Exam 5: Agency

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Fact Pattern 5-2 Billy owns a used car lot. Samantha works for Billy selling used cars. Billy fully directs and controls her work, sets her hours, and pays her an hourly salary as well as a commission. Belinda comes to the lot to buy a used car. Samantha, however, tells Belinda that she needs to sell her mother's used vehicle and that if Belinda will meet her after hours, she will give Belinda an excellent deal. Belinda meets Samantha after work and ends up buying the car belonging to Samantha's mother. The next day, Samantha, acting within the scope of her employment, is moving a car. She, however, is in a hurry and in a grossly negligently manner backs it over the foot of Wesley, another customer. While waiting for the ambulance to come for Wesley, Belinda storms onto the lot complaining about the condition of the vehicle she purchased from Samantha's mother. Billy fires Samantha on the spot based on her obviously intoxicated condition and the fact that she arranged for the sale of her mother's vehicle. Samantha informs him that she has been an excellent employee and that he has no reason to be unhappy with her. -Refer to fact pattern 5-2. Did Samantha breach any fiduciary duties owed to Billy?

(Multiple Choice)
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Principals may be held liable for the torts of independent contractors involving highly dangerous acts.

(True/False)
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Federal law provides that electronic agents may legally bind a user to click-wrap agreements.

(True/False)
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When would the "aided-in-the-agency" theory likely be asserted?

(Multiple Choice)
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What factors do courts consider in determining whether an act of an agent was within the scope of employment?

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An agent who refuses to follow legal instructions of a principal has breached the duty of care.

(True/False)
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Fact Pattern 5-2 Billy owns a used car lot. Samantha works for Billy selling used cars. Billy fully directs and controls her work, sets her hours, and pays her an hourly salary as well as a commission. Belinda comes to the lot to buy a used car. Samantha, however, tells Belinda that she needs to sell her mother's used vehicle and that if Belinda will meet her after hours, she will give Belinda an excellent deal. Belinda meets Samantha after work and ends up buying the car belonging to Samantha's mother. The next day, Samantha, acting within the scope of her employment, is moving a car. She, however, is in a hurry and in a grossly negligently manner backs it over the foot of Wesley, another customer. While waiting for the ambulance to come for Wesley, Belinda storms onto the lot complaining about the condition of the vehicle she purchased from Samantha's mother. Billy fires Samantha on the spot based on her obviously intoxicated condition and the fact that she arranged for the sale of her mother's vehicle. Samantha informs him that she has been an excellent employee and that he has no reason to be unhappy with her. -Refer to fact pattern 5-2. Who is liable for Wesley's injured foot?

(Multiple Choice)
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The most common form of agency relationship is employer-employee.

(True/False)
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An agency by ________ occurs when a person leads another to believe that someone else is his or her agent and is thereafter prevented from denying it.

(Multiple Choice)
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The person hiring an independent contractor bargains both for the results and the means of achieving the results.

(True/False)
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Which of the following is true regarding respondeat superior?

(Multiple Choice)
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Which of the following is true regarding a principal's duty to pay unemployment taxes?

(Multiple Choice)
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Which of the following is true regarding an independent contractor's entitlement to fringe benefits offered by a principal?

(Multiple Choice)
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Agents owe a fiduciary duty to the principal.Describe the specific responsibilities that are generated by this duty.Discuss fully.

(Essay)
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Which of the following terms refers to a slight deviation from the employer's business that is still within the scope of employment?

(Multiple Choice)
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Under the Uniform Computer Information Transactions Act,what would be the result if an electronic agent agrees to a click-wrap agreement?

(Multiple Choice)
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What is considered in determining the scope of an agent's implied authority?

(Essay)
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Which of the following was the result in EBC I,Inc.v.Goldman,Sachs,& Co.,the case in the text in which it was claimed that Goldman Sachs breached a fiduciary duty in acting as an underwriter and in providing advice to eToys,the plaintiff's predecessor,in regard to an initial public offering of stock?

(Multiple Choice)
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Whether a person is an independent contractor or an employee depends on what he or she does,not how the relationship is characterized by the parties.

(True/False)
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Which of the following is an example of a hallmark of the fiduciary relationship?

(Multiple Choice)
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