Exam 28: Relationship of Principal and Agent

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.

By the operation of law, the occurrence of certain events will automatically terminate an agency relationship.

The contractual duties owed by a principal to an agent are the duties of:

The result of an agent's functioning is exactly the same as if the principal had dealt directly with the third person.

A fiduciary duty, arising out of a relationship of trust and confidence, is one of utmost loyalty and good faith.

All employees are agents, but not all agents are employees.

An agent may lose the right to compensation:

An "electronic agent" is not a true agent since it is not a person.

Which of the following is NOT a major duty, which the agent owes to the principal?

Harold, an artist, contracts to paint a portrait of Irene from a photograph.However, he has one of his students do the actual work.This is a proper delegation of authority to an agent.

An agent's duty to inform:

When is an agency relationship irrevocable?

Linton, as a sales agent for Nancy, may keep the money for Nancy's business sales in his personal bank account until due to her as long as he keeps accurate records of the amounts he must separate out to pay to her.

The Third Restatement specifies that an agency is automatically terminated when the principal goes bankrupt.

An agent will not be authorized to act for a principal unless he receives some consideration for the task.

Carl loans Dan $1,500 for Dan's honeymoon.Dan gives Carl his ruby ring as security for the loan and after a year, tells Carl he may as well sell it to recoup the $1,500.When Dan's wife hears of this, she persuades Dan to call Carl and get back the ring.Can Carl sell it anyway?

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

A minor cannot act as an agent.

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

When the agency terminates, the agent's duty of confidentiality continues.