Question 1

An enduring power of attorney:

Accepted Answer

A) is implied rather than express. 
B) is, strictly speaking, not a form of agency. 
C) continues even if the principal loses intellectual capacity. 
D) is no longer permitted under current law. 
A) is implied rather than express. 
B) is, strictly speaking, not a form of agency. 
C) continues even if the principal loses intellectual capacity. 
D) is no longer permitted under current law. C

Question 2

To ratify an act is to:

Accepted Answer

A) approve or authorise the act retrospectively 
B) denounce the act in strong terms. 
C) authorise the act in advance either verbally, in writing, or by course of dealings. 
D) give express or actual authority for the performance of the act prospectively. 
A) approve or authorise the act retrospectively 
B) denounce the act in strong terms. 
C) authorise the act in advance either verbally, in writing, or by course of dealings. 
D) give express or actual authority for the performance of the act prospectively. A

Question 3

The agent's duty of confidentiality is a duty that prevents the agent from:

Accepted Answer

A) ever disclosing to others information about the affairs of the principal or using for their own benefit information about the principal. 
B) disclosing damaging information about the affairs of the principal. 
C) ever using information about the principal for their own benefit. 
D) disclosing to others or using for their own benefit information about the principal's affairs without the principal's permission during the course of the agency. 
A) ever disclosing to others information about the affairs of the principal or using for their own benefit information about the principal. 
B) disclosing damaging information about the affairs of the principal. 
C) ever using information about the principal for their own benefit. 
D) disclosing to others or using for their own benefit information about the principal's affairs without the principal's permission during the course of the agency. D

Question 4

The receipt of a secret commission by an agent is:

Accepted Answer

A) legal. 
B) normal. 
C) equitable. 
D) criminal. 
A) legal. 
B) normal. 
C) equitable. 
D) criminal.

Question 5

Which of the following statements is not true of an enduring power of attorney?

Accepted Answer

A) It is sometimes called a living will. 
B) It generally takes effect when and if the principal loses intellectual capacity. 
C) It generally lapses when and if the principal loses intellectual capacity. 
D) Like a general power of attorney it is a written grant of express actual authority. 
A) It is sometimes called a living will. 
B) It generally takes effect when and if the principal loses intellectual capacity. 
C) It generally lapses when and if the principal loses intellectual capacity. 
D) Like a general power of attorney it is a written grant of express actual authority.

Question 6

Which of the following is the least accurate.A mercantile agent is:

Accepted Answer

A) a person appointed to sell property on behalf of a client. 
B) a factor who sells the principal's property in his own name. 
C) a broker. 
D) a factor who sells the principal's property in the client's name. 
A) a person appointed to sell property on behalf of a client. 
B) a factor who sells the principal's property in his own name. 
C) a broker. 
D) a factor who sells the principal's property in the client's name.

Question 7

The relationship between a principal and agent is:

Accepted Answer

A) fiduciary. 
B) non-contractual. 
C) platonic. 
D) equal. 
A) fiduciary. 
B) non-contractual. 
C) platonic. 
D) equal.

Question 8

Which of the following circumstances is not an exception to the rule that an agent is not personally liable for liabilities incurred on behalf of the principal?

Accepted Answer

A) Where the doctrine of the undisclosed principle applies. 
B) Where custom or usage establishes that the agent will be personally liable. 
C) Where a tort has been committed by the agent. 
D) Where there has been a breach of warranty of authority. 
A) Where the doctrine of the undisclosed principle applies. 
B) Where custom or usage establishes that the agent will be personally liable. 
C) Where a tort has been committed by the agent. 
D) Where there has been a breach of warranty of authority.

Question 9

Generally speaking, agents are entitled to be indemnified by the principal:

Accepted Answer

A) for payments, expenses and liabilities specifically agreed upon either verbally or in writing. 
B) for payments, expenses and liabilities contemplated by both parties at the time of entry into the agency agreement. 
C) for all payments, expenses and liabilities covered by the terms of their agreement. 
D) for all payments, expenses and liabilities incurred by the agent as a necessary result of carrying out the principal's instructions. 
A) for payments, expenses and liabilities specifically agreed upon either verbally or in writing. 
B) for payments, expenses and liabilities contemplated by both parties at the time of entry into the agency agreement. 
C) for all payments, expenses and liabilities covered by the terms of their agreement. 
D) for all payments, expenses and liabilities incurred by the agent as a necessary result of carrying out the principal's instructions.

Question 10

Solicitors are:

Accepted Answer

A) commonly but not necessarily agents of their clients. 
B) always agents of their clients. 
C) never agents of their clients. 
D) universal agents of their clients. 
A) commonly but not necessarily agents of their clients. 
B) always agents of their clients. 
C) never agents of their clients. 
D) universal agents of their clients.

Question 11

A real estate agent who learns that a property comparable to their client's property, in the same street, sold for a price well above that for which their client's property is listed on the market should:

Accepted Answer

A) pass this information on to their client. 
B) suggest to their client that the asking price be increased. 
C) advise their client not to sell their property. 
D) disregard the information. 
A) pass this information on to their client. 
B) suggest to their client that the asking price be increased. 
C) advise their client not to sell their property. 
D) disregard the information.

Question 12

T makes a written offer to A to lease certain property to P, which A accepts on behalf of P.A did not have actual authority to accept the offer on behalf of P.T withdraws the offer.P then ratifies the A's acceptance.Does T have an agreement with P?

Accepted Answer

A) Yes.The ratification will operate retrospectively. 
B) No.Ratification does not operate retrospectively. 
C) Yes.At the time of acceptance A had actual authority. 
D) No.At the time of acceptance A did not have implied authority. 
A) Yes.The ratification will operate retrospectively. 
B) No.Ratification does not operate retrospectively. 
C) Yes.At the time of acceptance A had actual authority. 
D) No.At the time of acceptance A did not have implied authority.

Question 13

Which of the following statements is false?

Accepted Answer

A) An insurance broker is an independent intermediary between an insurance company and the insured. 
B) An insurance broker usually acts for the insured. 
C) An insurance agent is engaged by and represents the insurance company. 
D) An insurance agent is engaged by and represents the insured person. 
A) An insurance broker is an independent intermediary between an insurance company and the insured. 
B) An insurance broker usually acts for the insured. 
C) An insurance agent is engaged by and represents the insurance company. 
D) An insurance agent is engaged by and represents the insured person.

Question 14

An agent may have apparent authority to act on behalf of the principal:

Accepted Answer

A) even in the absence of actual authority. 
B) even if the third party did not know they were an agent. 
C) even in the absence of a 'holding out' by the principal. 
D) even if the third party knew the agent had no authority. 
A) even in the absence of actual authority. 
B) even if the third party did not know they were an agent. 
C) even in the absence of a 'holding out' by the principal. 
D) even if the third party knew the agent had no authority.

Question 15

The test for determining whether or not a gratuitous agent has breached their duty of care to the principal is:

Accepted Answer

A) a subjective test which entails consideration of what the agent thought was reasonable action in the circumstances. 
B) a subjective test which entails consideration of the degree of care a professional of reasonable skill and competence would exercise. 
C) an objective test which entails consideration of the degree of care that the agent ordinarily uses in attending to their own affairs. 
D) an objective test which entails consideration of the degree of care a reasonable person would exercise. 
A) a subjective test which entails consideration of what the agent thought was reasonable action in the circumstances. 
B) a subjective test which entails consideration of the degree of care a professional of reasonable skill and competence would exercise. 
C) an objective test which entails consideration of the degree of care that the agent ordinarily uses in attending to their own affairs. 
D) an objective test which entails consideration of the degree of care a reasonable person would exercise.

Question 16

Authority by ratification exists if the principal:

Accepted Answer

A) authorises the agent's act retrospectively. 
B) denounces the agent's act. 
C) authorises the agent's act in advance. 
D) authorises the agent's act in writing. 
A) authorises the agent's act retrospectively. 
B) denounces the agent's act. 
C) authorises the agent's act in advance. 
D) authorises the agent's act in writing.

Question 17

If an agent is appointed to engage in illegal acts on behalf of the principal:

Accepted Answer

A) the agent's appointment can be terminated by principal or agent without notice. 
B) the agent's appointment is automatically terminated. 
C) any contract negotiated by the agent on behalf of the principal, while enforceable in a civil court, will attract criminal penalties. 
D) the third party will not be bound to honour the contract with the principal but the agent's appointment will be valid. 
A) the agent's appointment can be terminated by principal or agent without notice. 
B) the agent's appointment is automatically terminated. 
C) any contract negotiated by the agent on behalf of the principal, while enforceable in a civil court, will attract criminal penalties. 
D) the third party will not be bound to honour the contract with the principal but the agent's appointment will be valid.

Question 18

The nature and extent of the implied authority of a company director to act on behalf of the company:

Accepted Answer

A) Is usually expressly granted by the board of directors as a whole. 
B) Is not affected by the position of the director on the board. 
C) Tends to decrease with the seniority of the director's position. 
D) Tends to increase with the seniority of the director's position. 
A) Is usually expressly granted by the board of directors as a whole. 
B) Is not affected by the position of the director on the board. 
C) Tends to decrease with the seniority of the director's position. 
D) Tends to increase with the seniority of the director's position.

Question 19

If a third party learns that an agent was acting for an undisclosed principal, the third party has the right to:

Accepted Answer

A) enforce the contract against the principal and the agent jointly. 
B) enforce the contract against the principal only. 
C) enforce the contract against the agent only. 
D) enforce the contract against either the principal or the agent but not both. 
A) enforce the contract against the principal and the agent jointly. 
B) enforce the contract against the principal only. 
C) enforce the contract against the agent only. 
D) enforce the contract against either the principal or the agent but not both.

Question 20

If an agent appointed under a power of attorney acts on behalf of a principal after the principal dies but before the agent has been informed of the death, power of attorney legislation in each state provides that:

Accepted Answer

A) the agent's act will not bind the principal's estate and any contracts entered into by the agent on the principal's behalf are void. 
B) the agent will be personally liable for any contracts entered into. 
C) the agent's actions will bind the estate of the principal. 
D) any contracts entered into on behalf of the principal by the agent are voidable and may be terminated at the discretion of the executors of the principal's estate. 
A) the agent's act will not bind the principal's estate and any contracts entered into by the agent on the principal's behalf are void. 
B) the agent will be personally liable for any contracts entered into. 
C) the agent's actions will bind the estate of the principal. 
D) any contracts entered into on behalf of the principal by the agent are voidable and may be terminated at the discretion of the executors of the principal's estate.

An enduring power of attorney:

To ratify an act is to:

The agent's duty of confidentiality is a duty that prevents the agent from:

The receipt of a secret commission by an agent is:

Which of the following statements is not true of an enduring power of attorney?

Which of the following is the least accurate.A mercantile agent is:

The relationship between a principal and agent is:

Which of the following circumstances is not an exception to the rule that an agent is not personally liable for liabilities incurred on behalf of the principal?

Generally speaking, agents are entitled to be indemnified by the principal:

Solicitors are:

A real estate agent who learns that a property comparable to their client's property, in the same street, sold for a price well above that for which their client's property is listed on the market should:

T makes a written offer to A to lease certain property to P, which A accepts on behalf of P.A did not have actual authority to accept the offer on behalf of P.T withdraws the offer.P then ratifies the A's acceptance.Does T have an agreement with P?

Which of the following statements is false?

An agent may have apparent authority to act on behalf of the principal:

The test for determining whether or not a gratuitous agent has breached their duty of care to the principal is:

Authority by ratification exists if the principal:

If an agent is appointed to engage in illegal acts on behalf of the principal:

The nature and extent of the implied authority of a company director to act on behalf of the company:

If a third party learns that an agent was acting for an undisclosed principal, the third party has the right to:

If an agent appointed under a power of attorney acts on behalf of a principal after the principal dies but before the agent has been informed of the death, power of attorney legislation in each state provides that:

Business and the Law

The Australian Legal System

Politicians and Judges

How to Find, Understand and Use the Law

Deliberately Causing Harm

Carelessly Causing Harm

Contract Law: Formation of the Contract

Contract Law: Terms of the Contract

Contract Law: Enforcement of the Contract

Dealing With Consumers

Dealing With Competitors

Protecting Ip

Managing a Business: Start-Up

Managing a Business: Business Ownership

Managing a Business: Companies and Corporate Governance

Managing a Business: Making Payments and Recovering Debts

Managing a Business: Insurance and Taxes

Managing a Business: Employing Workers

Managing a Business: Closing Down

Filters

Exam 10: Contract Law: Working With Agents

An enduring power of attorney:

To ratify an act is to:

The agent's duty of confidentiality is a duty that prevents the agent from:

The receipt of a secret commission by an agent is:

Which of the following statements is not true of an enduring power of attorney?

Which of the following is the least accurate.A mercantile agent is:

The relationship between a principal and agent is:

Which of the following circumstances is not an exception to the rule that an agent is not personally liable for liabilities incurred on behalf of the principal?

Generally speaking, agents are entitled to be indemnified by the principal:

Solicitors are:

A real estate agent who learns that a property comparable to their client's property, in the same street, sold for a price well above that for which their client's property is listed on the market should:

T makes a written offer to A to lease certain property to P, which A accepts on behalf of P.A did not have actual authority to accept the offer on behalf of P.T withdraws the offer.P then ratifies the A's acceptance.Does T have an agreement with P?

Which of the following statements is false?

An agent may have apparent authority to act on behalf of the principal:

The test for determining whether or not a gratuitous agent has breached their duty of care to the principal is:

Authority by ratification exists if the principal:

If an agent is appointed to engage in illegal acts on behalf of the principal:

The nature and extent of the implied authority of a company director to act on behalf of the company:

If a third party learns that an agent was acting for an undisclosed principal, the third party has the right to:

If an agent appointed under a power of attorney acts on behalf of a principal after the principal dies but before the agent has been informed of the death, power of attorney legislation in each state provides that:

Business and the Law

The Australian Legal System

Politicians and Judges

How to Find, Understand and Use the Law

Deliberately Causing Harm

Carelessly Causing Harm

Contract Law: Formation of the Contract

Contract Law: Terms of the Contract

Contract Law: Enforcement of the Contract

Dealing With Consumers

Dealing With Competitors

Protecting Ip

Managing a Business: Start-Up

Managing a Business: Business Ownership

Managing a Business: Companies and Corporate Governance

Managing a Business: Making Payments and Recovering Debts

Managing a Business: Insurance and Taxes

Managing a Business: Employing Workers

Managing a Business: Closing Down

Filters