Exam 18: Agency Law

A client hires a lawyer as an independent contractor to represent her in a civil lawsuit against a defendant to recover monetary damages.If the client authorizes the lawyer to settle a case within a certain dollar amount and the lawyer does so,which of the following is true?

Ronald,the purchasing manager of Telly's Supermarket in Georgia,was asked to purchase the latest video game console,FunCase,to be kept in the supermarket.Due to a truckers' strike,Ronald had to personally make the trip to the FunCase warehouse in Florida to pick up the console.Ronald paid for the trip himself,went to the warehouse,procured the console,and returned.After he got back,Telly's Supermarket paid Ronald for the personal expenses he incurred in making the trip to Florida.What duty of the principal did Telly's Supermarket satisfy when it paid Ronald for the trip?

Taylor gives a power of attorney to his twin brother Corey,permitting Corey to make all decisions on his behalf while he is abroad.As per the terms of the power of attorney,Corey is allowed to make decisions to purchase or sell stocks on Taylor's behalf,sell Taylor's real estate if he deems it to be in Taylor's best interest,pursue or defend lawsuits on Taylor's behalf,and make all other relevant decisions for Taylor.What kind of power of attorney confers such powers to Corey?

A(n)________ is a situation in which an agent does something during the course of his or her employment to further his or her own interests rather than the principal's.

The bankruptcy of the principal is not a valid reason to terminate an agency.

Which of the following is true of misrepresentation?

A special power of attorney empowers an agent to act in any matters on the principal's behalf without limitation.

Which of the following is true of an express agency?

A(n)________ is a contract a principal and agent enter into that says the principal cannot employ another agent other than the one stated.

Martin,who wants to sell his house,authorizes his concierge,William,to find a potential buyer and finalize a deal above a stipulated price.William contracts Chris,a real estate broker,and intends him to only find a potential buyer and send him or her over to William for the sale.Martin then contracts ReNowait Goodhouses,a home improvement company,to renovate the house.ReNowait completes its work and Martin pays it.Chris then searches for a suitable buyer and finds one in George.George buys the house and Chris is paid for his services.In this scenario,what role does Chris perform?

If there is no agreement about the amount of compensation,the law implies a promise that a principal will pay the agent the customary fee paid in the industry.

An employer-employee relationship occurs when an employer gives an employee the authority to act and enter into contracts on his or her behalf.

Business Unlimited Corporation employs Harriet as its marketing manager.Harriet is driving her automobile to attend a meeting with a client on behalf of her employer.On her way to the meeting,Harriet is involved in an automobile accident that is caused by her negligence.Several people are seriously injured because of Harriet's negligence.Which of the following is an accurate statement regarding liability to the injured parties?

Which of the following leads to the termination of an agency by operation of law?

Who is an independent contractor?

If a casting agent works for two Hollywood actors,the agent is liable for ________.

Marlon intends to sell a piece of real estate he owns and contracts Nita,a real estate broker,to make the sale.In the contract,Marlon authorizes Nita to make the sale at or above a minimum price he wants and the date by which he wants the sale to be completed.The contract also stipulates that Marlon must not hire another broker to sell that piece of land until the expiration of the contract period.Nita finds a suitable buyer,makes the sale in time,and is paid by Marlon for her services.What kind of contract existed between Marlon and Nita?

Parties with whom the agent has dealt directly must be given direct notice of termination of the agency.

Martin,who wants to sell his house,authorizes his concierge,William,to find a potential buyer and finalize a deal above a stipulated price.William contracts Chris,a real estate broker,and intends him to only find a potential buyer and send him or her over to William for the sale.Martin then contracts ReNowait Goodhouses,a home improvement company,to renovate the house.ReNowait completes its work and Martin pays the company.Chris then searches for a suitable buyer and finds one in George.George buys the house and Chris is paid for his services.Who performs the role of the agent in this land sale transaction?

The ________ is a principal's duty to cover the agent for any losses the agent suffers because of the principal's conduct.