Exam 19: Relationship of Principal and Agent

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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.

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(True/False)

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Question 1

Correct Answer:

Verified

False

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

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(Multiple Choice)

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Question 2

Correct Answer:

Verified

The Electronic Signatures in Global and National Commerce Act:

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(Multiple Choice)

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Question 3

Correct Answer:

Verified

Agents and principals have mutual fiduciary duties to one another.

(True/False)

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Question 4

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?

(Multiple Choice)

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Question 5

A principal may generally revoke the authority of an agent at any time by notifying the agent.

(True/False)

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Question 6

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

(True/False)

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Question 7

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

(True/False)

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Question 8

Which of the following is not an agent of the business?

(Multiple Choice)

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Question 9

All independent contractors are agents, but not all agents are independent contractors.

(True/False)

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Question 10

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?

(Multiple Choice)

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Question 11

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.

(True/False)

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Question 12

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

(True/False)

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Question 13

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.

(True/False)

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Question 14

An agency contract appointing the agent for a period of more than one year does not have to be in writing.

(True/False)

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Question 15

An agent is not required to keep which of the following information confidential?

(Multiple Choice)

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Question 16

Jason may validly authorize Nathan to:

(Multiple Choice)

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Question 17

An agent can never act for two principals.

(True/False)

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Question 18

The distinction between employee and independent contractor is irrelevant.

(True/False)

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Question 19

Contractual duties of a principal to an agent include all but the duty to:

(Multiple Choice)

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Question 20

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Exam 19: Relationship of Principal and Agent

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.

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

The Electronic Signatures in Global and National Commerce Act:

Agents and principals have mutual fiduciary duties to one another.

A principal may generally revoke the authority of an agent at any time by notifying the agent.

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

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

Which of the following is not an agent of the business?

All independent contractors are agents, but not all agents are independent contractors.

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?

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

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.

An agency contract appointing the agent for a period of more than one year does not have to be in writing.

An agent is not required to keep which of the following information confidential?

Jason may validly authorize Nathan to:

An agent can never act for two principals.

The distinction between employee and independent contractor is irrelevant.

Contractual duties of a principal to an agent include all but the duty to:

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

51: The Legal Environment Of Business

52: Contracts.

53: Agency.

54: Sales

55: Negotiable Instruments

56: Unincorporated Business Association

57: Corporations

58: Debtor and Creditor Relation

59: Regulation of Business

60: Property.

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