Question 1

Gem's principal asked her to pick up his dry-cleaning on her way to work.After she had picked up the dry-cleaning and while driving to work, Gem knocked over an old man crossing the street as she did not apply the brakes in time.Under the theory of ________, Gem's principal is liable to the injured man.

Accepted Answer

A)  intentional tort
B)  negligence
C)  liability with fault
D)  vicarious liability D

Question 2

Agents can compete with the principal during the course of the agency if the principal agrees.

Accepted Answer

A) True 
 B)False  True

Question 3

Which of the following is an instance of misuse of confidential information?

Accepted Answer

A)  An agent gives the seller the principal's name and phone number in a fully disclosed transaction.
B)  A principal gives the contact details of an agent to a third-party without the agent's knowledge.
C)  An agent withholds critical information from the principal about the agency.
D)  An agent divulges details of his past employer to his principal. D

Question 4

________ is a situation in which an agent does something during the course of his or her employment to further his or her own interests rather than the principal's.

Accepted Answer

A)  Coming and going
B)  Frolic and detour
C)  Self-dealing
D)  Dual-purpose mission

Question 5

An agent does not violate his or her duty of loyalty by serving two parties with the same interest.

Accepted Answer

A) True 
 B)False

Question 6

In a fully-disclosed agency, the contract is between ________.

Accepted Answer

A)  a principal and an agent
B)  a principal and a third party
C)  an agent and a third party
D)  a principal, an agent, and a third party

Question 7

The agent is not liable on the contract in a fully disclosed agency.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is true of a fully disclosed agency?

Accepted Answer

A)  The third party does not know the identity of the principal.
B)  The third party knows the name of the principal, but all transactions are done with the agent.
C)  The contract is between the principal, agent, and the third party.
D)  The principal is liable on the contract with a third party.

Question 9

________ is a rule that says an employer is liable for the tortious conduct of its employees or agents while they are acting within the scope of the employer's authority.

Accepted Answer

A)  Ad infinitum
B)  Respondeat superior
C)  Acienter
D)  Voir dire

Question 10

Undisclosed agencies are not lawful in the United States.

Accepted Answer

A) True 
 B)False

Question 11

Why can an agent not take an opportunity meant for the principal? When is an agent permitted to take such an opportunity? Give an illustration depicting an agent's violation of his or her duty of loyalty.

Accepted Answer

The answer of Why can an agent not take an...

Question 12

Which of the following is a course of action for a principal if an agent is found competing with him or her?

Accepted Answer

A)  The principal can recover damages from the agent if the competition continues after the agency has ended.
B)  The principal can recover profits made by the agent.
C)  The principal is given an option of buying the agent's competing venture.
D)  The principal is not allowed to recover for lost sales due to the agent's competing venture.

Question 13

Based on the doctrine of respondeat superior, principals are liable for the negligent conduct of agents acting within the scope of their employment.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following best describes a partially disclosed agency?

Accepted Answer

A)  an agent with multiple principals who do not know each other's identities
B)  a transaction in which the third party does not know the identity of the agent
C)  a transaction in which the third party knows the agent, not the principal
D)  an agent who discloses only the name of his or her principal in a transaction

Question 15

A car salesperson is employed to sell the principal's car, and the principal tells the agent that the car was repaired after it was involved in a major accident.If the agent intentionally tells the buyer that the car was never involved in an accident, the agent has committed the tort of ________.

Accepted Answer

A)  substantial frolic and detour
B)  intentional misrepresentation
C)  self-dealing
D)  competing with the principal

Question 16

________ occurs where a principal is liable for an agent's tortious conduct because of the employment contract between the principal and agent, not because the principal was personally at fault.

Accepted Answer

A)  Vicarious liability
B)  Negligence
C)  Liability with fault
D)  Misrepresentation

Question 17

If an independent contractor enters into a contract with a third party on behalf of the principal without express or implied authority from the principal to do so, who among the following is liable on the contract?

Accepted Answer

A)  the principal
B)  the independent contractor
C)  the third party
D)  both the principal and independent contractor

Question 18

Which of the following is true of tort liability for principals and agents?

Accepted Answer

A)  A principal is responsible for the tortious conduct of an agent irrespective of the scope of his or her authority.
B)  An agent is fully liable for his or her tortious conduct while on duty for the principal.
C)  An agent is liable for the principal's tortious conduct if he or she participates in it.
D)  An agent and a principal cannot be held responsible for the same tort.

Question 19

A fully disclosed agency results if a third party entering into a contract knows the actual identity of the principal.

Accepted Answer

A) True 
 B)False

Question 20

Principals do not control the means by which independent contractors achieve results.

Accepted Answer

A) True 
 B)False

Exam 30: Liability of Principals, Agents, and Independent Contractors

Agents can compete with the principal during the course of the agency if the principal agrees.

Which of the following is an instance of misuse of confidential information?

________ is a situation in which an agent does something during the course of his or her employment to further his or her own interests rather than the principal's.

An agent does not violate his or her duty of loyalty by serving two parties with the same interest.

In a fully-disclosed agency, the contract is between ________.

The agent is not liable on the contract in a fully disclosed agency.

Which of the following is true of a fully disclosed agency?

________ is a rule that says an employer is liable for the tortious conduct of its employees or agents while they are acting within the scope of the employer's authority.

Undisclosed agencies are not lawful in the United States.

Why can an agent not take an opportunity meant for the principal? When is an agent permitted to take such an opportunity? Give an illustration depicting an agent's violation of his or her duty of loyalty.

Which of the following is a course of action for a principal if an agent is found competing with him or her?

Based on the doctrine of respondeat superior, principals are liable for the negligent conduct of agents acting within the scope of their employment.

Which of the following best describes a partially disclosed agency?

A car salesperson is employed to sell the principal's car, and the principal tells the agent that the car was repaired after it was involved in a major accident.If the agent intentionally tells the buyer that the car was never involved in an accident, the agent has committed the tort of ________.

________ occurs where a principal is liable for an agent's tortious conduct because of the employment contract between the principal and agent, not because the principal was personally at fault.

If an independent contractor enters into a contract with a third party on behalf of the principal without express or implied authority from the principal to do so, who among the following is liable on the contract?

Which of the following is true of tort liability for principals and agents?

A fully disclosed agency results if a third party entering into a contract knows the actual identity of the principal.

Principals do not control the means by which independent contractors achieve results.