Question 1

A principal may generally revoke the authority of an agent at any time.

Accepted Answer

A) True 
 B)False

Question 2

A person who engages an independent contractor to do a specific job has the right to control the details of the conduct and activities of the independent contractor as it applies to the specific job.

Accepted Answer

A) True 
 B)False

Question 3

a.What is a fiduciary? 
b. What are the implications of an agent's fiduciary obligation? What is an agent prohibited from doing as a result of this obligation? Explain.

Accepted Answer

a. A fiduciary is someone who acts for s

Question 4

Which of the following is not a breach of an agent's duty of obedience?

Accepted Answer

A)  Entering into an unauthorized contract for which his or her principal is then liable. 
B)  Committing a tort for which the principal is now liable. 
C)  Improperly delegating her authority. 
D)  Not following a principal's instruction to misrepresent the quality of a competitor's goods to a potential customer. 
A)  Entering into an unauthorized contract for which his or her principal is then liable. 
B)  Committing a tort for which the principal is now liable. 
C)  Improperly delegating her authority. 
D)  Not following a principal's instruction to misrepresent the quality of a competitor's goods to a potential customer.

Question 5

The concept of conflict of interest as it relates to the law of agency includes which of the following?

Accepted Answer

A)  An agent may take a position that conflicts with the principal only if the principal, with full knowledge of all the facts, consents. 
B)  An agent may not represent her principal in a transaction in which the agent has a personal interest. 
C)  An agent may not act on behalf of adverse parties to a transaction without both principals' approval of the dual agency. 
D)  All of these represent conflicts of interest. 
A)  An agent may take a position that conflicts with the principal only if the principal, with full knowledge of all the facts, consents. 
B)  An agent may not represent her principal in a transaction in which the agent has a personal interest. 
C)  An agent may not act on behalf of adverse parties to a transaction without both principals' approval of the dual agency. 
D)  All of these represent conflicts of interest.

Question 6

The agent may be subject to liability to her principal for breach of the duty of obedience if she:

Accepted Answer

A)  entered into an authorized contract and the principal has changed her mind. 
B)  delegates her authority in any way and under any circumstances. 
C)  committed a tort for which the principal is now liable. 
D)  All of these are true. 
A)  entered into an authorized contract and the principal has changed her mind. 
B)  delegates her authority in any way and under any circumstances. 
C)  committed a tort for which the principal is now liable. 
D)  All of these are true.

Question 7

Identify the following parties and relationships. 
a. Patricia hires Andrew, an attorney, to negotiate a contract to purchase some property. She agrees to pay him $75 an hour for his services, and he agrees to use his own office and secretarial staff to negotiate and draft the agreement. 
b. Mel owns a retail store. He hires Sarah to work for him as a clerk in the home furnishings department. 
c. Carl is the general contractor for the construction of a large office complex. Carl hires Ed's Electric Company to do all of the wiring for the building. 
d. Incellmed Corporation hires Bob as an outside salesman and instructs him to call on customers in a specified territory and to solicit orders for their products. 
e. Marlin, who is the owner of Marlin's Department Store, hires Melissa as the general manager of his new branch in the Hillridge Mall.

Accepted Answer

a. Patricia is a principal, and Andrew i

Question 8

The negligence of an agent who is an employee in conducting the business of the principal exposes the principal to tort liability for injury and loss suffered by third persons.

Accepted Answer

A) True 
 B)False

Question 9

Agency law is basic to almost every other branch of business law.

Accepted Answer

A) True 
 B)False

Question 10

An agent is not required to keep which of the following information confidential?

Accepted Answer

A)  Unique business methods. 
B)  Customer lists. 
C)  Information that his or her principal is engaged in criminal activity. 
D)  Business plans. 
A)  Unique business methods. 
B)  Customer lists. 
C)  Information that his or her principal is engaged in criminal activity. 
D)  Business plans.

Question 11

After an agency terminates, the agent is free to disclose to third persons any information acquired during the agency relationship.

Accepted Answer

A) True 
 B)False

Question 12

E-Sign specifically excludes:

Accepted Answer

A)  all transactions covered by the UCC. 
B)  wills and matters of family law. 
C)  transactions relating to foreign commerce. 
D)  banking transactions. 
A)  all transactions covered by the UCC. 
B)  wills and matters of family law. 
C)  transactions relating to foreign commerce. 
D)  banking transactions.

Question 13

An agent must act solely in the interest of his principal in all acts that would affect the principal's business.

Accepted Answer

A) True 
 B)False

Question 14

A gratuitous agent is subject to the same duty of loyalty that is imposed upon a paid agent.

Accepted Answer

A) True 
 B)False

Question 15

The power of a gratuitous agent to affect the principal's relationship with third parties is the same as that of a paid agent.

Accepted Answer

A) True 
 B)False

Question 16

When is an agency relationship irrevocable?

Accepted Answer

A)  It is never irrevocable. 
B)  When the agency is coupled with an interest of the agent in the subject matter. 
C)  When the principal violates his duties to the agent. 
D)  When the agent is a fiduciary. 
A)  It is never irrevocable. 
B)  When the agency is coupled with an interest of the agent in the subject matter. 
C)  When the principal violates his duties to the agent. 
D)  When the agent is a fiduciary.

Question 17

A power given as security creates a relationship of agency and actual authority.

Accepted Answer

A) True 
 B)False

Question 18

Agents and principals have mutual fiduciary duties to one another.

Accepted Answer

A) True 
 B)False

Question 19

What is an independent contractor? Can an independent contractor also be an agent? Explain.

Accepted Answer

An independent contractor is someone who

Question 20

Marcos, who is an agent for Peter, breaches his fiduciary duty to Peter. Marcos :

Accepted Answer

A)  is liable to Peter for breach of contract. 
B)  is liable to Peter in tort for any losses caused by the breach. 
C)  must make restitution for any profits or property received in breach of this duty. 
D)  All of these are correct. 
A)  is liable to Peter for breach of contract. 
B)  is liable to Peter in tort for any losses caused by the breach. 
C)  must make restitution for any profits or property received in breach of this duty. 
D)  All of these are correct.

Exam 28: Relationship of Principal and Agent

A principal may generally revoke the authority of an agent at any time.

A person who engages an independent contractor to do a specific job has the right to control the details of the conduct and activities of the independent contractor as it applies to the specific job.

a.What is a fiduciary? b. What are the implications of an agent's fiduciary obligation? What is an agent prohibited from doing as a result of this obligation? Explain.

Which of the following is not a breach of an agent's duty of obedience?

The concept of conflict of interest as it relates to the law of agency includes which of the following?

The agent may be subject to liability to her principal for breach of the duty of obedience if she:

The negligence of an agent who is an employee in conducting the business of the principal exposes the principal to tort liability for injury and loss suffered by third persons.

Agency law is basic to almost every other branch of business law.

An agent is not required to keep which of the following information confidential?

After an agency terminates, the agent is free to disclose to third persons any information acquired during the agency relationship.

E-Sign specifically excludes:

An agent must act solely in the interest of his principal in all acts that would affect the principal's business.

A gratuitous agent is subject to the same duty of loyalty that is imposed upon a paid agent.

The power of a gratuitous agent to affect the principal's relationship with third parties is the same as that of a paid agent.

When is an agency relationship irrevocable?

A power given as security creates a relationship of agency and actual authority.

Agents and principals have mutual fiduciary duties to one another.

What is an independent contractor? Can an independent contractor also be an agent? Explain.

Marcos, who is an agent for Peter, breaches his fiduciary duty to Peter. Marcos :

Introduction to Law

Business Ethics

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance Breach and Discharge

Contract Remedies

Introduction to Sales and Leases

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Transfer of Title and Risk of Loss

Product Liability Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits Collections and Funds Transfers

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

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Environmental Law

International Business Law

Introduction to Property Property Insurance Bailments and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

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