Exam 14: Agency and the Employment Relationship

A(n) ____ is a principal's clear signal to be bound to the otherwise unauthorized agreement.

A company hired independent contractors to sell their products door-to-door. One sales rep, who had a criminal history, assaulted a customer, who sued the parent company. You would expect the court to hold the company liable for negligence.

If a person could be expected to possibly cause problems and an employer hires them anyway, the employer could be held liable for ____ if the employee commits a tort against a customer.

The death of a principal would affect the validity of contracts then made by the agent for the principal.

An agent is a(n) ____ of the principal, which means that the agent occupies a position of trust, honesty, and confidence for the principal.

An agent with authority to represent the principal only for a specific transaction, usually for a limited time is a(n):

Principals may be bound by the unauthorized acts of agents if the agent appears to third parties to have the authority to act.

A legal document that establishes some agency relationships is known as:

An agency relationship normally involves the use of an agent to represent a principal in dealing with which of the following:

Lyle is Thelma's agent. Thelma has made it clear to Lyle that she does not want him to sign the contracts that he negotiates; she retains that power. If, despite Thelma's instructions, Lyle negotiates and signs a contract with Tom committing Thelma to spend thousands of dollars, what will the consequences of Lyle's actions be?

____ consists of oral or written instructions given by the principal to an agent.

Which of the following is a factor that courts consider during a vicarious liability case when determining whether an act was within the scope of employment:

In which of the following situations can an agency relationship be created?

Agency by estoppel means:

The duty of an agent not to mix personal funds with the funds of the principal is the duty:

Geary was fired by his supervisor for revealing to higher management a serious problem with a company product. He sued for wrongful dismissal. You would expect the court to hold that Geary would be successful because he proved that if the product had gone to market it could have cost many lives.

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

A(n) ____is liable to a third party for a contract made by an agent who had actual authority to act on behalf of the principal.

Juan and Marie enter into an oral agreement that Marie will sell Juan's crusty herb garlic bread to gourmet food stores in the area. This works until Juan gets sick and no longer makes his bread. Marie is furious that Juan is unable to supply her with the popular bread and sues him for lost profits. A court is likely to rule:

Under the rule of ____ a principal or employer can be liable for the authorized or unauthorized intentional or negligent torts of agents and employees who were acting within the scope of employment.