Question 1

As a general rule,an agent is liable on contracts entered into on behalf of a fully disclosed principal.

Accepted Answer

A) True 
 B)False

Question 2

If apparent authority is present,the principal is liable for even the unauthorized acts of the agent.

Accepted Answer

A) True 
 B)False

Question 3

You cannot be held liable for the actions of your agents if the agents are violating your instructions.

Accepted Answer

A) True 
 B)False

Question 4

John hired Tim to sell his house.Which statement is correct?

Accepted Answer

A) John is Tim's principal. 
B) Tim,but not John,can terminate the agency relationship. 
C) John,but not Tim,can terminate the agency relationship. 
D) Tim is John's principal. 
A) John is Tim's principal. 
B) Tim,but not John,can terminate the agency relationship. 
C) John,but not Tim,can terminate the agency relationship. 
D) Tim is John's principal.

Question 5

Mrs.O'Leary hired Jenna to sell her house in Michigan.She executed a power of attorney in favor of Jenna authorizing her to do "anything and everything associated with the sale of real estate,acting as a prudent person." On May 30,Jenna finalized a deal with Brandon for the purchase of the house.Brandon and Jenna signed the real estate contract that day.Jenna learned the next day that Mrs.O'Leary had died May 29.

Accepted Answer

A) The contract is void since the agency terminated May 29. 
B) The contract is valid since the agency's purpose was achieved before Jenna was notified of Mrs.O'Leary's death. 
C) The contract is voidable at the option of Mrs.O'Leary's estate. 
D) The contract is voidable at the option of Brandon. 
A) The contract is void since the agency terminated May 29. 
B) The contract is valid since the agency's purpose was achieved before Jenna was notified of Mrs.O'Leary's death. 
C) The contract is voidable at the option of Mrs.O'Leary's estate. 
D) The contract is voidable at the option of Brandon.

Question 6

Pamela hired Lena to sell her business.Lena

Accepted Answer

A) can buy the business as long as the price is fair. 
B) can buy the business as long as she qualifies for financing. 
C) can buy the business only with Pamela's permission. 
D) cannot buy the business under any circumstances. 
A) can buy the business as long as the price is fair. 
B) can buy the business as long as she qualifies for financing. 
C) can buy the business only with Pamela's permission. 
D) cannot buy the business under any circumstances.

Question 7

Janelle has an art collection that she wants to sell.She calls Amber and tells her to sell the art collection for her at an upcoming auction.Amber agrees.This is an example of

Accepted Answer

A) apparent authority. 
B) respondeat superior. 
C) intermediary agency. 
D) express authority. 
A) apparent authority. 
B) respondeat superior. 
C) intermediary agency. 
D) express authority.

Question 8

Jim agreed to show Donna's car to a potential buyer.Donna was not able to be home since she had to attend a meeting.After showing the car,Jim left the keys in it and the car was stolen.Which statement is correct?

Accepted Answer

A) Since Jim is a gratuitous agent,he will only be liable for the loss of the car if his conduct constitutes gross negligence. 
B) Since Jim is a gratuitous agent,he will be liable for the loss of the car if his conduct constitutes ordinary negligence. 
C) Since Jim is a gratuitous agent,he has no liability for the car. 
D) Since Jim is a gratuitous agent,he is strictly liable for the loss of the car. 
A) Since Jim is a gratuitous agent,he will only be liable for the loss of the car if his conduct constitutes gross negligence. 
B) Since Jim is a gratuitous agent,he will be liable for the loss of the car if his conduct constitutes ordinary negligence. 
C) Since Jim is a gratuitous agent,he has no liability for the car. 
D) Since Jim is a gratuitous agent,he is strictly liable for the loss of the car.

Question 9

Which of the following persons is NOT an agent?

Accepted Answer

A) Diane,a shoe salesperson for a retail store. 
B) Tim,a real estate broker for a large real estate company. 
C) Craig,a telephone marketing employee. 
D) Harold,a trustee to the beneficiaries of an estate. 
A) Diane,a shoe salesperson for a retail store. 
B) Tim,a real estate broker for a large real estate company. 
C) Craig,a telephone marketing employee. 
D) Harold,a trustee to the beneficiaries of an estate.

Question 10

Betsy's elderly father gave her written authority to sell the family house.Her father lived in Arizona,and she lived in Minnesota.After about two months she found a buyer for the house and signed an acceptance of the offer on March 21.Later that same day,she learned her father had died the day before (March 20).Other members of the family did not want the family house sold and claimed that the acceptance Betsy signed was void.The buyer of the house claims Betsy had the legal authority to sell the house and that the contract is binding.Who is right?

Accepted Answer

The contract is void since Betsy's autho

Question 11

Luther (principal)and Marcia (agent)have an agency relationship.Under which circumstances will the relationship end "at will."

Accepted Answer

A) Luther and Marcia agree their agency relationship will last two years.At the end of that time,the agency relationship is terminated. 
B) Luther and Marcia made no agreement in advance about the term of the agreement.One afternoon,Marcia is tragically killed in an automobile accident. 
C) Luther and Marcia agree their agency relationship will last two years.One year into the relationship,they meet for lunch and decide the relationship isn't working and both agree to end it. 
D) Luther and Marcia made no agreement in advance about the term of the agreement.One day,Luther calls Marcia and tells her he no longer wishes her to be his agent. 
A) Luther and Marcia agree their agency relationship will last two years.At the end of that time,the agency relationship is terminated. 
B) Luther and Marcia made no agreement in advance about the term of the agreement.One afternoon,Marcia is tragically killed in an automobile accident. 
C) Luther and Marcia agree their agency relationship will last two years.One year into the relationship,they meet for lunch and decide the relationship isn't working and both agree to end it. 
D) Luther and Marcia made no agreement in advance about the term of the agreement.One day,Luther calls Marcia and tells her he no longer wishes her to be his agent.

Question 12

Someone who is not paid for performing duties is a(n)

Accepted Answer

A) fiduciary agent. 
B) charitable agent. 
C) implied agent. 
D) gratuitous agent. 
A) fiduciary agent. 
B) charitable agent. 
C) implied agent. 
D) gratuitous agent.

Question 13

In the case of an undisclosed principal,a third party

Accepted Answer

A) can only recover from the principal. 
B) can only recover from the agent. 
C) cannot recover at all. 
D) can recover from either the agent or the principal. 
A) can only recover from the principal. 
B) can only recover from the agent. 
C) cannot recover at all. 
D) can recover from either the agent or the principal.

Question 14

Alex worked for years for MegaCorp.During his employment with MegaCorp,he learned a great deal of confidential information and knew that if this information got into the hands of competitors or the general public,MegaCorp could suffer great business losses.Alex claims that he was wrongfully fired by MegaCorp,and accordingly,he believes he has no obligation to MegaCorp to keep any information he acquired with them as confidential.MegaCorp claims that Alex is under a continuing duty to keep confidential information secret,even though he is no longer with the company.Who is right? Why?

Accepted Answer

MegaCorp.is right.Regardless of why Alex

Question 15

In its most basic terms,a fiduciary relationship is one of

Accepted Answer

A) trust. 
B) control. 
C) competition. 
D) disclosure. 
A) trust. 
B) control. 
C) competition. 
D) disclosure.

Question 16

An agent is always liable for his or her own torts committed within the scope of the agency relationship.

Accepted Answer

A) True 
 B)False

Question 17

Andrew has been hired to do some work for Rossi Enterprises.What factors would a court consider in determining if Andrew is an employee or an independent contractor? Why does the designation matter?

Accepted Answer

In determining if agents are employees o

Question 18

Grant is a delivery person for Watkins Furniture.One day,after delivering a chair to Nadine's house,he stopped at a fast food restaurant to get a sandwich at the drive-through window.As he was leaving the parking lot,he accidentally hit the rear of Blanche's car.Discuss the possible liability of Watkins for Grant's accident.Would there be any difference in the potential liability of Watkins if Grant had the accident after driving 30 miles away to visit a friend?

Accepted Answer

The major issue here is abandonment.Watk

Question 19

Larry decided to relocate to Germany.Larry hired Happy Homes,Inc.to find a buyer and contract for the sale of his house in the United States.The agency relationship between Larry and Happy Homes must be evidenced with a written agreement.

Accepted Answer

A) True 
 B)False

Question 20

A principal is bound by contracts that an agent enters into with authority.Discuss the various types of contractual authority an agent may have.

Accepted Answer

Authority is the legal ability of an age

Exam 28: Agency Law

As a general rule,an agent is liable on contracts entered into on behalf of a fully disclosed principal.

If apparent authority is present,the principal is liable for even the unauthorized acts of the agent.

You cannot be held liable for the actions of your agents if the agents are violating your instructions.

John hired Tim to sell his house.Which statement is correct?

Pamela hired Lena to sell her business.Lena

Janelle has an art collection that she wants to sell.She calls Amber and tells her to sell the art collection for her at an upcoming auction.Amber agrees.This is an example of

Jim agreed to show Donna's car to a potential buyer.Donna was not able to be home since she had to attend a meeting.After showing the car,Jim left the keys in it and the car was stolen.Which statement is correct?

Which of the following persons is NOT an agent?

Luther (principal)and Marcia (agent)have an agency relationship.Under which circumstances will the relationship end "at will."

Someone who is not paid for performing duties is a(n)

In the case of an undisclosed principal,a third party

In its most basic terms,a fiduciary relationship is one of

An agent is always liable for his or her own torts committed within the scope of the agency relationship.

Andrew has been hired to do some work for Rossi Enterprises.What factors would a court consider in determining if Andrew is an employee or an independent contractor? Why does the designation matter?

Larry decided to relocate to Germany.Larry hired Happy Homes,Inc.to find a buyer and contract for the sale of his house in the United States.The agency relationship between Larry and Happy Homes must be evidenced with a written agreement.

A principal is bound by contracts that an agent enters into with authority.Discuss the various types of contractual authority an agent may have.

Introduction to Law

Ethics and Corporate Social Responsibility

International Law

Common Law, Statutory Law, and Administrative Law

Constitutional Law

Dispute Resolution

Crime

Intentional Torts and Business Torts

Negligence, Strict Liability, and Product Liability

Privacy and Internet Law

Introduction to Contracts

Agreement: Offers and Acceptances

Consideration

Legality

Voidable Contracts: Capacity and Consent

Written Contracts

Third Parties

Contract Termination

Remedies

Practical Contracts

Introduction to Sales

Ownership, Risk and Warranties

Performance and Remedies

Secured Transactions

Creating a Negotiable Instrument

Liability for Negotiable Instruments

Accountants Liability

Employment and Labor Law

Employment Discrimination

Starting a Business: Llcs and Other Options

Partnerships

Life and Death of a Corporation

Management Duties

Shareholder Rights

Bankruptcy

Securities Regulation

Antitrust

Consumer Protection

Environmental Law

Intellectual Property

Real Property and Landlord Tenant Law

Personal Property and Bailment

Planning for the Future: Wills, Trusts and Insurance

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