Question 1

The principal is liable for all torts of independent contractors.

Accepted Answer

A) True 
 B)False  False

Question 2

A fully disclosed agency results if a third party entering into a contract knows the actual identity of the principal.

Accepted Answer

A) True 
 B)False  True

Question 3

Battery committed by an agent in the principal's premises and during the scope of employment is considered an unintentional tort.

Accepted Answer

A) True 
 B)False  False

Question 4

The work-related test puts liability on the employee if the intentional tort is committed within work-related time and space.

Accepted Answer

A) True 
 B)False

Question 5

Briefly explain the liability for an independent contractor's torts.

Accepted Answer

Generally,a principal is not liable for

Question 6

Which of the following is true of tort liability for principals and agents?

Accepted Answer

A) A principal is responsible for the tortious conduct of an agent irrespective of the scope of his or her authority. 
B) An agent is fully liable for his or her tortious conduct while on duty for the principal. 
C) An agent is liable for the principal's tortious conduct if he or she participates in it. 
D) An agent and a principal cannot be held responsible for the same tort. 
A) A principal is responsible for the tortious conduct of an agent irrespective of the scope of his or her authority. 
B) An agent is fully liable for his or her tortious conduct while on duty for the principal. 
C) An agent is liable for the principal's tortious conduct if he or she participates in it. 
D) An agent and a principal cannot be held responsible for the same tort.

Question 7

An agent owes a fiduciary duty not to act adversely to the interests of the principal.

Accepted Answer

A) True 
 B)False

Question 8

Does an agent competing with the principal breach his or her duty of loyalty? What is the proper course of action for the principal in such a case?

Accepted Answer

Agents are prohibited from competing wit

Question 9

An actor asks an agent to place an order for a couch on the agent's way back to work.This is an instance of ________.

Accepted Answer

A) a dual-purpose mission 
B) frolic and detour 
C) coming and going 
D) self-dealing 
A) a dual-purpose mission 
B) frolic and detour 
C) coming and going 
D) self-dealing

Question 10

Which of the following is true of misrepresentation?

Accepted Answer

A) An intentional misrepresentation by an agent is not considered fraud or deceit. 
B) The principal is not liable for an agent's intentional misrepresentation. 
C) A third party cannot recover damages from the principal due to an agent's intentional misrepresentation. 
D) The principal is liable for an agent's innocent misrepresentation. 
A) An intentional misrepresentation by an agent is not considered fraud or deceit. 
B) The principal is not liable for an agent's intentional misrepresentation. 
C) A third party cannot recover damages from the principal due to an agent's intentional misrepresentation. 
D) The principal is liable for an agent's innocent misrepresentation.

Question 11

Labeling someone an independent contractor is only one factor in determining whether independent contractor status exists.

Accepted Answer

A) True 
 B)False

Question 12

Gerard wants to get some land cleared in Texas.With the help of a consulting agency,he hires Carlos,an independent contractor.Carlos procures dynamite from a legitimate dealer,to be used in clearing the land.However,the explosion of dynamite causes cracks to appear in the outer walls of a nearby house.Who is liable to the owner of the damaged house?

Accepted Answer

A) Gerard 
B) Carlos 
C) both Gerard and Carlos 
D) the consulting agency 
A) Gerard 
B) Carlos 
C) both Gerard and Carlos 
D) the consulting agency

Question 13

Which of the following torts committed by an agent is the liability of the principal?

Accepted Answer

A) substantial frolic and detour 
B) accidents caused by an agent on the way to work 
C) accidents caused by an agent on the way from work 
D) negligence 
A) substantial frolic and detour 
B) accidents caused by an agent on the way to work 
C) accidents caused by an agent on the way from work 
D) negligence

Question 14

Lucas,a car salesperson,has to sell John's car.John informs Lucas that the car was repaired after it was involved in a major accident.If Lucas intentionally tells the buyer of the car that the car was never involved in an accident,he has committed the tort of ________.

Accepted Answer

A) substantial frolic and detour 
B) intentional misrepresentation 
C) self-dealing 
D) competing with the principal 
A) substantial frolic and detour 
B) intentional misrepresentation 
C) self-dealing 
D) competing with the principal

Question 15

Independent contractors usually work for a number of clients,have their own offices,hire employees,and control the performance of their work.

Accepted Answer

A) True 
 B)False

Question 16

Susanna hires Shane,a lawyer,as an independent contractor to represent her in a civil lawsuit against a defendant to recover monetary damages.If Susanna authorizes Shane to settle the case within a certain dollar amount and Shane does so,which of the following would be true?

Accepted Answer

A) The agreement is invalid after Shane's contract with Susanna terminates. 
B) The agreement is void because independent contractors cannot enter into contracts. 
C) The agreement is binding only when there is no financial settlement involved. 
D) The settlement agreement is binding for Susanna. 
A) The agreement is invalid after Shane's contract with Susanna terminates. 
B) The agreement is void because independent contractors cannot enter into contracts. 
C) The agreement is binding only when there is no financial settlement involved. 
D) The settlement agreement is binding for Susanna.

Question 17

Jamie is a lawyer who runs her own law firm practicing in the area of real estate law.Raymond,a real estate developer,hires Jamie to represent him in the purchase of land.Jamie is a(n)________.

Accepted Answer

A) principal 
B) agent 
C) third-party 
D) independent contractor 
A) principal 
B) agent 
C) third-party 
D) independent contractor

Question 18

What is vicarious liability?

Accepted Answer

A) nonliability 
B) liability for multiple torts 
C) liability without knowledge 
D) liability without fault 
A) nonliability 
B) liability for multiple torts 
C) liability without knowledge 
D) liability without fault

Question 19

A partially disclosed agency can be created by mistake.

Accepted Answer

A) True 
 B)False

Question 20

Middlemen and finders are not considered dual agents.

Accepted Answer

A) True 
 B)False

Exam 30: Liability of Principals, agents, and Independent Contractors

The principal is liable for all torts of independent contractors.

A fully disclosed agency results if a third party entering into a contract knows the actual identity of the principal.

Battery committed by an agent in the principal's premises and during the scope of employment is considered an unintentional tort.

The work-related test puts liability on the employee if the intentional tort is committed within work-related time and space.

Briefly explain the liability for an independent contractor's torts.

Which of the following is true of tort liability for principals and agents?

An agent owes a fiduciary duty not to act adversely to the interests of the principal.

Does an agent competing with the principal breach his or her duty of loyalty? What is the proper course of action for the principal in such a case?

An actor asks an agent to place an order for a couch on the agent's way back to work.This is an instance of ________.

Which of the following is true of misrepresentation?

Labeling someone an independent contractor is only one factor in determining whether independent contractor status exists.

Which of the following torts committed by an agent is the liability of the principal?

Lucas,a car salesperson,has to sell John's car.John informs Lucas that the car was repaired after it was involved in a major accident.If Lucas intentionally tells the buyer of the car that the car was never involved in an accident,he has committed the tort of ________.

Independent contractors usually work for a number of clients,have their own offices,hire employees,and control the performance of their work.

Susanna hires Shane,a lawyer,as an independent contractor to represent her in a civil lawsuit against a defendant to recover monetary damages.If Susanna authorizes Shane to settle the case within a certain dollar amount and Shane does so,which of the following would be true?

Jamie is a lawyer who runs her own law firm practicing in the area of real estate law.Raymond,a real estate developer,hires Jamie to represent him in the purchase of land.Jamie is a(n)________.

What is vicarious liability?

A partially disclosed agency can be created by mistake.

Middlemen and finders are not considered dual agents.

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

Agency Formation and Termination

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

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