Question 1

Which of the following is true of a fully disclosed agency?

Accepted Answer

A) The third party does not know the identity of the principal. 
B) The third party knows the name of the principal but all transactions are done with the agent. 
C) The contract is between the principal,agent,and the third party. 
D) The principal is liable on the contract with a third party. 
A) The third party does not know the identity of the principal. 
B) The third party knows the name of the principal but all transactions are done with the agent. 
C) The contract is between the principal,agent,and the third party. 
D) The principal is liable on the contract with a third party.

Question 2

A power of attorney gives an agent the power to sign legal documents on behalf of the principal.

Accepted Answer

A) True 
 B)False

Question 3

According to the coming and going rule,what is the liability of the principal for injuries caused by its agents and employees while they are on their way to or from work?

Accepted Answer

A) complete liability 
B) vicarious liability 
C) limited liability 
D) no liability 
A) complete liability 
B) vicarious liability 
C) limited liability 
D) no liability

Question 4

Jamie is a lawyer who runs her own law firm and specializes in real estate law.Raymond,a real estate developer,hires Jamie to represent him in the purchase of land.Jamie is the ________.

Accepted Answer

A) principal 
B) agent 
C) third-party 
D) independent contractor 
A) principal 
B) agent 
C) third-party 
D) independent contractor

Question 5

Which of the following is true of dual agency?

Accepted Answer

A) An undisclosed dual agent is allowed to retain compensations of the transaction provided he or she discontinues the dual agency. 
B) Examples of dual agents are finders and marketing intermediaries. 
C) Dual agency is permitted if all parties in the transaction agree to it. 
D) Dual agency is permitted as long as the interests of both principals are similar. 
A) An undisclosed dual agent is allowed to retain compensations of the transaction provided he or she discontinues the dual agency. 
B) Examples of dual agents are finders and marketing intermediaries. 
C) Dual agency is permitted if all parties in the transaction agree to it. 
D) Dual agency is permitted as long as the interests of both principals are similar.

Question 6

Ratification of a contract is a situation in which a principal accepts an agent's unauthorized contract.

Accepted Answer

A) True 
 B)False

Question 7

A car salesperson is employed to sell the principal's car,and the principal tells the agent that the car was repaired after it was involved in a major accident.If the agent intentionally tells the buyer that the car was never involved in an accident,the agent has committed the tort of ________.

Accepted Answer

intentiona

Question 8

A(n)________ is a fiduciary relationship which results from the manifestation of consent by one person to another that the other shall act on his behalf and subject to his control,and consent by the other so to act.

Accepted Answer

A) assignment 
B) garnishment 
C) accommodation 
D) agency 
A) assignment 
B) garnishment 
C) accommodation 
D) agency

Question 9

What is vicarious liability?

Accepted Answer

A) non-liability 
B) liability for multiple torts 
C) liability without knowledge 
D) liability without fault 
A) non-liability 
B) liability for multiple torts 
C) liability without knowledge 
D) liability without fault

Question 10

________ 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.

Accepted Answer

A) Respondeat superior 
B) Frolic and detour 
C) Vicarious liability 
D) Dual-purpose mission 
A) Respondeat superior 
B) Frolic and detour 
C) Vicarious liability 
D) Dual-purpose mission

Question 11

A principal is liable for an agent's tortious conduct during a substantial frolic and detour.

Accepted Answer

A) True 
 B)False

Question 12

An agent does not violate his or her duty of loyalty by serving two parties with the same interest.

Accepted Answer

A) True 
 B)False

Question 13

Harrison hires an agent to look for a three-bedroom house in Atlanta.Elaine,the agent,finds a three-bedroom house within Harrison's budget but buys it herself without informing Harrison.This is an instance of the agent ________.

Accepted Answer

usurping a

Question 14

The termination of an agency contract in violation of the terms of the agency contract is referred to as ________.

Accepted Answer

A) termination by an unusual change in circumstances 
B) termination by impossibility of performance 
C) termination by operation of law 
D) wrongful termination 
A) termination by an unusual change in circumstances 
B) termination by impossibility of performance 
C) termination by operation of law 
D) wrongful termination

Question 15

What is imputed knowledge?

Accepted Answer

A) information collected by a principal prior to engaging in an agency 
B) information collected by a principal on an agency 
C) information learned by an agent that is attributed to the principal 
D) information learned by a principal that is attributed to an agent 
A) information collected by a principal prior to engaging in an agency 
B) information collected by a principal on an agency 
C) information learned by an agent that is attributed to the principal 
D) information learned by a principal that is attributed to an agent

Question 16

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.In this scenario,what type of commercial relationship exists between Martin and William?

Accepted Answer

A) an employer-employee relationship 
B) an agent-agent relationship 
C) an agent-independent contractor relationship 
D) a principal-agent relationship 
A) an employer-employee relationship 
B) an agent-agent relationship 
C) an agent-independent contractor relationship 
D) a principal-agent relationship

Question 17

A party that employs an independent contractor is called an agent.

Accepted Answer

A) True 
 B)False

Question 18

A principal can authorize an independent contractor to enter into contracts.

Accepted Answer

A) True 
 B)False

Question 19

The outbreak of a war between the principal's country and the agent's country is grounds for terminating an agency.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is a fiduciary duty owed by an agent not to act adversely to the interests of the principal?

Accepted Answer

A) duty of loyalty 
B) duty of undertaking 
C) duty of discharge 
D) duty of resolution 
A) duty of loyalty 
B) duty of undertaking 
C) duty of discharge 
D) duty of resolution

Exam 18: Agency Law

Which of the following is true of a fully disclosed agency?

A power of attorney gives an agent the power to sign legal documents on behalf of the principal.

According to the coming and going rule,what is the liability of the principal for injuries caused by its agents and employees while they are on their way to or from work?

Jamie is a lawyer who runs her own law firm and specializes in real estate law.Raymond,a real estate developer,hires Jamie to represent him in the purchase of land.Jamie is the ________.

Which of the following is true of dual agency?

Ratification of a contract is a situation in which a principal accepts an agent's unauthorized contract.

A car salesperson is employed to sell the principal's car,and the principal tells the agent that the car was repaired after it was involved in a major accident.If the agent intentionally tells the buyer that the car was never involved in an accident,the agent has committed the tort of ________.

A(n)________ is a fiduciary relationship which results from the manifestation of consent by one person to another that the other shall act on his behalf and subject to his control,and consent by the other so to act.

What is vicarious liability?

________ 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.

A principal is liable for an agent's tortious conduct during a substantial frolic and detour.

An agent does not violate his or her duty of loyalty by serving two parties with the same interest.

Harrison hires an agent to look for a three-bedroom house in Atlanta.Elaine,the agent,finds a three-bedroom house within Harrison's budget but buys it herself without informing Harrison.This is an instance of the agent ________.

The termination of an agency contract in violation of the terms of the agency contract is referred to as ________.

What is imputed knowledge?

A party that employs an independent contractor is called an agent.

A principal can authorize an independent contractor to enter into contracts.

The outbreak of a war between the principal's country and the agent's country is grounds for terminating an agency.

Which of the following is a fiduciary duty owed by an agent not to act adversely to the interests of the principal?

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