Exam 36: Third-Party Relations of the Principal and the Agent

Hillary tells Iris that she wants to buy Iris's house "on behalf of a party who wishes her identity not to be known." The party is Baker Associates.With Baker's consent,Hillary contracts with Iris on Baker's behalf to buy the house.What is Hillary's liability on this contract?

An agent who has total control over a piece of property has implied authority to contract for repairs.

Ralph,the owner of a medium-sized business operated as a sole proprietorship,gives his vice-president,Wanda,authority to hire a new manager for the firm.Ralph gives Wanda detailed instructions about the salary she can contract to pay,but tells her that under no circumstances can she make commitments regarding the new manager's pension.Wanda contracts to hire Nick for the new managerial position.But to get Nick to sign up,she has to make certain specific pension commitments to him.Some years later,Nick sues Ralph for failing to fulfill the pension commitments.Which of the following is true in this case?

Ordinarily,an agent is not liable for unauthorized acts made on behalf of a principal if:

Which of the following determines an agent's actual authority?

Which of the following is true regarding the requirements of ratification?

What is an employer's liability based on under respondeat superior?

Tara,an agent,enters into a contract on behalf of Sue to buy 100 pencils for $1 each and 100 pens for $2 each.Sue determines that Tara got a good price for pencils but made a poor deal on pens.Sue indicates she wishes to ratify only the agreement to buy pencils.Has Sue acted properly?

Briefly discuss the four tests courts use to determine if an employee's conduct was within his or her scope of employment.

Penny,acting as an agent for Felipe,enters into a contract with Tanya,but Tanya knows that Penny does not have authority to enter into contracts on Felipe's behalf.Is Penny liable for making an unauthorized contract?

Sandra hired Jeff to work as a taxi driver for Sandra.Jeff had a long criminal record for violent assaults,including three cases of vehicular homicide.However,Sandra was not aware of this and she does not check employees' criminal records.While Jeff was driving a passenger,Ben,they got involved in a heated argument.Jeff pulled Ben out of his car and hit him.Which of the following is true of this case?

Abel was employed as a security guard for Seep Corporation.Abel's job was to guard a fenced-in area and to use force to keep intruders from climbing the fence to enter the plant.His working hours were from 8:00 A.M.to 5:00 P.M.At about 11:00 P.M.one evening,Abel drove past his place of employment.He saw a teenager named Johnny climbing the outside of the fence that he guarded during the day.Angered by this violation of Seep's property rights and by the fact that Johnny had called him a "potbellied moron" only three days earlier,Abel stopped his car,ran up to the fence,pulled Johnny off of it,and beat him up.Johnny sues Seep Corporation for Abel's assault and battery (both intentional torts).Which of the following is most likely to be the court's verdict?

________ is the authority the principal wants the agent to possess and is based on the principal's communications or manifestations to the agent.

Respondeat superior makes a principal liable for an employee's negligence but not for her intentional torts.

Which of the following states that the agent has authority only to make representation contained in the contract and that only those representations bind the principal?

Which of the following is true of implied authority?

When a principal is liable for an agent's actions to a third party because the third party detrimentally changed his position based on a reasonable belief that the agent was acting with the authority of the principal,what is this called?

What is the most important factor in considering whether an agent is an employee?

Maria authorizes Frederick to sell her Maria-branded tee-shirts for $20 or more.Frederick sells the tee-shirts for $25 each.What type of authority gives Frederick authority to sell the tee-shirts?

What is it called when both principal and agent are liable for an agent's torts?