Question 1

Which of the following describes an agency by estoppel?

Accepted Answer

A) an agency that arises when a principal ratifies a contract created by an unauthorized agent 
B) an agency created when a principal and an agent expressly agree to enter into an agency agreement 
C) an agency that is not expressly stated but is implied from the conduct of the parties 
D) an agency that arises when a principal creates the appearance of an agency that in actuality does not exist 
A) an agency that arises when a principal ratifies a contract created by an unauthorized agent 
B) an agency created when a principal and an agent expressly agree to enter into an agency agreement 
C) an agency that is not expressly stated but is implied from the conduct of the parties 
D) an agency that arises when a principal creates the appearance of an agency that in actuality does not exist D

Question 2

If an agency terminates by operation of law,there is no duty to notify third parties about the termination.

Accepted Answer

A) True 
 B)False  True

Question 3

Minksine Corporation employs Sandy as its marketing manager.Sandy is driving her automobile to attend a meeting with a client on behalf of her employer.On her way,Sandy is involved in an automobile accident that is caused by her negligence.Several people are seriously injured.Which of the following is true of this case?

Accepted Answer

A) Sandy is solely liable for damages caused by the accident. 
B) The injured parties cannot recover damages from Sandy. 
C) Minksine Corporation is liable for the injuries caused by Sandy. 
D) The injured parties can only claim medical reimbursement from Minksine Corporation. 
A) Sandy is solely liable for damages caused by the accident. 
B) The injured parties cannot recover damages from Sandy. 
C) Minksine Corporation is liable for the injuries caused by Sandy. 
D) The injured parties can only claim medical reimbursement from Minksine Corporation. C

Question 4

Marcus employs a real estate broker,Dean,to sell his house.Dean's express powers are to advertise and market the house for sale,show the house to prospective buyers,and accept offers from persons who want to purchase the house.He is not allowed to complete a deal without Marcus's consent.Marcus goes away on a month-long trip where he cannot be contacted.During this time,a short circuit in the house causes a power outage.Dean uses his authority to hire an electrician to repair the circuits and restore electricity in the house.Marcus then comes back and pays Dean for the electricity repair.What is the nature of the agency that Dean used to fix the electricity problem in the house?

Accepted Answer

A) implied agency 
B) agency by ratification 
C) power of attorney 
D) express agency 
A) implied agency 
B) agency by ratification 
C) power of attorney 
D) express agency

Question 5

An agency by ratification occurs when the principal ________.

Accepted Answer

A) accepts an unauthorized act created by an unauthorized agent 
B) accepts an authorized act created by an authorized agent 
C) creates the appearance of an agency that in actuality does not exist 
D) accepts an act carried out under the implied authority of an agent 
A) accepts an unauthorized act created by an unauthorized agent 
B) accepts an authorized act created by an authorized agent 
C) creates the appearance of an agency that in actuality does not exist 
D) accepts an act carried out under the implied authority of an agent

Question 6

Which of the following circumstances leads to the termination of an agency by impossibility of performance?

Accepted Answer

A) the loss of a required qualification 
B) the bankruptcy of the principal 
C) the insanity of either the principal or the agent 
D) the outbreak of a war between the principal's country and the agent's country 
A) the loss of a required qualification 
B) the bankruptcy of the principal 
C) the insanity of either the principal or the agent 
D) the outbreak of a war between the principal's country and the agent's country

Question 7

Frank Hannigan sees a grand piano that his musician friend Scott Kristoff had been looking for in an antique store.Frank enters into a contract to purchase the grand piano from the antique seller and signs the contract,"Frank Hannigan,agent for Scott Kristoff." As Frank is not Scott's agent,Scott is not bound by the contract.If Scott decides to accept the contract,what kind of agency would be created?

Accepted Answer

A) express agency 
B) implied agency 
C) agency by ratification 
D) power of attorney 
A) express agency 
B) implied agency 
C) agency by ratification 
D) power of attorney

Question 8

Which of the following is true of an apparent agency?

Accepted Answer

A) The authority of an apparent agent is implied from the conduct of the parties. 
B) The third-party is not bound to the contract created by an apparent agent. 
C) The principal is bound to the contracts entered into by an apparent agent. 
D) The actions of an apparent agent create an apparent agency. 
A) The authority of an apparent agent is implied from the conduct of the parties. 
B) The third-party is not bound to the contract created by an apparent agent. 
C) The principal is bound to the contracts entered into by an apparent agent. 
D) The actions of an apparent agent create an apparent agency.

Question 9

If an agent competes with the principal without the principal's permission,the principal may recover profits made by the agent.

Accepted Answer

A) True 
 B)False

Question 10

If an agent reveals confidential information about a principal to a third party,the principal's course of action is to obtain an injunction against the third party.

Accepted Answer

A) True 
 B)False

Question 11

An employee,motivated by jealousy,intentionally injures someone on the work premises and during work hours who dated her boyfriend.Based on the ________ test,the principal is liable for the injury.

Accepted Answer

The answer of An employee,motivated by jealousy,intentionally injures someone on...

Question 12

An agency that occurs when a principal and an agent categorically agree to enter into an agency agreement with each other is known as an ________.

Accepted Answer

A) agency by ratification 
B) implied agency 
C) apparent agency 
D) express agency 
A) agency by ratification 
B) implied agency 
C) apparent agency 
D) express agency

Question 13

In which of the following cases is a motivation test used to establish the employee's motive?

Accepted Answer

A) An employee commits a tort to promote the principal's business outside work premises. 
B) An employee commits an intentional tort against another employee on work premises. 
C) An employee commits an unintentional tort that helps promote the principal's business. 
D) An employee assaults another employee due to personal reasons. 
A) An employee commits a tort to promote the principal's business outside work premises. 
B) An employee commits an intentional tort against another employee on work premises. 
C) An employee commits an unintentional tort that helps promote the principal's business. 
D) An employee assaults another employee due to personal reasons.

Question 14

A ________ is a deceit in which an agent makes an untrue statement that he or she knows is not true.

Accepted Answer

A) partially disclosed agency 
B) misrepresentation 
C) respondeat superior 
D) dual-purpose mission 
A) partially disclosed agency 
B) misrepresentation 
C) respondeat superior 
D) dual-purpose mission

Question 15

Principals do not control the means by which independent contractors achieve results.

Accepted Answer

A) True 
 B)False

Question 16

If a principal and an agent enter into an express agency contract,the principal cannot employ any agent other than the agent who entered into the contract.

Accepted Answer

A) True 
 B)False

Question 17

The work-related test puts liability on the agent if the agent commits an intentional tort within a work-related time and space.

Accepted Answer

A) True 
 B)False

Question 18

Agency law is a mixture of contract law and tort law.

Accepted Answer

A) True 
 B)False

Question 19

A general power of attorney limits an agent to those acts enumerated by the agreement.

Accepted Answer

A) True 
 B)False

Question 20

An agent given a power of attorney is known as an attorney-in-fact.

Accepted Answer

A) True 
 B)False

Exam 18: Agency Law

Which of the following describes an agency by estoppel?

If an agency terminates by operation of law,there is no duty to notify third parties about the termination.

An agency by ratification occurs when the principal ________.

Which of the following circumstances leads to the termination of an agency by impossibility of performance?

Which of the following is true of an apparent agency?

If an agent competes with the principal without the principal's permission,the principal may recover profits made by the agent.

If an agent reveals confidential information about a principal to a third party,the principal's course of action is to obtain an injunction against the third party.

An employee,motivated by jealousy,intentionally injures someone on the work premises and during work hours who dated her boyfriend.Based on the ________ test,the principal is liable for the injury.

An agency that occurs when a principal and an agent categorically agree to enter into an agency agreement with each other is known as an ________.

In which of the following cases is a motivation test used to establish the employee's motive?

A ________ is a deceit in which an agent makes an untrue statement that he or she knows is not true.

Principals do not control the means by which independent contractors achieve results.

If a principal and an agent enter into an express agency contract,the principal cannot employ any agent other than the agent who entered into the contract.

The work-related test puts liability on the agent if the agent commits an intentional tort within a work-related time and space.

Agency law is a mixture of contract law and tort law.

A general power of attorney limits an agent to those acts enumerated by the agreement.

An agent given a power of attorney is known as an attorney-in-fact.

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