Question 1

As discussed in the text, which of the following is true regarding electronic contracts and agency authority in Singapore?

Accepted Answer

A)  In Singapore because of the fear of fraud, agents are not allowed to engage in electronic transactions on behalf of principals. 
B)  Singapore relies on a type of law similar to U.S. common law in addressing agency authority in regard to electronic transactions. 
C)  Singapore passed a law providing that a principal must countersign any electronic transaction engaged in by an agent. 
D)  Singapore passed a law providing that each employer must post a list electronically of all its agents with authority to act on its behalf. 
E)  Singapore passed a law by which lack of awareness of a principal for an agent's acts is not recognized as a defense. 
A)  In Singapore because of the fear of fraud, agents are not allowed to engage in electronic transactions on behalf of principals. 
B)  Singapore relies on a type of law similar to U.S. common law in addressing agency authority in regard to electronic transactions. 
C)  Singapore passed a law providing that a principal must countersign any electronic transaction engaged in by an agent. 
D)  Singapore passed a law providing that each employer must post a list electronically of all its agents with authority to act on its behalf. 
E)  Singapore passed a law by which lack of awareness of a principal for an agent's acts is not recognized as a defense.

Question 2

When a principal is classified as a disclosed principal, which of the following is true?

Accepted Answer

A)  The third party is totally unaware that the agent is action for a principal. 
B)  A third party can sue both the principal and the agent for misrepresentation. 
C)  A third party is aware that an agent is making an agreement on behalf of a principal, and the third party also knows the identity of the principal. 
D)  A third party can choose to contract only with the agent instead of the principal. 
E)  A third party must consult with the principal before agreeing to be bound in any contract. 
A)  The third party is totally unaware that the agent is action for a principal. 
B)  A third party can sue both the principal and the agent for misrepresentation. 
C)  A third party is aware that an agent is making an agreement on behalf of a principal, and the third party also knows the identity of the principal. 
D)  A third party can choose to contract only with the agent instead of the principal. 
E)  A third party must consult with the principal before agreeing to be bound in any contract.

Question 3

In Doe v. Uber Technologies, Inc. the case in the text in which two victims sued Uber Technologies alleging separate sexual assaults on rides they received from Uber drivers and whether or not those drivers were employees or independent contractors. The court held that:

Accepted Answer

A)  That Uber drivers are independent contractors who do not hold the same status as an employee for purposes of vicarious liability. 
B)  That the assault occurred outside the scope of employment so that Uber was allowed to dismiss the case. 
C)  That although the assault did not occur within the scope of the driver's employment, Uber was vicariously liable for the act because the assault was criminal nature. 
D)  That even though the Uber drivers are considered independent contractors, Uber can still be vicariously liable because Uber knew of the criminal act but did nothing. 
E)  For the purpose of surviving a motion to dismiss, plaintiffs had plausibly alleged that the Uber drivers were acting within the scope of employment when they assaulted plaintiffs. 
A)  That Uber drivers are independent contractors who do not hold the same status as an employee for purposes of vicarious liability. 
B)  That the assault occurred outside the scope of employment so that Uber was allowed to dismiss the case. 
C)  That although the assault did not occur within the scope of the driver's employment, Uber was vicariously liable for the act because the assault was criminal nature. 
D)  That even though the Uber drivers are considered independent contractors, Uber can still be vicariously liable because Uber knew of the criminal act but did nothing. 
E)  For the purpose of surviving a motion to dismiss, plaintiffs had plausibly alleged that the Uber drivers were acting within the scope of employment when they assaulted plaintiffs.

Question 4

According to the text, which of the following is not a factor considered by courts in determining whether an act committed by an employee occurred within the course and scope of employment?

Accepted Answer

A)  Whether the employer authorized the employee's act. 
B)  Whether the employer provided the tools by which the act occurred. 
C)  Whether the employer knew that the act would involve the commission of a serious crime. 
D)  Whether the employee had worked for the employer for a substantial amount of time. 
E)  Whether the employee used force not expected by the employer. 
A)  Whether the employer authorized the employee's act. 
B)  Whether the employer provided the tools by which the act occurred. 
C)  Whether the employer knew that the act would involve the commission of a serious crime. 
D)  Whether the employee had worked for the employer for a substantial amount of time. 
E)  Whether the employee used force not expected by the employer.

Question 5

Agents who go beyond their authority when the principal is disclosed or partially disclosed are liable to third parties for breach of contract, not breach of implied warranty.

Accepted Answer

A) True 
 B)False

Question 6

[Textbook Confusion] Jason needs a business law book. He hears that Gwen has one for sale. Jason asks his girlfriend Sakura to buy it for him from Gwen if Sakura can get it for under $40. Sakura sees Gwen in the hall and asks if she will sell the book for $30, and Gwen agrees. They are between classes, and Sakura does not mention that the book is for Jason, although all the parties were on good terms, and the identity of the buyer should not have affected Sakura's agreement. Later, however, Rima agrees to give Jason her used business law book. Jason tells Sakura that he no longer wants the book. Sakura tells Gwen about the situation with Jason. Gwen replies that she does not care if Jason wants the book or not. Gwen says that she passed up a couple of opportunities to sell the book because she thought she already had it sold and that she wants her money from either Gwen or Jason - she doesn't care who pays.
-Which of the following is true regarding whether Jason is liable to Sakura for the cost of the book if Sakura pays Gwen the purchase price?

Accepted Answer

A)  Jason is liable to Sakura for the cost of the book. 
B)  Jason is liable to Sakura for the cost of the book only if Sakura had Jason sign a document affirming his liability before Sakura paid Gwen. 
C)  Jason is liable to Sakura only if she resells the book and is unable to recover as much as she paid for it. 
D)  Jason is not liable to Sakura for the cost of the book. 
E)  Jason can avoid liability to Sakura only if he can establish that his actions constituted "justifiable expectations" under the law absolving him from liability. 
A)  Jason is liable to Sakura for the cost of the book. 
B)  Jason is liable to Sakura for the cost of the book only if Sakura had Jason sign a document affirming his liability before Sakura paid Gwen. 
C)  Jason is liable to Sakura only if she resells the book and is unable to recover as much as she paid for it. 
D)  Jason is not liable to Sakura for the cost of the book. 
E)  Jason can avoid liability to Sakura only if he can establish that his actions constituted "justifiable expectations" under the law absolving him from liability.

Question 7

If a principal notifies a third party that an agency relationship has ended, at what point does that authority end?

Accepted Answer

A)  It ends immediately 
B)  24 hours 
C)  48 hours 
D)  7 days 
E)  10 days 
A)  It ends immediately 
B)  24 hours 
C)  48 hours 
D)  7 days 
E)  10 days

Question 8

[Furniture Store Woes] Connor was hired by Jun to deliver furniture purchased from Jun's furniture store, Good Furniture. Jun had authorized Connor to drive the delivery truck home from work, but Connor was not authorized to use the truck for any personal errands. Connor decided to help his friend Adriana move, believing that Jun would never find out. Unfortunately, while moving Adriana's furniture to her new home, Connor was speeding and hit Tomás's vehicle in the rear, causing whiplash to Tomás. Tomás is threatening to sue both Jun and Connor. Then, on his way to work in the same truck the next day, Connor again bumped a car, driven by Gina, who is also threatening to sue both Connor and Jun. Jun also has another problem involving Hae, his niece, an aspiring interior designer who Jun hired to provide design services to customers. Both Hae and Jun were aware that customers would likely have no interest in the services of Hae if they knew she had no experience and no training in design. Therefore, they inflated her accomplishments to customers, telling them that she had both training and experience. In reliance on those claims, Beth agreed to have Hae do the interior design work for her new business building while Beth was out of town on an extended business trip. Unfortunately, Hae did a terrible job. Beth was outraged when she returned. She found out from Destiny, a disgruntled employee of Jun, that Hae actually had no training or experience in interior design. Beth wants to sue both Hae and jun.
-Which of the following is true regarding Jun's liability to Tomás?

Accepted Answer

A)  Jun will likely be held liable for Tomás's injuries because while Connor was acting outside the scope of his duties at the time of the accident, he had not substantially departed from the course of his employer's business. 
B)  Jun will likely be held liable for Tomás's injuries because Connor was driving Jun's truck at the time of the accident. 
C)  Jun will likely be held liable for Tomás's injuries because Jun allowed Connor to take the truck home regardless of Jun's instructions regarding the use of the truck. 
D)  It is unlikely that Jun will be held liable for Tomás's injuries because Connor had substantially departed from the course of his employer's business. 
E)  It is unlikely that Jun will be held liable for Tomás's injuries unless it can be proven that Connor had no insurance and lacks the ability to pay. 
A)  Jun will likely be held liable for Tomás's injuries because while Connor was acting outside the scope of his duties at the time of the accident, he had not substantially departed from the course of his employer's business. 
B)  Jun will likely be held liable for Tomás's injuries because Connor was driving Jun's truck at the time of the accident. 
C)  Jun will likely be held liable for Tomás's injuries because Jun allowed Connor to take the truck home regardless of Jun's instructions regarding the use of the truck. 
D)  It is unlikely that Jun will be held liable for Tomás's injuries because Connor had substantially departed from the course of his employer's business. 
E)  It is unlikely that Jun will be held liable for Tomás's injuries unless it can be proven that Connor had no insurance and lacks the ability to pay.

Question 9

________ deals with the concept of the principal/employer-agent/employee relationship in relation to liability of the principal/employer for acts of the agent/employee.

Accepted Answer

A)  Respondeat Superior 
B)  Superior Respondeat 
C)  Stare decisis 
D)  Res judicata 
E)  In Pari Delicto 
A)  Respondeat Superior 
B)  Superior Respondeat 
C)  Stare decisis 
D)  Res judicata 
E)  In Pari Delicto

Question 10

List the options of an injured third party when a principal is found liable for a misrepresentation made by an agent.

Accepted Answer

The third party has the follow

Question 11

[Beach Home] Wendy hires Rob to find and negotiate a price for her perfect vacation home. Rob previously helped Wendy find a home and Wendy was very satisfied with his service. Wendy had many demands for her dream vacation home and told Rob that each demand was nonnegotiable. Wendy desired her home to have five bedrooms, seven bathrooms, a large master suite with a balcony, a pool house, and she wanted the property to be within a block of the beach. Rob informed Wendy this was a high demand and he was not confident he could find a property that met all of Wendy's requirements within her price range. Wendy thought Rob was underestimating himself and told him that she was not willing to budge. Rob finds a home that meets all of her requirements, except it is five blocks from the beach. Rob informed the seller he was working on behalf of a principal and the property met all of her requirements. Rob negotiates an outstanding price and is excited to share it with Wendy. Rob tells Wendy about the stellar price and Wendy is devastated that the property is not in her defined location. She immediately calls the seller to rescind the offer but the seller declines, stating the offer is binding because as the seller knew, Rob had authority to contract and the seller was not aware of Wendy's requirements.
-If Wendy refuses to compensate Rob for his services rendered, what would be the result it Rob sued Wendy for unpaid wages?

Accepted Answer

A)  Wendy would prevail because she did not authorize Rob to extend an offer. 
B)  Wendy would prevail because Rob exceeded his authority in the transaction. 
C)  Wendy would prevail because Rob should sue the seller, not Wendy. 
D)  Rob would prevail because Wendy owed him money for services rendered. 
E)  Rob would prevail because he negotiated a vacation home for Wendy that met most of her requirements. 
A)  Wendy would prevail because she did not authorize Rob to extend an offer. 
B)  Wendy would prevail because Rob exceeded his authority in the transaction. 
C)  Wendy would prevail because Rob should sue the seller, not Wendy. 
D)  Rob would prevail because Wendy owed him money for services rendered. 
E)  Rob would prevail because he negotiated a vacation home for Wendy that met most of her requirements.

Question 12

Under the UCC, if an agent enters into a contract that is an negotiable instrument, the principal cannot be held liable unless the principal's name is on the instrument or the agent's signature indicates that it was made in ________.

Accepted Answer

A)  a representative capacity. 
B)  the presence of a notary. 
C)  the presence of the disclosed or undisclosed principal. 
D)  a bank or an institution that would accept the negotiable instrument. 
E)  connection with an auxiliary promise to the contract. 
A)  a representative capacity. 
B)  the presence of a notary. 
C)  the presence of the disclosed or undisclosed principal. 
D)  a bank or an institution that would accept the negotiable instrument. 
E)  connection with an auxiliary promise to the contract.

Question 13

What are the two conditions under which the law holds a principal directly responsible for his or her own tortious conduct?

Accepted Answer

First, a principal who directs the agent

Question 14

Which of the following is not a way an agency relationship will terminate by operation of law?

Accepted Answer

A)  Death 
B)  Bankruptcy 
C)  Impossibility 
D)  Lapse of time 
E)  War 
A)  Death 
B)  Bankruptcy 
C)  Impossibility 
D)  Lapse of time 
E)  War

Question 15

Which of the following represented the position of the Supreme Court of Tennessee in the Case Opener in which the plaintiff attempted to hold a hospital vicariously liable for her injuries?

Accepted Answer

A)  That a defendant in the position of the hospital is vicariously liable for injuries received within its premises without a need for further proof. 
B)  That because the plaintiff dismissed the hospital's alleged agent from the lawsuit, she could not proceed even though she had sued the hospital before dismissing the agent. 
C)  That the plaintiff was barred from proceeding because vicarious liability is not recognized in the medical malpractice arena. 
D)  That the plaintiff could proceed but only because she had already established liability on the part of the physician employees involved. 
E)  That the hospital could be held vicariously liable if the plaintiff established that a wrongful act harming her occurred within the scope of the agent's employment. 
A)  That a defendant in the position of the hospital is vicariously liable for injuries received within its premises without a need for further proof. 
B)  That because the plaintiff dismissed the hospital's alleged agent from the lawsuit, she could not proceed even though she had sued the hospital before dismissing the agent. 
C)  That the plaintiff was barred from proceeding because vicarious liability is not recognized in the medical malpractice arena. 
D)  That the plaintiff could proceed but only because she had already established liability on the part of the physician employees involved. 
E)  That the hospital could be held vicariously liable if the plaintiff established that a wrongful act harming her occurred within the scope of the agent's employment.

Question 16

Which of the following is false regarding classification of principals?

Accepted Answer

A)  If the third party is aware of the principal's existence but not his or her identity, the principal is classified as a disclosed principal. 
B)  When the third party is aware that the agent is making an agreement on behalf of a principal and also knows who the principal is, the principal is a disclosed principal. 
C)  An unidentified principal is in the same classification as a partially disclosed principal. 
D)  If the third party does not know that an agent is acting on behalf of a principal, an undisclosed principal is involved. 
E)  Classification of the principal is important because it helps determine the principal's liability. 
A)  If the third party is aware of the principal's existence but not his or her identity, the principal is classified as a disclosed principal. 
B)  When the third party is aware that the agent is making an agreement on behalf of a principal and also knows who the principal is, the principal is a disclosed principal. 
C)  An unidentified principal is in the same classification as a partially disclosed principal. 
D)  If the third party does not know that an agent is acting on behalf of a principal, an undisclosed principal is involved. 
E)  Classification of the principal is important because it helps determine the principal's liability.

Question 17

An agency relationship may be terminated in several ways for a variety of reasons. Which of the following is not one of these reasons?

Accepted Answer

A)  Insolvency of the principal 
B)  Occurrence of a specific event 
C)  Revocation of authority 
D)  Fulfillment of purpose 
E)  Renunciation by the agent 
A)  Insolvency of the principal 
B)  Occurrence of a specific event 
C)  Revocation of authority 
D)  Fulfillment of purpose 
E)  Renunciation by the agent

Question 18

If an agency relationship is made specifically with the agent, not the principal in mind, this is known as an ________.

Accepted Answer

A)  agency for an agent 
B)  agency coupled with an interest 
C)  agency benefitting the agent 
D)  agency compensation principle 
E)  agency entitlement principle 
A)  agency for an agent 
B)  agency coupled with an interest 
C)  agency benefitting the agent 
D)  agency compensation principle 
E)  agency entitlement principle

Question 19

Gladian works as a plumber for Jackson Plumbing. When he is at Smithby's house, he tries to fix the Smithby's satellite dish causing the unit to overheat and causing a fire. What is Jackson Plumbing's best defense regarding liability?

Accepted Answer

A)  Gladian was on a substantial departure 
B)  Gladian is on minimal departure 
C)  Gladian is on a half departure 
D)  Gladian is on an absolute departure 
E)  Gladian is on an unauthorized departure 
A)  Gladian was on a substantial departure 
B)  Gladian is on minimal departure 
C)  Gladian is on a half departure 
D)  Gladian is on an absolute departure 
E)  Gladian is on an unauthorized departure

Question 20

Actual notice of agency termination must be given to third parties who have had business interactions with an agent in order to fully terminate a principal's responsibility.

Accepted Answer

A) True 
 B)False

Exam 34: Liability to Third Parties and Termination

As discussed in the text, which of the following is true regarding electronic contracts and agency authority in Singapore?

When a principal is classified as a disclosed principal, which of the following is true?

In Doe v. Uber Technologies, Inc. the case in the text in which two victims sued Uber Technologies alleging separate sexual assaults on rides they received from Uber drivers and whether or not those drivers were employees or independent contractors. The court held that:

According to the text, which of the following is not a factor considered by courts in determining whether an act committed by an employee occurred within the course and scope of employment?

Agents who go beyond their authority when the principal is disclosed or partially disclosed are liable to third parties for breach of contract, not breach of implied warranty.

If a principal notifies a third party that an agency relationship has ended, at what point does that authority end?

________ deals with the concept of the principal/employer-agent/employee relationship in relation to liability of the principal/employer for acts of the agent/employee.

List the options of an injured third party when a principal is found liable for a misrepresentation made by an agent.

Under the UCC, if an agent enters into a contract that is an negotiable instrument, the principal cannot be held liable unless the principal's name is on the instrument or the agent's signature indicates that it was made in ________.

What are the two conditions under which the law holds a principal directly responsible for his or her own tortious conduct?

Which of the following is not a way an agency relationship will terminate by operation of law?

Which of the following represented the position of the Supreme Court of Tennessee in the Case Opener in which the plaintiff attempted to hold a hospital vicariously liable for her injuries?

Which of the following is false regarding classification of principals?

An agency relationship may be terminated in several ways for a variety of reasons. Which of the following is not one of these reasons?

If an agency relationship is made specifically with the agent, not the principal in mind, this is known as an ________.

Gladian works as a plumber for Jackson Plumbing. When he is at Smithby's house, he tries to fix the Smithby's satellite dish causing the unit to overheat and causing a fire. What is Jackson Plumbing's best defense regarding liability?

Actual notice of agency termination must be given to third parties who have had business interactions with an agent in order to fully terminate a principal's responsibility.

An Introduction to Dynamic Business Law

Business Ethics

The Us Legal System

Alternative Dispute Resolution

Constitutional Principles

International and Comparative Law

Crime and the Business Community

Tort Law

Negligence and Strict Liability

Product Liability

Liability of Accountants and Other Professionals

Intellectual Property

Introduction to Contracts

Agreement

Consideration

Capacity and Legality

Legal Assent

Contracts in Writing

Third-Party Rights to Contracts

Discharge and Remedies

Introduction to Sales and Lease Contracts

Title, Risk of Loss, and Insurable Interest

Performance and Obligations Under Sales and Leases

Remedies for Breach of Sales and Lease Contracts

Warranties

Negotiable Instruments: Negotiability and Transferability

Negotiation, Holder in Due Course, and Defenses

Liability, Defenses, and Discharge

Checks and Electronic Fund Transfers

Secured Transactions

Other Creditors Remedies and Suretyship

Bankruptcy and Reorganization

Agency Formation and Duties

Forms of Business Organization

Partnerships: Nature, Formation, and Operation

Partnerships: Termination and Limited Partnerships

Corporations: Formation and Financing

Corporations: Directors, Officers, and Shareholders

Corporations: Mergers, Consolidations, Terminations

Corporations: Securities and Investor Protection

Employment and Labor Law

Employment Discrimination

Administrative Law

Consumer Law

Environmental Law

Antitrust Law

The Nature of Property, Personal Property, and Bailments

Real Property

Landlord-Tenant Law

Insurance Law

Wills and Trusts

Filters