Exam 29: Agency Formation and Termination

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If the law changes such that the actions called for in an agency arrangement become illegal after the agency has been carried on legally for some period of time,what is the consequence?

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(Multiple Choice)

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Question 1

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Why is capacity required for the principal,but not for the agent?

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(Essay)

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Question 2

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The rule allowing a minor to disaffirm a contract is for the protection of a minor.If a minor could be a principal,the minor could do indirectly what the minor could not do directly.An adult agent could take advantage of the minor principal.On the other hand,when a minor acts as an agent,any contracts that the minor enters into are binding on the adult principal,not the minor agent.Thus,a minor does not need protection here.If the adult has foolishly hired a minor to be his agent,it is the adult who must live with the consequences of that decision.Furthermore,it might be wise for an adult to hire a minor who might be an expert on the subject matter of the transaction.

Why can apparent agency be created only by representations of the principal,but not the supposed agent?

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Question 3

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When a party represents that someone is her agent,the party making the representations is creating potential liability for herself,and the law will hold her liable.When someone makes representations that she is someone's agent,the person making the representations is creating liability for another.Assuming that the purported principal had no role in the representations,it would not be fair to impose liability on the purported principal because there would be no way for the purported principal to know about or control the representations of others claiming to be her agent.

The principal hires an agent to manage her boutique.After several months,the principal fires this agent.To avoid liability for any further acts done by this agent,the principal must give:

(Multiple Choice)

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Question 4

An agency arrangement based on the conduct of the two parties is what type of agency?

(Multiple Choice)

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Question 5

When a principal terminates an agency contract,it is called a renunciation of authority.

(True/False)

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Question 6

Agency relationships are not necessary to the operation of a partnership.

(True/False)

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Question 7

An agency relationship is created by the mutual consent of a principal and an agent.

(True/False)

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Question 8

The bankruptcy of which party or parties will cause an agency to terminate?

(Multiple Choice)

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Question 9

An agency agreement may exist for an infinite period of time.

(True/False)

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Question 10

Mickey went to eat at a local restaurant.He was unsatisfied with the meal,and decided to leave quickly without paying.Another patron noticed that Mickey left without paying,and followed Mickey's car onto the highway.The patron called a manager at the restaurant from a cell phone,providing information as to Mickey's location.The manager called 911 to relay the information to the police. The cars were driving at high- speed on the highway.Mickey lost control of his vehicle and suffered significant injuries after crashing into an embankment.The patron drove away from the scene without being identified.Mickey subsequently sued the restaurant,claiming that the patron was an agent of the establishment and therefore vicariously liable for the cause of the accident.Will the patron most likely be considered an agent of the restaurant?

(Multiple Choice)

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Question 11

When a principal terminates an agency arrangement,the principal's action is called:

(Multiple Choice)

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Question 12

Generally,in agency situations,the principal and agent must both have contractual capacity.

(True/False)

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Question 13

Why is either party allowed to terminate a fixed-term agency arrangement prior to the end of the term?

(Essay)

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Question 14

Which of the following is generally true about a relationship where one party works for another?

(Multiple Choice)

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Question 15

Implied authority in an implied agency may be conferred by industry custom.

(True/False)

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Question 16

When an agency agreement terminates,direct notice of the termination must be given to all persons who dealt with the agent.

(True/False)

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Question 17

Incidental authority is a kind of:

(Multiple Choice)

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Question 18

The principal hires an agent to manage his restaurant.As a result,the agent hires two people to serve as waitstaff.The hiring of the waitstaff is an example of what type of authority?

(Multiple Choice)

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Question 19

You have contracted orally with Patty to buy some real estate on her behalf.The only limitations are that she wants a vacant lot in a residential area for less than $100,000.If you find such a residential lot costing $85,000,what type of authority do you have to enter into this transaction on Patty's behalf?

(Multiple Choice)

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Question 20

Showing 1 - 20 of 86

Exam 29: Agency Formation and Termination

If the law changes such that the actions called for in an agency arrangement become illegal after the agency has been carried on legally for some period of time,what is the consequence?

Why is capacity required for the principal,but not for the agent?

Why can apparent agency be created only by representations of the principal,but not the supposed agent?

The principal hires an agent to manage her boutique.After several months,the principal fires this agent.To avoid liability for any further acts done by this agent,the principal must give:

An agency arrangement based on the conduct of the two parties is what type of agency?

When a principal terminates an agency contract,it is called a renunciation of authority.

Agency relationships are not necessary to the operation of a partnership.

An agency relationship is created by the mutual consent of a principal and an agent.

The bankruptcy of which party or parties will cause an agency to terminate?

An agency agreement may exist for an infinite period of time.

When a principal terminates an agency arrangement,the principal's action is called:

Generally,in agency situations,the principal and agent must both have contractual capacity.

Why is either party allowed to terminate a fixed-term agency arrangement prior to the end of the term?

Which of the following is generally true about a relationship where one party works for another?

Implied authority in an implied agency may be conferred by industry custom.

When an agency agreement terminates,direct notice of the termination must be given to all persons who dealt with the agent.

Incidental authority is a kind of:

The principal hires an agent to manage his restaurant.As a result,the agent hires two people to serve as waitstaff.The hiring of the waitstaff is an example of what type of authority?

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