Question 1

The distinction between employee and independent contractor is irrelevant.

Accepted Answer

A) True 
 B)False  False

Question 2

Which of the following is not a breach of an agent's duty of obedience?

Accepted Answer

A)  Entering into an unauthorized contract for which his or her principal is liable. 
B)  Refusing to follow the principal/employer's instruction to misrepresent the quality of a competitor's goods to a potential customer. 
C)  Improperly delegating her authority. 
D)  Committing a tort for which the principal is liable. 
A)  Entering into an unauthorized contract for which his or her principal is liable. 
B)  Refusing to follow the principal/employer's instruction to misrepresent the quality of a competitor's goods to a potential customer. 
C)  Improperly delegating her authority. 
D)  Committing a tort for which the principal is liable. B

Question 3

Mary employs Tony to purchase for her a suitable site for an office complex. Tony owns a suitable site himself and sells it to Mary for the fair market value without disclosing to her that he is the owner of the land. Tony has fulfilled his duties to Mary, because he sold the property for the fair market value, even if he failed to disclose his ownership of the property.

Accepted Answer

A) True 
 B)False  False

Question 4

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

Accepted Answer

The answer of A(n)
B) indemnification
C) power of attorney
D) qui facit...

Question 5

Since the capacity to be a principal depends upon the capacity of the principal to do the act himself, a person cannot appoint an agent to act for him in the case that he subsequently loses mental capacity.

Accepted Answer

A) True 
 B)False

Question 6

A person who engages an independent contractor may control the method and manner used by the contractor to perform the job.

Accepted Answer

A) True 
 B)False

Question 7

A principal owes to any agent the same duties under tort law that the principal owes to all parties.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A)  The incapacity of the agent disqualifies him from making a contract that is binding on his principal. 
B)  Business associations do not have the capacity to act as agents. 
C)  If an incompetent person who is not under guardianship appoints an agent, contracts made by that agent are voidable. 
D)  Electronic agents, although not persons, are considered agents. 
A)  The incapacity of the agent disqualifies him from making a contract that is binding on his principal. 
B)  Business associations do not have the capacity to act as agents. 
C)  If an incompetent person who is not under guardianship appoints an agent, contracts made by that agent are voidable. 
D)  Electronic agents, although not persons, are considered agents.

Question 9

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 10

The appointment of an agent by a minor or an incompetent not under a guardianship and any resulting contracts are not voidable regardless of the agent's contractual capacity.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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 13

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 14

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

Accepted Answer

Courts will consider: (a) the extent of

Question 15

The principal has a duty to indemnify the agent for losses incurred or suffered while acting as directed by the principal in a transaction which is not illegal or wrongful.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Jones, an agent of Rossi, is authorized to sell Rossi's ownership of wheat on the commodities market on Monday. On Monday, however, the market opens with the lowest prices for wheat in two decades. Jones must go ahead and sell Rossi's wheat on Monday.

Accepted Answer

A) True 
 B)False

Question 19

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 20

An agent may be liable to his principal if he improperly delegates his authority.

Accepted Answer

A) True 
 B)False

Exam 19: Relationship of Principal and Agent

The distinction between employee and independent contractor is irrelevant.

Which of the following is not a breach of an agent's duty of obedience?

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

Since the capacity to be a principal depends upon the capacity of the principal to do the act himself, a person cannot appoint an agent to act for him in the case that he subsequently loses mental capacity.

A person who engages an independent contractor may control the method and manner used by the contractor to perform the job.

A principal owes to any agent the same duties under tort law that the principal owes to all parties.

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

The appointment of an agent by a minor or an incompetent not under a guardianship and any resulting contracts are not voidable regardless of the agent's contractual capacity.

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

An agency:

The Electronic Signatures in Global and National Commerce Act:

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

The principal has a duty to indemnify the agent for losses incurred or suffered while acting as directed by the principal in a transaction which is not illegal or wrongful.

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

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

Jones, an agent of Rossi, is authorized to sell Rossi's ownership of wheat on the commodities market on Monday. On Monday, however, the market opens with the lowest prices for wheat in two decades. Jones must go ahead and sell Rossi's wheat on Monday.

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.

An agent may be liable to his principal if he improperly delegates his authority.

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

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

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

the Legal Environment of Business

Contracts

Agency

Sales

Negotiable Instruments

Unincorporated Business Associations

Corporations

Debtor and Creditor Relations

Regulation of Business

Property

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