Question 1

A power of attorney can permit an agent to transact all business for a principal.

Accepted Answer

A) True 
 B)False

Question 2

Emmett, an agent for Fridley, signs an agreement with Grover on Fridley's behalf but neglects to tell Fridley that the agreement requires the payment of a certain tax. The government prosecutes Fridley for failing to pay the tax. Fridley is

Accepted Answer

A) liable, because notice to Emmett is notice to Fridley. 
B) liable, because notice to Grover is notice to Fridley. 
C) not liable, because Emmett did not notify Fridley of the tax. 
D) not liable, because Grover did not tell Fridley about the tax. 
A) liable, because notice to Emmett is notice to Fridley. 
B) liable, because notice to Grover is notice to Fridley. 
C) not liable, because Emmett did not notify Fridley of the tax. 
D) not liable, because Grover did not tell Fridley about the tax.

Question 3

The agent has the right to be compensated, and to be reimbursed and indemnified.

Accepted Answer

A) True 
 B)False

Question 4

An agency agreement can be created by an oral agreement.

Accepted Answer

A) True 
 B)False

Question 5

If a principal ratifies a contract without knowing all of the facts, the principal can rescind the contract.

Accepted Answer

A) True 
 B)False

Question 6

John contracts with Kelly to buy a certain number of cattle for Kelly's Circle K ranch. John makes a deal with Lawson, the owner of a local herd, and makes a down payment. Kelly fails to pay the rest of the price. Lawson sues John for breach of contract. John's right to hold Kelly liable for any damages that he has to pay is the right of

Accepted Answer

A) compensation. 
B) cooperation. 
C) indemnification. 
D) reimbursement. 
A) compensation. 
B) cooperation. 
C) indemnification. 
D) reimbursement.

Question 7

Bud approves on behalf of Cody-but without authorization-a contract with Dick to build a new silo. Cody does not ratify the contract. Later, Dick tries to enforce the deal against Cody. This attempt will be

Accepted Answer

A) partly successful. 
B) partly unsuccessful. 
C) totally successful. 
D) totally unsuccessful. 
A) partly successful. 
B) partly unsuccessful. 
C) totally successful. 
D) totally unsuccessful.

Question 8

Cory employs Dash Delivery Agency as an agent under a written agreement that describes the rights and duties of both parties. This is

Accepted Answer

A) apparent authority. 
B) equal authority. 
C) express authority. 
D) implied authority. 
A) apparent authority. 
B) equal authority. 
C) express authority. 
D) implied authority.

Question 9

Through a power of attorney, a principal may never permit an agent to do more than one specified act.

Accepted Answer

A) True 
 B)False

Question 10

Refer to Fact Pattern 17-2. Cuisine Catering is

Accepted Answer

A) a disclosed principal. 
B) an apparent agent. 
C) an undisclosed principal. 
D) a partially disclosed principal. 
A) a disclosed principal. 
B) an apparent agent. 
C) an undisclosed principal. 
D) a partially disclosed principal.

Question 11

An agency agreement can be implied by conduct.

Accepted Answer

A) True 
 B)False

Question 12

Mirena serves in a representative capacity for Netanya. Orla is injured through Mirena's negligence. Netanya may be liable to Orla if Mirena's conduct occurred

Accepted Answer

A) due to a propensity Netanya was not and could not have been aware of. 
B) during normal working hours. 
C) in the course and scope of Mirena's employment. 
D) outside the parties' employment relationship. 
A) due to a propensity Netanya was not and could not have been aware of. 
B) during normal working hours. 
C) in the course and scope of Mirena's employment. 
D) outside the parties' employment relationship.

A power of attorney can permit an agent to transact all business for a principal.

Emmett, an agent for Fridley, signs an agreement with Grover on Fridley's behalf but neglects to tell Fridley that the agreement requires the payment of a certain tax. The government prosecutes Fridley for failing to pay the tax. Fridley is

The agent has the right to be compensated, and to be reimbursed and indemnified.

An agency agreement can be created by an oral agreement.

If a principal ratifies a contract without knowing all of the facts, the principal can rescind the contract.

Bud approves on behalf of Cody-but without authorization-a contract with Dick to build a new silo. Cody does not ratify the contract. Later, Dick tries to enforce the deal against Cody. This attempt will be

Cory employs Dash Delivery Agency as an agent under a written agreement that describes the rights and duties of both parties. This is

Through a power of attorney, a principal may never permit an agent to do more than one specified act.

Refer to Fact Pattern 17-2. Cuisine Catering is

An agency agreement can be implied by conduct.

Mirena serves in a representative capacity for Netanya. Orla is injured through Mirena's negligence. Netanya may be liable to Orla if Mirena's conduct occurred

Legal and Constitutional Foundations of Business

Courts and Alternative Dispute Resolution

Tort Law and Product Liability

Intellectual Property

Internet Law, Social Media, and Privacy

Criminal Law and Cyber Crime

Business Ethics

Agreement and Consideration in Contracts

Capacity, Legality, and Enforceability

Contract Performance, Breach, and Remedies

Sales and Lease Contracts

Performance and Breach in Sales and Lease Contracts

Consumer Law

Negotiable Instruments

Banking in the Digital Age

Creditors Rights and Bankruptcy

Employment Law

The Entrepreneurs Options

Corporations

Investor Protection, Insider Trading, and Corporate Governance

Antitrust Law and Promoting Competition

Personal Property, Bailments, and Insurance

Real Property and Environmental Law

International Law in a Global Economy

Filters

Exam 17: Agency Relationships in Business

A power of attorney can permit an agent to transact all business for a principal.

Emmett, an agent for Fridley, signs an agreement with Grover on Fridley's behalf but neglects to tell Fridley that the agreement requires the payment of a certain tax. The government prosecutes Fridley for failing to pay the tax. Fridley is

The agent has the right to be compensated, and to be reimbursed and indemnified.

An agency agreement can be created by an oral agreement.

If a principal ratifies a contract without knowing all of the facts, the principal can rescind the contract.

Bud approves on behalf of Cody-but without authorization-a contract with Dick to build a new silo. Cody does not ratify the contract. Later, Dick tries to enforce the deal against Cody. This attempt will be

Cory employs Dash Delivery Agency as an agent under a written agreement that describes the rights and duties of both parties. This is

Through a power of attorney, a principal may never permit an agent to do more than one specified act.

Refer to Fact Pattern 17-2. Cuisine Catering is

An agency agreement can be implied by conduct.

Mirena serves in a representative capacity for Netanya. Orla is injured through Mirena's negligence. Netanya may be liable to Orla if Mirena's conduct occurred

Legal and Constitutional Foundations of Business

Courts and Alternative Dispute Resolution

Tort Law and Product Liability

Intellectual Property

Internet Law, Social Media, and Privacy

Criminal Law and Cyber Crime

Business Ethics

Agreement and Consideration in Contracts

Capacity, Legality, and Enforceability

Contract Performance, Breach, and Remedies

Sales and Lease Contracts

Performance and Breach in Sales and Lease Contracts

Consumer Law

Negotiable Instruments

Banking in the Digital Age

Creditors Rights and Bankruptcy

Employment Law

The Entrepreneurs Options

Corporations

Investor Protection, Insider Trading, and Corporate Governance

Antitrust Law and Promoting Competition

Personal Property, Bailments, and Insurance

Real Property and Environmental Law

International Law in a Global Economy

Filters