Exam 14: Agency and the Employment Relationship

Under the common law doctrine of ____, employers are free to discharge employees for any reason at any time, and employees are free to quit their jobs for any reason at any time.

A principal may designate someone to execute all transactions connected with running a business. Such a person is known as a special agent.

Someone designated to do all acts that can be legally granted to an agent is called a(n):

Power of attorney may only be held by a licensed attorney.

Carla agrees to try to sell Frank's prize dog Spike for him. Carla does this as a favor to Frank because she knows many professional dog breeders. Carla may be best described as:

An agent's authority is the power to change the principal's legal obligations.

Agency by estoppel means:

In an agency relationship, the agent is a neutral party regarding contracts between the principal and third parties.

In Foley v. Interactive Data, the California Supreme Court held that for an employer to ignore written termination guidelines does not provide a basis for suing for breach of employment contract.

When you go on vacation you give your neighbor authority to pick up your mail and watch for burglars for you. You tell the neighbor not to go into the house or let anyone else in. A fire on the hills threatens your house. The neighbor goes in to carry out valuables before the house burns. This action is:

An employee of a company, who has good technical knowledge, is concerned that some televisions made by the company may have electrical shorts that could cause fires. Since no one in the company would address the problem, the employee provides evidence of the problem to the media and state attorney general, so consumers can be aware of the problem. If the employee is fired he is unlikely to have:

When liability is imposed on the principal for the unauthorized torts of an agent, it is called:

Lisa works for Sally. Lisa's jobs include selling the folk-art Santa Claus statutes that Sally hand-makes, as well as purchasing the wood for the statutes. In this case Lisa is:

A disclosed principal is a principal whose identity is:

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

European nations generally have more detailed rules regarding employees than does the U.S.

Insuring an agent against losses suffered during the course of authorized transactions is part of the principal's:

An agent has a ____ the funds and property of his principal that have been entrusted to him or have come into his possession.

In Cove Management v. AFLAC, Galgano, an independent contractor who solicited insurance business for AFLAC, rented office space from Cove under AFLAC's name. When Galgano defaulted on payments, Cove sued AFLAC contending that Galgano was its agent when he rented the office, so AFLAC was liable. The appeals court held that AFLAC:

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