Question 1

Where an employer makes use of a job title in an employment situation,which kind of authority can arise in the employee based on the job title?

Accepted Answer

A)  apparent authority 
B)  authority by estoppel 
C)  inherent authority 
D)  express authority 
E)  implied authority 
A)  apparent authority 
B)  authority by estoppel 
C)  inherent authority 
D)  express authority 
E)  implied authority

Question 2

Which is true about agency agreements?

Accepted Answer

A)  A minor may generally be a principal. 
B)  A minor may generally be an agent. 
C)  An agency agreement must have consideration on both the principal's and agent's side. 
D)  Agents must disclose their agency status to those with whom they are dealing. 
A)  A minor may generally be a principal. 
B)  A minor may generally be an agent. 
C)  An agency agreement must have consideration on both the principal's and agent's side. 
D)  Agents must disclose their agency status to those with whom they are dealing.

Question 3

Jack hires Frankie,who is 13 years old,to buy a computer on Jack's behalf.Which of the following is true?

Accepted Answer

A)  This is a valid agency relationship even though Frankie is a minor,and Jack would be bound by authorized contracts entered into on Jack's behalf. 
B)  This is a valid agency relationship even though Frankie is a minor,but Jack would be able to disaffirm any contracts entered into on Jack's behalf. 
C)  This agency arrangement is not valid because the agent lacks contractual capacity. 
D)  If Frankie buys the computer on Jack's behalf,Frankie would not be entitled to payment under the terms of the agency arrangement because of his lack of capacity. 
A)  This is a valid agency relationship even though Frankie is a minor,and Jack would be bound by authorized contracts entered into on Jack's behalf. 
B)  This is a valid agency relationship even though Frankie is a minor,but Jack would be able to disaffirm any contracts entered into on Jack's behalf. 
C)  This agency arrangement is not valid because the agent lacks contractual capacity. 
D)  If Frankie buys the computer on Jack's behalf,Frankie would not be entitled to payment under the terms of the agency arrangement because of his lack of capacity.

Question 4

An agency by estoppel arises when a principal expressly creates the agency relationship with an agent.

Accepted Answer

A) True 
 B)False

Question 5

An express agency is one that happens when a principal and an agent expressly agree to enter into an agency agreement with each other.

Accepted Answer

A) True 
 B)False

Question 6

John is hired at minimum wage in a fast-food restaurant.John works at the counter taking customer orders,accepting payment,and giving the orders to the customer.John must work in accordance with a detailed procedures manual.John is:

Accepted Answer

A)  an independent contractor,but not an agent 
B)  an employee,but not an agent 
C)  an independent contractor as well as an agent 
D)  an employee as well as an agent 
A)  an independent contractor,but not an agent 
B)  an employee,but not an agent 
C)  an independent contractor as well as an agent 
D)  an employee as well as an agent

Exam 29: Agency Formation and Termination

Where an employer makes use of a job title in an employment situation,which kind of authority can arise in the employee based on the job title?

Which is true about agency agreements?

Jack hires Frankie,who is 13 years old,to buy a computer on Jack's behalf.Which of the following is true?

An agency by estoppel arises when a principal expressly creates the agency relationship with an agent.

An express agency is one that happens when a principal and an agent expressly agree to enter into an agency agreement with each other.

John is hired at minimum wage in a fast-food restaurant.John works at the counter taking customer orders,accepting payment,and giving the orders to the customer.John must work in accordance with a detailed procedures manual.John is:

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