Question 1

BizOnline.com uses an electronic agent,or e-agent,to perform certain tasks in e-commerce.With respect to the e-agent's actions,BizOnline.com is bound by

Accepted Answer

A) all of the actions. 
B) only those actions of which BizOnline.com is aware. 
C) only those actions that BizOnline.com does not refute. 
D) only those actions that BizOnine.com ratifies. 
A) all of the actions. 
B) only those actions of which BizOnline.com is aware. 
C) only those actions that BizOnline.com does not refute. 
D) only those actions that BizOnine.com ratifies.

Question 2

Clive is a purchasing agent for Double D Ranch with the authority to buy cat?tle at a certain auction.After the cattle are bought,the agency rela?tionship terminates

Accepted Answer

A) automatically. 
B) following notice to all actual cattle sellers. 
C) following notice to all potential cattle sellers. 
D) following published notice in a local newspaper. 
A) automatically. 
B) following notice to all actual cattle sellers. 
C) following notice to all potential cattle sellers. 
D) following published notice in a local newspaper.

Question 3

Fact Pattern 33-1A (Questions A10-A11 apply)
Ulani indicates that she is acting as an agent on behalf of an unidentified client-Thoroughbred Stallions,LLC-when she enters into a contract with Shana.
-Refer to Fact Pattern 33-1A.Thoroughbred Stallions is

Accepted Answer

A) a disclosed principal. 
B) a non-existent principal. 
C) an undisclosed principal. 
D) a partially disclosed principal. 
A) a disclosed principal. 
B) a non-existent principal. 
C) an undisclosed principal. 
D) a partially disclosed principal.

Question 4

Miklos grants an ordinary power of attorney to Nathalie to handle a list of financial transactions on Miklos's behalf.This power will terminate on

Accepted Answer

A) any transaction causing a loss to Miklos. 
B) Miklos's death or incapacity. 
C) Miklos's sixty-fifth birthday. 
D) Nathalie's handling of one of each stipulated transaction. 
A) any transaction causing a loss to Miklos. 
B) Miklos's death or incapacity. 
C) Miklos's sixty-fifth birthday. 
D) Nathalie's handling of one of each stipulated transaction.

Question 5

A principal whose identity is known by a third party with whom an agent contracts on the principal's behalf is a disclosed principal.

Accepted Answer

A) True 
 B)False

Question 6

An agent's authority to act on behalf of a principal must be actual and apparent.

Accepted Answer

A) True 
 B)False

Question 7

Sonia manages a Tasty Pastry store for United Food Company.To manage the business,Sonia's authority can be implied by

Accepted Answer

A) an inference from the position Sonia occupies. 
B) any inference a reasonable customer or supplier would make. 
C) any inference Sonia chooses to make. 
D) no inference. 
A) an inference from the position Sonia occupies. 
B) any inference a reasonable customer or supplier would make. 
C) any inference Sonia chooses to make. 
D) no inference.

Question 8

An agent's implied authority can contradict his or her express authority.

Accepted Answer

A) True 
 B)False

Question 9

Cory employs Daily Delivery Agency as an agent under a writ?ten agreement that describes the rights and duties of both parties.This is

Accepted Answer

A) apparent authority. 
B) equal authority. 
C) express authority. 
D) implied authority. 
A) apparent authority. 
B) equal authority. 
C) express authority. 
D) implied authority.

Question 10

An agency relationship may be terminated by an act of the parties or by operation of law.

Accepted Answer

A) True 
 B)False

Question 11

A partially disclosed principal is liable to a third party for a contract made by the agent acting within the scope of his or her authority.

Accepted Answer

A) True 
 B)False

Question 12

Rupert,an agent for Star Productions,Inc.,enters into an unauthorized contract with Theatrical Transport Corporation purportedly on behalf of Star,which refuses to perform.Rupert is liable

Accepted Answer

A) for breach of contract to Star and Theatrical Transport. 
B) for misrepresentation to Star only. 
C) for misrepresentation to Theatrical Transport only. 
D) to no one. 
A) for breach of contract to Star and Theatrical Transport. 
B) for misrepresentation to Star only. 
C) for misrepresentation to Theatrical Transport only. 
D) to no one.

Question 13

Vicarious liability is direct liability.

Accepted Answer

A) True 
 B)False

Question 14

An agent has the implied authority to do what is reasonably necessary to carry out express au?thor?ity.

Accepted Answer

A) True 
 B)False

Question 15

Jaclyn,an agent for Kilpatrick,enters into a contract on Kilpatrick's behalf with Leif that must be in writing to be enforceable under the Statute of Frauds.Under the equal dignity rule,Jaclyn's authority to enter into this contract

Accepted Answer

A) may be oral or written. 
B) must be oral and written. 
C) must be written. 
D) cannot be oral or written. 
A) may be oral or written. 
B) must be oral and written. 
C) must be written. 
D) cannot be oral or written.

Question 16

Emery is an agent for Downtown Market Corporation.Emery makes an innocent mis?representation when entering into a contract on be?half of Downtown Market with Cool Fruits,Inc.Cool Fruits

Accepted Answer

A) is directly responsible for performing the contract. 
B) is estopped from performing the contract. 
C) may rescind the contract. 
D) must ratify the contract. 
A) is directly responsible for performing the contract. 
B) is estopped from performing the contract. 
C) may rescind the contract. 
D) must ratify the contract.

Question 17

Frida hires Gert,a real estate broker,to act as her agent to sell her house.The house burns down before being sold.The agency agreement is likely

Accepted Answer

A) still in force if Frida gives Gert additional consideration. 
B) still in force if Gert does not tell prospective customers. 
C) terminated by mutual consent of the parties. 
D) terminated by operation of law. 
A) still in force if Frida gives Gert additional consideration. 
B) still in force if Gert does not tell prospective customers. 
C) terminated by mutual consent of the parties. 
D) terminated by operation of law.

Question 18

Homer is an officer of Integrity Corporation.With respect to binding Integrity to contracts,Homer's authority

Accepted Answer

A) may be actual or apparent. 
B) must be actual and apparent. 
C) must be actual and not apparent. 
D) cannot be actual or apparent. 
A) may be actual or apparent. 
B) must be actual and apparent. 
C) must be actual and not apparent. 
D) cannot be actual or apparent.

Question 19

Commercial Development Corporation (CDC)hires Delta Construction Company to work at a site as an independent contractor.Whether CDC will be liable for torts committed at the site by Delta depends on

Accepted Answer

A) what Delta bid for the job. 
B) whether unusually hazardous activities are involved. 
C) which party obtained insurance to cover tort liability. 
D) who is paying Delta. 
A) what Delta bid for the job. 
B) whether unusually hazardous activities are involved. 
C) which party obtained insurance to cover tort liability. 
D) who is paying Delta.

Question 20

Meals n' More,Inc.,a catering company,requires its customers to pay by check.Lyra,a Meals n' More driver,tells customers that they can pay her with cash.When Meals n' More learns of Lyra's collections,it takes no action to stop it.Lyra steals some of the cash.Meals n' More may suffer the loss under the doc?trine of

Accepted Answer

A) apparent authority. 
B) express authority. 
C) implied authority. 
D) no authority. 
A) apparent authority. 
B) express authority. 
C) implied authority. 
D) no authority.

Exam 33: Agency Liability and Termination

BizOnline.com uses an electronic agent,or e-agent,to perform certain tasks in e-commerce.With respect to the e-agent's actions,BizOnline.com is bound by

Clive is a purchasing agent for Double D Ranch with the authority to buy cat?tle at a certain auction.After the cattle are bought,the agency rela?tionship terminates

Fact Pattern 33-1A (Questions A10-A11 apply) Ulani indicates that she is acting as an agent on behalf of an unidentified client-Thoroughbred Stallions,LLC-when she enters into a contract with Shana. -Refer to Fact Pattern 33-1A.Thoroughbred Stallions is

Miklos grants an ordinary power of attorney to Nathalie to handle a list of financial transactions on Miklos's behalf.This power will terminate on

A principal whose identity is known by a third party with whom an agent contracts on the principal's behalf is a disclosed principal.

An agent's authority to act on behalf of a principal must be actual and apparent.

Sonia manages a Tasty Pastry store for United Food Company.To manage the business,Sonia's authority can be implied by

An agent's implied authority can contradict his or her express authority.

Cory employs Daily Delivery Agency as an agent under a writ?ten agreement that describes the rights and duties of both parties.This is

An agency relationship may be terminated by an act of the parties or by operation of law.

A partially disclosed principal is liable to a third party for a contract made by the agent acting within the scope of his or her authority.

Rupert,an agent for Star Productions,Inc.,enters into an unauthorized contract with Theatrical Transport Corporation purportedly on behalf of Star,which refuses to perform.Rupert is liable

Vicarious liability is direct liability.

An agent has the implied authority to do what is reasonably necessary to carry out express au?thor?ity.

Jaclyn,an agent for Kilpatrick,enters into a contract on Kilpatrick's behalf with Leif that must be in writing to be enforceable under the Statute of Frauds.Under the equal dignity rule,Jaclyn's authority to enter into this contract

Emery is an agent for Downtown Market Corporation.Emery makes an innocent mis?representation when entering into a contract on be?half of Downtown Market with Cool Fruits,Inc.Cool Fruits

Frida hires Gert,a real estate broker,to act as her agent to sell her house.The house burns down before being sold.The agency agreement is likely

Homer is an officer of Integrity Corporation.With respect to binding Integrity to contracts,Homer's authority

Commercial Development Corporation (CDC)hires Delta Construction Company to work at a site as an independent contractor.Whether CDC will be liable for torts committed at the site by Delta depends on

Introduction to Law and Legal Reasoning

Courts and Alternative Dispute Resolution

Court Procedures

Constitutional Authority to Regulate Business

Ethics and Business Decision Making

Intentional Torts and Privacy

Negligence and Strict Liability

Intellectual Property and Internet Law

Criminal Law and Cyber Crime

Nature and Terminology

Agreement in Traditional and E-Contracts

Consideration

Capacity and Legality

Mistakes, fraud, and Voluntary Consent

The Statute of Frauds

Third Party Rights

Performance and Discharge

Breach of Contract and Remedies

The Formation of Sales and Lease Contracts

Title, risk, and Insurable Interest

Performance Breach of Sales Lease Contracts

Warranties and Product Liability

International Law in a Global Economy

The Function Creation of Negotiable Instruments

Transferability and Holder in Due Course

Liability,defenses,and Discharge

Checks and Banking in the Digital Age

Creditors Rights and Remedies

Secured Transactions

Bankruptcy Law

Mortgages Foreclosures After the Recession

Agency Formation and Duties

Employment,immigration,and Labor Law

Employment Discrimination

Sole Proprietorships and Franchises

Partnerships and Limited Liability Partnerships

Limited Liability Companies Special Business Forms

Corporate Formation and Financing

Corporate Directors,officers, Shareholders

Corporate Merger, consolidation, Termination

Securities Law Corporate Governance

Law for Small Business

Administrative Law

Consumer Law

Environmental Law

Antitrust Law

Professional Liaility and Accountability

Personal Property and Bailments

Real Property Landlord-Tenant Relationships

Insurance

Wills and Trusts

Legal and Ethical Considerations in Sustainability, Discovery, and Corporate Behavior

Legal and Ethical Issues in Contemporary Society

Contracts and Agreements

Legal Issues in Iowa's Video Game Labeling Statute, National Export Initiative, and Contract Law

Banking and Loan Liability

Bankruptcy and Agricultural Credit: Debts, Reporting, and Risk

Legal and Ethical Issues in Employment and Agency Relationships

Legal Issues in Business Franchising, LLC Management, Tax Collection, Director Liability, and Securities Regulations

Compliance and Ethics Issues in Business Operations