Question 1

As a general rule,an agent is liable on contracts entered into on behalf of a fully disclosed principal.

Accepted Answer

A) True 
 B)False

Question 2

HBR Accounting hired Denise,a CPA,to prepare tax returns.Which statement is correct?

Accepted Answer

A) Denise is a gratuitous agent and has a duty not to commit gross negligence. 
B) Denise is a gratuitous agent and has a duty not to commit ordinary negligence. 
C) Denise, as a CPA, is an agent with special skills. She is held to a higher standard than ordinary negligence. 
D) Denise, as a CPA, is an agent with special skills. She is held to a lower standard than ordinary negligence. 
A) Denise is a gratuitous agent and has a duty not to commit gross negligence. 
B) Denise is a gratuitous agent and has a duty not to commit ordinary negligence. 
C) Denise, as a CPA, is an agent with special skills. She is held to a higher standard than ordinary negligence. 
D) Denise, as a CPA, is an agent with special skills. She is held to a lower standard than ordinary negligence.

Question 3

If the principal and agent agree in advance how long their relationship will last,their agreement is called?

Accepted Answer

A) an agency at will. 
B) an agency of purpose. 
C) an express agreement. 
D) a term agreement. 
A) an agency at will. 
B) an agency of purpose. 
C) an express agreement. 
D) a term agreement.

Question 4

You cannot be held liable for the actions of your agents if the agents are violating your instructions.

Accepted Answer

A) True 
 B)False

Question 5

Janet was employed as a sales representative for Esday,Inc.An appreciative customer gave her a diamond bracelet for all her hard work on a complicated contract.Can Janet keep the bracelet?

Accepted Answer

A) Yes.The bracelet was given to Janet personally and intended for her. 
B) Yes, but only if she discloses the gift to Esday and Esday consents to her keeping the bracelet. 
C) No. An agent is not allowed under any circumstances to personally profit as a result of the agency relationship. 
D) No. The bracelet is regarded as an unfair trade practice and violates antitrust law. 
A) Yes.The bracelet was given to Janet personally and intended for her. 
B) Yes, but only if she discloses the gift to Esday and Esday consents to her keeping the bracelet. 
C) No. An agent is not allowed under any circumstances to personally profit as a result of the agency relationship. 
D) No. The bracelet is regarded as an unfair trade practice and violates antitrust law.

Exam 28: Agency Law

As a general rule,an agent is liable on contracts entered into on behalf of a fully disclosed principal.

HBR Accounting hired Denise,a CPA,to prepare tax returns.Which statement is correct?

If the principal and agent agree in advance how long their relationship will last,their agreement is called?

You cannot be held liable for the actions of your agents if the agents are violating your instructions.

Janet was employed as a sales representative for Esday,Inc.An appreciative customer gave her a diamond bracelet for all her hard work on a complicated contract.Can Janet keep the bracelet?

Introduction to Law

Business Ethics and Corporate Social Responsibility

International Law

Common Law, Statutory Law, and Administrative Law

Constitutional Law

Dispute Resolution

Crime

Intentional Torts and Business Torts

Negligence, Strict Liability, and Product Liability

Cyberlaw and Privacy

Introduction to Contracts

Agreement

Consideration

Legality

Capacity and Consent

Written Contracts

Third Parties

Performance, Breach and Discharge

Remedies

Practical Contracts

Introduction to Sales

Ownership, Risk and Warranties

Performance and Remedies

Secured Transactions

Creating a Negotiable Instrument

Liability for Negotiable Instruments

Accountants' Liability

Employment and Labor Law

Employment Discrimination

Starting a Business: LLCs and Other Options

Partnerships

Life and Death of a Corporation

Management Duties

Shareholder Rights

Bankruptcy

Securities Regulation

Antitrust

Consumer Protection

Environmental Law

Intellectual Property

Real Property and Landlord Tenant

Personal Property and Bailment

Planning for the Future: Estates and Insurance

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