Exam 14: Agency and the Employment Relationship

Power of attorney is based on a legal document.

Agents have no obligation to engage in activity on behalf of principals that could lead to personal liability.

Employers may be liable for torts of employees that can be attributed to negligent hiring or supervision under the rule of law known as:

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

Many states require agencies for ____ to be established in writing.

An agency is created when an agent agrees to act for, or in place of, the:

The principal's duty to reimburse dose not cover expenses:

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

A(n) ____ relationship is one in which one person is an employee whose conduct is controlled by the employer.

Bill is an attorney in Ohio. Marla hires Bill to create a trust for her children. Bill has not been keeping up with developments in trust law, and so creates an inefficient trust. Under recent Ohio law, he could have created a much more beneficial trust. In this case, Bill:

In Bearden v. Wardley Corp., where Bearden sued Wardley because one of its agents, Gritton, bought a house from her and then cheated her on the transaction, the court held that:

The agency relationship is a key part to most business operations.

The authority given by the principal to an agent, conferring on the agent the power and right to change the principal's legal status is referred to as:

An independent contractor is usually not an agent of the principal who hired her, but can have that role too.

Agents rarely can change a principal's legal obligations.

A principal held responsible for the torts of an agent is said to have vicarious liability.

Express authority consists of the agent's:

All valid agency relationships are contracts.

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. The company was not liable because the sales rep was an independent contractor.

The ____ provides some immunity for a company against content posted or submitted online by third parties, if a company is merely acting as a publisher.