Exam 5: Agency

An agent who refuses to follow legal instructions of a principal has breached the duty of care.

Under the doctrine of respondeat superior,employers and those contracting with independent contractors are liable for torts committed by employees and independent contractors.

In the past,Gale,acting as a purchasing agent for Four Seasons Furniture,has been permitted to enter into contracts up to $10,000._____ authority allows Gale to continue entering into such transactions.

A manager should review the scope of authority granted to the company's workers and consider the company's potential liability for the actions of those workers.

The "Inside Story" provides a discussion of the Department of Labor's fiduciary rule that concerns advisers' recommendations to customers regarding retirement investments.

An independent contractor is considered an employee of the person for whom work is being done.

Marley wants to buy a vacant lot that is for sale in the neighborhood.The problem is that Marley had a skirmish with the current owner,Blair,whose dog barked at all hours of the night.Marley asks River to purchase the lot on Marley's behalf without telling Blair that Marley will be the true owner.River agrees and reaches an agreement with Blair.A few months after the purchase,Marley begins to do some work on the lot.Blair sees Marley and asks what Marley is doing.Marley tells Blair that River had acted on Marley's behalf and that Marley was in fact the true purchaser.Blair becomes furious and promises to have the sale rescinded by suing both Marley and River for fraud.What will be the likely result if Blair sues Marley and River?

Which of the following terms refers to a slight deviation from the employer's business that is still within the scope of employment?

What is the meaning of the term respondeat superior?

An agency relationship can be created by

Channing leads Dane to believe that Emerson is Channing's agent.Thereafter,Channing is prevented from denying it according to agency by:

Which of the following statements regarding a principal's duty to pay unemployment taxes is true?

Sam is an employee of Binky,Inc.While delivering a truckload of binkies to a local retailer,Sam decided to stop at his bank to deposit his paycheck.The bank is three blocks from the retailer and it takes approximately 15 minutes to deposit a check.While Sam was in the bank,the truck rolled down the street because Sam negligently forgot to set the parking brake.The truck crashed through the window of Market,killing two people and causing $500,000 in damage.Discuss the issues involved in determining whether Binky,Inc.is liable for the damages at issue.If Binky,Inc.is liable,can it recover against Sam for the damages?

Courts have generally found click-wrap agreements to be enforceable.

Which of the following is NOT a duty of an agent to a principal?

Whether a person is an independent contractor or an employee depends on what he or she does,not how the relationship is characterized by the parties.

Which of the following is true regarding an independent contractor's entitlement to fringe benefits offered by a principal?

When ruling on a case involving contracts,the law looks at a number of factors to distinguish between employees and independent contractors.Which of the following factors would NOT be included among those examined?

Under the duty of ______ an agent has a duty to act solely for the benefit of his or her principal in all matters directly connected with the agency undertaking.

Unless state law is to the contrary,an agent may lawfully conceal ______ of the principal.