Question 1

Parties with whom an agent has direct dealings must be given direct notice of the termination of an agency.

Accepted Answer

A) True 
 B)False

Question 2

For an implied agency to function,implied authority cannot conflict with express authority.

Accepted Answer

A) True 
 B)False

Question 3

A(n)________ is a contract a principal and agent enter into that says the principal cannot employ another agent other than the one stated.

Accepted Answer

A) exclusive principal contract 
B) exclusive agency contract 
C) ratified contract 
D) apparent agency contract 
A) exclusive principal contract 
B) exclusive agency contract 
C) ratified contract 
D) apparent agency contract

Question 4

What is imputed knowledge?

Accepted Answer

A) information collected by a principal prior to engaging in an agency 
B) information collected by a principal on an agency 
C) information learned by an agent that is attributed to the principal 
D) information learned by a principal that is attributed to an agent 
A) information collected by a principal prior to engaging in an agency 
B) information collected by a principal on an agency 
C) information learned by an agent that is attributed to the principal 
D) information learned by a principal that is attributed to an agent

Question 5

An agent does not owe a duty to notify the principal of important information he learns concerning the agency.

Accepted Answer

A) True 
 B)False

Question 6

A special power of attorney empowers the agent to act in any matters on the principal's behalf without limitation.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is true of a principal-independent contractor relationship?

Accepted Answer

A) Principals are bound by the authorized contracts of their independent contractors. 
B) Independent contractors cannot be authorized by principals. 
C) Independent contractors are employees of the principals. 
D) Principals cannot directly employ independent contractors. 
A) Principals are bound by the authorized contracts of their independent contractors. 
B) Independent contractors cannot be authorized by principals. 
C) Independent contractors are employees of the principals. 
D) Principals cannot directly employ independent contractors.

Question 8

Which of the following constitutes an agency?

Accepted Answer

A) principal-agent relationship 
B) agent-agent relationship 
C) principal-principal relationship 
D) agent-independent contractor relationship 
A) principal-agent relationship 
B) agent-agent relationship 
C) principal-principal relationship 
D) agent-independent contractor relationship

Question 9

Which of the following is true of an express agency?

Accepted Answer

A) The agency involved is allowed to have multiple agents if desired. 
B) The agency is implied from the conduct of the parties. 
C) The agency comes to effect when the principal ratifies an unauthorized act. 
D) The agency arises when a principal creates the appearance of an agency that does not exist. 
A) The agency involved is allowed to have multiple agents if desired. 
B) The agency is implied from the conduct of the parties. 
C) The agency comes to effect when the principal ratifies an unauthorized act. 
D) The agency arises when a principal creates the appearance of an agency that does not exist.

Question 10

An agent is a party who ________.

Accepted Answer

A) agrees to act on behalf of another 
B) employs another person to act on his or her behalf 
C) directs a worker under an express or implied contract of employment 
D) receives the services of another for remuneration 
A) agrees to act on behalf of another 
B) employs another person to act on his or her behalf 
C) directs a worker under an express or implied contract of employment 
D) receives the services of another for remuneration

Question 11

A duty that a principal owes to pay an agreed-upon amount to the agent either upon the completion of the agency or at some other mutually agreeable time is known as a principal's ________.

Accepted Answer

A) duty to reimburse 
B) duty to cooperate 
C) duty to indemnify 
D) duty to compensate 
A) duty to reimburse 
B) duty to cooperate 
C) duty to indemnify 
D) duty to compensate

Question 12

The principal's duty to reimburse says that the principal should pay the agent all expenses prior to the start of the agency.

Accepted Answer

A) True 
 B)False

Question 13

Martin,who wants to sell a house he owns,authorizes his concierge,Wilhelm,to find a potential buyer,and finalize a deal above a stipulated price.Wilhelm contracts Chris,a real estate broker,and instructs him to only find a potential buyer and send them over to Wilhelm for the sale.Martin then contracts ReNowait Goodhouses,a home improvement company to renovate the house.ReNowait completes its work and Martin pays them.Chris then searches for a suitable buyer and finds one in George.George buys the house and Chris is paid for his services.What role does Chris perform?

Accepted Answer

A) independent contractor 
B) agent 
C) principal 
D) trustee 
A) independent contractor 
B) agent 
C) principal 
D) trustee

Question 14

List the circumstances that can lead to termination by impossibility of performance.

Accepted Answer

An agency relationship terminates if a s

Question 15

A general power of attorney limits the agent to those acts enumerated by the agreement.

Accepted Answer

A) True 
 B)False

Question 16

A(n)________ is a fiduciary relationship which results from the manifestation of consent by one person to another that the other shall act in his behalf and subject to his control,and consent by the other so to act.

Accepted Answer

A) assignment 
B) garnishment 
C) accommodation 
D) agency 
A) assignment 
B) garnishment 
C) accommodation 
D) agency

Question 17

A principal-agent relationship exists when an employer hires an employee to perform some form of physical service.

Accepted Answer

A) True 
 B)False

Question 18

If a principal and an agent enter into an express agency contract,the principal cannot employ any agent other than the exclusive agent.

Accepted Answer

A) True 
 B)False

Question 19

Constructive notice is not valid against strangers who assert claims of apparent agency.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following describes an agency by estoppel?

Accepted Answer

A) an agency that arises when a principal ratifies a contract created by an unauthorized agent 
B) an agency created when a principal and an agent expressly agree to enter into an agency agreement 
C) an agency that is not expressly stated but is implied and inferred in the conduct of the parties 
D) an agency that arises when a principal creates the appearance of an agency that in actuality does not exist 
A) an agency that arises when a principal ratifies a contract created by an unauthorized agent 
B) an agency created when a principal and an agent expressly agree to enter into an agency agreement 
C) an agency that is not expressly stated but is implied and inferred in the conduct of the parties 
D) an agency that arises when a principal creates the appearance of an agency that in actuality does not exist

Exam 29: Agency Formation and Termination

Parties with whom an agent has direct dealings must be given direct notice of the termination of an agency.

For an implied agency to function,implied authority cannot conflict with express authority.

A(n)________ is a contract a principal and agent enter into that says the principal cannot employ another agent other than the one stated.

What is imputed knowledge?

An agent does not owe a duty to notify the principal of important information he learns concerning the agency.

A special power of attorney empowers the agent to act in any matters on the principal's behalf without limitation.

Which of the following is true of a principal-independent contractor relationship?

Which of the following constitutes an agency?

Which of the following is true of an express agency?

An agent is a party who ________.

A duty that a principal owes to pay an agreed-upon amount to the agent either upon the completion of the agency or at some other mutually agreeable time is known as a principal's ________.

The principal's duty to reimburse says that the principal should pay the agent all expenses prior to the start of the agency.

List the circumstances that can lead to termination by impossibility of performance.

A general power of attorney limits the agent to those acts enumerated by the agreement.

A(n)________ is a fiduciary relationship which results from the manifestation of consent by one person to another that the other shall act in his behalf and subject to his control,and consent by the other so to act.

A principal-agent relationship exists when an employer hires an employee to perform some form of physical service.

If a principal and an agent enter into an express agency contract,the principal cannot employ any agent other than the exclusive agent.

Constructive notice is not valid against strangers who assert claims of apparent agency.

Which of the following describes an agency by estoppel?

Legal Environment of Business and Online Commerce

Courts and Jurisdiction

Judicial, alternative, and Online Dispute Resolution

Constitutional Law for Business and E-Commerce

Intentional Torts and Negligence

Product and Strict Liability

Intellectual Property and Cyber Piracy

Criminal Law and Cyber Crime

Nature of Traditional and E-Contracts

Agreement

Consideration and Promissory Estoppel

Capacity and Legality

Genuineness of Assent and Undue Influence

Statute of Frauds and Equitable Exceptions

Third-Party Rights and Discharge

Remedies for Breach of Traditional and E-Contracts

Digital Law and E-Commerce

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties

Creation of Negotiable Instruments

Holder in Due Course and Transferability

Liability, defenses, and Discharge

Banking System and Electronic Financial Transactions

Credit, mortgages, and Debtors Rights

Secured Transactions

Bankruptcy and Reorganization

Liability of Principals, agents, and Independent Contractors

Employment, worker Protection, and Immigration Law

Labor Law

Equal Opportunity in Employment

Small Business, entrepreneurship, and General Partnerships

Limited Partnerships and Special Partnerships

Corporate Formation and Financing

Corporate Governance and the Sarbanes-Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Companies and Limited Liability Partnerships

Franchises and Special Forms of Businesses

Investor Protection, e-Securities, and Wall Street Reform

Ethics and Social Responsibility of Business

Administrative Law and Regulatory Agencies

Consumer Protection and Product Safety

Environmental Protection

Antitrust Law and Unfair Trade Practices

Personal Property, real Property, and Insurance

Real Property

Landlord-Tenant Law and Land Use Regulation

Insurance

Accountants Duties and Liability

Wills, trusts, and Estates

Family Law

International and World Trade Law

Filters