Question 1

Unless otherwise agreed, an agent making a contract with actual or apparent authority on behalf of an unidentified principal is a party to the contract.

Accepted Answer

A) True 
 B)False

Question 2

When is a principal liable for her own conduct in tort involving the use of agents?

Accepted Answer

Such liability may arise in two primary

Question 3

An employer may have criminal liability for the acts of an employee.

Accepted Answer

A) True 
 B)False

Question 4

The doctrine of respondeat superior is most often applied in situations involving:

Accepted Answer

A)  torts of the agent. 
B)  negligence of the principal. 
C)  contracts negotiated by the agent. 
D)  crimes committed by the agent. 
A)  torts of the agent. 
B)  negligence of the principal. 
C)  contracts negotiated by the agent. 
D)  crimes committed by the agent.

Question 5

For a ratification to be effective, the principal:

Accepted Answer

A)  must have knowledge of all material facts concerning the transaction. 
B)  must communicate her intent to ratify to the third party. 
C)  must have been in existence when the act was done. 
D)  M ust have knowledge of all material facts concerning the transaction and  must have been in existence when the act was done. 
A)  must have knowledge of all material facts concerning the transaction. 
B)  must communicate her intent to ratify to the third party. 
C)  must have been in existence when the act was done. 
D)  M ust have knowledge of all material facts concerning the transaction and  must have been in existence when the act was done.

Question 6

Upon the termination of an agency, the agent's actual authority ceases. However, apparent authority may continue until actual notice of the termination is given to third parties.

Accepted Answer

A) True 
 B)False

Question 7

An undisclosed principal may result in which of the following?

Accepted Answer

A)  Liability of the agent for any contract made on behalf of such a principal. 
B)  The agent's being declared incompetent by a court of law. 
C)  A declaration order by the court for the principal to show a guarantee. 
D)  All of these. 
A)  Liability of the agent for any contract made on behalf of such a principal. 
B)  The agent's being declared incompetent by a court of law. 
C)  A declaration order by the court for the principal to show a guarantee. 
D)  All of these.

Question 8

Jack was fired by Bob but decided to try to win back his job as agent by getting a big new contract. He approached Sharon, a new client, and made a pitch to sell Bob's product. Sharon agreed to buy 100. Jack tells Bob. What are the legal consequences?

Accepted Answer

A)  Bob has to hire Jack again and then make the deal. 
B)  Bob would have to ratify the deal to get the benefit of the contract. 
C)  Bob would have to negotiate the deal with Sharon himself. 
D)  Jack would forfeit his commission if Bob took the contract. 
A)  Bob has to hire Jack again and then make the deal. 
B)  Bob would have to ratify the deal to get the benefit of the contract. 
C)  Bob would have to negotiate the deal with Sharon himself. 
D)  Jack would forfeit his commission if Bob took the contract.

Question 9

A principal may be liable where his agent sells liquor to an underage person even though the principal did not authorize the act.

Accepted Answer

A) True 
 B)False

Question 10

The liability of an employer under the doctrine of respondeat superior is limited to wrongdoing by the employee in the scope of his employment.

Accepted Answer

A) True 
 B)False

Question 11

Without authority, Donegal makes a contract with Evan, supposedly on behalf of Shawna. Shawna may ratify the contract, even if Evan loses contractual capacity before she ratifies the contract.

Accepted Answer

A) True 
 B)False

Question 12

Actual authority consists of both express and implied authority.

Accepted Answer

A) True 
 B)False

Question 13

Rena employs Marcel, a real estate broker, to find a buyer for her home at a price of at least $225,000. Marcel has actual authority to contract for the sale of Rena's home if the price is at least $225,000.

Accepted Answer

A) True 
 B)False

Question 14

A subagent is an agent of both the principal and the agent.

Accepted Answer

A) True 
 B)False

Question 15

Under the general rule of the Third Restatement, death of a principal terminates all authority of an agent, including apparent authority, even though no notice is given to third parties.

Accepted Answer

A) True 
 B)False

Question 16

An agent who has either actual or apparent authority has the power to bind his principal.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is not correct regarding the relationship between an independent contractor and a principal?

Accepted Answer

A)  The contractor is liable under respondeat superior . 
B)  The contractor generally contracts to perform services but is not controlled by the principal. 
C)  The right of control is the essential and often decisive factor in determining whether someone is an independent contractor or an employee. 
D)  Under some circumstances, a principal will be vicariously liable for torts committed by a carefully selected independent contractor. 
A)  The contractor is liable under respondeat superior . 
B)  The contractor generally contracts to perform services but is not controlled by the principal. 
C)  The right of control is the essential and often decisive factor in determining whether someone is an independent contractor or an employee. 
D)  Under some circumstances, a principal will be vicariously liable for torts committed by a carefully selected independent contractor.

Question 18

A principal's intention to permit the agent to delegate granted authority may only be gathered from the express authorization of the principal.

Accepted Answer

A) True 
 B)False

Question 19

Under the Second Restatement, the bankruptcy of the principal terminates, without notice, the power of an agent to affect the principal's property that passes to the bankruptcy trustee.

Accepted Answer

A) True 
 B)False

Question 20

The court in the Schoenberger v. Chicago Transit Authority case held that:

Accepted Answer

A)  the actual authority of an agent may be founded on the acts or words of the agent. 
B)  implied authority is such authority as the principal knowingly permits the agent to assume. 
C)  actual authority is such authority as a reasonable, prudent person, exercising diligence and discretion, in view of the principal's conduct, would naturally suppose the agent to possess. 
D)  ZuChristian had neither actual nor apparent authority to make an offer of a specific salary or to make a promise of additional compensation. 
A)  the actual authority of an agent may be founded on the acts or words of the agent. 
B)  implied authority is such authority as the principal knowingly permits the agent to assume. 
C)  actual authority is such authority as a reasonable, prudent person, exercising diligence and discretion, in view of the principal's conduct, would naturally suppose the agent to possess. 
D)  ZuChristian had neither actual nor apparent authority to make an offer of a specific salary or to make a promise of additional compensation.

Exam 29: Relationship With Third Parties

Unless otherwise agreed, an agent making a contract with actual or apparent authority on behalf of an unidentified principal is a party to the contract.

When is a principal liable for her own conduct in tort involving the use of agents?

An employer may have criminal liability for the acts of an employee.

The doctrine of respondeat superior is most often applied in situations involving:

For a ratification to be effective, the principal:

Upon the termination of an agency, the agent's actual authority ceases. However, apparent authority may continue until actual notice of the termination is given to third parties.

An undisclosed principal may result in which of the following?

Jack was fired by Bob but decided to try to win back his job as agent by getting a big new contract. He approached Sharon, a new client, and made a pitch to sell Bob's product. Sharon agreed to buy 100. Jack tells Bob. What are the legal consequences?

A principal may be liable where his agent sells liquor to an underage person even though the principal did not authorize the act.

The liability of an employer under the doctrine of respondeat superior is limited to wrongdoing by the employee in the scope of his employment.

Without authority, Donegal makes a contract with Evan, supposedly on behalf of Shawna. Shawna may ratify the contract, even if Evan loses contractual capacity before she ratifies the contract.

Actual authority consists of both express and implied authority.

Rena employs Marcel, a real estate broker, to find a buyer for her home at a price of at least $225,000. Marcel has actual authority to contract for the sale of Rena's home if the price is at least $225,000.

A subagent is an agent of both the principal and the agent.

Under the general rule of the Third Restatement, death of a principal terminates all authority of an agent, including apparent authority, even though no notice is given to third parties.

An agent who has either actual or apparent authority has the power to bind his principal.

Which of the following is not correct regarding the relationship between an independent contractor and a principal?

A principal's intention to permit the agent to delegate granted authority may only be gathered from the express authorization of the principal.

Under the Second Restatement, the bankruptcy of the principal terminates, without notice, the power of an agent to affect the principal's property that passes to the bankruptcy trustee.

The court in the Schoenberger v. Chicago Transit Authority case held that:

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

Performance

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 of Principal and Agent

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

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Accountants Legal Liability

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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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