Question 1

Agency is perhaps the most pervasive legal relationship in the business world.

Accepted Answer

A) True 
 B)False

Question 2

Discuss the elements that are considered in determining whether a worker is an employee or an independent contractor.

Accepted Answer

Considerations include the amount of con

Question 3

Agents owe a fiduciary duty to the principal.Describe the specific responsibilities that are generated by this duty.Discuss fully.

Accepted Answer

Students should fully discuss the duties

Question 4

Under the Uniform Computer Information Transactions Act (UCITA),what would be the result if an electronic agent agrees to a click-wrap agreement?

Accepted Answer

A)  The user of the electronic agent would not be liable for the agreement. 
B)  The user of the electronic agent would be liable for the agreement only if the evidence established that the user had an opportunity to look over the agreement and cancel it within a reasonable length of time. 
C)  The user of the electronic agent would be liable for the agreement. 
D)  The user of the electronic agent would be liable for the agreement only if the user was a merchant in respect to goods or services of the type purchased by the agreement. 
A)  The user of the electronic agent would not be liable for the agreement. 
B)  The user of the electronic agent would be liable for the agreement only if the evidence established that the user had an opportunity to look over the agreement and cancel it within a reasonable length of time. 
C)  The user of the electronic agent would be liable for the agreement. 
D)  The user of the electronic agent would be liable for the agreement only if the user was a merchant in respect to goods or services of the type purchased by the agreement.

Question 5

Express authority may be given by:

Accepted Answer

A)  the principal's actual words but not by action. 
B)  written contract only. 
C)  the principal's actual words and also by an action that indicates the principal's consent. 
D)  action but only after a contract of agency has been signed. 
A)  the principal's actual words but not by action. 
B)  written contract only. 
C)  the principal's actual words and also by an action that indicates the principal's consent. 
D)  action but only after a contract of agency has been signed.

Question 6

Which of the following is true regarding an agency relationship?

Accepted Answer

A)  The least common form of agency relationship is the employer-employee relationship. 
B)  An agent may not be an independent contractor. 
C)  An enforceable agency agreement may not be implied. 
D)  Agency may be established by estoppel. 
A)  The least common form of agency relationship is the employer-employee relationship. 
B)  An agent may not be an independent contractor. 
C)  An enforceable agency agreement may not be implied. 
D)  Agency may be established by estoppel.

Question 7

In CASE 5.2,Northeast General Corp.v.Wellington Advertising,Inc.(1993),the plaintiff sued to receive a finder's fee for acting as an agent to Wellington.Wellington claimed Northeast failed to disclose adverse information and thereby failed in its fiduciary duty.How did the court rule and why?

Accepted Answer

A)  The appellate court refused to dismiss the plaintiff's claim and found that its failure to disclose a material conflict of interest established a claim for breach of fiduciary duty. 
B)  The appellate court ruled that Wellington must pay the finder's fee because the agreement did not contain cognizable fiduciary terms. 
C)  The court dismissed the case because the defendants' financial losses from their market mishap with Sternau do not provide sufficient reason to advocate a new fiduciary-like doctrine into finders' agreements. 
D)  The trial court judge set aside the jury's verdict based on public policy imperatives,which imposed a fiduciary-like duty on finders to disclose adverse information to clients; the appellate court upheld this ruling. 
A)  The appellate court refused to dismiss the plaintiff's claim and found that its failure to disclose a material conflict of interest established a claim for breach of fiduciary duty. 
B)  The appellate court ruled that Wellington must pay the finder's fee because the agreement did not contain cognizable fiduciary terms. 
C)  The court dismissed the case because the defendants' financial losses from their market mishap with Sternau do not provide sufficient reason to advocate a new fiduciary-like doctrine into finders' agreements. 
D)  The trial court judge set aside the jury's verdict based on public policy imperatives,which imposed a fiduciary-like duty on finders to disclose adverse information to clients; the appellate court upheld this ruling.

Question 8

In agreeing to act on behalf of the principal,the agent becomes a fiduciary.

Accepted Answer

A) True 
 B)False

Question 9

In an agent's negotiations on behalf of an undisclosed principal:

Accepted Answer

A)  no agreement is binding until the identity of the principal is provided. 
B)  the agent cannot be held liable for the breach of a principal. 
C)  the principal will be bound by any contract the agent has the authority to make. 
D)  the principal is bound to any agreement,even if the agent acts without authority. 
A)  no agreement is binding until the identity of the principal is provided. 
B)  the agent cannot be held liable for the breach of a principal. 
C)  the principal will be bound by any contract the agent has the authority to make. 
D)  the principal is bound to any agreement,even if the agent acts without authority.

Question 10

Which of the following is true regarding respondeat superior?

Accepted Answer

A)  Under that theory,a principal may be liable for not only the contracts but also the torts of its agents. 
B)  Under that theory,a principal may be liable for only the contracts of its agents,not the torts. 
C)  Under that theory,a principal may be liable for only the torts of its agents,not the contracts. 
D)  Under that theory,a principal may not be held liable for either the contracts or torts of its agent unless the principal expressly authorizes the agent's actions. 
A)  Under that theory,a principal may be liable for not only the contracts but also the torts of its agents. 
B)  Under that theory,a principal may be liable for only the contracts of its agents,not the torts. 
C)  Under that theory,a principal may be liable for only the torts of its agents,not the contracts. 
D)  Under that theory,a principal may not be held liable for either the contracts or torts of its agent unless the principal expressly authorizes the agent's actions.

Question 11

Mckinley,as an agent,entered into a contract with Kazumi on behalf of Adley,but without having obtained Adley's authority.Which of the following statements is true in this situation?

Accepted Answer

A)  Adley,the principal,is not bound nor is the agent Mckinley bound by the contract. 
B)  Adley,the principal,is bound,and the agent Mckinley may be personally liable. 
C)  Adley,the principal,is not bound,but the agent Mckinley may personally liable. 
D)  Neither Adley,the principal,nor the agent Mckinley is bound if the contract is oral; but if the contract is written,both Adley and Mckinley are bound. 
A)  Adley,the principal,is not bound nor is the agent Mckinley bound by the contract. 
B)  Adley,the principal,is bound,and the agent Mckinley may be personally liable. 
C)  Adley,the principal,is not bound,but the agent Mckinley may personally liable. 
D)  Neither Adley,the principal,nor the agent Mckinley is bound if the contract is oral; but if the contract is written,both Adley and Mckinley are bound.

Question 12

When would the aided-in-accomplishing theory likely be asserted?

Accepted Answer

A)  By a defending employer in an attempt to show that although an employee was acting within the scope of employment,the employer should not be held responsible for the employee's actions because the employee was aided by a nonemployee 
B)  By a plaintiff in an attempt to show that even if an employee was acting outside the scope of employment,the employer may be liable for the employee's action because the employee was aided by the agency relationship 
C)  By a defending employer in an attempt to show that an employee was acting outside the scope of employment and that the employer should not,therefore,be held liable for the employee's actions 
D)  By a plaintiff in an attempt to show that an employee was acting within the scope of employment and that the employer should,therefore,be held liable for the employee's actions 
A)  By a defending employer in an attempt to show that although an employee was acting within the scope of employment,the employer should not be held responsible for the employee's actions because the employee was aided by a nonemployee 
B)  By a plaintiff in an attempt to show that even if an employee was acting outside the scope of employment,the employer may be liable for the employee's action because the employee was aided by the agency relationship 
C)  By a defending employer in an attempt to show that an employee was acting outside the scope of employment and that the employer should not,therefore,be held liable for the employee's actions 
D)  By a plaintiff in an attempt to show that an employee was acting within the scope of employment and that the employer should,therefore,be held liable for the employee's actions

Question 13

An agent may bind the principal due to the agent's ______ authority.

Accepted Answer

A)  express 
B)  implied 
C)  apparent 
D)  express,implied,or apparent 
A)  express 
B)  implied 
C)  apparent 
D)  express,implied,or apparent

Question 14

Apparent authority may be based on which of the following?

Accepted Answer

A)  Only words of the principal or acts of the principal 
B)  Only words of the principal or knowledge that the principal has allowed its agent to engage in certain activities on its behalf over an extended period of time 
C)  Words of the principal,acts of the principal,or knowledge that the principal has allowed its agent to engage in certain activities on its behalf over an extended period of time 
D)  Express contractual authority only 
A)  Only words of the principal or acts of the principal 
B)  Only words of the principal or knowledge that the principal has allowed its agent to engage in certain activities on its behalf over an extended period of time 
C)  Words of the principal,acts of the principal,or knowledge that the principal has allowed its agent to engage in certain activities on its behalf over an extended period of time 
D)  Express contractual authority only

Question 15

The most basic legal characteristic of the employer-employee relationship is that the employer has the right to

Accepted Answer

A)  deduct taxes. 
B)  control the conduct of the employee. 
C)  provide health care. 
D)  deduct taxes,control the conduct of the employee,and provide health care. 
A)  deduct taxes. 
B)  control the conduct of the employee. 
C)  provide health care. 
D)  deduct taxes,control the conduct of the employee,and provide health care.

Question 16

Which of the following is an example of a hallmark of the fiduciary relationship?

Accepted Answer

A)  Loyalty 
B)  Subservience 
C)  Politeness 
D)  Generosity 
A)  Loyalty 
B)  Subservience 
C)  Politeness 
D)  Generosity

Question 17

What is considered in determining the scope of an agent's implied authority?

Accepted Answer

To determine an agent's implied authorit

Question 18

Mo owns a business that makes kites.Mo's agent Baez entered into an agreement with Val to purchase some land for a new kite factory.Mo's agency relationship with Baez was not memorialized by any writing.The day after Baez signs the papers finalizing the sale,Mo learned of the purchase,was furious with Baez,and wanted out of the deal.Assuming that Baez was legally considered the agent of Mo in making the purchase,which of the following is Mo's best argument?

Accepted Answer

A)  That the agency agreement with Baez was not in writing and that under the equal dignities rule Mo should not be bound. 
B)  That agency agreements may not extend to the purchase of land. 
C)  That under the exclusion principle,Baez was not authorized to purchase land unless expressly authorized by Mo. 
D)  That Mo did not need land and therefore should not be bound because Baez was mistaken. 
A)  That the agency agreement with Baez was not in writing and that under the equal dignities rule Mo should not be bound. 
B)  That agency agreements may not extend to the purchase of land. 
C)  That under the exclusion principle,Baez was not authorized to purchase land unless expressly authorized by Mo. 
D)  That Mo did not need land and therefore should not be bound because Baez was mistaken.

Question 19

The most common form of agency relationship is employer-employee.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following are autonomous computer programs that can be dispatched by the user to execute certain tasks?

Accepted Answer

A)  Electronic agents 
B)  Software identifiers 
C)  Click programs 
D)  Fortran identifiers 
A)  Electronic agents 
B)  Software identifiers 
C)  Click programs 
D)  Fortran identifiers

Exam 5: Agency

Agency is perhaps the most pervasive legal relationship in the business world.

Discuss the elements that are considered in determining whether a worker is an employee or an independent contractor.

Agents owe a fiduciary duty to the principal.Describe the specific responsibilities that are generated by this duty.Discuss fully.

Under the Uniform Computer Information Transactions Act (UCITA),what would be the result if an electronic agent agrees to a click-wrap agreement?

Express authority may be given by:

Which of the following is true regarding an agency relationship?

In CASE 5.2,Northeast General Corp.v.Wellington Advertising,Inc.(1993),the plaintiff sued to receive a finder's fee for acting as an agent to Wellington.Wellington claimed Northeast failed to disclose adverse information and thereby failed in its fiduciary duty.How did the court rule and why?

In agreeing to act on behalf of the principal,the agent becomes a fiduciary.

In an agent's negotiations on behalf of an undisclosed principal:

Which of the following is true regarding respondeat superior?

Mckinley,as an agent,entered into a contract with Kazumi on behalf of Adley,but without having obtained Adley's authority.Which of the following statements is true in this situation?

When would the aided-in-accomplishing theory likely be asserted?

An agent may bind the principal due to the agent's ______ authority.

Apparent authority may be based on which of the following?

The most basic legal characteristic of the employer-employee relationship is that the employer has the right to

Which of the following is an example of a hallmark of the fiduciary relationship?

What is considered in determining the scope of an agent's implied authority?

The most common form of agency relationship is employer-employee.

Which of the following are autonomous computer programs that can be dispatched by the user to execute certain tasks?

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