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

Which of the following statements is true of an agent taking an opportunity?

The amount of time that an agent works for a principal is not one of the factors in determining independent contractor status.

Dan asks his agent Jude to drop off some medicines at his mother's house.On his way back,Jude decides to have lunch at a diner two blocks from his workplace.While walking back to work,he jaywalks at a green signal on the road,causing a motorcyclist to hit the curb and injure himself while attempting to avoid hitting Jude.Under the concept of ________,Dan is liable for the injuries caused to the motorcyclist.

If an agent exceeds his or her scope of authority,a principal is bound on the contract only if he or she ratifies the contract.

The crucial factor in determining whether someone is an independent contractor or an employee is the ________.

Fiona works for Open Heart Hospital and lives 10 miles away from her place of work.The hospital has provided her with a car to commute and also pays for its upkeep.If she accidentally injures a person while driving to work in the morning,which of the following would be true?

Which of the following is a fiduciary duty owed by an agent not to act adversely to the interests of the principal?

Which of the following is a course of action for a principal if an agent is found competing with him or her?

An independent contractor cannot represent more than one principal at a time.

The agent is liable for any intentional or innocent misrepresentation made by the principal in a transaction.

Describe the operation of a fully disclosed agency.

If an agent reveals confidential information of a principal to a third party,one of principal's courses of action may be to obtain an injunction against the third party.

The agent is not liable on the contract in a fully disclosed agency.

Minksine Corporation employs Sandy as its marketing manager.Sandy is driving her sedan to attend a meeting with a client on behalf of her employer.On her way to the meeting,Sandy is involved in an automobile accident that is caused by her negligence.Several people are seriously injured in the accident.Which of the following is true of this case?

Most jurisdictions hold the ________ liable for injuries caused on a dual-purpose mission.

In a fully disclosed agency,an agent is not liable on the contract if he or she guarantees that the principal will perform the contract.

A dual-purpose mission is a situation that occurs when ________.

Which of the following is true of an agent's undisclosed self-dealing?

Briefly explain an undisclosed agency.What are the liabilities involved in such an agency?

A principal has no course of action if an agent discloses his or her confidential information to a third party.