Exam 5: Agency.

Unless state law is to the contrary,an agent may lawfully conceal __________ of the principal.

Molly wants to buy a vacant lot that is for sale in her neighborhood.The problem is that she had a skirmish with the current owner,Ben,over his dog barking at all hours of the night.Molly asks Sam if he will purchase the lot on her behalf without telling Ben that she will be the true owner.Sam agrees and reaches an agreement with Ben.A few months after the purchase,Molly begins to do some work on the lot.Ben sees her and asks what she is doing.Molly tells him that she was the true purchaser.Ben becomes furious and yells at her that he will have the sale rescinded and sue both Molly and Sam for fraud.What will be the likely result if Ben sues Molly and Sam?

Carl is a contractor that is building a home for Orel.Pam is one of Orel's neighbors.One day Pam was walking in the neighborhood.As she passed the construction site,a piece of lumber fell from the partially finished garage roof and hit her in the head,injuring her severely.The lumber was left negligently on the roof by Carl.Pam now wishes to sue Orel.Should Orel be held liable to Pam? Discuss.

Implied ratification of an agent's unauthorized acts can occur through the silence of the principal.

A master-servant agency is a type of modern day slavery that is illegal.

Under the duty of __________ an agent has a duty to act solely for the benefit of his or her principal in all matters directly connected with the agency undertaking.

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.Who is liable for Wesley's injured foot?