Exam 36: Agency

A person who has knowledge of a limitation on an agent's authority cannot disregard that limitation.

Which of the following is not a necessary condition for ratification?

A durable power of attorney may be terminated by: ______.

The principal has a duty to perform all of the following except: ______.

A person has apparent authority as an agent when the principal's words or conduct leads a third person to reasonably believe that the person has that authority and the third person relies on that appearance.

It is the duty of an agent to act with the care that: ______.

Ames, an agent for Baker Antiques, had the authority to purchase early 20th-century American furniture costing a maximum of $1,500 per piece. Ames bought a 19th-century French desk for $3,000 from Carter. Baker was furious when she saw the desk, and she fired Ames. Nevertheless, she put the desk on display in the shop with a $5,000 price tag. When the best offer she got for the desk was $2,500, Baker returned the desk to Carter. Baker told Carter that Ames had exceeded his authority in purchasing the desk, and she demanded that Carter refund the $3,000 that Ames had paid for the desk. Will Carter have to do so?

The scope of an agent's authority is always known by the third party.

The term apparent authority is used when there is: ______.

The intention to ratify an unauthorized act may be expressed by words or conduct.

An agency may arise by appointment, conduct, ratification, or operation of law.

Ann was seriously ill and feared that she might lapse into a coma or somehow become unable to speak or act for herself in her medical emergency. She is aware that agents ordinarily lose their authority to act for principals who become mentally disabled. She nevertheless desires to have her husband Alberto make medical decisions and speak on her behalf. She is particularly concerned about existing on life support in a persistent and incurable vegetative state. Is there any action that she might take to enable Alberto to act for her?

If a principal terminates an agency without giving notice of the termination to third persons, the agent may retain the power to make contracts that will bind the principal and third persons.

A contractor's work can be so controlled by the hiring party that the contractor is regarded as an employee of the hiring person.

The acts of the agent obligate the principal to third persons and give the principal rights against third persons.

A third person who deals with a person claiming to be an agent: ______.

The Uniform Durable Power of Attorney Act (UDPAA) changes the general rule that insanity of a principal terminates an agent's authority to act for the principal.

A written authorization of agency is called a power of attorney.

An employer does not have control over the performance of the work done by an independent contractor.

An agent has implied __________ authority to do any act that usually accompanies the transaction for which the agent is authorized to act.