Question 1

Under the Copyright Act of 1976, if an employee completes work at the employer's request, this is known as ________ and the employer owns the copyright.

Accepted Answer

A)  an "employee marked copyright" 
B)  a "work for hire" 
C)  an "employee copyright" 
D)  "hired-out copyright" 
E)  "employee protected work" 
A)  an "employee marked copyright" 
B)  a "work for hire" 
C)  an "employee copyright" 
D)  "hired-out copyright" 
E)  "employee protected work" B

Question 2

What type of relationship has formed when the parties have agreed that one person will have power to bind the other person in contract?

Accepted Answer

A)  Principal-agent 
B)  Employer-employee 
C)  Employer-independent contractor 
D)  Employer-agent 
E)  Principal-independent contractor 
A)  Principal-agent 
B)  Employer-employee 
C)  Employer-independent contractor 
D)  Employer-agent 
E)  Principal-independent contractor A

Question 3

[Cheap Principal] Paolo, who is very knowledgeable regarding computers, agrees to purchase computers for Joe's business. Paolo is retained for that purpose only, he is paid a set rate for the job, and Joe exercised no control over the manner in which Paolo did his work. Paolo purchased computers from AAA Computers without any mention of Joe. The computers worked well and were not defective in any way. Unfortunately, Joe did not pay AAA Computers on a timely basis. Paolo, therefore, paid AAA Computers out of his own pocket because he wanted to be able to do business with AAA Computers in the future and also because his name was on the invoice. Paolo asked Joe for reimbursement, but Joe refused. Joe claimed that if Paolo had only waited, AAA Computers might have agreed to take less.
-Which of the following is true regarding any right of reimbursement Paolo is due from Joe?

Accepted Answer

A)  Paolo is not due any reimbursement because he did not get permission from Joe before paying AAA Computers. 
B)  Paolo is only due 50% of whatever he paid because he did not get permission from Joe before paying AAA Computers. 
C)  Paolo is not due any reimbursement from Joe unless he can establish that Joe signed a written contract authorizing him to personally pay debts incurred. 
D)  Paolo is not due any reimbursement from Joe unless Paolo can establish by a preponderance of the evidence that AAA Computers would not have agreed to take a lesser amount. 
E)  Paolo is entitled to reimbursement from Joe. 
A)  Paolo is not due any reimbursement because he did not get permission from Joe before paying AAA Computers. 
B)  Paolo is only due 50% of whatever he paid because he did not get permission from Joe before paying AAA Computers. 
C)  Paolo is not due any reimbursement from Joe unless he can establish that Joe signed a written contract authorizing him to personally pay debts incurred. 
D)  Paolo is not due any reimbursement from Joe unless Paolo can establish by a preponderance of the evidence that AAA Computers would not have agreed to take a lesser amount. 
E)  Paolo is entitled to reimbursement from Joe. E

Question 4

A ________ is a written document, created by a principal, expressing his or her wishes for an agent's authority not to be affected by the principal's subsequent incapacity.

Accepted Answer

A)  General purpose order of authority 
B)  Living legal empowerment 
C)  Notarized order 
D)  Durable power of attorney 
E)  Lasting power of authority 
A)  General purpose order of authority 
B)  Living legal empowerment 
C)  Notarized order 
D)  Durable power of attorney 
E)  Lasting power of authority

Question 5

What type of agency is formed when it appears an agency relationship exists based on the conduct of the parties?

Accepted Answer

A)  Expressed agency 
B)  Agency by implied authority 
C)  Apparent agency 
D)  Agency by ratification 
E)  An agency relationship cannot be formed based on the conduct of the parties alone. 
A)  Expressed agency 
B)  Agency by implied authority 
C)  Apparent agency 
D)  Agency by ratification 
E)  An agency relationship cannot be formed based on the conduct of the parties alone.

Question 6

An agency relationship may be created only for a lawful purpose.

Accepted Answer

A) True 
 B)False

Question 7

The principal can sue the agent, and may be entitled to a variety of contract and tort remedies beyond those stated in the contract, if an agent breaches his or her duties.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not one of the duties that a principal would owe an agent?

Accepted Answer

A)  The principal owes a duty of cooperation to the agent. 
B)  The principal owes a duty of safe working conditions to the agent. 
C)  The principal owes a duty of reimbursement and indemnification to the agent. 
D)  The principal owes a duty of compensation to the agent. 
E)  The principal owes a duty of loyalty not to hire another agent. 
A)  The principal owes a duty of cooperation to the agent. 
B)  The principal owes a duty of safe working conditions to the agent. 
C)  The principal owes a duty of reimbursement and indemnification to the agent. 
D)  The principal owes a duty of compensation to the agent. 
E)  The principal owes a duty of loyalty not to hire another agent.

Question 9

What should Melanie seek if she wants possession of the lakeside lot Kumar purchased?

Accepted Answer

A)  A resolute trust 
B)  An actual trust 
C)  A constructive trust 
D)  A defined trust 
E)  An absolute trust 
A)  A resolute trust 
B)  An actual trust 
C)  A constructive trust 
D)  A defined trust 
E)  An absolute trust

Question 10

What duty does a principal have concerning safe working conditions?

Accepted Answer

A)  The principal has a duty to provide safe working conditions for the agent, but he does not need to warn the agency of any known unsafe working conditions. 
B)  The principal only has a duty to warn agents of known unsafe working conditions. 
C)  The principal only has a duty to make necessary repairs to maintain safe working conditions. 
D)  The principal has a duty to provide safe working conditions for the agent, warn the agent of any known unsafe working conditions, and make necessary repairs. 
E)  The principal does not owe a duty of safe working conditions to an agent. 
A)  The principal has a duty to provide safe working conditions for the agent, but he does not need to warn the agency of any known unsafe working conditions. 
B)  The principal only has a duty to warn agents of known unsafe working conditions. 
C)  The principal only has a duty to make necessary repairs to maintain safe working conditions. 
D)  The principal has a duty to provide safe working conditions for the agent, warn the agent of any known unsafe working conditions, and make necessary repairs. 
E)  The principal does not owe a duty of safe working conditions to an agent.

Question 11

Agents in Australia are obligated to act personally on behalf of the principal.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is true regarding the form of authority upon which an agency relationship may be created?

Accepted Answer

A)  Agency relationships can be created through expressed agency, but not through implied authority, apparent agency, or through ratification. 
B)  Agency relationships can be created through expressed agency or through implied authority, but not through apparent agency or through ratification. 
C)  Agency relationships can be created through ratification, but not through implied authority, apparent agency, or expressed authority. 
D)  Agency relationships can be created through ratification or expressed agency, but not through implied authority or apparent agency. 
E)  Agency relationships can be created through expressed agency, implied authority, apparent agency, or ratification. 
A)  Agency relationships can be created through expressed agency, but not through implied authority, apparent agency, or through ratification. 
B)  Agency relationships can be created through expressed agency or through implied authority, but not through apparent agency or through ratification. 
C)  Agency relationships can be created through ratification, but not through implied authority, apparent agency, or expressed authority. 
D)  Agency relationships can be created through ratification or expressed agency, but not through implied authority or apparent agency. 
E)  Agency relationships can be created through expressed agency, implied authority, apparent agency, or ratification.

Question 13

Which of the following is not a type of independent contractor?

Accepted Answer

A)  Building contractor 
B)  Stockbroker 
C)  Elementary school teacher 
D)  Lawyer 
E)  Doctor 
A)  Building contractor 
B)  Stockbroker 
C)  Elementary school teacher 
D)  Lawyer 
E)  Doctor

Question 14

Carolina is leaving the country to visit her ailing mother in Spain. Her worker Carlotta will be responsible for Carolina's company's bills while she is gone. Carolina can sign a(n) ________ giving Carlotta authority to act for her while she is gone.

Accepted Answer

A)  order of authority 
B)  power of order 
C)  legal empowerment 
D)  power of attorney 
E)  allowable authority order 
A)  order of authority 
B)  power of order 
C)  legal empowerment 
D)  power of attorney 
E)  allowable authority order

Question 15

The duty of an agent to perform specified duties with reasonable skill, care, and professionalism is referred to as which of the following?

Accepted Answer

A)  Duty of action 
B)  Duty of contract 
C)  Express duty of action 
D)  Duty of performance 
E)  Duty of obedience 
A)  Duty of action 
B)  Duty of contract 
C)  Express duty of action 
D)  Duty of performance 
E)  Duty of obedience

Question 16

When must agency agreements be in writing?

Accepted Answer

First, agency agreements need to be in w

Question 17

An individual who lacks contractual capacity may hire an agent to make contracts on his or her behalf.

Accepted Answer

A) True 
 B)False

Question 18

In City of Binghamton v. Whalen, the text case that discussed whether or not the plaintiff should have lost his compensation under the faithless servant doctrine, when he stole money from his job as Director of Parks and Recreation, the court held that:

Accepted Answer

A)  The court that if an employee has an otherwise unblemished record, benefits acquired in previous working years could still be granted to the employee even after they are fired. 
B)  The court ruled that workers forfeit only their salary and not their benefits under the faithless servant doctrine. 
C)  The court declined to relax the faithless servant doctrine so as to limit plaintiff's forfeiture of all compensation earned by defendant during the period in which he was disloyal. 
D)  The court ruled that the Appeal's court overstepped its bounds in reviewing evidence and sent the case back for further review. 
E)  The court determined that the City of Binghamton owed plaintiff damages for defamation but that no tangible benefits needed to be returned to the plaintiff. 
A)  The court that if an employee has an otherwise unblemished record, benefits acquired in previous working years could still be granted to the employee even after they are fired. 
B)  The court ruled that workers forfeit only their salary and not their benefits under the faithless servant doctrine. 
C)  The court declined to relax the faithless servant doctrine so as to limit plaintiff's forfeiture of all compensation earned by defendant during the period in which he was disloyal. 
D)  The court ruled that the Appeal's court overstepped its bounds in reviewing evidence and sent the case back for further review. 
E)  The court determined that the City of Binghamton owed plaintiff damages for defamation but that no tangible benefits needed to be returned to the plaintiff.

Question 19

Meryl is an avid doll collector and has been searching for the Beach Doll to complete her 200-piece collection. There were only 5 Beach Dolls created in the world. Meryl is envious of her neighbor Nancy, who has the first Beach Doll ever created. Nancy refuses to sell the doll because she thinks it will be worth a million dollars someday. While Nancy is on vacation, Meryl hires Alex to steal the doll from Nancy's home. Has an agency relationship been formed?

Accepted Answer

A)  No, because the agreement must be in writing. 
B)  No, because the agreement has an illegal purpose. 
C)  No, because the amount or form of compensation was not contemplated. 
D)  Yes, because the agreement may be oral or in writing. 
E)  Yes, because Alex's objective was unambiguous. 
A)  No, because the agreement must be in writing. 
B)  No, because the agreement has an illegal purpose. 
C)  No, because the amount or form of compensation was not contemplated. 
D)  Yes, because the agreement may be oral or in writing. 
E)  Yes, because Alex's objective was unambiguous.

Question 20

Which of the following is the term used to describe the duty an agent has to follow the lawful instruction and direction of the principal?

Accepted Answer

A)  Duty of action 
B)  Duty of contract 
C)  Express duty of action 
D)  Duty of performance 
E)  Duty of obedience 
A)  Duty of action 
B)  Duty of contract 
C)  Express duty of action 
D)  Duty of performance 
E)  Duty of obedience

Exam 33: Agency Formation and Duties

Under the Copyright Act of 1976, if an employee completes work at the employer's request, this is known as ________ and the employer owns the copyright.

What type of relationship has formed when the parties have agreed that one person will have power to bind the other person in contract?

A ________ is a written document, created by a principal, expressing his or her wishes for an agent's authority not to be affected by the principal's subsequent incapacity.

What type of agency is formed when it appears an agency relationship exists based on the conduct of the parties?

An agency relationship may be created only for a lawful purpose.

The principal can sue the agent, and may be entitled to a variety of contract and tort remedies beyond those stated in the contract, if an agent breaches his or her duties.

Which of the following is not one of the duties that a principal would owe an agent?

What should Melanie seek if she wants possession of the lakeside lot Kumar purchased?

What duty does a principal have concerning safe working conditions?

Agents in Australia are obligated to act personally on behalf of the principal.

Which of the following is true regarding the form of authority upon which an agency relationship may be created?

Which of the following is not a type of independent contractor?

Carolina is leaving the country to visit her ailing mother in Spain. Her worker Carlotta will be responsible for Carolina's company's bills while she is gone. Carolina can sign a(n) ________ giving Carlotta authority to act for her while she is gone.

The duty of an agent to perform specified duties with reasonable skill, care, and professionalism is referred to as which of the following?

When must agency agreements be in writing?

An individual who lacks contractual capacity may hire an agent to make contracts on his or her behalf.

In City of Binghamton v. Whalen, the text case that discussed whether or not the plaintiff should have lost his compensation under the faithless servant doctrine, when he stole money from his job as Director of Parks and Recreation, the court held that:

Which of the following is the term used to describe the duty an agent has to follow the lawful instruction and direction of the principal?

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

Liability to Third Parties and Termination

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

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