Question 1

A __________ is a written, formal appointment of an agent.

Accepted Answer

A)  power of attorney 
B)  revocation 
C)  fiduciary 
D)  rescission 
A)  power of attorney 
B)  revocation 
C)  fiduciary 
D)  rescission

Question 2

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

Question 3

Whether an agency relationship has been created is determined by using a subjective test.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is correct with regard to the capacity of an agent?

Accepted Answer

A)  If an incompetent person who is not under guardianship appoints an agent, contracts made by that agent are voidable. 
B)  No mental capacity is necessary for an agent. 
C)  The incapacity of the agent disqualifies him from making a contract that is binding on his principal. 
D)  A young child or a person under guardianship has the capacity to act as an agent. 
A)  If an incompetent person who is not under guardianship appoints an agent, contracts made by that agent are voidable. 
B)  No mental capacity is necessary for an agent. 
C)  The incapacity of the agent disqualifies him from making a contract that is binding on his principal. 
D)  A young child or a person under guardianship has the capacity to act as an agent.

Question 5

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

Accepted Answer

A) True 
 B)False

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. 
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.

Question 7

If an agency is gratuitous, the principal ordinarily may revoke it without liability to the agent.

Accepted Answer

A) True 
 B)False

Question 8

A gratuitous agent is not subject to the same duty of loyalty that is imposed upon a paid agent.

Accepted Answer

A) True 
 B)False

Question 9

An agency contract appointing the agent for a period of more than one year must be in writing.

Accepted Answer

A) True 
 B)False

Question 10

Jones, an agent of Rossi, is authorized to sell Rossi's ownership of wheat on the commodities market on Monday.On Monday, however, the market opens with the lowest prices for wheat in two decades.Jones must go ahead and sell Rossi's wheat on Monday.

Accepted Answer

A) True 
 B)False

Question 11

Discuss the nature of agency, including the scope of agency purposes.

Accepted Answer

Agency is a consensual relationship betw

Question 12

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. 
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.

Question 13

The principal has a duty to indemnify the agent for losses incurred or suffered while acting as directed by the principal in a transaction which is not illegal or wrongful.

Accepted Answer

A) True 
 B)False

Question 14

All of the following except which one is a duty of an agent?

Accepted Answer

A)  Refrain from competing with his principal. 
B)  After the agency is terminated, refrain from using any information gained while an agent. 
C)  Inform his principal of any information relevant to his agency. 
D)  Account for money received on behalf of his principal. 
A)  Refrain from competing with his principal. 
B)  After the agency is terminated, refrain from using any information gained while an agent. 
C)  Inform his principal of any information relevant to his agency. 
D)  Account for money received on behalf of his principal.

Question 15

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

Accepted Answer

An independent contractor is someone who

Question 16

An agency agreement must always be in writing.

Accepted Answer

A) True 
 B)False

Question 17

Agents and principals have mutual fiduciary duties to one another.

Accepted Answer

A) True 
 B)False

Question 18

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 so

Question 19

Steven is a manufacturer's representative for Incell Corporation.One day he receives a big-screen television as a gift from one of the clients he contacts on behalf of Incell.

Accepted Answer

A)  Steven must account to Incell for the gift he has received. 
B)  The big-screen television belongs to Incell rather than to Steven. 
C)  If he keeps the TV without telling Incell, he will have breached his fiduciary duty. 
D)  All of these are correct. 
A)  Steven must account to Incell for the gift he has received. 
B)  The big-screen television belongs to Incell rather than to Steven. 
C)  If he keeps the TV without telling Incell, he will have breached his fiduciary duty. 
D)  All of these are correct.

Question 20

A plumber hired to redo the plumbing in a building is an independent contractor and an agent of the owner of the building.

Accepted Answer

A) True 
 B)False

Exam 28: Relationship of Principal and Agent

A __________ is a written, formal appointment of an agent.

E-Sign specifically excludes:

Whether an agency relationship has been created is determined by using a subjective test.

Which of the following is correct with regard to the capacity of an agent?

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

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

If an agency is gratuitous, the principal ordinarily may revoke it without liability to the agent.

A gratuitous agent is not subject to the same duty of loyalty that is imposed upon a paid agent.

An agency contract appointing the agent for a period of more than one year must be in writing.

Jones, an agent of Rossi, is authorized to sell Rossi's ownership of wheat on the commodities market on Monday.On Monday, however, the market opens with the lowest prices for wheat in two decades.Jones must go ahead and sell Rossi's wheat on Monday.

Discuss the nature of agency, including the scope of agency purposes.

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

The principal has a duty to indemnify the agent for losses incurred or suffered while acting as directed by the principal in a transaction which is not illegal or wrongful.

All of the following except which one is a duty of an agent?

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

An agency agreement must always be in writing.

Agents and principals have mutual fiduciary duties to one another.

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.

Steven is a manufacturer's representative for Incell Corporation.One day he receives a big-screen television as a gift from one of the clients he contacts on behalf of Incell.

A plumber hired to redo the plumbing in a building is an independent contractor and an agent of the owner of the building.

Introduction to Law

Business Ethicspart Ii: the Legal Environment of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Negligence and Strict Liabilitypart Iii: Contracts

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 Remediespart Iv: Sales

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remediespart V: Negotiable Instruments

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transferspart Vi: Agency

Relationship With Third Partiespart Vii: Business Associations

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 Corporationspart Viii: Debtor and Creditor Relations

Secured Transactions and Suretyship

Bankruptcypart Ix: Regulation of Business

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

International Business Lawpart X: Property

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

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