Question 1

Ben manages a warehouse and its inventory for Coffee Shops, Inc. To operate this part of the business, Ben's authority can be inferred​

Accepted Answer

A)  ​from the position Ben occupies. 
B)  ​by a reasonable party with whom Coffee Shops does business. 
C)  ​to contradict Ben's express authority. 
D)  ​under no circumstances. 
A)  ​from the position Ben occupies. 
B)  ​by a reasonable party with whom Coffee Shops does business. 
C)  ​to contradict Ben's express authority. 
D)  ​under no circumstances.

Question 2

A partially disclosed principal is only partially liable to a third party for a contract made by an agent.

Accepted Answer

A) True 
 B)False

Question 3

A principal is not bound to an unauthorized contract unless the principal ratifies it.

Accepted Answer

A) True 
 B)False

Question 4

OnlineSales.com uses an e-agent to take a purchase order from a consumer over the Internet. The e-agent fails to provide an onscreen confirmation of the order. The effect of any error in the order can be avoided by​

Accepted Answer

A)  ​OnlineSales.com. 
B)  ​the consumer. 
C)  ​both parties. 
D)  ​none of the choices. 
A)  ​OnlineSales.com. 
B)  ​the consumer. 
C)  ​both parties. 
D)  ​none of the choices.

Question 5

Without authorization, Lars contracts on behalf of Mina to have Nemo paint the interior and exterior of Mina's house. If Mina decides to ratify the contract, she must affirm​

Accepted Answer

A)  ​all of the contract. 
B)  ​any part of the contract, with Lars liable to Nemo for the difference. 
C)  ​any part of the contract before performance begins. 
D)  ​any part of the contract at any time. 
A)  ​all of the contract. 
B)  ​any part of the contract, with Lars liable to Nemo for the difference. 
C)  ​any part of the contract before performance begins. 
D)  ​any part of the contract at any time.

Question 6

Failure to comply with the equal dignity rule can make a contract voidable at the option of the principal.

Accepted Answer

A) True 
 B)False

Question 7

Becca is a purchasing agent for Cable & Wire Corporation. Doyle, a Cable & Wire corporate officer, gives Becca written authority to buy for the firm as much copper as necessary. The next day, Doyle calls Becca and tells her to buy only a certain quantity of copper and no more. Becca shows the written authority to Earthbound Resources, Inc., and enters into a contract to buy more than the quantity specified by Doyle. Earthbound Resources ships the order to Cable & Wire. Is Cable & Wire liable to Earthbound Resources under the contract? Is Becca liable? In each case, if so, why? If not, why not?

Accepted Answer

Cable & Wire is liable to Earthbound Res

Question 8

Vicarious liability is indirect liability.

Accepted Answer

A) True 
 B)False

Question 9

On March 1, Eugene retains Farley to act as his authorized agent. On April 1, Eugene dies. On April 2, before Farley knows of Eugene's death, he enters into a contract on Eugene's behalf. The contract is​

Accepted Answer

A)  ​binding on Eugene's heirs. 
B)  ​binding on Farley. 
C)  ​void. 
D)  ​voidable. 
A)  ​binding on Eugene's heirs. 
B)  ​binding on Farley. 
C)  ​void. 
D)  ​voidable.

Question 10

Orin hires Pat, a real estate broker, to sell her oceanfront house. The house is destroyed in a hurricane before being sold. Pat is Orin's agent​

Accepted Answer

A)  ​until Orin's insurer pays Pat's commission. 
B)  ​until the destroyed house is sold. 
C)  ​until the destroyed house is rebuilt and sold. 
D)  ​no more. 
A)  ​until Orin's insurer pays Pat's commission. 
B)  ​until the destroyed house is sold. 
C)  ​until the destroyed house is rebuilt and sold. 
D)  ​no more.

Question 11

Reliable Insurance Company employs Stuart as an agent. To terminate Stuart's authority, Reliable Insurance must notify​

Accepted Answer

A)  ​only third parties who are aware of the agency relationship. 
B)  ​the public generally. 
C)  ​Stuart and any third parties who are aware of the agency relationship. 
D)  ​Stuart only. 
A)  ​only third parties who are aware of the agency relationship. 
B)  ​the public generally. 
C)  ​Stuart and any third parties who are aware of the agency relationship. 
D)  ​Stuart only.

Question 12

Romero employs Supplies Procurement Service as an agent under a written agreement that describes the rights and duties of both parties. This is​

Accepted Answer

A)  ​apparent authority. 
B)  ​equal authority. 
C)  ​express authority. 
D)  ​implied authority. 
A)  ​apparent authority. 
B)  ​equal authority. 
C)  ​express authority. 
D)  ​implied authority.

Exam 33: Agency Liability and Termination

Ben manages a warehouse and its inventory for Coffee Shops, Inc. To operate this part of the business, Ben's authority can be inferred​

A partially disclosed principal is only partially liable to a third party for a contract made by an agent.

A principal is not bound to an unauthorized contract unless the principal ratifies it.

OnlineSales.com uses an e-agent to take a purchase order from a consumer over the Internet. The e-agent fails to provide an onscreen confirmation of the order. The effect of any error in the order can be avoided by​

Without authorization, Lars contracts on behalf of Mina to have Nemo paint the interior and exterior of Mina's house. If Mina decides to ratify the contract, she must affirm​

Failure to comply with the equal dignity rule can make a contract voidable at the option of the principal.

Vicarious liability is indirect liability.

On March 1, Eugene retains Farley to act as his authorized agent. On April 1, Eugene dies. On April 2, before Farley knows of Eugene's death, he enters into a contract on Eugene's behalf. The contract is​

Orin hires Pat, a real estate broker, to sell her oceanfront house. The house is destroyed in a hurricane before being sold. Pat is Orin's agent​

Reliable Insurance Company employs Stuart as an agent. To terminate Stuart's authority, Reliable Insurance must notify​

Romero employs Supplies Procurement Service as an agent under a written agreement that describes the rights and duties of both parties. This is​

Law and Legal Reasoning

Courts and Alternative Dispute Resolution

Court Procedures

Business and the Constitution

Business Ethics

Tort Law

Strict Liability and Product Liability

Intellectual Property Rights

Internet Law, Social Media, and Privacy

Criminal Law and Cyber Crime

Nature and Terminology

Agreement in Traditional and E-Contracts

Consideration

Capacity and Legality

Mistakes, Fraud, and Voluntary Consent

The Writing Requirement in Our Digital World

Third Party Rights

Performance and Discharge

Breach of Contract and Remedies

The Formation of Sales and Lease Contracts

Title, Risk, and Insurable Interest

Performance and Breach of Sales and Lease Contracts

Warranties

International and Space Law

Negotiable Instruments

Transferability and Holder in Due Course

Liability, Defenses, and Discharge

Banking in the Digital Age

Creditors Rights and Remedies

Secured Transactions

Bankruptcy Law

Agency Formation and Duties

Employment, Immigration, and Labor Law

Employment Discrimination

Small Businesses and Franchises

All Forms of Partnerships

Limited Liability Companies and Special Business Forms

Corporate Formation and Financing

Corporate Directors, Officers, and Shareholders

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Investor Protection, Insider Trading, and Corporate Governance

Administrative Agencies

Consumer Law

Environmental Protection

Antitrust Law

Professional Liability and Accountability

Personal Property and Bailments

Real Property and Landlord-Tenant Law

Insurance

Wills and Trusts

The Legal Environment of Business

Torts and Crimes

Contracts and E-Contracts

Domestic and International Sales and Lease Contracts

Negotiable Instruments

Creditors Rights and Bankruptcy

Agency and Employment

Business Organizations

Government Regulation

Property and Its Protection

Filters

Ben manages a warehouse and its inventory for Coffee Shops, Inc. To operate this part of the business, Ben's authority can be inferred

OnlineSales.com uses an e-agent to take a purchase order from a consumer over the Internet. The e-agent fails to provide an onscreen confirmation of the order. The effect of any error in the order can be avoided by

Without authorization, Lars contracts on behalf of Mina to have Nemo paint the interior and exterior of Mina's house. If Mina decides to ratify the contract, she must affirm

On March 1, Eugene retains Farley to act as his authorized agent. On April 1, Eugene dies. On April 2, before Farley knows of Eugene's death, he enters into a contract on Eugene's behalf. The contract is

Orin hires Pat, a real estate broker, to sell her oceanfront house. The house is destroyed in a hurricane before being sold. Pat is Orin's agent

Reliable Insurance Company employs Stuart as an agent. To terminate Stuart's authority, Reliable Insurance must notify

Romero employs Supplies Procurement Service as an agent under a written agreement that describes the rights and duties of both parties. This is