Question 1

Seed Packets, Inc., a garden seed company, requires its customers to pay by check. Taylor, a Seed Packets driver, tells customers that they can pay her with cash. When Seed Packets learns of Taylor's collections, it does not act to stop them. Taylor steals some of the cash. Under the doctrine of apparent authority, Seed Packets will most likely​

Accepted Answer

A)  ​suffer the loss. 
B)  ​recover the amount of the cash payments from its customers. 
C)  ​increase its prices to cover the amount of the stolen cash. 
D)  ​hold its accountant liable for apparently authorizing the cash collections.

Question 2

Apparent authority usually comes into existence through a principal's pattern of conduct over time.

Accepted Answer

A) True 
 B)False

Question 3

An agent's implied authority cannot contradict his or her express authority.

Accepted Answer

A) True 
 B)False

Question 4

Mirena serves in a representative capacity for Netanya. Orla is injured through Mirena's negligence. Netanya may be liable to Orla if Mirena's conduct occurred​

Accepted Answer

A)  ​due to a propensity Netanya was not and could not have been aware of. 
B)  ​during normal working hours. 
C)  ​in the course and scope of Mirena's employment. 
D)  ​outside the parties' employment relationship.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Vicarious liability is indirect liability.

Accepted Answer

A) True 
 B)False

Question 7

Fact Pattern 10-1
Berry indicates that she is acting as an agent on behalf of an unidentified client-Cuisine Catering, LLC-when she enters into a contract with Désean.
-Refer to Fact Pattern 10-1.Liability to Désean for nonperformance of the contract may be imposed on​

Accepted Answer

A)  ​none of the choices. 
B)  ​Berry and Cuisine Catering. 
C)  ​Berry only. 
D)  ​Cuisine Catering only.

Question 8

Rachel is an agent for Sports Logo Merchandise, Inc. Rachel makes an innocent misrepresentation when entering into a contract on behalf of Sports Logo with Team Marketing & Sales Corporation. Sports Logo​

Accepted Answer

A)  ​is directly responsible for Rachel's misrepresentation. 
B)  ​is estopped from performing the contract. 
C)  ​may rescind the contract. 
D)  ​must ratify the contract.

Question 9

Garry drives a truck as an employee for Heavy Hauling, Inc. Garry would most likely be considered acting outside the scope of her employment if he​

Accepted Answer

A)  ​crashed into a car at the airport while off duty. 
B)  ​hit a pedestrian in a parking lot during a "working" lunch. 
C)  ​ran over an attendant at Quik's gas station while refueling the truck. 
D)  ​smashed into a store-front while intoxicated on-duty.

Question 10

Fact Pattern 10-1
Berry indicates that she is acting as an agent on behalf of an unidentified client-Cuisine Catering, LLC-when she enters into a contract with Désean.
-Refer to Fact Pattern 10-1.Cuisine Catering is​

Accepted Answer

A)  ​a disclosed principal. 
B)  ​an apparent agent. 
C)  ​an undisclosed principal. 
D)  ​a partially disclosed principal.

Question 11

An employer is charged with the knowledge of any dangerous condition discovered by an employee and pertinent to the employment situation.

Accepted Answer

A) True 
 B)False

Question 12

A principal is not normally liable for the tort of an agent committed within the scope of the agency or employment.

Accepted Answer

A) True 
 B)False

Exam 10: Agency Liability and Termination

Apparent authority usually comes into existence through a principal's pattern of conduct over time.

An agent's implied authority cannot contradict his or her express authority.

Mirena serves in a representative capacity for Netanya. Orla is injured through Mirena's negligence. Netanya may be liable to Orla if Mirena's conduct occurred​

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

Vicarious liability is indirect liability.

Fact Pattern 10-1 Berry indicates that she is acting as an agent on behalf of an unidentified client-Cuisine Catering, LLC-when she enters into a contract with Désean. -Refer to Fact Pattern 10-1.Liability to Désean for nonperformance of the contract may be imposed on​

Rachel is an agent for Sports Logo Merchandise, Inc. Rachel makes an innocent misrepresentation when entering into a contract on behalf of Sports Logo with Team Marketing & Sales Corporation. Sports Logo​

Garry drives a truck as an employee for Heavy Hauling, Inc. Garry would most likely be considered acting outside the scope of her employment if he​

Fact Pattern 10-1 Berry indicates that she is acting as an agent on behalf of an unidentified client-Cuisine Catering, LLC-when she enters into a contract with Désean. -Refer to Fact Pattern 10-1.Cuisine Catering is​

An employer is charged with the knowledge of any dangerous condition discovered by an employee and pertinent to the employment situation.

A principal is not normally liable for the tort of an agent committed within the scope of the agency or employment.

Mirena serves in a representative capacity for Netanya. Orla is injured through Mirena's negligence. Netanya may be liable to Orla if Mirena's conduct occurred

Fact Pattern 10-1 Berry indicates that she is acting as an agent on behalf of an unidentified client-Cuisine Catering, LLC-when she enters into a contract with Désean. -Refer to Fact Pattern 10-1.Liability to Désean for nonperformance of the contract may be imposed on

Rachel is an agent for Sports Logo Merchandise, Inc. Rachel makes an innocent misrepresentation when entering into a contract on behalf of Sports Logo with Team Marketing & Sales Corporation. Sports Logo

Garry drives a truck as an employee for Heavy Hauling, Inc. Garry would most likely be considered acting outside the scope of her employment if he

Fact Pattern 10-1 Berry indicates that she is acting as an agent on behalf of an unidentified client-Cuisine Catering, LLC-when she enters into a contract with Désean. -Refer to Fact Pattern 10-1.Cuisine Catering is