Question 1

An undisclosed principal will be bound by any contract the agent enters into with actual authority.

Accepted Answer

A) True 
 B)False

Question 2

Maureen owns a business that makes kites.Maureen's agent Bob entered into an agreement with Alice to purchase some land for a new kite factory.Maureen's agency relationship with Bob was not memorialized by any writing.The day after Bob signs the papers finalizing the sale,Maureen learned of the purchase,was furious with Bob,and said that she wanted out of the deal.Assuming that Bob was legally considered the agent of Maureen in making the purchase,which of the following is Maureen's best argument?

Accepted Answer

A)  That the agency agreement with Bob was not in writing and that under the equal dignities rule she should not be bound. 
B)  That agency agreements may not extend to the purchase of land. 
C)  That under the exclusion principle, Bob was not authorized to purchase land unless expressly authorized by Maureen. 
D)  That she did not need land and that therefore she should not be bound because Bob was mistaken. 
A)  That the agency agreement with Bob was not in writing and that under the equal dignities rule she should not be bound. 
B)  That agency agreements may not extend to the purchase of land. 
C)  That under the exclusion principle, Bob was not authorized to purchase land unless expressly authorized by Maureen. 
D)  That she did not need land and that therefore she should not be bound because Bob was mistaken.

Question 3

CASE 5.1,Meinhard v.Salmon(1928),involved the question of respondeat superior.

Accepted Answer

A) True 
 B)False

Question 4

CASE 5.3O'Shea v.Welch (2003)involved a question of whether Welch,an employee,was acting within the scope of his employment when he struck O'Shea's car.How did the court find and why?

Accepted Answer

A)  The court found that as a matter of law the employee was not acting within the scope of his employment because he was involved in a frolic of his own. 
B)  The court found that as a matter of law the employee was not acting within the scope of his employment because he was involved in a detour. 
C)  The court found that as a matter of law the employee was acting within the scope of his employment because he was involved in only a detour, not a frolic on his own. 
D)  The court found that the jury should determine whether the employee was acting within the scope of his employment during the time period at issue. 
A)  The court found that as a matter of law the employee was not acting within the scope of his employment because he was involved in a frolic of his own. 
B)  The court found that as a matter of law the employee was not acting within the scope of his employment because he was involved in a detour. 
C)  The court found that as a matter of law the employee was acting within the scope of his employment because he was involved in only a detour, not a frolic on his own. 
D)  The court found that the jury should determine whether the employee was acting within the scope of his employment during the time period at issue.

Question 5

CASE 5.3O'Shea v.Welch (2003),involved the question of whether an employee was on a frolic or a detour at the time of the accident.

Accepted Answer

A) True 
 B)False

Question 6

Once an agent is given __________ authority,he or she also has __________ authority to do whatever is reasonable to complete the task he or she has been instructed to undertake.

Accepted Answer

A)  express, implied 
B)  express, absolute 
C)  express, limited 
D)  apparent, contractual 
A)  express, implied 
B)  express, absolute 
C)  express, limited 
D)  apparent, contractual

Question 7

Federal law provides that electronic agents may legally bind a user to click-wrap agreements.

Accepted Answer

A) True 
 B)False

Question 8

The "Inside Story" discusses how the Telephone Records and Privacy Protection Act of 2006 made it illegal for a person to use fraud to obtain individual customer billing records and other customer information from telephone companies.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following are autonomous computer programs that can be dispatched by the user to execute certain tasks?

Accepted Answer

A)  Electronic agents 
B)  Software identifiers 
C)  Click programs 
D)  Fortran identifiers 
A)  Electronic agents 
B)  Software identifiers 
C)  Click programs 
D)  Fortran identifiers

Question 10

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 the duty of Candy,if any,to pay social security taxes for Todd?

Accepted Answer

A)  Candy must pay all of Todd's social security taxes. 
B)  Candy is responsible for 50% of Todd's social security taxes, and he is responsible for 50%. 
C)  Candy is responsible for all of Todd's social security taxes only if he works at least 30 hours per week; otherwise, Todd is responsible for all of the taxes. 
D)  Candy is not responsible for any of Todd's social security taxes. 
A)  Candy must pay all of Todd's social security taxes. 
B)  Candy is responsible for 50% of Todd's social security taxes, and he is responsible for 50%. 
C)  Candy is responsible for all of Todd's social security taxes only if he works at least 30 hours per week; otherwise, Todd is responsible for all of the taxes. 
D)  Candy is not responsible for any of Todd's social security taxes.

Question 11

The most common form of agency relationship is employer-employee.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is an example of a hallmark of the fiduciary relationship?

Accepted Answer

A)  Loyalty 
B)  Subservience 
C)  Politeness 
D)  Both loyalty and subservience, but not politeness 
A)  Loyalty 
B)  Subservience 
C)  Politeness 
D)  Both loyalty and subservience, but not politeness

Question 13

The fact that leased workers are on the payroll of an employment agency does not preclude them from being considered employees of the company at which they are actually working on a joint employer theory.

Accepted Answer

A) True 
 B)False

Question 14

A principal may be held liable for the torts of a(n)__________ only in extraordinary circumstances,usually involving highly dangerous acts or nondelegable duties.

Accepted Answer

A)  agent 
B)  servant 
C)  employee 
D)  independent contractor 
A)  agent 
B)  servant 
C)  employee 
D)  independent contractor

Question 15

Principals may be held liable for the torts of independent contractors involving highly dangerous acts.

Accepted Answer

A) True 
 B)False

Question 16

An independent contractor is also considered an employee of the person for whom work is being done.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is true regarding situations in which an agent enters into a contract without authority?

Accepted Answer

A)  The principal is not bound nor is the agent bound. 
B)  The principal is bound and the agent may be personally liable. 
C)  The principal is not bound, but the agent may personally liable. 
D)  Neither the principal nor the agent is bound if the contract is oral; but if the contract is written, both the principal and agent are bound. 
A)  The principal is not bound nor is the agent bound. 
B)  The principal is bound and the agent may be personally liable. 
C)  The principal is not bound, but the agent may personally liable. 
D)  Neither the principal nor the agent is bound if the contract is oral; but if the contract is written, both the principal and agent are bound.

Question 18

Leased workers are precluded from being considered employees of the company for which they are doing work because they are on the payroll of an employment agency.

Accepted Answer

A) True 
 B)False

Question 19

Under the Uniform Computer Information Transactions Act (UCITA),what would be the result if an electronic agent agrees to a click-wrap agreement?

Accepted Answer

A)  The user of the electronic agent would not be liable for the agreement. 
B)  The user of the electronic agent would be liable for the agreement only if the evidence established that the user had an opportunity to look over the agreement and cancel it within a reasonable length of time. 
C)  The use of the electronic agent would be liable for the agreement. 
D)  The user of the electronic agent would be liable for the agreement only if the user was a merchant in respect to goods or services of the type purchased by the agreement. 
A)  The user of the electronic agent would not be liable for the agreement. 
B)  The user of the electronic agent would be liable for the agreement only if the evidence established that the user had an opportunity to look over the agreement and cancel it within a reasonable length of time. 
C)  The use of the electronic agent would be liable for the agreement. 
D)  The user of the electronic agent would be liable for the agreement only if the user was a merchant in respect to goods or services of the type purchased by the agreement.

Question 20

Which of the following is true regarding whether an independent contractor is an agent of a principal?

Accepted Answer

A)  An independent contractor is always an agent of the principal. 
B)  An independent contractor, by definition, is not an agent of the principal. 
C)  An independent contractor may or may not be an agent generally depending on whether the independent contractor has authority to enter into contracts on behalf of the hiring party. 
D)  An independent contractor is an agent only if the hiring party is a merchant. 
A)  An independent contractor is always an agent of the principal. 
B)  An independent contractor, by definition, is not an agent of the principal. 
C)  An independent contractor may or may not be an agent generally depending on whether the independent contractor has authority to enter into contracts on behalf of the hiring party. 
D)  An independent contractor is an agent only if the hiring party is a merchant.

Exam 5: Agency.

An undisclosed principal will be bound by any contract the agent enters into with actual authority.

CASE 5.1,Meinhard v.Salmon(1928),involved the question of respondeat superior.

CASE 5.3O'Shea v.Welch (2003)involved a question of whether Welch,an employee,was acting within the scope of his employment when he struck O'Shea's car.How did the court find and why?

CASE 5.3O'Shea v.Welch (2003),involved the question of whether an employee was on a frolic or a detour at the time of the accident.

Once an agent is given __________ authority,he or she also has __________ authority to do whatever is reasonable to complete the task he or she has been instructed to undertake.

Federal law provides that electronic agents may legally bind a user to click-wrap agreements.

The "Inside Story" discusses how the Telephone Records and Privacy Protection Act of 2006 made it illegal for a person to use fraud to obtain individual customer billing records and other customer information from telephone companies.

Which of the following are autonomous computer programs that can be dispatched by the user to execute certain tasks?

The most common form of agency relationship is employer-employee.

Which of the following is an example of a hallmark of the fiduciary relationship?

The fact that leased workers are on the payroll of an employment agency does not preclude them from being considered employees of the company at which they are actually working on a joint employer theory.

A principal may be held liable for the torts of a(n)__________ only in extraordinary circumstances,usually involving highly dangerous acts or nondelegable duties.

Principals may be held liable for the torts of independent contractors involving highly dangerous acts.

An independent contractor is also considered an employee of the person for whom work is being done.

Which of the following is true regarding situations in which an agent enters into a contract without authority?

Leased workers are precluded from being considered employees of the company for which they are doing work because they are on the payroll of an employment agency.

Under the Uniform Computer Information Transactions Act (UCITA),what would be the result if an electronic agent agrees to a click-wrap agreement?

Which of the following is true regarding whether an independent contractor is an agent of a principal?

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

Once an agent is given authority,he or she also has authority to do whatever is reasonable to complete the task he or she has been instructed to undertake.