Question 1

Which of the following is NOT a correct statement about an auctioneer?

Accepted Answer

A) An auctioneer is an agent of the vendor but after the fall of the hammer becomes an agent of the purchaser. 
B) An auctioneer owes a duty to the vendor to accept the highest bid. 
C) An auctioneer is accountable to the vendor for the collection of the purchase price. 
D) An auctioneer can sue for the purchase price in their own name. 
A) An auctioneer is an agent of the vendor but after the fall of the hammer becomes an agent of the purchaser. 
B) An auctioneer owes a duty to the vendor to accept the highest bid. 
C) An auctioneer is accountable to the vendor for the collection of the purchase price. 
D) An auctioneer can sue for the purchase price in their own name.

Question 2

In what circumstances will Peter be an employer and Paul an employee?

Accepted Answer

A) Paul is claiming to be Peter's legal representative. 
B) Peter is paying Paul to perform a task and Paul is subject to the control and direction of Peter. 
C) Peter is paying Paul to perform a task but has no control over how Paul will complete the task. 
D) Paul has authority to bind Peter to a contract with a third party. 
A) Paul is claiming to be Peter's legal representative. 
B) Peter is paying Paul to perform a task and Paul is subject to the control and direction of Peter. 
C) Peter is paying Paul to perform a task but has no control over how Paul will complete the task. 
D) Paul has authority to bind Peter to a contract with a third party.

Question 3

An agent who can only make a particular type of contract or carry out a particular transaction on behalf of the principal is known as:

Accepted Answer

A) a 'special' or 'limited' agent. 
B) a 'universal' agent. 
C) an 'independent' agent. 
D) a 'general' agent. 
A) a 'special' or 'limited' agent. 
B) a 'universal' agent. 
C) an 'independent' agent. 
D) a 'general' agent.

Question 4

A contract must exist between the agent and the third party as well as the agent and the principal for agency law to apply.

Accepted Answer

A) True 
 B)False

Question 5

What do you think is the rationale behind the rule that an agent must act in person? Do you agree with this rationale?

Accepted Answer

The rationale behind the rule that an ag

Question 6

Agency is a fiduciary relationship.

Accepted Answer

A) True 
 B)False

Question 7

In which of the following cases did the court decide that the agent had breached their duty to act in the principal's interests?

Accepted Answer

A) Lunghi v Sinclair [1966] WAR 172. 
B) Hewson v Sydney Stock Exchange (1967)87 WN (NSW)422. 
C) Panorama Developments (Guildford)Ltd v Fidelis Furnishings Fabrics [1971] 3 WLR 440. 
D) John McCann & Co.v Pow [1973] 1 All ER 129. 
A) Lunghi v Sinclair [1966] WAR 172. 
B) Hewson v Sydney Stock Exchange (1967)87 WN (NSW)422. 
C) Panorama Developments (Guildford)Ltd v Fidelis Furnishings Fabrics [1971] 3 WLR 440. 
D) John McCann & Co.v Pow [1973] 1 All ER 129.

Question 8

Explain the meaning of 'agent of necessity' and give two examples.

Accepted Answer

An agency by necessity can only arise in

Question 9

An agent who can do almost anything on behalf of the principal which the principal can do for themselves is known as:

Accepted Answer

A) a 'special' or 'limited' agent. 
B) a 'universal' agent. 
C) an 'independent' agent. 
D) a 'general' agent. 
A) a 'special' or 'limited' agent. 
B) a 'universal' agent. 
C) an 'independent' agent. 
D) a 'general' agent.

Question 10

Which of the following is an example of an agency created by implication?

Accepted Answer

A) Adam is entrusted with Peter's property and finds it necessary to do something with it in order to preserve it. 
B) Peter retrospectively affirms the authority of Adam. 
C) Adam and Peter become partners in a partnership. 
D) Peter appoints Adam under a general power of attorney to carry out a particular transaction on his behalf. 
A) Adam is entrusted with Peter's property and finds it necessary to do something with it in order to preserve it. 
B) Peter retrospectively affirms the authority of Adam. 
C) Adam and Peter become partners in a partnership. 
D) Peter appoints Adam under a general power of attorney to carry out a particular transaction on his behalf.

Question 11

Which of the following is an exception to the rule that an agent will NOT be personally liable under a contract entered into with a third party?

Accepted Answer

A) Where the agent has executed a deed in their own name. 
B) Where the agent is in breach of warranty of authority. 
C) Where the agent has not disclosed to the third party that they are an agent. 
D) All of the above. 
A) Where the agent has executed a deed in their own name. 
B) Where the agent is in breach of warranty of authority. 
C) Where the agent has not disclosed to the third party that they are an agent. 
D) All of the above.

Question 12

Ratification by a principal of an unauthorised act by an agent can bind the third party retrospectively.

Accepted Answer

A) True 
 B)False

Question 13

Where a principal,by words or conduct,creates the appearance of an agency that is reality does not exist,this is an example of:

Accepted Answer

A) implied actual authority. 
B) express actual authority. 
C) retrospective actual authority. 
D) apparent or ostensible authority. 
A) implied actual authority. 
B) express actual authority. 
C) retrospective actual authority. 
D) apparent or ostensible authority.

Question 14

The decision in the case of: Tooth & Co v Laws (1888)9 LR (NSW)154 was based on the fact that:

Accepted Answer

A) the dealings of the secretary appeared to be within the scope of their authority even though they lacked actual authority. 
B) the defendant's previous conduct in paying for the jewellery amounted to a representation of the agent's authority. 
C) the defendant's failure to notify the suppliers of the sale of business prohibited him from denying that the purchasers were his agents. 
D) buying and selling cars was a normal practice of that kind of business. 
A) the dealings of the secretary appeared to be within the scope of their authority even though they lacked actual authority. 
B) the defendant's previous conduct in paying for the jewellery amounted to a representation of the agent's authority. 
C) the defendant's failure to notify the suppliers of the sale of business prohibited him from denying that the purchasers were his agents. 
D) buying and selling cars was a normal practice of that kind of business.

Question 15

In what circumstances will Adam be a principal and David an agent?

Accepted Answer

A) David has authority to bind Adam to a contract with a third party. 
B) Adam is paying David to perform a task but has no control over how David will complete the task. 
C) David is claiming to be Adam's legal representative. 
D) Adam is paying Eve to perform a task to be carried out by David. 
A) David has authority to bind Adam to a contract with a third party. 
B) Adam is paying David to perform a task but has no control over how David will complete the task. 
C) David is claiming to be Adam's legal representative. 
D) Adam is paying Eve to perform a task to be carried out by David.

Question 16

An independent contractor can never create an agency relationship with the person who engages them.

Accepted Answer

A) True 
 B)False

Question 17

Authority that is inferred from the conduct of the parties is an example of:

Accepted Answer

A) implied actual authority. 
B) express actual authority. 
C) retrospective actual authority. 
D) apparent or ostensible authority. 
A) implied actual authority. 
B) express actual authority. 
C) retrospective actual authority. 
D) apparent or ostensible authority.

Question 18

Which of the following is an example of an agency that is created by express appointment?

Accepted Answer

A) Adam is entrusted with Peter's property and finds it necessary to do something with it in order to preserve it. 
B) Peter retrospectively affirms the authority of Adam. 
C) Adam and Peter become partners in a partnership. 
D) Peter appoints Adam under a general power of attorney to carry out a particular transaction on his behalf. 
A) Adam is entrusted with Peter's property and finds it necessary to do something with it in order to preserve it. 
B) Peter retrospectively affirms the authority of Adam. 
C) Adam and Peter become partners in a partnership. 
D) Peter appoints Adam under a general power of attorney to carry out a particular transaction on his behalf.

Question 19

Death of one of the parties will terminate an agency agreement.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is NOT an agent?

Accepted Answer

A) Stockbroker. 
B) Real estate agent. 
C) Partner. 
D) Mercantile agent. 
A) Stockbroker. 
B) Real estate agent. 
C) Partner. 
D) Mercantile agent.

Exam 18: Agency

Which of the following is NOT a correct statement about an auctioneer?

In what circumstances will Peter be an employer and Paul an employee?

An agent who can only make a particular type of contract or carry out a particular transaction on behalf of the principal is known as:

A contract must exist between the agent and the third party as well as the agent and the principal for agency law to apply.

What do you think is the rationale behind the rule that an agent must act in person? Do you agree with this rationale?

Agency is a fiduciary relationship.

In which of the following cases did the court decide that the agent had breached their duty to act in the principal's interests?

Explain the meaning of 'agent of necessity' and give two examples.

An agent who can do almost anything on behalf of the principal which the principal can do for themselves is known as:

Which of the following is an example of an agency created by implication?

Which of the following is an exception to the rule that an agent will NOT be personally liable under a contract entered into with a third party?

Ratification by a principal of an unauthorised act by an agent can bind the third party retrospectively.

Where a principal,by words or conduct,creates the appearance of an agency that is reality does not exist,this is an example of:

The decision in the case of: Tooth & Co v Laws (1888)9 LR (NSW)154 was based on the fact that:

In what circumstances will Adam be a principal and David an agent?

An independent contractor can never create an agency relationship with the person who engages them.

Authority that is inferred from the conduct of the parties is an example of:

Which of the following is an example of an agency that is created by express appointment?

Death of one of the parties will terminate an agency agreement.

Which of the following is NOT an agent?

Legal Foundations

Legal Systems

How Law Is Made: Precedentstatute Law

Civil Liability: the Law of Torts and Negligence

Applications of Negligence to Business

Introduction to Contracts

Agreement Between the Parties

Intention to Create Legal Relations

Consideration

Capacity of the Parties

Genuine Consent

Is the Contract Legal

Terms of the Contract

Rights and Liabilities of the Parties,discharge and Remedies

Remedies in Contract

Statutory Consumer Guarantees and the Australian Consumer Law

General and Specific Consumer Protections Under the Acl

Introduction to Companies and Incorporated Associations

Partnerships

Choosing a Business Entity

Other Business-Related Torts

Insurance

Sale of Goodsbusiness to Business

Property and Mortgages

Intellectual Property

Ethics and Business Practice

Criminal Law in a Business Context

Competition Law

Insolvency and Debt Recovery

The Work Environment and the Employment Relationship

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