Exam 28: Agency Law

Ron is the business agent for Kansas Sunshine,a rock band.He is also the agent for another popular Midwestern rock group,City Sand.Ron negotiates a deal with a Kansas City promoter to have City Sand play after a professional football game.The promoter was willing to pay $250,000 for both groups to play after the game; however,Ron talked her into booking just City Sand for $175,000.Given his contract with City Sand,Ron made more money under this arrangement.Has Ron violated his fiduciary duty to Kansas Sunshine?

Betsy's elderly father gave her written authority her to sell the family house.Her father lived in Arizona and she lived in Minnesota.After about two months she found a buyer for the house and signed an acceptance of the offer on March 21.Later that same day she learned her father had died the day before (March 20).Other members of the family did not want the family house sold and claimed that the acceptance Betsy signed was void.The buyer of the house claims Betsy had the legal authority to sell the house and that the contract is binding.Who is right?

Kaiya is a sales representative of TriColor.Kaiya owes a fiduciary duty to TriColor.

An agent is always liable for his or her own torts committed within the scope of the agency relationship.

Pamela hired Lena to sell her business.Lena:

A principal must indemnify an agent for any expenses incurred in carrying out agency responsibilities,but the principal will not be responsible for indemnifying an agent for any unauthorized purchases.

Jolene hired Lacy to find a buyer for her house.Adam was interested in buying the house.If both Jolene and Adam agree,Lacy,a real estate agent,may represent both parties.

A principal is bound by contracts that an agent enters into with authority.Discuss the various types of contractual authority an agent may have.

If a principal accepts the benefits of a whole unauthorized contract,the principal is deemed to have ratified the contract and is bound as if the act had been originally authorized.

Nikki was an tax accountant with HBR Accounting.Nikki decided to do some tax consulting in the evenings and on weekends.HBR is unaware of Nikki's consulting work.Which statement is correct?

Factors influencing whether a servant is acting within the scope of employment include all but which of the following?

Chance is a traveling marketing representative for a publishing company.He is an independent contractor.One afternoon while driving to a meeting,he negligently runs a stop sign and causes an accident.Judy is injured.Judy can:

Janet was employed as a sales representative for Esday,Inc.An appreciative customer gave her a diamond bracelet for all her hard work on a complicated contract.Can Janet keep the bracelet?

Larry decided to relocate to Germany.Larry hired Happy Homes,Inc.to find a buyer and contract for the sale of his house in the U.S.The agency relationship between Larry and Happy Homes must be evidenced with a written agreement.

An agency will be terminated in all but which one of the following situations?

Erica's supervisor told her to arrange for a conference room at the Kelly Inn.Erica has express authority to contract for the room.

Express authority can be created by:

An agent may not engage in inappropriate behavior that reflects badly on the principal.This rule applies to conduct:

An agent must obey all instructions of the principal.

Rob agrees to act as an agent for Diane in selling her car.Diane has a duty of loyalty to Rob.