Exam 17: Agency Relationships in Business

Beth, acting within the scope of her authority for the Cake Bake Shop, contracts with Eden Valley Orchards to buy an assortment of fruit. Cake Bake is liable on the contract, and Beth is not, if Cake Bake is​

Rod is an employee of Savers Bank. In deciding whether Rod acts within the scope of his employment when he commits a tort against Tracy, a court will not consider whether​

If the principal petitions for bankruptcy, the agency is usually terminated.​

Insurance Sales Corporation hires Jeremy to act as its agent. Insurance Sales's right not to perform a contract entered into by Jeremy, if he breaches their agency agreement, is the right of​

Mirena serves in a representative capacity for Netanya. Orla is injured through Mirena's negligence. Netanya may be liable to Orla if Mirena's conduct occurred​

Whether a worker is an employee or an independent contractor has no effect on the employer's liability for the worker's actions.​

Ingmar asks Jessie to contract with Jessie's high school classmates to babysit Ingmar's new baby. Jessie orally agrees to do so. This is​

Vicarious liability is indirect liability.​

An agency relationship terminates only when both parties consent to end it.​

Lynn, an agent for Mindwonder Games LLC, executes an unauthorized contract with NOW Marketing Inc. The deal is highly advantageous to Mindwonder, and the company ratifies the contract. The contract is​

The equal dignity rule requires that if a contract entered into by an agent is or must be in writing, the agent's authority must also be in writing.​

A principal may be liable if he or she authorizes an agent to commit a tort.​

A disclosed principal is liable to a third party for a contract made by the agent acting within the scope of his or her authority.​

Agency relationships can exist between employers and independent contractors.​

Denny, a certified public accountant and an investor, and Ethel, an insurance salesperson and a realtor, may create an agency relationship for​

​A principal has the right to control an agent's conduct in matters entrusted to the agent.

Agency relationships normally are consensual.​

Garry drives a truck as an employee for Heavy Hauling, Inc. Garry would most likely be considered acting outside the scope of her employment if he​

Based on Oona's conduct, Porcio reasonably believes that Qasim has the authority to act on Oona's behalf even though Qasim does not have the actual authority to do so. In this circumstance, Qasim has​

Bernard is an expert on exotic flowers. Custom Floral Arrangements, Inc., hires Bernard to order exotic flowers for its arrangements. Bernard does not examine the quality of the flowers he orders on behalf of Custom Floral. Bernard has breached​