Exam 14: Agency and the Employment Relationship

A(n) ____ relationship is one in which an agent acts on behalf of or for the principal, with a degree of personal discretion.

An agency coupled with an interest is created:

Fiduciary duties include:

A principal's major reason for developing agency relationships is to expand business opportunities.

Which of the following is a common problem with employee handbooks:

Which of the following would lead to termination by operation of law for an agency:

All employee handbooks are held to create binding contractual obligations on the part of employers who use them.

A senior manager at a car dealership is likely both an agent and employee.

The principal has a ____ with her agent by performing responsibilities defined in the agreement forming the agency.

Which of the following is least likely to be an issue in determining if an employer has hired an employee or an independent contractor:

Which of the following is an advantage to having the ability to use agents:

A person designated by a principal to do all acts that can be legally delegated to an agent is a:

The duty of loyalty:

Through an agency relationship, the agent becomes a representative of the:

If Hilda volunteers to sell Heidi's horse for her, because Hilda knows lots of potential buyers, and Heidi agrees, Hilda is a gratuitous agent.

An agent must be able to show where money or property comes from and goes to because of his duty:

Which of the following is not a category of agents covered in the text:

A principal's ratification is:

Which of the following is a common problem with employee handbooks:

Fact Pattern 14-1 Emile owns Emile's Used Car Emporium. Several people work for him at the Emporium. When Emile is gone, he leaves one of his best salespersons, Meg, in charge. Over the years, Emile has given Meg the authority to contract with vendors, negotiate sales, and conclude car sales contracts in his name. One August, Emile takes a long vacation, leaving Meg in charge. While he is gone a hurricane hits Florida where the Emporium is located, causing severe damage. Because Emile is floating down the Amazon, Meg cannot reach him for instructions. She decides that rather than leave the place in shambles, she will hire people to repair the Emporium. Meg hires a carpenter to rebuild a wall that was blown down by the storm. Phil, the carpenter, is busy at work on his scaffold when Meg's Scottish terrier Adam, who she keeps with her at work, plows into the scaffolding while chasing a cat. Phil is knocked off the scaffold and falls ten feet to the ground, suffering a broken leg. -Refer to Fact Pattern 14-1. Suppose Meg, as part of her employment, pays Emile $100 per week so she may act as the go-between for car customers and financing companies, so she can get commissions from the financing companies. This kind of arrangement is known as: