Exam 25: Agency

Ron is the business agent for Kansas Sunshine,a rock band.He is also the agent for another popular Midwestern rock group,City Sand.Ron negotiates a deal with a Kansas City promoter to have City Sand play after a professional football game.The promoter was willing to pay $250,000 for both groups to play after the game;however,Ron talked her into booking just City Sand for $175,000.Given his contract with City Sand,Ron made more money under this arrangement.Has Ron violated his fiduciary duty to Kansas Sunshine?

If a principal accepts the benefits of a whole unauthorized contract,the principal is deemed to have ratified the contract and is bound as if the act had been originally authorized.

Linda borrowed $2,500 from Tonya.They agreed that Tonya could take a grouping of Linda's antiques as collateral.If Linda could not pay,then Tonya could sell the antiques to recover her money.When Linda could not pay off the loan,Tonya sold the antiques and paid Linda the proceeds after deducting the balance of the loan.Which of the following statements is correct?

Chance is a traveling marketing representative for a publishing company.He is an independent contractor.One afternoon while driving to a meeting,he negligently runs a stop sign and causes an accident.Judy is injured.Judy can:

If apparent authority is present,the principal is liable for even the unauthorized acts of the agent.

Which of the following persons is an agent?

A principal is bound by contracts that an agent enters into with authority.Discuss the various types of contractual authority an agent may have.

Factors influencing whether a servant is acting within the scope of employment include all but which of the following?

An agent may not engage in inappropriate behavior that reflects badly on the principal.This rule applies to conduct:

The doctrine of estoppel would most often apply in situations of:

Generally,either party to an agency relationship has the power to terminate it at any time.

Kaiya is a sales representative of TriColor.Kaiya owes a fiduciary duty to TriColor.

As a general rule,an agent is liable on contracts entered into on behalf of a fully disclosed principal.

Erica's supervisor told her to arrange for a conference room at the Kelly Inn.Erica has express authority to contract for the room.

The equal dignities rule relative to agency law applies to an agent:

If Denise is hired to work as a cashier,she has the implied authority to do acts reasonably necessary to carry out her job.

Alex worked for years for MegaCorp.During his employment with MegaCorp,he learned a great deal of confidential information and knew that if this information got into the hands of competitors or the general public,MegaCorp could suffer great business losses.Alex claims that he was wrongfully fired by MegaCorp and accordingly he believes he has no obligation to MegaCorp to keep any information he acquired with them as confidential.MegaCorp claims that Alex is under a continuing duty to keep confidential information secret,even though he is no longer with the company.Who is right? Why?

Pamela hired Lena to sell her business.Lena:

Larry decided to relocate to Germany.Larry hired Happy Homes,Inc.to find a buyer and contract for the sale of his house in the U.S.The agency relationship between Larry and Happy Homes must be evidenced with a written agreement.

A principal must indemnify an agent for any expenses incurred in carrying out agency responsibilities,but the principal will not be responsible for indemnifying an agent for any unauthorized purchases.