Question 1

An employer held responsible for the torts of an employee is said to have vicarious liability.

Accepted Answer

A) True 
 B)False

Question 2

Under which of the following conditions would a principal or employer be liable for the tort of an agent or employee:

Accepted Answer

A)  the tort was authorized by the principal 
B)  the tort occurred within the scope of employment 
C)  the tort was not authorized by the principal 
D)  both a and b are correct 
E)  none of the other choices are correct 
A)  the tort was authorized by the principal 
B)  the tort occurred within the scope of employment 
C)  the tort was not authorized by the principal 
D)  both a and b are correct 
E)  none of the other choices are correct

Question 3

An express ratification takes place when the principal behaves as if she has the intention of ratifying an unauthorized agreement.

Accepted Answer

A) True 
 B)False

Question 4

In Yin v. J's Fashion Accessories, the court found that Yim was an agent for his company, Hosung, so was not liable for debts owed by Hosung, the principal.

Accepted Answer

A) True 
 B)False

Question 5

A disclosed principal is a principal whose identity is:

Accepted Answer

A)  known to the agent 
B)  unknown to the agent 
C)  unknown to third parties to contracts entered into with the agent 
D)  known to partners 
E)  known to third parties to contracts entered into with the agent 
A)  known to the agent 
B)  unknown to the agent 
C)  unknown to third parties to contracts entered into with the agent 
D)  known to partners 
E)  known to third parties to contracts entered into with the agent

Question 6

For an agency to be valid in most states:

Accepted Answer

A)  there must be written evidence of its creation 
B)  the agency must be registered 
C)  the agent must be subject to the principal's control 
D)  there must be written evidence of its creation and the agent must be subject to the principal's control 
E)  the agent must be subject to the principal's control and the agency must be registered 
A)  there must be written evidence of its creation 
B)  the agency must be registered 
C)  the agent must be subject to the principal's control 
D)  there must be written evidence of its creation and the agent must be subject to the principal's control 
E)  the agent must be subject to the principal's control and the agency must be registered

Question 7

Agency relationships used to be common in decades past, but in recent years they have fallen out of favor.

Accepted Answer

A) True 
 B)False

Question 8

An employment of an agent for the purpose of representation in establishing relations between a principal and third parties is known as a(n):

Accepted Answer

A)  third party relationship 
B)  principal relationship 
C)  agency relationship 
D)  real relationship 
E)  representative relationship 
A)  third party relationship 
B)  principal relationship 
C)  agency relationship 
D)  real relationship 
E)  representative relationship

Question 9

Destruction of the subject matter of an agency ends an agency relationship.

Accepted Answer

A) True 
 B)False

Question 10

An employee works for 20 years for a large company and has good job performance. When the company is reorganized, the employee is dismissed because he is "no longer needed." The employee probably has a good suit for:

Accepted Answer

A)  breach of implied covenant of good faith 
B)  breach of express contract, since he worked for more than seven years 
C)  tort of interference with contractual relations 
D)  breach of an implied contract 
E)  none of the other choices 
A)  breach of implied covenant of good faith 
B)  breach of express contract, since he worked for more than seven years 
C)  tort of interference with contractual relations 
D)  breach of an implied contract 
E)  none of the other choices

Question 11

The agent's ability to transact business on behalf of and for the principal depends on whether the agent possesses:

Accepted Answer

A)  actual authority 
B)  apparent authority 
C)  quasi-authority 
D)  actual or apparent authority 
E)  actual or apparent authority or quasi-authority 
A)  actual authority 
B)  apparent authority 
C)  quasi-authority 
D)  actual or apparent authority 
E)  actual or apparent authority or quasi-authority

Question 12

An agent makes a contract with a third party on behalf of the disclosed principal. The principal then breaches the contract. The third party may sue the agent to recover damages.

Accepted Answer

A) True 
 B)False

Question 13

In Coelho v. Posi-Seal the Connecticut Supreme Court found that statements by the company president to an employee that he had good job security, but later fired him, was a breach of implied contract for continued employment.

Accepted Answer

A) True 
 B)False

Question 14

An agent must perform instructions provided by the principal. If the agent fails to do so, he violates:

Accepted Answer

A)  the duty of cooperation 
B)  the duty of obedience and performance 
C)  the duty to reimburse 
D)  the duty of loyalty 
E)  the duty of accounting 
A)  the duty of cooperation 
B)  the duty of obedience and performance 
C)  the duty to reimburse 
D)  the duty of loyalty 
E)  the duty of accounting

Question 15

Employee handbooks usually do which of the following?

Accepted Answer

A)  discuss grounds for discipline and dismissal 
B)  communicate company policies and procedures 
C)  eliminate liability for employers for any on-the-job injuries 
D)  discuss grounds for discipline and dismissal and communicate company policies and procedures 
E)  discuss grounds for discipline and dismissal and communicate company policies and procedures and eliminate liability for employers for any on-the-job injuries 
A)  discuss grounds for discipline and dismissal 
B)  communicate company policies and procedures 
C)  eliminate liability for employers for any on-the-job injuries 
D)  discuss grounds for discipline and dismissal and communicate company policies and procedures 
E)  discuss grounds for discipline and dismissal and communicate company policies and procedures and eliminate liability for employers for any on-the-job injuries

Question 16

Subagents work for the agent and owe duties to:

Accepted Answer

A)  only the agent 
B)  only the principal 
C)  both the agent and the principal 
D)  no one 
E)  none of the other choices are correct 
A)  only the agent 
B)  only the principal 
C)  both the agent and the principal 
D)  no one 
E)  none of the other choices are correct

Question 17

An employer could be liable for acts of an employee based on negligent hiring.

Accepted Answer

A) True 
 B)False

Question 18

An employer could be held liable for negligence in hiring if:

Accepted Answer

A)  they hire a person who could be expected to possibly cause problems 
B)  they hire a person who has no criminal record 
C)  they hire a person who owns property with liens on it 
D)  they hire a person who has never had a job before 
E)  they hire a person without a college degree 
A)  they hire a person who could be expected to possibly cause problems 
B)  they hire a person who has no criminal record 
C)  they hire a person who owns property with liens on it 
D)  they hire a person who has never had a job before 
E)  they hire a person without a college degree

Question 19

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

Accepted Answer

A)  universal agent 
B)  special agent 
C)  gratuitous agent 
D)  general agent 
E)  none of the other choices 
A)  universal agent 
B)  special agent 
C)  gratuitous agent 
D)  general agent 
E)  none of the other choices

Question 20

The power of an agent to do whatever is reasonable and customary to carry out the agency purpose is given by:

Accepted Answer

A)  express authority 
B)  verbal authority 
C)  quasi authority 
D)  false authority 
E)  none of the other choices are correct 
A)  express authority 
B)  verbal authority 
C)  quasi authority 
D)  false authority 
E)  none of the other choices are correct

Exam 14: Agency and the Employment Relationship

An employer held responsible for the torts of an employee is said to have vicarious liability.

Under which of the following conditions would a principal or employer be liable for the tort of an agent or employee:

An express ratification takes place when the principal behaves as if she has the intention of ratifying an unauthorized agreement.

In Yin v. J's Fashion Accessories, the court found that Yim was an agent for his company, Hosung, so was not liable for debts owed by Hosung, the principal.

A disclosed principal is a principal whose identity is:

For an agency to be valid in most states:

Agency relationships used to be common in decades past, but in recent years they have fallen out of favor.

An employment of an agent for the purpose of representation in establishing relations between a principal and third parties is known as a(n):

Destruction of the subject matter of an agency ends an agency relationship.

An employee works for 20 years for a large company and has good job performance. When the company is reorganized, the employee is dismissed because he is "no longer needed." The employee probably has a good suit for:

The agent's ability to transact business on behalf of and for the principal depends on whether the agent possesses:

An agent makes a contract with a third party on behalf of the disclosed principal. The principal then breaches the contract. The third party may sue the agent to recover damages.

In Coelho v. Posi-Seal the Connecticut Supreme Court found that statements by the company president to an employee that he had good job security, but later fired him, was a breach of implied contract for continued employment.

An agent must perform instructions provided by the principal. If the agent fails to do so, he violates:

Employee handbooks usually do which of the following?

Subagents work for the agent and owe duties to:

An employer could be liable for acts of an employee based on negligent hiring.

An employer could be held liable for negligence in hiring if:

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

The power of an agent to do whatever is reasonable and customary to carry out the agency purpose is given by:

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