Exam 17: Agency Relationships in Business

Kelvin is an agent for Lookout Mountain Accountants, Inc. On Lookout's behalf and at its request, Kelvin pays Nerdlinger for custom software designed for the management of Lookout's services. Kelvin's right to obtain the amount of those payments from Lookout arises under the principal's duty of

An agency relationship is enforceable even if it is created for an illegal purpose.

Under the doctrine of respondeat superior, an agent is liable for any harm caused to a principal by a third party.

An agent is authorized to act on behalf and instead of a principal in doing business with third parties.

Agency relationships normally are consensual.

Geoff serves in a representative capacity for Huck. To accomplish the objectives of this relationship, Geoff's authority can be implied

Orina hires Padget, a real estate broker, to sell her oceanfront house. The house is destroyed in a hurricane before being sold. Padget is

Dimitri, a certified public accountant and an investor, and Elinor, an insurance salesperson and a realtor, may create an agency relationship for

Picabo drives a truck as an employee for Quik Delivery, Inc. Picabo would most likely be considered acting outside the scope of her employment if she

Refer to Fact Pattern 17-1. With respect to third parties, Owen is Purified's​

Dakota Energy Company employs Evan to negotiate the purchase of mineral rights for future mining projects. Evan secretly buys some of the property and sells it to Dakota at a profit. Evan has breached

Alexandra manages a Beans Bistro for Coffee Shops, Inc. To manage the business, Alexandra's authority can be inferred

An agency can terminate once its purpose is achieved.

Without authorization, Rolf contracts on behalf of Sari to have Tige paint the interior and exterior of Sari's house. Aware of all material facts involved, Sari ratifies the contract. Later, Sari tries to rescind the part of the contract relating to the exterior. This attempt will be

The relationship between a principal and an independent contractor cannot involve an agency relationship.

Independent contractors have no control over the details of their work performance.

Churchy hires Danielle, a real estate broker, to act as his agent to sell his land for $150,000. Oil is discovered beneath the land, causing its market value to increase considerably. The agency agreement is likely

Roberta introduces Steve to her friends as "my associate." Steve purports to act as Roberta's agent in several business transactions with those friends. If Roberta is liable for Steve's actions, it will be because their relationship is

Miklos employs Nathalie to handle a list of financial transactions on Miklos's behalf. This power will terminate on

Normally, employees who deal with third parties are not deemed to be agents.