Question 1

A principal has a duty to indemnify an agent if the agent gets a speeding ticket while performing the principal's business.

Accepted Answer

A) True 
 B)False

Question 2

An agent working for two principals at the same time violates the duty of

Accepted Answer

A)  obedience. 
B)  loyalty. 
C)  accurate accounting. 
D)  reasonable skill. 
A)  obedience. 
B)  loyalty. 
C)  accurate accounting. 
D)  reasonable skill.

Question 3

A principal-agent contract

Accepted Answer

A)  must be in writing if it involves the sale of real estate. 
B)  must be in writing if the relationship is to last for less than one year. 
C)  never needs to be in writing. 
D)  must always be in writing. 
A)  must be in writing if it involves the sale of real estate. 
B)  must be in writing if the relationship is to last for less than one year. 
C)  never needs to be in writing. 
D)  must always be in writing.

Question 4

An agent who suffers a loss while acting for a principal is entitled to ____________________ from the principal.

Accepted Answer

The answer of An agent who suffers a loss while...

Question 5

The obligation of a principal to pay an agent for expenses incurred by the agent while performing work for the principal is known as

Accepted Answer

A)  repayment. 
B)  indemnification. 
C)  recovery. 
D)  reimbursement. 
A)  repayment. 
B)  indemnification. 
C)  recovery. 
D)  reimbursement.

Question 6

An agency by estoppel is created

Accepted Answer

A)  by a written contract. 
B)  when the principal is a minor. 
C)  when the principal leads others to believe a person is her or his agent. 
D)  for one specific purpose. 
A)  by a written contract. 
B)  when the principal is a minor. 
C)  when the principal leads others to believe a person is her or his agent. 
D)  for one specific purpose.

Question 7

Unless the agency agreement provides otherwise, all profits that result from an agency

Accepted Answer

A)  belong solely to the agent. 
B)  belong solely to the principal. 
C)  are divided equally between the principal and the agent. 
D)  belong to the agent, based on the time spent. 
A)  belong solely to the agent. 
B)  belong solely to the principal. 
C)  are divided equally between the principal and the agent. 
D)  belong to the agent, based on the time spent.

Question 8

A principal-agency relationship may be used for

Accepted Answer

A)  personal purposes. 
B)  business purposes. 
C)  both personal and business purposes. 
D)  employment purposes only. 
A)  personal purposes. 
B)  business purposes. 
C)  both personal and business purposes. 
D)  employment purposes only.

Question 9

An agency that may not be unilaterally revoked by the principal is a(n) ____________________.

Accepted Answer

agency cou

Question 10

A principal-agent relationship may be terminated by

Accepted Answer

A)  mutual agreement. 
B)  operation of law. 
C)  revocation of authority. 
D)  all of these. 
A)  mutual agreement. 
B)  operation of law. 
C)  revocation of authority. 
D)  all of these.

Exam 24: Principal-Agent Relationship

A principal has a duty to indemnify an agent if the agent gets a speeding ticket while performing the principal's business.

An agent working for two principals at the same time violates the duty of

A principal-agent contract

An agent who suffers a loss while acting for a principal is entitled to ____________________ from the principal.

The obligation of a principal to pay an agent for expenses incurred by the agent while performing work for the principal is known as

An agency by estoppel is created

Unless the agency agreement provides otherwise, all profits that result from an agency

A principal-agency relationship may be used for

An agency that may not be unilaterally revoked by the principal is a(n) ____________________.

A principal-agent relationship may be terminated by

Foundations of Law and the Role of Ethics in Business

The Legal System in the United States and Its Constitutional Foundation

Personal, Business, and Cyber Crimes and the American Criminal Justice System

Tort Law: Traditional Torts and Cyber Torts

Litigation and Alternatives for Settling Civil Disputes

Contract Law: a Beginning

Agreement: Offer and Acceptance

Consideration

Capacity

Legality

Memorialize Contracts in Writingstatute of Frauds

Transfer of Contract Rights and Duties

The Termination of Contracts: Discharge

The Termination of Contracts: Breach of Contract

Formation of Sales and Lease Contracts

The Sales Contract: Transfer of Title and Risk of Loss

The Sales Contract: Performance, Breach, and Remedies for Breach

Product Liability Law

Nature and Types of Negotiable Instruments

Issue, Transfer, Indorsement, and Discharge of Negotiable Instruments

Rights and Duties of Parties

Checks and the Banking System in the Twenty-First Century

Employer-Employee Relationship

Principal-Agent, Employer-Employee, and Third-Party Relationships

Sole Proprietorships, Partnerships, and Limited Liability Organizations

Corporations and Franchising

Government Regulation of Business

Basic Legal Concepts of Property

Renting Real Property

Buying and Selling Real Property

Nature and Types of Bailments

Wills, Intestacy, and Estate Planning

Protecting the Consumer and the Taxpayer

Protecting the Borrower

Protecting the Creditor

Property, Casualty and Automobile Insurance

Personal Insurance

Filters