Question 1

One contracting with an independent contractor may be held liable for any injuries the contractor negligently causes to third parties. ​

Accepted Answer

A) True 
 B)False  False

Question 2

A general agent may transact any business of a particular kind.

Accepted Answer

A) True 
 B)False  True

Question 3

Which of the following is true when a person hires an independent contractor to perform some tasks?

Accepted Answer

A) The contract creates a principal-agent relationship. 
B) The contractor is responsible for the proper performance of the contract. 
C) The person hiring the contractor retains the right to control how the independent contractor performance the terms of the contract. 
D) The person hiring the contractor is liable for any injuries the contractor causes to third parties. 
A) The contract creates a principal-agent relationship. 
B) The contractor is responsible for the proper performance of the contract. 
C) The person hiring the contractor retains the right to control how the independent contractor performance the terms of the contract. 
D) The person hiring the contractor is liable for any injuries the contractor causes to third parties. B

Question 4

The law requires that only persons with sufficient intelligence to carry out a principal's orders may be appointed to act as an agent. ​

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements best defines customary authority? ​

Accepted Answer

A) It is the authority specifically delegated to an agent by the agreement creating the agency. 
B) It is the authority to act on behalf of another that arises when such agents ordinarily possess such powers. 
C) It is the authority to do things not specifically listed in a contract so that the purpose of the agency can be fulfilled. 
D) It is the authority that an agent is believed to have because of the principal's behavior. 
A) It is the authority specifically delegated to an agent by the agreement creating the agency. 
B) It is the authority to act on behalf of another that arises when such agents ordinarily possess such powers. 
C) It is the authority to do things not specifically listed in a contract so that the purpose of the agency can be fulfilled. 
D) It is the authority that an agent is believed to have because of the principal's behavior.

Question 6

A contract of agency may be oral when:

Accepted Answer

A) the agency is created to transfer title to real estate. 
B) the agent's authority extends for more than one year. 
C) the agent is to execute a bond. 
D) the agent is to be a special agent. 
A) the agency is created to transfer title to real estate. 
B) the agent's authority extends for more than one year. 
C) the agent is to execute a bond. 
D) the agent is to be a special agent.

Question 7

Brokers are also known as commission merchants. ​

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is true when a person wants to ratify the unauthorized acts of an assumed agent? ​

Accepted Answer

A) The one attempting to ratify must have been capable of authorizing the act at the time the act was done. 
B) The one attempting to ratify need not be capable of authorizing the act at the time approval of the act is given. 
C) It is permissible for the one attempting to ratify to approve part of the act and reject the rest. 
D) The ratification cannot be made before the third party has withdrawn from the transaction. 
A) The one attempting to ratify must have been capable of authorizing the act at the time the act was done. 
B) The one attempting to ratify need not be capable of authorizing the act at the time approval of the act is given. 
C) It is permissible for the one attempting to ratify to approve part of the act and reject the rest. 
D) The ratification cannot be made before the third party has withdrawn from the transaction.

Question 9

Limitations upon an agent's authority can bind a third party who does not know of them. ​

Accepted Answer

A) True 
 B)False

Question 10

​ Can anyone become an agent? Explain the requirements one needs to become an agent.

Accepted Answer

Ordinarily, any person who has sufficien

Question 11

A(n)is one authorized to carry out all of the principal's business of a particular kind.

Accepted Answer

A) special agent 
B) factor del credere 
C) general agent 
D) commission merchant 
A) special agent 
B) factor del credere 
C) general agent 
D) commission merchant

Question 12

The general principles of law pertaining to contracts govern the relation creating an agency. ​

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements best defines a power of attorney? ​

Accepted Answer

A) It is a written instrument indicating how a person's property is to be divided in the event of his or her death. 
B) It is a written instrument indicating the appointment of an agent for the performance of certain tasks. 
C) It is the power conferred by a court on a party to manage the financial affairs of another. 
D) It is a document that confers the rights of ownership of certain property to another. 
A) It is a written instrument indicating how a person's property is to be divided in the event of his or her death. 
B) It is a written instrument indicating the appointment of an agent for the performance of certain tasks. 
C) It is the power conferred by a court on a party to manage the financial affairs of another. 
D) It is a document that confers the rights of ownership of certain property to another.

Question 14

Which of the following tasks cannot be delegated to an agent? ​

Accepted Answer

A) Voting in a public election 
B) Contracting to purchase business supplies 
C) Signing a business merger 
D) Publishing a report on a company 
A) Voting in a public election 
B) Contracting to purchase business supplies 
C) Signing a business merger 
D) Publishing a report on a company

Question 15

​ Which of the following statements is true of contracts of agency?

Accepted Answer

A) The legal requirements to be an agent are the same in all states. 
B) Corporations cannot act as agents in contracts of agency. 
C) Every agent must possess a valid license authorizing the agent to act as one. 
D) All people legally competent to act for themselves may act through an agent. 
A) The legal requirements to be an agent are the same in all states. 
B) Corporations cannot act as agents in contracts of agency. 
C) Every agent must possess a valid license authorizing the agent to act as one. 
D) All people legally competent to act for themselves may act through an agent.

Question 16

The creation of an agency may be executed through an informal contract. ​

Accepted Answer

A) True 
 B)False

Question 17

One who contracts with an independent contractor has more control over the performance of the work than does an employer. ​

Accepted Answer

A) True 
 B)False

Question 18

An assumed agent who acted without actual or apparent authority can still bind a supposed principal.

Accepted Answer

A) True 
 B)False

Question 19

A special agent is one who is authorized to carry out all of the principal's business of a particular kind.

Accepted Answer

A) True 
 B)False

Question 20

A contract negotiated by an agent usually involves at least three parties. ​

Accepted Answer

A) True 
 B)False

Exam 25: Nature and Creation of an Agency

One contracting with an independent contractor may be held liable for any injuries the contractor negligently causes to third parties. ​

A general agent may transact any business of a particular kind.

Which of the following is true when a person hires an independent contractor to perform some tasks?

The law requires that only persons with sufficient intelligence to carry out a principal's orders may be appointed to act as an agent. ​

Which of the following statements best defines customary authority? ​

A contract of agency may be oral when:

Brokers are also known as commission merchants. ​

Which of the following is true when a person wants to ratify the unauthorized acts of an assumed agent? ​

Limitations upon an agent's authority can bind a third party who does not know of them. ​

​ Can anyone become an agent? Explain the requirements one needs to become an agent.

A(n)is one authorized to carry out all of the principal's business of a particular kind.

The general principles of law pertaining to contracts govern the relation creating an agency. ​

Which of the following statements best defines a power of attorney? ​

Which of the following tasks cannot be delegated to an agent? ​

​ Which of the following statements is true of contracts of agency?

The creation of an agency may be executed through an informal contract. ​

One who contracts with an independent contractor has more control over the performance of the work than does an employer. ​

An assumed agent who acted without actual or apparent authority can still bind a supposed principal.

A special agent is one who is authorized to carry out all of the principal's business of a particular kind.

A contract negotiated by an agent usually involves at least three parties. ​

Introduction to Law

Courts and Court Procedures

Business Torts and Crimes

Government Regulation of Business

Nature and Classes of Contracts

Offer and Acceptance

Capacity to Contract

Consideration

Defective Agreements

Illegal Agreements

Written Contracts

Third Parties and Contracts

Termination of Contracts

Nature of Personal Property

Special Bailments

Sales of Personal Property

Formalities of a Sale

Transfer of Title and Risk in Sales Contracts

Warranties Product Liability and Consumer Protection

Nature of Negotiable Instruments

Essentials of Negotiability

Promissory Notes and Drafts

Negotiation and Discharge

Liabilities of Parties, Holders in Due Course and Defenses

Operation and Termination of an Agency

Employer and Employee Relations

Employees Rights

Introduction to Business Organizations

Creation and Operation of a Partnership

Dissolution of a Partnership

Nature of a Corporation

Ownership of a Corporation

Management and Dissolution of a Corporation

Principles of Insurance

Types of Insurance

Security Devices

Bankruptcy

Nature of Real Property

Transfer of Real Property

Real Estate Mortgages

Landlord and Tenant

Wills Inheritances and Trust

Filters

One contracting with an independent contractor may be held liable for any injuries the contractor negligently causes to third parties.

The law requires that only persons with sufficient intelligence to carry out a principal's orders may be appointed to act as an agent.

Which of the following statements best defines customary authority?

Brokers are also known as commission merchants.

Which of the following is true when a person wants to ratify the unauthorized acts of an assumed agent?

Limitations upon an agent's authority can bind a third party who does not know of them.

Can anyone become an agent? Explain the requirements one needs to become an agent.

The general principles of law pertaining to contracts govern the relation creating an agency.

Which of the following statements best defines a power of attorney?

Which of the following tasks cannot be delegated to an agent?

Which of the following statements is true of contracts of agency?

The creation of an agency may be executed through an informal contract.

One who contracts with an independent contractor has more control over the performance of the work than does an employer.

A contract negotiated by an agent usually involves at least three parties.