Exam 29: Relationship With Third Parties

Dan, an agent for Ramona, sees what he thinks is a good deal for Ramona. Without asking whether he has authority to negotiate the deal, Dan enters into a contract on Ramona's behalf. Ramona says later that she isn't interested. Is Ramona liable on the contract? Is Dan liable on the contract? Explain.

Pat bought a cotton sweater at Ivey's Fashion Store. Sue, the salesperson, told her the sweater was guaranteed not to shrink if washed in cold water by hand. Pat washes the sweater as directed, and it shrinks. Which of the following is correct?

For a ratification to be effective, the principal:

Which of the following is correct with regard to the doctrine of respondeat superior ?

The court in the Schoenberger v. Chicago Transit Authority case held that:

An agent, at his principal's direction, fixes prices with the principal's competitors. The result is:

An agent is never personally liable for the torts he commits while in the scope of his employment.

Which of the following is correct with regard to a contract entered into with a third person by an agent of an undisclosed principal?

Regarding the effect of termination of agency on authority, the general rule of the Third Restatement is that:

The power of an agent is her ability to change the legal status of her principal.

An example of successful land purchases made by agents for an undisclosed principal took place in Florida for Walt Disney Productions.

Actual notice requires a written, not oral, communication to the third party.

Ordinarily, an agent may delegate his duties to an equally qualified subagent.

In the presence of Betty, Ann tells Thomas that Ann is Betty's agent. In reality, Ann has no authority. Betty hears the statement, but she says nothing. In reliance, Thomas ships goods to Betty on Ann's order. Betty is liable even though no actual authority existed.

Actual authority consists of both express and implied authority.

Apparent authority is not actual authority.

Richard writes a letter to Sarah authorizing her to sell his car and sends a copy of the letter to Timothy, a prospective purchaser. The next day, Richard sends a letter to Sarah revoking her authority, but he fails to notify Timothy. Sarah:

Under the Second Restatement, the bankruptcy of the principal terminates, without notice, the power of an agent to affect the principal's property that passes to the bankruptcy trustee.

Which of the following is true regarding an agent who is acting for an undisclosed principal?

A subagent is an agent of both the principal and the agent.