Question 1

Jason may validly authorize Nathan to:

Accepted Answer

A)  obtain title to Max's car by making materially false representations of an existing fact. 
B)  vote in his place since Jason is not feeling well on election day. 
C)  negotiate a contract for the sale of Jason's boat. 
D)  All of these. 
A)  obtain title to Max's car by making materially false representations of an existing fact. 
B)  vote in his place since Jason is not feeling well on election day. 
C)  negotiate a contract for the sale of Jason's boat. 
D)  All of these. C

Question 2

A(n)______ is an instrument that evidences an agent's appointment and states the nature or extent of the agent's authority.

Accepted Answer

A)  fiduciary 
B)  indemnification 
C)  power of attorney 
D)  qui facit per alium 
A)  fiduciary 
B)  indemnification 
C)  power of attorney 
D)  qui facit per alium C

Question 3

According to the Restatement,whether an agency relationship has been created is determined by using a subjective test.

Accepted Answer

A) True 
 B)False  False

Question 4

What is an independent contractor? Can an independent contractor also be an agent? Explain.

Accepted Answer

a.Because the authority of an agent is b

Question 5

An agent has breached his fiduciary duty to the principal in which of the following situations?

Accepted Answer

A)  Where the agent competes with the principal 
B)  Where the agent makes a secret profit 
C)  Where the agent uses confidential information obtained in the course of the agency for his own benefit 
D)  All of these. 
A)  Where the agent competes with the principal 
B)  Where the agent makes a secret profit 
C)  Where the agent uses confidential information obtained in the course of the agency for his own benefit 
D)  All of these.

Question 6

An agent,acting within the scope of authority granted by the principal,may bind the principal to contracts,but may not negotiate terms of the contracts.

Accepted Answer

A) True 
 B)False

Question 7

Edward writes to Judy,who is in the business of purchasing goods for others,telling her to purchase certain goods and ship them to him.Before answering Edward's letter,Judy does as directed and charges the goods to Edward.Judy was not authorized to do this because an agency relationship did not yet exist between Edward and Judy.

Accepted Answer

A) True 
 B)False

Question 8

The distinction between employee and independent contractor is irrelevant.

Accepted Answer

A) True 
 B)False

Question 9

Unless otherwise agreed,a power given as security may not be revoked.

Accepted Answer

A) True 
 B)False

Question 10

Agency relationships are governed primarily by federal statute.

Accepted Answer

A) True 
 B)False

Question 11

A minor can act as an agent for an adult.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following will terminate an agency coupled with an interest?

Accepted Answer

A)  The death of the principal 
B)  The bankruptcy of the principal 
C)  The incapacity of the principal 
D)  None of these will terminate such an agency. 
A)  The death of the principal 
B)  The bankruptcy of the principal 
C)  The incapacity of the principal 
D)  None of these will terminate such an agency.

Question 13

An agency:

Accepted Answer

A)  is a consensual relationship that the principal and agent may form by contract or agreement. 
B)  must be created with consideration. 
C)  requires a formal writing,called a power of attorney. 
D)  which is voidable because of the incapacity of an agent results in only voidable contracts with third parties. 
A)  is a consensual relationship that the principal and agent may form by contract or agreement. 
B)  must be created with consideration. 
C)  requires a formal writing,called a power of attorney. 
D)  which is voidable because of the incapacity of an agent results in only voidable contracts with third parties.

Question 14

If an agent receives a gift from a third person with whom he is dealing on behalf of the principal,he can keep it without notifying the principal.

Accepted Answer

A) True 
 B)False

Question 15

According to the Second Restatement,in which of the following situations would an agency be terminated by operation of law?

Accepted Answer

A)  An outbreak of war places the principal and agent in the position of alien enemies. 
B)  The death of the individual principal,only upon the agent's notice of the death. 
C)  The agent gives notice to the principal that she is renouncing the authority given to her. 
D)  None of these. 
A)  An outbreak of war places the principal and agent in the position of alien enemies. 
B)  The death of the individual principal,only upon the agent's notice of the death. 
C)  The agent gives notice to the principal that she is renouncing the authority given to her. 
D)  None of these.

Question 16

In a partnership,each partner is an agent of the partnership.

Accepted Answer

A) True 
 B)False

Question 17

Agents and principals have mutual fiduciary duties to one another.

Accepted Answer

A) True 
 B)False

Question 18

Milton owns a business delivering coffee and donuts within the downtown area of the city.Smith Co.calls him to deliver a large quantity of his products to their local office.While taking a coffee urn through the Smith Co.'s office,Milton drops it on Lester,scalding him.Who is liable?

Accepted Answer

A)  Smith Co.and Milton are liable 
B)  Milton alone is liable 
C)  Lester has to absorb the cost himself since he assumed the risk by working at Smith Co 
D)  Smith Co.alone is liable 
A)  Smith Co.and Milton are liable 
B)  Milton alone is liable 
C)  Lester has to absorb the cost himself since he assumed the risk by working at Smith Co 
D)  Smith Co.alone is liable

Question 19

The Electronic Signatures in Global and National Commerce Act:

Accepted Answer

A)  makes electronic records and signatures valid and enforceable across the United States for many types of transactions affecting interstate commerce. 
B)  excludes all transactions covered under the UCC. 
C)  was enacted by all the states after being promulgated as a uniform act. 
D)  defines an "electronic agent" as a true agent. 
A)  makes electronic records and signatures valid and enforceable across the United States for many types of transactions affecting interstate commerce. 
B)  excludes all transactions covered under the UCC. 
C)  was enacted by all the states after being promulgated as a uniform act. 
D)  defines an "electronic agent" as a true agent.

Question 20

An agent who violates his fiduciary duty loses the right to compensation.

Accepted Answer

A) True 
 B)False

Exam 19: Relationship of Principal and Agent

Jason may validly authorize Nathan to:

A(n)______ is an instrument that evidences an agent's appointment and states the nature or extent of the agent's authority.

According to the Restatement,whether an agency relationship has been created is determined by using a subjective test.

What is an independent contractor? Can an independent contractor also be an agent? Explain.

An agent has breached his fiduciary duty to the principal in which of the following situations?

An agent,acting within the scope of authority granted by the principal,may bind the principal to contracts,but may not negotiate terms of the contracts.

The distinction between employee and independent contractor is irrelevant.

Unless otherwise agreed,a power given as security may not be revoked.

Agency relationships are governed primarily by federal statute.

A minor can act as an agent for an adult.

Which of the following will terminate an agency coupled with an interest?

An agency:

If an agent receives a gift from a third person with whom he is dealing on behalf of the principal,he can keep it without notifying the principal.

According to the Second Restatement,in which of the following situations would an agency be terminated by operation of law?

In a partnership,each partner is an agent of the partnership.

Agents and principals have mutual fiduciary duties to one another.

Milton owns a business delivering coffee and donuts within the downtown area of the city.Smith Co.calls him to deliver a large quantity of his products to their local office.While taking a coffee urn through the Smith Co.'s office,Milton drops it on Lester,scalding him.Who is liable?

The Electronic Signatures in Global and National Commerce Act:

An agent who violates his fiduciary duty loses the right to compensation.

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

A: Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance,breach,and Discharge

Contract Remedies

Relationship With Third Parties

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Products Liability: Warranties and Strict Liability in Tort

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits,collections,and Funds Transfers

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature,formation,and Powers

Financial Structure

Management Structure

Fundamental Changes

Secured Transactions and Suretyship

Bankruptcy

Protection of Intellectual Property

Antitrust

Consumer Protection Double

Employment Law

Securities Regulation

Accountants Legal Liability

Environmental Law

International Business Law

Introduction to Property,property Insurance,bailments,and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Decedents Estates

Legal Terminology: Understanding Criminal and Civil Law Systems

Contract Law Terminology

Exploring the Legal Concepts of Agency and Fiduciary Duty

Understanding Key Legal Concepts in Sales and Contracts

Understanding the Terminology of Banking and Finance: Key Concepts and Definitions

Exploring Legal Concepts and Processes in Business Partnerships

Understanding Corporate Law: A Guide to Ultra Vires Acts, Subscribers, Debt Securities, and More

Understanding Key Terms in Secured Transactions and Bankruptcy Law

Legal Topics and Terms

Legal Topics in Property Ownership and Management