Question 1

A principal owes an agent a duty of estoppel.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A)  no duty. 
B)  the duty of accounting. 
C)  the duty of loyalty. 
D)  the duty of notification. 
A)  no duty. 
B)  the duty of accounting. 
C)  the duty of loyalty. 
D)  the duty of notification.

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Fact Pattern 32-1A
Janet and Julie work at ABC Interiors. Janet is a designer who works with clients of ABC on interior design projects. ABC closely supervises all of its designers, 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

Accepted Answer

A)  employee, agent, and independent contractor. 
B)  employee and agent. 
C)  employee but not agent. 
D)  independent contractor. 
A)  employee, agent, and independent contractor. 
B)  employee and agent. 
C)  employee but not agent. 
D)  independent contractor.

Question 6

Employment laws do not apply to independent contractors.

Accepted Answer

A) True 
 B)False

Question 7

When an agent fails to perform his or her duties, liability for breach of contract may result.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A)  the doctrine of estoppel. 
B)  the equal dignity rule. 
C)  the fiduciary principle. 
D)  the good faith statute. 
A)  the doctrine of estoppel. 
B)  the equal dignity rule. 
C)  the fiduciary principle. 
D)  the good faith statute.

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

A principal does not have the right to control an agent's conduct in matters entrusted to the agent.

Accepted Answer

A) True 
 B)False

Question 11

Rangle contracts with Siena to buy a certain horse for her. Rangle makes a deal with Timberline Stables, the owner of the horse, and makes a down payment. Siena fails to pay the rest of the price. Timberline sues Rangle for breach of contract. His right to hold Siena liable for any damages that he has to pay is the right of

Accepted Answer

A)  avoidance. 
B)  cooperation. 
C)  indemnification. 
D)  reimbursement. 
A)  avoidance. 
B)  cooperation. 
C)  indemnification. 
D)  reimbursement.

Question 12

Agency relationships exist only within employment relationships.

Accepted Answer

A) True 
 B)False

Question 13

A person must have contractual capacity to be an agent.

Accepted Answer

A) True 
 B)False

Question 14

When the principal-agent relationship is not contractual, the agent has no right to specific performance.

Accepted Answer

A) True 
 B)False

Question 15

Clearview 3D HD TV Company grants its agent Blossom an exclusive territory in which to sell Clearview products. Clearview cannot compete with Blossom in that territory under the principal's duty of

Accepted Answer

A)  avoidance. 
B)  cooperation. 
C)  indemnification. 
D)  reimbursement. 
A)  avoidance. 
B)  cooperation. 
C)  indemnification. 
D)  reimbursement.

Question 16

Bob, a salesperson at a Carpets Galore store, tells Dita, a customer, "Buy your carpet here, and I'll install it for half of what the store would charge." Dita buys the carpet, which Bob installs for half the store's price. Bob keeps the money. Bob has breached

Accepted Answer

A)  no duty. 
B)  the duty of loyalty. 
C)  the duty of notification. 
D)  the duty of obedience. 
A)  no duty. 
B)  the duty of loyalty. 
C)  the duty of notification. 
D)  the duty of obedience.

Question 17

Sela agrees to act on Thom's behalf, subject to Thom's control, and Thom trusts Sela to so act. They set out the terms in a written document, which they both sign. This is

Accepted Answer

A)  an agency by agreement. 
B)  an agency by estoppel. 
C)  an agency by ratification. 
D)  not the creation of an agency relationship. 
A)  an agency by agreement. 
B)  an agency by estoppel. 
C)  an agency by ratification. 
D)  not the creation of an agency relationship.

Question 18

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

Accepted Answer

A)  an agent but not a principal. 
B)  an agent or a principal. 
C)  a principal but not an agent. 
D)  neither an agent nor a principal. 
A)  an agent but not a principal. 
B)  an agent or a principal. 
C)  a principal but not an agent. 
D)  neither an agent nor a principal.

Question 19

A principal owes his or her agent a duty to act in good faith.

Accepted Answer

A) True 
 B)False

Question 20

An agreement to form an agency relationship can be oral.

Accepted Answer

A) True 
 B)False

Exam 32: Agency Formation and Duties

A principal owes an agent a duty of estoppel.

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

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

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

Employment laws do not apply to independent contractors.

When an agent fails to perform his or her duties, liability for breach of contract may result.

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

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

A principal does not have the right to control an agent's conduct in matters entrusted to the agent.

Agency relationships exist only within employment relationships.

A person must have contractual capacity to be an agent.

When the principal-agent relationship is not contractual, the agent has no right to specific performance.

Clearview 3D HD TV Company grants its agent Blossom an exclusive territory in which to sell Clearview products. Clearview cannot compete with Blossom in that territory under the principal's duty of

Bob, a salesperson at a Carpets Galore store, tells Dita, a customer, "Buy your carpet here, and I'll install it for half of what the store would charge." Dita buys the carpet, which Bob installs for half the store's price. Bob keeps the money. Bob has breached

Sela agrees to act on Thom's behalf, subject to Thom's control, and Thom trusts Sela to so act. They set out the terms in a written document, which they both sign. This is

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

A principal owes his or her agent a duty to act in good faith.

An agreement to form an agency relationship can be oral.

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

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