Question 1

A minor cannot act as an agent.

Accepted Answer

A) True 
 B)False

Question 2

Agency is a consensual relationship that the principal and agent may form by contract or agreement.

Accepted Answer

A) True 
 B)False

Question 3

The fiduciary duty of an agent has no bearing upon his ability to act on behalf of a competitor of his principal.

Accepted Answer

A) True 
 B)False

Question 4

An agent may lose the right to compensation:

Accepted Answer

A) by breaching the agency contract willfully and deliberately. 
B) if the specified result of the contract is not obtained. 
C) if the duty of loyalty is breached. 
D) All of the above 
E) None of the above. 
A) by breaching the agency contract willfully and deliberately. 
B) if the specified result of the contract is not obtained. 
C) if the duty of loyalty is breached. 
D) All of the above 
E) None of the above.

Question 5

All independent contractors are agents, but not all agents are independent contractors.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

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

Question 7

Agency relationships are governed primarily by federal statute.

Accepted Answer

A) True 
 B)False

Question 8

When is an agency relationship irrevocable?

Accepted Answer

A) It is never irrevocable. 
B) When the agency is coupled with an interest of the agent in the subject matter. 
C) When the principal violates his duties to the agent. 
D) When the agent is a fiduciary. 
A) It is never irrevocable. 
B) When the agency is coupled with an interest of the agent in the subject matter. 
C) When the principal violates his duties to the agent. 
D) When the agent is a fiduciary.

Question 9

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

Accepted Answer

a.Agency is terminated by: (1) acts of t

Question 10

The Electronic Signatures in Global and National Commerce Act validates:

Accepted Answer

A) contracts relating to transactions affecting interstate commerce formed by electronic agents as long as the action of the electronic agent is legally attributable to the person to be bound. 
B) electronic signatures on codicils and testamentary trusts. 
C) electronic signatures on divorces and other matters of family law. 
D) electronic signatures on contracts governed by the UCC, other than sales and leases of goods. 
E) All of the above. 
A) contracts relating to transactions affecting interstate commerce formed by electronic agents as long as the action of the electronic agent is legally attributable to the person to be bound. 
B) electronic signatures on codicils and testamentary trusts. 
C) electronic signatures on divorces and other matters of family law. 
D) electronic signatures on contracts governed by the UCC, other than sales and leases of goods. 
E) All of the above.

Question 11

An agent must act solely in the interest of his principal in all acts that would affect the principal's business.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

An agent has breached his fiduciary duty in which of the following situations?

Accepted Answer

A) All of the following choices are correct answers. 
B) Where the agent makes a secret profit. 
C) Where the agent uses information obtained in the course of the agency for his own benefit. 
D) Where the agent competes with the principal. 
A) All of the following choices are correct answers. 
B) Where the agent makes a secret profit. 
C) Where the agent uses information obtained in the course of the agency for his own benefit. 
D) Where the agent competes with the principal.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

A principal owes to any agent the same duties under tort law that the principal owes to all parties.

Accepted Answer

A) True 
 B)False

Question 16

Anna employs Mark to purchase for her a suitable site for a roller rink.Mark owns a huge site himself and sells it to Anna at fair market value without disclosing to her that he is the owner of the land.Anna may not rescind the transaction, because Mark has not breached his fiduciary duty to his principal.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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 the above. 
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 the above.

Question 19

Which of the following will terminate a power given as security?

Accepted Answer

A) The death of the creator. 
B) Revocation of the power. 
C) The incapacity of the creator. 
D) None of the above. 
A) The death of the creator. 
B) Revocation of the power. 
C) The incapacity of the creator. 
D) None of the above.

Question 20

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 the above 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 the above are correct.

Exam 29: Relationship of Principal and Agent

A minor cannot act as an agent.

Agency is a consensual relationship that the principal and agent may form by contract or agreement.

The fiduciary duty of an agent has no bearing upon his ability to act on behalf of a competitor of his principal.

An agent may lose the right to compensation:

All independent contractors are agents, but not all agents are independent contractors.

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

Agency relationships are governed primarily by federal statute.

When is an agency relationship irrevocable?

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

The Electronic Signatures in Global and National Commerce Act validates:

An agent must act solely in the interest of his principal in all acts that would affect the principal's business.

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

An agent has breached his fiduciary duty in which of the following situations?

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

A principal owes to any agent the same duties under tort law that the principal owes to all parties.

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

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

Which of the following will terminate a power given as security?

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.

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

Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Relationship With Third Parties

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

Antitrust

Accountants Legal Liability

Consumer Protection

Environmental Law

International Business Law

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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