Question 1

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 2

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 3

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 4

Trey,an agent for Uno Music Corporation,executes an unau?thor?ized contract with Variety Recording,Inc. ,that is highly ad?vanta?geous to Uno.Variety withdraws from the deal before Uno ratifies the con?tract.The contract is

Accepted Answer

A) valid. 
B) variable. 
C) void. 
D) voidable. 
A) valid. 
B) variable. 
C) void. 
D) voidable.

Question 5

A principal who authorizes an agent to commit a tort is not liable to persons or property injured thereby.

Accepted Answer

A) True 
 B)False

Question 6

Ratification occurs when a principal accepts responsibility for an agent's unauthorized act.

Accepted Answer

A) True 
 B)False

Question 7

Fabulous Auto Sales,Inc. ,employs GR8 Collection Company as a collection agent.While repossessing a car from Hadji,one of Fabulous's customers,GR8 causes an accident in which Hadji is injured.Hadji can recover from

Accepted Answer

A) Fabulous only. 
B) Fabulous or GR8. 
C) GR8 only. 
D) Hadji's insurance company only. 
A) Fabulous only. 
B) Fabulous or GR8. 
C) GR8 only. 
D) Hadji's insurance company only.

Question 8

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 9

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 10

Apparent authority is authority declared in clear,direct,definite terms.

Accepted Answer

A) True 
 B)False

Question 11

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.

Question 12

If a principal is undisclosed,the agent may be liable to the principal for a third party's nonperformance of a contract.

Accepted Answer

A) True 
 B)False

Question 13

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

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

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 16

If a principal is disclosed,the agent may be liable to a third party for the principal's nonperformance of a contract.

Accepted Answer

A) True 
 B)False

Question 17

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 18

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

Accepted Answer

A) True 
 B)False

Question 19

Under the doctrine of respondeat superior,an agent is liable for any harm caused to a principal by a third party.

Accepted Answer

A) True 
 B)False

Question 20

Fact Pattern 33-1A
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.Liability to Shana for nonper?formance of the con?tract may be imposed on

Accepted Answer

A) neither Ulani nor Thoroughbred Stallions. 
B) Ulani and Thoroughbred Stallions. 
C) Ulani only. 
D) Thoroughbred Stallions only. 
A) neither Ulani nor Thoroughbred Stallions. 
B) Ulani and Thoroughbred Stallions. 
C) Ulani only. 
D) Thoroughbred Stallions only.

Exam 33: B: Agency Liability and Termination

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

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

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

Trey,an agent for Uno Music Corporation,executes an unau?thor?ized contract with Variety Recording,Inc. ,that is highly ad?vanta?geous to Uno.Variety withdraws from the deal before Uno ratifies the con?tract.The contract is

A principal who authorizes an agent to commit a tort is not liable to persons or property injured thereby.

Ratification occurs when a principal accepts responsibility for an agent's unauthorized act.

Fabulous Auto Sales,Inc. ,employs GR8 Collection Company as a collection agent.While repossessing a car from Hadji,one of Fabulous's customers,GR8 causes an accident in which Hadji is injured.Hadji can recover from

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

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.

Apparent authority is authority declared in clear,direct,definite terms.

If a principal is undisclosed,the agent may be liable to the principal for a third party's nonperformance of a contract.

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

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

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

If a principal is disclosed,the agent may be liable to a third party for the principal's nonperformance of a contract.

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

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

Under the doctrine of respondeat superior,an agent is liable for any harm caused to a principal by a third party.

Fact Pattern 33-1A 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.Liability to Shana for nonper?formance of the con?tract may be imposed on

A: Introduction to Law and Legal Reasoning

B: Introduction to Law and Legal Reasoning

C: Introduction to Law and Legal Reasoning

D: Introduction to Law and Legal Reasoning

A: Courts and Alternative Dispute Resolution

B: Courts and Alternative Dispute Resolution

A: Court Procedures

B: Court Procedures

A: Constitutional Authority to Regulate Business

B: Constitutional Authority to Regulate Business

A: Ethics and Business Decision Making

B: Ethics and Business Decision Making

A: Intentional Torts and Privacy

B: Intentional Torts and Privacy

A: Negligence and Strict Liability

B: Negligence and Strict Liability

C: Negligence and Strict Liability

D: Negligence and Strict Liability

A: Intellectual Property and Internet Law

B: Intellectual Property and Internet Law

A: Criminal Law and Cyber Crimes

B: Criminal Law and Cyber Crime

A: Nature and Terminology

B: Nature and Terminology

C: Nature and Terminology

D: Nature and Terminology

A: Agreement in Traditional and E-Contracts

B: Agreement in Traditional and E-Contracts

A: Consideration

B: Consideration

A: Capacity and Legality

B: Capacity and Legality

A: Mistakes,fraud,and Voluntary Consent

B: Mistakes,fraud,and Voluntary Consent

A: The Statute of Frauds

B: The Statute of Frauds

A: Third Party Rights

B: Third Party Rights

A: Performance and Discharge

B: Performance and Discharge

A: Breach of Contract and Remedies

B: Breach of Contract and Remedies

A: The Formation of Sales and Lease Contracts

B: The Formation of Sales and Lease Contracts

C: The Formation of Sales and Lease Contracts

D: The Formation of Sales and Lease Contracts

A: Title,risk,and Insurable Interest

B: Title,risk,and Insurable Interest

A: Performance Breach of Sales Lease Contracts

B: Performance Breach of Sales Lease Contracts

A: Warranties and Product Liability

B: Warranties and Product Liability

A: International Law in a Global Economy

B: International Law in a Global Economy

A: The Function Creation of Negotiable Instruments

B: The Function Creation of Negotiable Instruments

C: The Function Creation of Negotiable Instruments

D: The Function Creation of Negotiable Instruments

A: Transferability and Holder in Due Course

B: Transferability and Holder in Due Course