Question 1

Notification may be implied when the principal does not object to a contract and accepts its benefits.

Accepted Answer

A) True 
 B)False

Question 2

The term apparent authority is used when an appearance of authority has been created by a principal,but actual authority does not exist.

Accepted Answer

A) True 
 B)False

Question 3

The term apparent authority is used when there is:

Accepted Answer

A)  no interaction between the principal and third persons. 
B)  actual authority. 
C)  only the appearance of authority and that appearance of authority was created by the principal. 
D)  only the appearance of authority and that appearance of authority was created by the agent. 
A)  no interaction between the principal and third persons. 
B)  actual authority. 
C)  only the appearance of authority and that appearance of authority was created by the principal. 
D)  only the appearance of authority and that appearance of authority was created by the agent.

Question 4

A durable power of attorney may be terminated by:

Accepted Answer

A)  revocation by a competent principal. 
B)  the death of the principal. 
C)  revocation by a competent principal or by the death of the principal. 
D)  none of the above,since a "durable" power of attorney is designed by law to be irrevocable under all circumstances. 
A)  revocation by a competent principal. 
B)  the death of the principal. 
C)  revocation by a competent principal or by the death of the principal. 
D)  none of the above,since a "durable" power of attorney is designed by law to be irrevocable under all circumstances.

Question 5

The principal must:

Accepted Answer

A)  perform the contract according to its terms. 
B)  compensate the agent for services. 
C)  indemnify the agent for loss in some circumstances. 
D)  all of the above. 
A)  perform the contract according to its terms. 
B)  compensate the agent for services. 
C)  indemnify the agent for loss in some circumstances. 
D)  all of the above.

Question 6

Ann was seriously ill and feared that she might lapse into a coma or somehow become unable to speak or act for herself in her medical emergency.She is aware that agents ordinarily lose their authority to act for principals who become mentally disabled.She nevertheless desires to have her husband Alberto make medical decisions and speak on her behalf.She is particularly concerned about existing on life support in a persistent and incurable vegetative state.Is there any action that she might take to enable Alberto to act for her?

Accepted Answer

If the state in which Ann resides has ad

Question 7

It is the duty of an agent to act with the care that:

Accepted Answer

A)  the principal would exercise under the circumstances. 
B)  a reasonable principal would exercise under the circumstances. 
C)  a reasonable juror would exercise under the circumstances. 
D)  a reasonable person would exercise under the circumstances. 
A)  the principal would exercise under the circumstances. 
B)  a reasonable principal would exercise under the circumstances. 
C)  a reasonable juror would exercise under the circumstances. 
D)  a reasonable person would exercise under the circumstances.

Question 8

An agent acting under a power of attorney is referred to as an:

Accepted Answer

A)  implied attorney. 
B)  attorney in fact. 
C)  implied agent. 
D)  attorney at law. 
A)  implied attorney. 
B)  attorney in fact. 
C)  implied agent. 
D)  attorney at law.

Question 9

If the principal revokes the agency:

Accepted Answer

A)  the agent's authority to act for the principal is terminated immediately. 
B)  the right of the agent to bind the principal to third persons generally ends immediately upon the termination of the agent's authority. 
C)  the termination is not effective until notice is given to third parties. 
D)  all of the above. 
A)  the agent's authority to act for the principal is terminated immediately. 
B)  the right of the agent to bind the principal to third persons generally ends immediately upon the termination of the agent's authority. 
C)  the termination is not effective until notice is given to third parties. 
D)  all of the above.

Question 10

The scope of an agent's authority is always known by the third party.

Accepted Answer

A) True 
 B)False

Question 11

The intention to ratify an unauthorized act may be expressed by words or conduct.

Accepted Answer

A) True 
 B)False

Question 12

A general agent is authorized by the principal to do all acts that can be delegated lawfully to a representative.

Accepted Answer

A) True 
 B)False

Question 13

A special agent is authorized by the principal to handle a definite business transaction or do a specific act.

Accepted Answer

A) True 
 B)False

Exam 37: Agency

Notification may be implied when the principal does not object to a contract and accepts its benefits.

The term apparent authority is used when an appearance of authority has been created by a principal,but actual authority does not exist.

The term apparent authority is used when there is:

A durable power of attorney may be terminated by:

The principal must:

It is the duty of an agent to act with the care that:

An agent acting under a power of attorney is referred to as an:

If the principal revokes the agency:

The scope of an agent's authority is always known by the third party.

The intention to ratify an unauthorized act may be expressed by words or conduct.

A general agent is authorized by the principal to do all acts that can be delegated lawfully to a representative.

A special agent is authorized by the principal to handle a definite business transaction or do a specific act.

The Nature and Sources of Law

The Court System and Dispute Resolution

Business Ethics, Social Forces, and the Law

The Constitution As the Foundation of the Legal Environment

Government Regulation of Competition and Prices

Administrative Agencies

The Legal Environment of International Trade

Crimes

Torts

Intellectual Property Rights

Cyberlaw

Nature and Classes of Contracts: Contracting on the Internet

Formation of Contracts: Offer and Acceptance

Capacity and Genuine Assent

Consideration

Legality and Public Policy

Writing, Electronic Forms, and Interpretation of Contracts

Third Persons and Contracts

Discharge of Contracts

Breach of Contract and Remedies

Personal Property and Bailments

Legal Aspects of Supply Chain Management

Nature and Form of Sales

Title and Risk of Loss

Product Liability: Warranties and Torts

Obligations and Performance

Remedies for Breach of Sales Contracts

Kinds of Instruments, parties, and Negotiability

Transfers of Negotiable Instruments and Warranties of Parties

Liability of the Parties Under Negotiable Instruments

Checks and Funds Transfers

Nature of the Debtor-Creditor Relationship

Consumer Protection

Secured Transactions in Personal Property

Bankruptcy

Insurance

Third Persons in Agency

Regulation of Employment

Equal Employment Opportunity Law

Types of Business Organizations

Partnerships

LPs, LLCs, and LLPs

Corporate Formation

Shareholder Rights in Corporations

Securities Regulation

Accountants Liability and Malpractice

Management of Corporations

Real Property

Environmental Law and Land Use Controls

Leases

Decedents Estates and Trusts

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