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

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On the advice of her colleague,Stacey hires Harold,a lawyer and an independent contractor,to represent her in a court case.While driving to the courthouse to represent Stacey at trial,Harold negligently causes an automobile accident in which Mildred,a bystander,is severely injured.Who is liable to Mildred?

(Multiple Choice)
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Ratification of a contract is a situation in which a principal accepts an agent's unauthorized contract.

(True/False)
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If an agent competes with the principal without the principal's permission,the principal may recover profits made by the agent.

(True/False)
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Which of the following best describes a partially disclosed agency?

(Multiple Choice)
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If a casting agent works for two Hollywood actors,the agent is liable for ________.

(Multiple Choice)
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In a fully-disclosed agency,the contract is between ________.

(Multiple Choice)
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________ occurs where a principal is liable for an agent's tortious conduct because of the employment contract between the principal and agent,not because the principal was personally at fault.

(Multiple Choice)
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Agents can compete with the principal during the course of the agency if the principal agrees.

(True/False)
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Which of the following is an intentional tort?

(Multiple Choice)
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The principal is not liable for an agent's negligence if the agent is on a dual-purpose mission.

(True/False)
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Undisclosed self-dealing by an agent is not regarded as violation of the duty of loyalty.

(True/False)
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Which of the following is an instance of misuse of confidential information?

(Multiple Choice)
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The party that employs an independent contractor is called an agent.

(True/False)
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Dual agency is permitted if all parties to a transaction agree to it.

(True/False)
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Which of the following is true of an undisclosed agency?

(Multiple Choice)
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Which of the following is true of an independent contractor's liability?

(Multiple Choice)
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An agent does not violate his or her duty of loyalty by serving two parties with the same interest.

(True/False)
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Which of the following is true of dual agency?

(Multiple Choice)
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Under the ________ test,the principal is liable for any intentional torts committed by an agent during working hours on the principal's premises.

(Multiple Choice)
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Why can an agent generally not take an opportunity meant for the principal? Is an agent ever permitted to take such an opportunity? Give an example of an agent's violation of the duty of loyalty.

(Essay)
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