Exam 14: Agency and the Employment Relationship

The legal document that authorizes a person or a company to act as an agent for a principal is called:

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. Meg is Emile's agent. They appear to have created their agency relationship by:

A(n) ____ is one whose identity is unknown by the third party at the time when a contract is entered into with an agent.

Federal law states that employers are not liable for actions of employees based on their use of social media in the workplace.

When a principal's conduct appears consistent with the existence of an agency relationship, an agency by estoppel may be created.

If an agent competes with his principal without the principal's consent:

A manager who runs all aspects of a hotel is most likely what kind of agent:

Which of the following can determine the scope of authority given to an agent:

____ is the authority given by the principal to the agent.

An employer should be cautious about hiring persons with criminal backgrounds that mean they could pose a threat to others as the employer could be liable for unauthorized torts that occurred on the job.

An independent contractor is an agent and an employee of the person who hired her.

The independent contractor is distinguished by:

____ takes place when the principal behaves as if he has the intent of ratifying an unauthorized agreement.

Andrea has been working very hard for her employer, Bill. Two weeks before Andrea is due for a bonus payment, Bill fires her for no reason. Andrea could make a case that:

Employment-at-will:

The duty of loyalty:

Which of the following is not a duty owed by the agent to the principal:

A principal may designate someone to do all acts that can be legally delegated to an agent. That agent is called a general agent.

A principal is contractually liable to a third party if that party enters into a contract presented by an agent with apparent authority to act for the principal.

Ratification of an agreement that is required by law to be in writing: