Exam 32: Agency Formation and Duties

Explore all topics

Miracle Motors employs Norris as a sales agent for a trial period.At the end of the period,Miracle Motors and Norris disagree on the amount of the commissions Norris is due for sales that he made.Norris may demand

Free

(Multiple Choice)

4.9/5

(83)

Question 1

Correct Answer:

Verified

Tri-state Financial Corporation hires Uri,a real estate agent,to locate investment properties for Tri-state.Uri learns of a warehouse available for $100,000,informs Tri-state,and makes an offer of $90,000 on Tri-state's instruction.The offer is rejected.Uri

Free

(Multiple Choice)

4.9/5

(63)

Question 2

Correct Answer:

Verified

Arnold is the chief executive officer of Beta Corporation.Arnold's re?sponsibilities include decisions on product development,marketing,and other significant business directions.Arnold is subject to the approval and oversight of Beta's board of directors.Carol is a Beta manager whose duties include the firm's day-to-day hiring,firing,purchasing,and sell?ing.Dave is a Beta salesperson,whose daily activities are con?trolled by Carol.Erin writes technical manuals for Beta products ac?cording to Arnold's instructions and subject to Beta's control,but has no dealings with Beta custom?ers or sup?pliers.Fred edits the manuals on a contract-per-manual basis and is not otherwise subject to Beta's control.Who is a principal? Who is an agent? Who is an employee? Who is an independent contractor?

Free

(Essay)

4.8/5

(70)

Question 3

Correct Answer:

Verified

Beta is a principal.Arnold,Carol,Dave,and Erin are Beta agents and employees.Fred is an independent contractor.In an agency relationship,an agent agrees to act for or on behalf of a principal.An agent is subject to the control of the principal.An employee is subject to the control of employer.An independent contractor is not subject to an employer's control.A corporation is a "person" who has contractual capacity but who can act only through its agents.Beta,as a corporation,is acting through its agents.Arnold,Carol,Dave,and Erin act on behalf of Beta,from which they obtain their authority.This authority differs: Arnold,Carol,and Dave can bind Beta in certain ways in their dealings with third parties,but Erin does not have the authority to legally bind Beta.Because Arnold,Carol,Dave,and Erin are subject to the control of Beta,through their superiors,they are employees.Because Fred is not subject to Beta's control with respect to the physical conduct in the performance of his contracts,Fred is an independent contractor.

Calvin is a minor.In most states,Calvin may be

(Multiple Choice)

4.7/5

(88)

Question 4

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

(True/False)

4.9/5

(84)

Question 5

A person must have contractual capacity to be an agent.

(True/False)

4.8/5

(87)

Question 6

A person cannot be both an independent contractor and an agent.

(True/False)

4.9/5

(71)

Question 7

Ozzy is an officer of Prudent Financial Corporation.Ozzy serves in a representative capacity for Prudent Financial's owners.With respect to binding Prudent Financial to contracts,Ozzy is

(Multiple Choice)

5.0/5

(87)

Question 8

An agent is authorized to act on behalf of a principal in doing business with third parties.

(True/False)

4.8/5

(71)

Question 9

Independent contractors have no control over the details of their work performance.

(True/False)

4.9/5

(87)

Question 10

Agency relationships normally are consensual.

(True/False)

4.9/5

(86)

Question 11

Pam is an agent for Refined Chemicals Corporation.Refined Chemicals owes Pam the duty of

(Multiple Choice)

5.0/5

(86)

Question 12

Fact Pattern 32-1A (Questions A4-A5 apply) Janet and Julie work at ABC Interiors.Janet is a designer who works with cli?ents of ABC on interior design projects.ABC closely supervises all of its design?ers,and dictates their work schedules.Julie works part-time in the evenings cleaning the offices. -Refer to Fact Pattern 32-1A.Janet is ABC's

(Multiple Choice)

4.8/5

(83)

Question 13

Acts of a purported agent in and of themselves can create an agency by estoppel.

(True/False)

5.0/5

(84)

Question 14

When an agency relationship is gratuitous,the agent does not act in exchange for payment.

(True/False)

4.7/5

(75)

Question 15

Jill introduces Kelly to her friends as "my associate." Kelly purports to act as Jill's agent in several business transactions with those friends.If Jill is liable for Kelly's actions,it will be under

(Multiple Choice)

4.9/5

(65)

Question 16

An agent has a duty to keep and make available to the principal an account of all property and funds received and paid out on behalf of the principal.

(True/False)

4.8/5

(78)

Question 17

Home Development Company employs llya to buy property for a future residential development.Ilya secretly buys some of the property and sells it to Home Development at a profit.Ilya has breached

(Multiple Choice)

4.7/5

(72)

Question 18

Mackenzie,an agent for Lindsay,signs an agreement with Kirk on Lindsay's behalf but ne?glects to tell her that the agreement requires the payment of a certain tax.The government prosecutes Lindsay for failing to pay the tax.She is

(Multiple Choice)

4.7/5

(73)

Question 19

Fact Pattern 32-1A (Questions A4-A5 apply) Janet and Julie work at ABC Interiors.Janet is a designer who works with cli?ents of ABC on interior design projects.ABC closely supervises all of its design?ers,and dictates their work schedules.Julie works part-time in the evenings cleaning the offices. -Refer to Fact Pattern 32-1A.Julie is ABC's

(Multiple Choice)

4.9/5

(86)

Question 20

Showing 1 - 20 of 42

Exam 32: Agency Formation and Duties

Miracle Motors employs Norris as a sales agent for a trial period.At the end of the period,Miracle Motors and Norris disagree on the amount of the commissions Norris is due for sales that he made.Norris may demand

Tri-state Financial Corporation hires Uri,a real estate agent,to locate investment properties for Tri-state.Uri learns of a warehouse available for $100,000,informs Tri-state,and makes an offer of $90,000 on Tri-state's instruction.The offer is rejected.Uri

Calvin is a minor.In most states,Calvin may be

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

A person must have contractual capacity to be an agent.

A person cannot be both an independent contractor and an agent.

Ozzy is an officer of Prudent Financial Corporation.Ozzy serves in a representative capacity for Prudent Financial's owners.With respect to binding Prudent Financial to contracts,Ozzy is

An agent is authorized to act on behalf of a principal in doing business with third parties.

Independent contractors have no control over the details of their work performance.

Agency relationships normally are consensual.

Pam is an agent for Refined Chemicals Corporation.Refined Chemicals owes Pam the duty of

Acts of a purported agent in and of themselves can create an agency by estoppel.

When an agency relationship is gratuitous,the agent does not act in exchange for payment.

Jill introduces Kelly to her friends as "my associate." Kelly purports to act as Jill's agent in several business transactions with those friends.If Jill is liable for Kelly's actions,it will be under

An agent has a duty to keep and make available to the principal an account of all property and funds received and paid out on behalf of the principal.

Home Development Company employs llya to buy property for a future residential development.Ilya secretly buys some of the property and sells it to Home Development at a profit.Ilya has breached

Mackenzie,an agent for Lindsay,signs an agreement with Kirk on Lindsay's behalf but ne?glects to tell her that the agreement requires the payment of a certain tax.The government prosecutes Lindsay for failing to pay the tax.She is

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 Liability and Termination

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

Risk Assessment, Virtual Property, Property Rights, and Building Moratoriums

Filters