Exam 28: Agency Law

Betsy's elderly father gave her written authority her to sell the family house.Her father lived in Arizona and she lived in Minnesota.After about two months she found a buyer for the house and signed an acceptance of the offer on March 21.Later that same day she learned her father had died the day before (March 20).Other members of the family did not want the family house sold and claimed that the acceptance Betsy signed was void.The buyer of the house claims Betsy had the legal authority to sell the house and that the contract is binding.Who is right?

An agency will be terminated in all but which one of the following situations?

Chance is a traveling marketing representative for a publishing company.He is an independent contractor and was hired without negligence.One afternoon while driving to a meeting,Chance negligently runs a stop sign and causes an accident.Judy is injured.Judy can

In its most basic terms,a fiduciary relationship is one of

John hired Tim to sell his house.Which statement is correct?

Generally,either party to an agency relationship has the power to terminate it at any time.

Nikki was an tax accountant with HBR Accounting.Nikki decided to do some tax consulting in the evenings and on weekends.HBR is unaware of Nikki's consulting work.Which statement is correct?

Janelle has an art collection that she wants to sell.She calls Amber and tells her to sell the art collection for her at an upcoming auction.Amber agrees.This is an example of

An agent must obey all instructions of the principal.

Jolene hired Lacy to find a buyer for her house.Adam was interested in buying the house.If both Jolene and Adam agree,Lacy,a real estate agent,may represent both parties.

An agent is always liable for his or her own torts committed within the scope of the agency relationship.

When a principal is partially disclosed

Which of the following states that if an agent is empowered to enter into a contract that must be in writing,then the appointment of the agent must also be written?

An agency relationship can be created

In the case of an undisclosed principal,a third party

The principle of liability stating that an employer is liable for a physical tort committed by an employee acting within the scope of employment and a nonphysical tort of an employee acting with authority is called

Jim agreed to show Donna's car to a potential buyer.Donna was not able to be home since she had to attend a meeting.After showing the car,Jim left the keys in it and the car was stolen.Which statement is correct?

Someone who is not paid for performing duties is a(n)

Rob agrees to act as an agent for Diane in selling her car.Diane has a duty of loyalty to Rob.

A principal must indemnify an agent for any reasonable expenses incurred in carrying out his or her responsibilities.