Exam 25: Agency law

Frank Hannigan sees a grand piano that his musician friend,Scott Kristoff,had been looking for,in an antique store.Frank enters into a contract to purchase the grand piano from the antique seller and signs the contract,"Frank Hannigan,agent for Scott Kristoff." But because Frank is not Scott's agent,Scott is not bound by the contract.If Scott decides to accept the contract,what kind of agency would be created?

An agent who does not perform his or her express duties or fails to use the standard degree of care,skill,or diligence is liable to the principal for damages.

Marcus employs a real estate broker,Dean,to sell his house.Dean's express powers are to advertise and market the house for sale,show the house to prospective buyers,and accept offers from persons who want to purchase the house.He is not allowed to seal a deal without Marcus' consent.Marcus goes away on a month-long trip where he cannot be contacted.During this time,a short circuit in the house causes a power outage.Dean uses his authority to hire an electrician to repair the circuits and restore electricity in the house.Marcus then comes back and pays Dean for the electricity repair.What is the nature of the agency that Dean used to fix the electricity problem in the house?

A(n)________ is a contract a principal and agent enter into that says the principal cannot employ another agent other than the one stated.

The extent of the agent's authority under an implied agency is determined from the facts and circumstances of the particular situation.

In the event of an agency by ratification,an agent is liable for any misrepresentation.

A critical factor in determining independent contractor status is the amount of time that the agent works for the principal.

________ 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.

Marlon intends to sell a piece of real estate he owns and contracts Nita,a real estate broker,to make the sale.In the contract,Marlon authorizes Nita to make the sale at or above a minimum price he wants and the date by which he wants the sale to be completed.The contract also stipulates that Marlon should not hire another broker to sell that piece of land until the expiry of the contract period.Nita finds a suitable buyer,makes the sale in time,and is paid by Marlon for her services.Which of the following types of agency had Marlon and Nita entered into?

The agency of power of attorney is an example of an ________ agreement.

________ refers to an agent's duty to meet the standards of reasonable care,skill,and diligence implicit in all contracts.

Which of the following statements is true about a durable power of attorney?

The legal rule of imputed knowledge means that the principal is assumed to know what the agent knows.

If an agency is an exclusive agency,the principal can employ more than one agent to try to accomplish a stated purpose.

________ says that a principal is generally not liable for injuries caused by its agents and employees while they are on their way to or from work.

Ryan,an owner of a farm employs Jason,a real estate agent,to sell the farm for $2 million.The agent thereafter learns that oil has been discovered on the property,which increases the property's worth to $7 million.The agency relationship would be ________.

Martin,who wants to sell a house he owns,authorizes his concierge,Wilhelm,to find a potential buyer,and finalize a deal above a stipulated price.Wilhelm contracts Chris,a real estate broker,and intends him to only find a potential buyer and send them over to Wilhelm for the sale.Martin then contracts ReNowait Goodhouses,a home improvement company to renovate the house.ReNowait completes their work and Martin pays them.Chris then searches for a suitable buyer and finds one in George.George buys the house and Chris is paid for his services.Who among the following perform the role of the principal during the land sale transaction?

A principal is not liable under the doctrine of vicarious liability for intentional torts of agents and employees committed within the agent's scope of employment.

The outbreak of a war between the principal's country and the agent's country would lead to a ________.

Which of the following statements best describes imputed knowledge?