Question 1

Which of the following is true regarding respondeat superior?

Accepted Answer

A)  Under that theory, a principal may be liable for not only the contracts but also the torts of its agents. 
B)  Under that theory, a principal may be liable for only the contracts of its agents, not the torts. 
C)  Under that theory, a principal may be liable for only the torts of its agents, not the contracts. 
D)  Under that theory, a principal may not be held liable for either the contracts or torts of its agent unless the principal expressly authorize the agent's actions. 
A)  Under that theory, a principal may be liable for not only the contracts but also the torts of its agents. 
B)  Under that theory, a principal may be liable for only the contracts of its agents, not the torts. 
C)  Under that theory, a principal may be liable for only the torts of its agents, not the contracts. 
D)  Under that theory, a principal may not be held liable for either the contracts or torts of its agent unless the principal expressly authorize the agent's actions.

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Fact Pattern 5-1
Candy owns a nail and hair salon. She reaches an agreement with Todd, an independent contractor, allowing him to do nails in her salon three days per week. Todd has a sign on his desk informing his customers that he is an independent contractor of the shop. After working for a month, Todd asks Candy if she has been paying appropriate social security taxes for him. He also informs Candy that Phyllis, a customer, is preparing to sue both Todd and Candy based upon a nasty nail fungus she developed after having her nails done by Todd.
-Refer to Fact Pattern 5-1.Which of the following is true regarding legal responsibility to Phyllis assuming negligence on the part of Todd can be established?

Accepted Answer

A)  Both Candy and Todd are responsible to Phyllis with Candy being primarily responsible meaning that if Todd pays then he can recover any payments from Candy. 
B)  Both Candy and Todd are responsible to Phyllis with Todd being primarily responsible meaning that if Candy pays then she can recover any payments from Todd. 
C)  Candy owes 50% of any payments due Phyllis, and Todd owes 50%; but neither Candy nor Todd can recover against the other. 
D)  Candy does not owe Phyllis any amounts. 
A)  Both Candy and Todd are responsible to Phyllis with Candy being primarily responsible meaning that if Todd pays then he can recover any payments from Candy. 
B)  Both Candy and Todd are responsible to Phyllis with Todd being primarily responsible meaning that if Candy pays then she can recover any payments from Todd. 
C)  Candy owes 50% of any payments due Phyllis, and Todd owes 50%; but neither Candy nor Todd can recover against the other. 
D)  Candy does not owe Phyllis any amounts.

Question 4

Under the theory of __________,a company can be held liable for violations of __________ law by its employee,even if a manager told the employee not to violate the law.

Accepted Answer

A)  vicarious liability, civil 
B)  aided-in-the-agency, civil 
C)  vicarious liability, criminal 
D)  disclosure of principal, civil 
A)  vicarious liability, civil 
B)  aided-in-the-agency, civil 
C)  vicarious liability, criminal 
D)  disclosure of principal, civil

Question 5

The term "usual authority" refers to the authority that an agent has been allowed to exercise in the past.

Accepted Answer

A) True 
 B)False

Question 6

In all cases,an agency agreement must be written in order to be enforceable.

Accepted Answer

A) True 
 B)False

Question 7

The respondeat superior doctrine typically applies to the actions of independent contractors.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not usually considered an independent contractor?

Accepted Answer

A)  A delivery driver working for a delivery service 
B)  A lawyer working for a client 
C)  A plumber working for a homeowner 
D)  An architect working for a developer 
A)  A delivery driver working for a delivery service 
B)  A lawyer working for a client 
C)  A plumber working for a homeowner 
D)  An architect working for a developer

Question 9

The principal has the right to demand reimbursement from the agent for any damages paid to a third party because of an agent's negligence.

Accepted Answer

A) True 
 B)False

Question 10

An __________ occurs if a principal approves or accepts the benefits of the actions of an otherwise unauthorized agent.

Accepted Answer

A)  agency by ratification 
B)  agency by estoppel 
C)  agency by independent action 
D)  agency by intervention 
A)  agency by ratification 
B)  agency by estoppel 
C)  agency by independent action 
D)  agency by intervention

Question 11

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?

Accepted Answer

A)  Yes, only the duty of loyalty 
B)  Yes, only the duty of care 
C)  Yes, both the duty of loyalty and the duty of care 
D)  No 
A)  Yes, only the duty of loyalty 
B)  Yes, only the duty of care 
C)  Yes, both the duty of loyalty and the duty of care 
D)  No

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

When would the "aided-in-the-agency" theory likely be asserted?

Accepted Answer

A)  By a defending employer in an attempt to show that although an employee was acting within the scope of employment, the employer should not be held responsible for the employee's actions because the employee was aided by a non-employee. 
B)  By a plaintiff in an attempt to show that even if an employee was acting outside the scope of employment, the employer may be liable for the employee's action because the employee was aided by the agency relationship. 
C)  By a defending employer in an attempt to show that an employee was acting outside the scope of employment and that the employer should not, therefore, be held liable for the employee's actions. 
D)  By a plaintiff in an attempt to show that an employee was acting within the scope of employment and that the employer should, therefore, be held liable for the employee's actions. 
A)  By a defending employer in an attempt to show that although an employee was acting within the scope of employment, the employer should not be held responsible for the employee's actions because the employee was aided by a non-employee. 
B)  By a plaintiff in an attempt to show that even if an employee was acting outside the scope of employment, the employer may be liable for the employee's action because the employee was aided by the agency relationship. 
C)  By a defending employer in an attempt to show that an employee was acting outside the scope of employment and that the employer should not, therefore, be held liable for the employee's actions. 
D)  By a plaintiff in an attempt to show that an employee was acting within the scope of employment and that the employer should, therefore, be held liable for the employee's actions.

Question 14

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

Accepted Answer

A)  A principal must pay unemployment taxes for both an employee and an independent contractor. 
B)  A principal must pay unemployment taxes for an independent contractor but not for an employee. 
C)  A principal must pay unemployment taxes for an employee but not for an independent contractor. 
D)  A principal is not required to pay unemployment taxes for either an employee or an independent contractor. 
A)  A principal must pay unemployment taxes for both an employee and an independent contractor. 
B)  A principal must pay unemployment taxes for an independent contractor but not for an employee. 
C)  A principal must pay unemployment taxes for an employee but not for an independent contractor. 
D)  A principal is not required to pay unemployment taxes for either an employee or an independent contractor.

Question 15

An agent may bind the principal due to the agent's __________ authority.

Accepted Answer

A)  express 
B)  implied 
C)  apparent 
D)  express, implied, or apparent 
A)  express 
B)  implied 
C)  apparent 
D)  express, implied, or apparent

Question 16

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

Accepted Answer

Courts consider (1)whether the employee'

Question 17

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

Accepted Answer

A)  Frolic 
B)  Detour 
C)  Errand 
D)  Chore 
A)  Frolic 
B)  Detour 
C)  Errand 
D)  Chore

Question 18

The most basic legal characteristic of the employer-employee relationship is that the employer has the right to:

Accepted Answer

A)  deduct taxes. 
B)  control the conduct of the employee. 
C)  provide health care. 
D)  deduct taxes, control the conduct of the employee, and provide health care. 
A)  deduct taxes. 
B)  control the conduct of the employee. 
C)  provide health care. 
D)  deduct taxes, control the conduct of the employee, and provide health care.

Question 19

Which of the following is true?

Accepted Answer

A)  Cannot be bound on contracts made by an agent if the principal's identity is not disclosed to the third party. 
B)  Cannot through ratification be bound on contracts made by an agent. 
C)  Can be bound on contracts made by an agent even if the principal's identity is not disclosed to the third party. 
D)  Cannot through ratification be bound on contracts made by an agent, but a principal can be bound on contracts made by an agent even if the principal's identity is not disclosed to the third party. 
A)  Cannot be bound on contracts made by an agent if the principal's identity is not disclosed to the third party. 
B)  Cannot through ratification be bound on contracts made by an agent. 
C)  Can be bound on contracts made by an agent even if the principal's identity is not disclosed to the third party. 
D)  Cannot through ratification be bound on contracts made by an agent, but a principal can be bound on contracts made by an agent even if the principal's identity is not disclosed to the third party.

Question 20

Sam is an employee of Binky,Inc.While delivering a truckload of binkies to a local retailer,Sam decided to stop at his bank to deposit his paycheck.The bank is three blocks from the retailer and it takes approximately 15 minutes to deposit a check.While Sam is in the bank,the truck rolled down the street because Sam negligently forgot to set the parking brake.The truck crashed through the window of Market,killing two people and causing $500,000 in damage.Discuss the issues involved in determining whether Binky,Inc.is liable for the damages at issue.If Binky,Inc.is liable,can it recover against Sam for the damages?

Accepted Answer

Market would have to prove that Sam shou

Exam 5: Agency.

Which of the following is true regarding respondeat superior?

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

Under the theory of __________,a company can be held liable for violations of __________ law by its employee,even if a manager told the employee not to violate the law.

The term "usual authority" refers to the authority that an agent has been allowed to exercise in the past.

In all cases,an agency agreement must be written in order to be enforceable.

The respondeat superior doctrine typically applies to the actions of independent contractors.

Which of the following is not usually considered an independent contractor?

The principal has the right to demand reimbursement from the agent for any damages paid to a third party because of an agent's negligence.

An __________ occurs if a principal approves or accepts the benefits of the actions of an otherwise unauthorized agent.

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

When would the "aided-in-the-agency" theory likely be asserted?

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

An agent may bind the principal due to the agent's __________ authority.

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

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

The most basic legal characteristic of the employer-employee relationship is that the employer has the right to:

Which of the following is true?

Law, Value Creation, and Risk Management.

Ethics and the Law.

Sources of Law, Courts, and Dispute Resolution.

Constitutional Bases for Business Regulation.

Administrative Law.

Contracts.

Sales, Licensing, and E-Commerce.

Torts and Privacy Protection.

Product Liability.

Intellectual Property.

The Employment Agreement.

Civil Rights and Employment Discrimination.

Criminal Law.

Environmental Law and Sustainability.

Antitrust.

Consumer Protection.

Real Property and Land Use.

Forms of Business Organizations.

Directors, Officers, and Controlling Shareholders.

Public and Private Offerings of Securities.

Securities Fraud and Insider Trading.

Debtor-Creditor Relations and Bankruptcy.

International Law and Transactions.

Filters

Under the theory of ,a company can be held liable for violations of law by its employee,even if a manager told the employee not to violate the law.