licensing,and e-commerce

Torts and Privacy protection

product liability

Intellectual property

The employment agreement

civil rights and employment discrimination

Criminal law

Environmental law

Antitrust

Consumer Protection

real property and land use

Forms of business organizations

Directors, Officers, and Controlling Shareholders

Public and Private Offerings of Securities

Securities Fraud and insider trading

Debtor-Creditor Relations and Bankruptcy

International Business

Filters

Exam 5: Agency

Under the duty of ____________ an agent has a duty to act solely for the benefit of his or her principal in all matters directly connected with the agency undertaking.

Leased workers are precluded from being considered employees of the company for which they are doing work because they are on the payroll of an employment agency.

The term "customary authority" refers to authority that agents must have by law.

An ________ occurs if a principal approves or accepts the benefits of the actions of an otherwise unauthorized agent.

Which of the following is true?

Apparent authority may be based on which of the following?

Implied ratification of an agent's unauthorized acts can occur through the silence of the principal.

The term "usual authority" refers to the authority that an agent has been allowed to exercise in the past.

An undisclosed principal will be bound by any contract the agent enters into with actual authority.

Unless state law is to the contrary,an agent may lawfully conceal ________ of the principal.

The respondeat superior doctrine typically applies to the actions of independent contractors.

In all cases,an agency agreement must be written in order to be enforceable.

Which of the following is not a duty of an agent to a principal?

What is the meaning of the term "respondeat superior"?

As referenced in the case in the text involving Hewlett-Packard in the text,what is "pretexting"?

Which of the following are autonomous computer programs that can be dispatched by the user to execute certain tasks?

law, value creation, and risk management

Ethics ant the law

Courts, sources of law, and dispute resolution

Constitutional bases for business regulation

Administrative Law

Contracts

sales,licensing,and e-commerce

Torts and Privacy protection

product liability

Intellectual property

The employment agreement

civil rights and employment discrimination

Criminal law

Environmental law

Antitrust

Consumer Protection

real property and land use

Forms of business organizations

Directors, Officers, and Controlling Shareholders

Public and Private Offerings of Securities

Securities Fraud and insider trading

Debtor-Creditor Relations and Bankruptcy

International Business

Filters