Question 1

Employment laws apply to the employer-independent contractor relationship.

Accepted Answer

A) True 
 B)False  False

Question 2

An agent's deviation from the lawful clearly stated instructions of the principal is a violation of the duty of obedience.

Accepted Answer

A) True 
 B)False  True

Question 3

Fact Pattern 9-2
Faye works as an administrator and receptionist for Garage Door Store. The store withholds federal taxes from Faye's pay, and controls the methods and details of the performance of her work. Faye is not authorized to modify the prices or other terms of a sale at the store. Homer installs Garage Door products at the buyers' locations.
-Refer to Fact Pattern 9-2.Garage Door authorizes Homer to sell garage door upgrades and accessories at the buyers' locations at prices that Homer negotiates with those buyers. With respect to sales at those locations, Homer is​

Accepted Answer

A)  ​an independent contractor. 
B)  ​an employee only. 
C)  ​an employee and agent. 
D)  ​a principal. 
A)  ​an independent contractor. 
B)  ​an employee only. 
C)  ​an employee and agent. 
D)  ​a principal. C

Question 4

Dakota Energy Company employs Evan to negotiate the purchase of mineral rights for future mining projects. Evan secretly buys some of the property and sells it to Dakota at a profit. Evan has breached​

Accepted Answer

A)  ​no duty. 
B)  ​the agent's duty of accounting. 
C)  ​the agent's duty of loyalty. 
D)  ​the principal's duty of compensation. 
A)  ​no duty. 
B)  ​the agent's duty of accounting. 
C)  ​the agent's duty of loyalty. 
D)  ​the principal's duty of compensation.

Question 5

Emmett, an agent for Fridley, signs an agreement with Glover on Fridley's behalf but neglects to tell him that the agreement requires the payment of a certain tax. The government prosecutes Fridley for failing to pay the tax. He is​

Accepted Answer

A)  ​liable, because notice to Emmett is notice to Fridley. 
B)  ​liable, because notice to Glover is notice to Fridley. 
C)  ​not liable, because Emmett did not notify Fridley of the tax. 
D)  ​not liable, because Glover did not tell Fridley about the tax. 
A)  ​liable, because notice to Emmett is notice to Fridley. 
B)  ​liable, because notice to Glover is notice to Fridley. 
C)  ​not liable, because Emmett did not notify Fridley of the tax. 
D)  ​not liable, because Glover did not tell Fridley about the tax.

Question 6

Business Travelers Hotel Corporation hires Conrad, a real estate agent, to locate hotel properties for the company. Conrad learns of a hotel available for $3.2 million, informs Business Travelers, and makes an offer of $2.9 million on Business Travelers's instruction. The offer is rejected. Conrad​

Accepted Answer

A)  ​breached the agent's fiduciary duties to the principal. 
B)  ​complied with all of the agent's duties to the principal. 
C)  ​failed to exercise the degree of skill required of an agent. 
D)  ​did not act strictly for the benefit of the principal. 
A)  ​breached the agent's fiduciary duties to the principal. 
B)  ​complied with all of the agent's duties to the principal. 
C)  ​failed to exercise the degree of skill required of an agent. 
D)  ​did not act strictly for the benefit of the principal.

Question 7

Any copyrighted work created by an employee within the scope of his or her employment at the request of the employer is a "work for hire."

Accepted Answer

A) True 
 B)False

Question 8

John contracts with Kelly to buy a certain number of cattle for Kelly's Circle K ranch. John makes a deal with Lawson, the owner of a local herd, and makes a down payment. Kelly fails to pay the rest of the price. Lawson sues John for breach of contract. John's right to hold Kelly liable for any damages that he has to pay is the right of​

Accepted Answer

A)  ​compensation. 
B)  ​cooperation. 
C)  ​indemnification. 
D)  ​reimbursement. 
A)  ​compensation. 
B)  ​cooperation. 
C)  ​indemnification. 
D)  ​reimbursement.

Question 9

Sybil agrees with Tyrone and other professional athletes to sign contracts with promoters and others on the athletes' behalf. Sybil is

Accepted Answer

A)  ​an agent. 
B)  ​an employee. 
C)  ​an employer. 
D)  ​a principal. 
A)  ​an agent. 
B)  ​an employee. 
C)  ​an employer. 
D)  ​a principal.

Question 10

Investment Holdings Corporation hires Jeri, a business appraiser, to locate investment possibilities for Investment Holdings. Jeri learns of a salsa and hot sauce manufacturing company available for a reasonable price, but neglects to tell Investment Holdings. Most likely, Jeri​

Accepted Answer

A)  ​breached the agent's fiduciary duties to the principal. 
B)  ​did nothing wrong. 
C)  ​failed to take advantage of a business opportunity. 
D)  ​assumed that the information was confidential. 
A)  ​breached the agent's fiduciary duties to the principal. 
B)  ​did nothing wrong. 
C)  ​failed to take advantage of a business opportunity. 
D)  ​assumed that the information was confidential.

Question 11

An agency by estoppel arises when the principal's actions have created the appearance of an agency that does not in fact exist.

Accepted Answer

A) True 
 B)False

Question 12

A principal has the right to control an agent's conduct in matters entrusted to the agent.

Accepted Answer

A) True 
 B)False

Question 13

Bernard is an expert on exotic flowers. Custom Floral Arrangements, Inc., hires Bernard to order exotic flowers for its arrangements. Bernard does not examine the quality of the flowers he orders on behalf of Custom Floral. Bernard has breached​

Accepted Answer

A)  ​the duty of performance. 
B)  ​the duty of loyalty. 
C)  ​no duty. 
D)  ​the duty of notification. 
A)  ​the duty of performance. 
B)  ​the duty of loyalty. 
C)  ​no duty. 
D)  ​the duty of notification.

Question 14

The agent has the right to a safe working environment.

Accepted Answer

A) True 
 B)False

Question 15

Roman is the chief executive officer of Salty Snax Corporation. Roman's responsibilities include decisions on product development, marketing, and other significant business directions. Roman is subject to the approval and oversight of Salty Snax's board of directors. Teri is a Salty Snax manager whose duties include the firm's day-to-day hiring, firing, purchasing, and selling. Umberto is a Salty Snax salesperson, whose daily activities are controlled by Teri. Velma writes sales manuals and promotional materials for Salty Snax's products according to Roman's instructions and subject to Salty Snax's control, but has no dealings with the company's customers or suppliers. Warren writes copy on a contract-per-project basis and is not otherwise subject to Salty Snax's control. Who is a principal? Who is an agent? Who is an employee? Who is an independent contractor?

Accepted Answer

Salty Snax is a principal. Roman, Teri,

Question 16

Agency relationships are not crucial in the business world.

Accepted Answer

A) True 
 B)False

Question 17

An agent's duties to the principal are implied from the agency relationship only if the identity of the principal is disclosed to a third party.

Accepted Answer

A) True 
 B)False

Question 18

An agency relationship created for an illegal purpose is enforceable.

Accepted Answer

A) True 
 B)False

Question 19

If a great degree of skill is required, this may indicate that a person is an employee hired for a specialized job and not an independent contractor.

Accepted Answer

A) True 
 B)False

Question 20

Jill agrees to act on Kit's behalf, subject to Kit's control, and Kit trusts Jill to so act. This describes a relationship between​

Accepted Answer

A)  ​an employee and an agent. 
B)  ​a work for hire and a worker. 
C)  ​an employer and an independent contractor. 
D)  ​a principal and an agent. 
A)  ​an employee and an agent. 
B)  ​a work for hire and a worker. 
C)  ​an employer and an independent contractor. 
D)  ​a principal and an agent.

Exam 9: Agency Formation and Duties

Employment laws apply to the employer-independent contractor relationship.

An agent's deviation from the lawful clearly stated instructions of the principal is a violation of the duty of obedience.

Dakota Energy Company employs Evan to negotiate the purchase of mineral rights for future mining projects. Evan secretly buys some of the property and sells it to Dakota at a profit. Evan has breached​

Emmett, an agent for Fridley, signs an agreement with Glover on Fridley's behalf but neglects to tell him that the agreement requires the payment of a certain tax. The government prosecutes Fridley for failing to pay the tax. He is​

Any copyrighted work created by an employee within the scope of his or her employment at the request of the employer is a "work for hire."

Sybil agrees with Tyrone and other professional athletes to sign contracts with promoters and others on the athletes' behalf. Sybil is

Investment Holdings Corporation hires Jeri, a business appraiser, to locate investment possibilities for Investment Holdings. Jeri learns of a salsa and hot sauce manufacturing company available for a reasonable price, but neglects to tell Investment Holdings. Most likely, Jeri​

An agency by estoppel arises when the principal's actions have created the appearance of an agency that does not in fact exist.

A principal has the right to control an agent's conduct in matters entrusted to the agent.

Bernard is an expert on exotic flowers. Custom Floral Arrangements, Inc., hires Bernard to order exotic flowers for its arrangements. Bernard does not examine the quality of the flowers he orders on behalf of Custom Floral. Bernard has breached​

The agent has the right to a safe working environment.

Agency relationships are not crucial in the business world.

An agent's duties to the principal are implied from the agency relationship only if the identity of the principal is disclosed to a third party.

An agency relationship created for an illegal purpose is enforceable.

If a great degree of skill is required, this may indicate that a person is an employee hired for a specialized job and not an independent contractor.

Jill agrees to act on Kit's behalf, subject to Kit's control, and Kit trusts Jill to so act. This describes a relationship between​

Business Ethics

Small Businesses and Franchises

All Forms of Partnerships

Limited Liability Companies and Special Business Forms

Corporate Formation and Financing

Corporate Directors, Officers, and Shareholders

Securities Law and Corporate Governance

Tort Law

Agency Liability and Termination

Employment, Immigration, and Labor Law

Employment Discrimination

The Formation of Sales and Lease Contracts

Performance and Breach of Sales and Lease Contracts

Negotiable Instruments

Transferability and Holder in Due Course

Liability, Defenses, and Discharge

Banking in the Digital Age

Creditors Rights and Remedies

Secured Transactions

Bankruptcy Law

Professional Liability and Accountability

Administrative Agencies

Consumer Law

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Personal Property and Bailments

Real Property and Landlord-Tenant Law

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Digital Update:should Employees Have a Right of Disconnecting

Digital Update: Revenge Porn and Invasion of Privacy

Digital Update: Taxing Web Purchases

Ethics Today:what Are an Attorneys Responsibilities for Protecting Data Stored in a Cloud

Digital Update:the Exploding World of Digital Property

Filters

Dakota Energy Company employs Evan to negotiate the purchase of mineral rights for future mining projects. Evan secretly buys some of the property and sells it to Dakota at a profit. Evan has breached

Emmett, an agent for Fridley, signs an agreement with Glover on Fridley's behalf but neglects to tell him that the agreement requires the payment of a certain tax. The government prosecutes Fridley for failing to pay the tax. He is

Investment Holdings Corporation hires Jeri, a business appraiser, to locate investment possibilities for Investment Holdings. Jeri learns of a salsa and hot sauce manufacturing company available for a reasonable price, but neglects to tell Investment Holdings. Most likely, Jeri

Bernard is an expert on exotic flowers. Custom Floral Arrangements, Inc., hires Bernard to order exotic flowers for its arrangements. Bernard does not examine the quality of the flowers he orders on behalf of Custom Floral. Bernard has breached

Jill agrees to act on Kit's behalf, subject to Kit's control, and Kit trusts Jill to so act. This describes a relationship between