Exam 18: Agency Law

Undisclosed agencies are not lawful in the United States.

A power of attorney is an example of an ________ agreement.

The agent's actions-not the principal's-create an apparent agency.

An agency by ratification occurs when a principal ratifies an authorized act.

In an undisclosed agency,the principal is solely liable on the contract with the third party.

Battery committed by an agent on the principal's premises and during the scope of employment is considered an unintentional tort.

An agent is strictly liable for any intentional or innocent misrepresentation made by the principal in a transaction.

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 Marlon pays for her services.Which of the following types of agencies had Marlon and Nita entered into?

The coming and going rule says that a principal is generally not liable for injuries caused by its agents and employees while they are on their way to or from work.

In a fully disclosed agency,an agent is not liable on the contract if he or she guarantees that the principal will perform the contract.

Vicarious liability is liability with fault.

Which of the following is true of a principal-independent contractor relationship?

A party who employs another person to act on his or her behalf is known as a(n)________.

Why can't an agent take an opportunity meant for the principal? When is an agent permitted to take such an opportunity? Give an illustration of an agent's violation of his or her duty of loyalty.

If an agency is not an exclusive agency,the principal can employ more than one agent to try to accomplish a stated purpose.

Any property,money,or other benefit received by the agent in the course of an agency belongs to the principal.

The legal rule of imputed knowledge means that the principal is assumed to know what the agent knows.

Undisclosed self-dealing by an agent is not regarded as a violation of the duty of loyalty.

A principal is not liable for the intentional torts of agents and employees that are committed outside the principal's scope of business.

Under the ________ test,if the agent committed an intentional tort to promote the principal's business,the principal is liable for any injury caused by the tort.