Exam 19: Relationship of Principal and Agent

Robert advances money to John so that John can purchase inventory for his business.In return and for security on the loan,John makes Robert his agent.If John:

The duty of obedience owed by an agent to a principal is not breached and will not result in liability to the principal if the agent refused to do an illegal or unethical act for the principal.

An agency agreement does not have to always be in writing.

Which of the following would NOT be considered an agent?

Trudy would breach the duty to inform if she failed to tell her principal:

Identify at least six factors a court will consider in determining whether a person acting for another is an employee or an independent contractor.

Which of the following may terminate an agency agreement by operation of law?

Mark hires Joe's real estate agency to sell his estate,telling Joe he has lost too much money playing the stock market to afford to keep it up.Then Mark wins the three million-dollar lottery! Joe reads this in the newspaper and that afternoon makes a contract with Sharon to sell the estate.Is the contract valid?

Carl loans Dan $1,500 for Dan's honeymoon.Dan gives Carl his ruby ring as security for the loan and after a year,tells Carl he may as well sell it to recoup the $1,500.When Dan's wife hears of this,she persuades Dan to call Carl and get back the ring.Can Carl sell it anyway?

In some states,the authority of an agent to sell land must be in writing and signed by the principal.

When is an agency relationship irrevocable?

An agency will terminate on the occurrence of all but which one of the following?

The maxim "Qui facit per alium,facit per se" accurately describes the relationship between an independent contractor and the one who hired him or her.

Carolyn,a cashier at Tops Supermarkets,may cash checks for up to $20 over a purchase amount.A friend needs money for a dress,so Carolyn cashes a check for $50 with no purchase.If the check bounces,Carolyn is:

Which of the following is correct with regard to the capacity of an agent?

The operation of agency involves at least three persons.

All employees are agents,but not all agents are employees.

A plumber hired to redo the plumbing in a building is an independent contractor and agent of the owner of the building.

Which of the following is not a factor used to determine whether an agent is an employee or an independent contractor?

Which of the following is NOT a major duty which the agent owes to his principal?