Question 1

An agent who does not perform his or her express duties or fails to use the standard degree of care,skill,or diligence is liable to the principal for damages.

Accepted Answer

A) True 
 B)False

Question 2

In a partially disclosed agency,the contracting third party transacts directly with the principal and does not know the identity of the agent.

Accepted Answer

A) True 
 B)False

Question 3

A(n)________ is a relationship formed when an employer hires an employee and gives that employee authority to act and enter into contracts on his or her behalf.

Accepted Answer

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

Question 4

Fiona works for Open Heart Hospital and lives 10 miles away from her place of work.The hospital has provided her with a car to commute and also pays for its upkeep.If she accidentally injures a person while driving to work in the morning,which of the following will be true?

Accepted Answer

A) Open Heart Hospital will be completely liable for the injury. 
B) The injured person can sue Open Heart Hospital but can only recover reimbursement for his or her medical expenses due to the injury. 
C) Both Fiona and Open Heart Hospital will be liable to the injured person. 
D) Only Fiona will be liable for her negligence. 
A) Open Heart Hospital will be completely liable for the injury. 
B) The injured person can sue Open Heart Hospital but can only recover reimbursement for his or her medical expenses due to the injury. 
C) Both Fiona and Open Heart Hospital will be liable to the injured person. 
D) Only Fiona will be liable for her negligence.

Question 5

Which of the following is true of tort liability for principals and agents?

Accepted Answer

A) A principal is responsible for the tortious conduct of an agent regardless of whether the conduct occurs within the scope of the agency. 
B) A principal is responsible for the tortious conduct of an agent regardless of whether the conduct occurs within the course of the agency. 
C) An agent is liable for the principal's tortious conduct if he or she participates in it. 
D) An agent and a principal cannot be held responsible for the same tort. 
A) A principal is responsible for the tortious conduct of an agent regardless of whether the conduct occurs within the scope of the agency. 
B) A principal is responsible for the tortious conduct of an agent regardless of whether the conduct occurs within the course of the agency. 
C) An agent is liable for the principal's tortious conduct if he or she participates in it. 
D) An agent and a principal cannot be held responsible for the same tort.

Question 6

What is an implied agency?

Accepted Answer

In many situations,a principal and an ag

Question 7

Which of the following torts committed by an agent is the liability of the principal?

Accepted Answer

A) substantial frolic and detour 
B) accidents caused by an agent on the way to work 
C) accidents caused by an agent on the way from work 
D) negligence 
A) substantial frolic and detour 
B) accidents caused by an agent on the way to work 
C) accidents caused by an agent on the way from work 
D) negligence

Question 8

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,who is the principal during the land sale transaction?

Accepted Answer

A) ReNowait Goodhouses 
B) George 
C) Martin 
D) William 
A) ReNowait Goodhouses 
B) George 
C) Martin 
D) William

Question 9

An express agency agreement that is often used to give an agent the power to sign legal documents on behalf of the principal is known as a(n)________.

Accepted Answer

A) assignment 
B) accommodation 
C) power of attorney 
D) letter of credit 
A) assignment 
B) accommodation 
C) power of attorney 
D) letter of credit

Question 10

________ occurs where a principal is liable for an agent's tortious conduct because of the employment contract between the principal and agent,not because the principal was personally at fault.

Accepted Answer

A) Vicarious liability 
B) Negligence 
C) Liability with fault 
D) Misrepresentation 
A) Vicarious liability 
B) Negligence 
C) Liability with fault 
D) Misrepresentation

Question 11

A principal is liable for the intentional and innocent misrepresentations made by an agent acting within the scope of his or her employment.

Accepted Answer

A) True 
 B)False

Question 12

The ________ is the party who employs another person to act on his or her behalf.

Accepted Answer

A) agent 
B) principal 
C) independent contractor 
D) employee 
A) agent 
B) principal 
C) independent contractor 
D) employee

Question 13

Which of the following is considered an intentional tort?

Accepted Answer

A) negligence 
B) innocent misrepresentation 
C) fraud 
D) dual-purpose mission 
A) negligence 
B) innocent misrepresentation 
C) fraud 
D) dual-purpose mission

Question 14

The principal is liable for all torts of independent contractors.

Accepted Answer

A) True 
 B)False

Question 15

An independent contractor cannot represent more than one principal at a time.

Accepted Answer

A) True 
 B)False

Question 16

Under the ________ test,the principal is liable for any intentional torts committed by an agent during working hours on the principal's premises.

Accepted Answer

The answer of Under the ________ test,the principal is liable...

Question 17

Which of the following is a course of action for a principal if an agent is found competing with him or her?

Accepted Answer

A) The principal can recover damages from the agent if the competition continues after the agency has ended. 
B) The principal can recover profits made by the agent in the competing venture. 
C) The principal has the option of buying the agent's competing venture. 
D) The principal is not allowed to recover lost sales due to the agent's competing venture. 
A) The principal can recover damages from the agent if the competition continues after the agency has ended. 
B) The principal can recover profits made by the agent in the competing venture. 
C) The principal has the option of buying the agent's competing venture. 
D) The principal is not allowed to recover lost sales due to the agent's competing venture.

Question 18

A fully disclosed agency results if a third party entering into a contract knows the actual identity of the principal.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is an instance of misuse of confidential information?

Accepted Answer

A) An agent gives the seller the principal's name and phone number in a fully disclosed transaction. 
B) A principal gives the contact details of an agent to a third-party without the agent's knowledge. 
C) An agent withholds critical information from the principal about the agency. 
D) An agent divulges details of his past employer to the principal. 
A) An agent gives the seller the principal's name and phone number in a fully disclosed transaction. 
B) A principal gives the contact details of an agent to a third-party without the agent's knowledge. 
C) An agent withholds critical information from the principal about the agency. 
D) An agent divulges details of his past employer to the principal.

Question 20

The principal is liable for the tortious conduct of an agent who is acting within the scope of his or her authority.

Accepted Answer

A) True 
 B)False

Exam 18: Agency Law

An agent who does not perform his or her express duties or fails to use the standard degree of care,skill,or diligence is liable to the principal for damages.

In a partially disclosed agency,the contracting third party transacts directly with the principal and does not know the identity of the agent.

A(n)________ is a relationship formed when an employer hires an employee and gives that employee authority to act and enter into contracts on his or her behalf.

Fiona works for Open Heart Hospital and lives 10 miles away from her place of work.The hospital has provided her with a car to commute and also pays for its upkeep.If she accidentally injures a person while driving to work in the morning,which of the following will be true?

Which of the following is true of tort liability for principals and agents?

What is an implied agency?

Which of the following torts committed by an agent is the liability of the principal?

An express agency agreement that is often used to give an agent the power to sign legal documents on behalf of the principal is known as a(n)________.

________ occurs where a principal is liable for an agent's tortious conduct because of the employment contract between the principal and agent,not because the principal was personally at fault.

A principal is liable for the intentional and innocent misrepresentations made by an agent acting within the scope of his or her employment.

The ________ is the party who employs another person to act on his or her behalf.

Which of the following is considered an intentional tort?

The principal is liable for all torts of independent contractors.

An independent contractor cannot represent more than one principal at a time.

Under the ________ test,the principal is liable for any intentional torts committed by an agent during working hours on the principal's premises.

Which of the following is a course of action for a principal if an agent is found competing with him or her?

A fully disclosed agency results if a third party entering into a contract knows the actual identity of the principal.

Which of the following is an instance of misuse of confidential information?

The principal is liable for the tortious conduct of an agent who is acting within the scope of his or her authority.

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