Exam 15: Agency Law

Express authority:

To create an agency relationship, both the principal and agent must have capacity.

In a partially disclosed principal relationship, who is liable to the third party on a contract outside the agent's authority?

Ellen Fishman was hired by Attics, Inc., a company that does attic refurbishments and redesigns, to evaluate attics,provide homeowners with estimates, and, hopefully, sign them up with contracts for their attics. Ellen provided an estimate of $11,000 to the Kornbluths for a redesign of their attic. Because she was new at the job, Ellen forgot the demolition costs in the estimate. However, the Kornbluths signed a contract Ellen presented and put down a 10% deposit of $1100. Attics, Inc.'s president has refused to do the attic for anything less than $15,000, what the estimate should have been. The Kornbluths have no experience with remodeling and had only one other estimate for the refurbishment, which was $12,500. Attics, Inc. terminated Ellen. However, Ellen still had all the materials, books, contract forms, and her card from Attics, Inc. Ellen went out and got three homeowners to sign contracts for refurbishments for prices ranging from $15,000 to $22,000. If Attics, Inc. performed the contracts Ellen negotiated, it would:

An unincorporated association is a group that acts as an entity but has no legal existence.

In a fully disclosed principal situation in which the agent is acting with authority, only the principal is liable on the contract.

What is the difference between employee status and independent contractor status?​

"Talk to Ann. She used to work here, but I think she is the best one to get this deal done for us," is an example of express authority given to an agent.

In which of the following situations is an agent liable to third parties?

Fiduciary duties include:

Implied authority is the extension of express authority by custom.

The purpose of anti-retaliation statutes is to protect:

What is the general rule with regard to employer liability for employee accidents occurring while the employee is on the way to work?

Elizabeth Drake worked as a nanny for Kimba and Zeus Baird and cared for their 3 children each day from 8 AM until 5:30 PM. At 10:00 AM each day, Elizabeth drove the Bairds' 3-year-old daughter to pre-school. On the way to the pre-school last Tuesday, Elizabeth failed to stop at a stop sign and struck a UPS truck. Could UPS make a claim against the Bairds?

Principals are liable for the acts of independent contractors if:

The ability of a clerk in a store to accept payment for goods is an example of implied authority.

There is no employer liability for negligent hiring.

Describe fiduciary duty.

Which of the following types of agency relationships would have to be evidenced by a record to be valid?

Anti-retaliation statutes are protections for whistle-blowers.