Question 1

An agency coupled with an interest means:

Accepted Answer

A)  either party may terminate the agency at any time. 
B)  the agency may not be able to recover the debt in the event of the principal's death. 
C)  the agency is irrevocable without the consent of the agent. 
D)  each party has the power to terminate without breach of contract if done so within 18 months. 
A)  either party may terminate the agency at any time. 
B)  the agency may not be able to recover the debt in the event of the principal's death. 
C)  the agency is irrevocable without the consent of the agent. 
D)  each party has the power to terminate without breach of contract if done so within 18 months.

Question 2

Adya loaned $300 from Olga to buy a phone.He gave Olga the authority to sell his music system if he failed to pay her back $300.He failed to pay back the loan as promised.Under these circumstances,_____.

Accepted Answer

A)  a dual agency exists 
B)  Adya can revoke Olga's power if the phone is damaged 
C)  if Adya dies and the debt remains unpaid, there is termination of the agency 
D)  Adya cannot revoke Olga's power to sell the music system 
A)  a dual agency exists 
B)  Adya can revoke Olga's power if the phone is damaged 
C)  if Adya dies and the debt remains unpaid, there is termination of the agency 
D)  Adya cannot revoke Olga's power to sell the music system

Question 3

Agents may use trade secrets such as formulas,processes,and mechanisms they have acquired while employed by their principal to benefit themselves.

Accepted Answer

A) True 
 B)False

Question 4

One of the duties generally imposed on the principal by the common law is the duty to:

Accepted Answer

A)  share profits and losses. 
B)  reimburse and indemnify. 
C)  account for funds and property. 
D)  consult. 
A)  share profits and losses. 
B)  reimburse and indemnify. 
C)  account for funds and property. 
D)  consult.

Question 5

If the agent commingles goods that are not fungible,the principal bears the risk of any loss.

Accepted Answer

A) True 
 B)False

Question 6

Explain the concepts "agency at will" and "agency coupled with an interest."

Accepted Answer

In an agency at will,notwithstanding the

Question 7

An agency relationship results from any indication of consent by the principal that the agent may act on the principal's behalf and under her control.

Accepted Answer

A) True 
 B)False

Question 8

When a principal breaches a duty owed to the agent,the agent:

Accepted Answer

A)  may only bring a lawsuit against the principal for physical injuries suffered and not for compensations because agent has to take the blunt of a principal's breach. 
B)  does not have a lien on anything that belongs to the principal which is in the agent's lawful possession. 
C)  may claim compensation from the principal only after the contract has expired. 
D)  may claim the principal's property that is in his lawful possession for compensation due him for his performance of the agency responsibilities. 
A)  may only bring a lawsuit against the principal for physical injuries suffered and not for compensations because agent has to take the blunt of a principal's breach. 
B)  does not have a lien on anything that belongs to the principal which is in the agent's lawful possession. 
C)  may claim compensation from the principal only after the contract has expired. 
D)  may claim the principal's property that is in his lawful possession for compensation due him for his performance of the agency responsibilities.

Question 9

The agent has a duty to inform the principal of knowledge the agent gains in the course of his or her responsibilities.

Accepted Answer

A) True 
 B)False

Question 10

Discuss the purpose of insurance commissions paid to the agents.

Accepted Answer

In the life insurance business,it is cus

Exam 23: The Agency Relationship-Creation, duties, and Termination

An agency coupled with an interest means:

Adya loaned $300 from Olga to buy a phone.He gave Olga the authority to sell his music system if he failed to pay her back $300.He failed to pay back the loan as promised.Under these circumstances,_____.

Agents may use trade secrets such as formulas,processes,and mechanisms they have acquired while employed by their principal to benefit themselves.

One of the duties generally imposed on the principal by the common law is the duty to:

If the agent commingles goods that are not fungible,the principal bears the risk of any loss.

Explain the concepts "agency at will" and "agency coupled with an interest."

An agency relationship results from any indication of consent by the principal that the agent may act on the principal's behalf and under her control.

When a principal breaches a duty owed to the agent,the agent:

The agent has a duty to inform the principal of knowledge the agent gains in the course of his or her responsibilities.

Discuss the purpose of insurance commissions paid to the agents.

Law, Legal Reasoning, and the Legal Profession

Dispute Settlement

Business Ethics and Corporate Social Responsibility

Business and the Constitution

Crimes

Intentional Torts

Negligence and Strict Liability

Licensing and Intellectual Propertypart Two Contracts

The Nature and Origins of Contracts

Creating a Contract: Offers

Creating a Contract: Acceptances

Consideration

Capacity to Contract

Voluntary Consent

Illegality

The Form and Meaning of Contracts

Third Parties Contract Rights

Performance and Remediespart Three Sales

Formation and Terms of Sales Contracts

Warranties and Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contractspart Four Agency and Employment

Liability of Principals and Agents to Third Parties

Employment Laws-Part Five Business Organizations

Which Form of Business Organization

Partnerships

Formation and Termination of Corporations

Management of the Corporate Business

Financing the Corporation and the Role of the Shareholders

Securities Regulation

Legal Liability of Accountantspart Six Property

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance-Part Seven Commercial Paper

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Fund Transfers-Part Eight Credit Transactions

Introduction to Security

Security Interests in Personal Property

Bankruptcy-Part Nine Government Regulation

The Antitrust Laws

Consumer Protection Laws

Environmental Regulation

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