Question 1

Because the authority given to an agent by a principal is strictly personal, the agent's death terminates the agency.

Accepted Answer

A) True 
 B)False

Question 2

Whether a person is an employee or an independent contractor makes a difference in whether the principal has obligations under certain federal and state statutes.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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 5

Which of the following would NOT be considered an agent?

Accepted Answer

A) A salesman who sells his employer's goods 
B) An independent contractor without authority to act on behalf of the person hiring her 
C) A factory worker hired to operate a machine 
D) A buyer who regularly buys merchandise for a store 
A) A salesman who sells his employer's goods 
B) An independent contractor without authority to act on behalf of the person hiring her 
C) A factory worker hired to operate a machine 
D) A buyer who regularly buys merchandise for a store

Question 6

A gratuitous agent:

Accepted Answer

A) is a paid agent. 
B) is subject to the same duty of loyalty as other agents. 
C) has no duty of diligence. 
D) need not be reimbursed for her expenses. 
A) is a paid agent. 
B) is subject to the same duty of loyalty as other agents. 
C) has no duty of diligence. 
D) need not be reimbursed for her expenses.

Question 7

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.

Accepted Answer

A) True 
 B)False

Question 8

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 9

An agent has breached his fiduciary duty to the principal in which of the following situations?

Accepted Answer

A) Where the agent competes with the principal 
B) Where the agent makes a secret profit 
C) Where the agent uses confidential information obtained in the course of the agency for his own benefit 
D) All of these. 
A) Where the agent competes with the principal 
B) Where the agent makes a secret profit 
C) Where the agent uses confidential information obtained in the course of the agency for his own benefit 
D) All of these.

Question 10

An agent, acting within the scope of authority granted by the principal, may bind the principal to contracts, but may not negotiate terms of the contracts.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) Duty to obey instructions. 
B) Duty to act in good faith and with loyalty. 
C) Duty to indemnify. 
D) Duty to exercise care. 
A) Duty to obey instructions. 
B) Duty to act in good faith and with loyalty. 
C) Duty to indemnify. 
D) Duty to exercise care.

Exam 19: Relationship of Principal and Agent

Because the authority given to an agent by a principal is strictly personal, the agent's death terminates the agency.

Whether a person is an employee or an independent contractor makes a difference in whether the principal has obligations under certain federal and state statutes.

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

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 would NOT be considered an agent?

A gratuitous agent:

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.

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

An agent has breached his fiduciary duty to the principal in which of the following situations?

An agent, acting within the scope of authority granted by the principal, may bind the principal to contracts, but may not negotiate terms of the contracts.

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

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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