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

Express authority is created by:

The state of Indiana hires the Reliable Construction Company to do some excavation work on an interstate highway.The state lays out the general objectives that Reliable has to achieve,but the details of the job are up to Reliable.The job involves digging holes ten feet deep,the whole way,across the highway.Given the nature of the job,it's important that Reliable be especially careful in putting up flashers and warning signs to steer oncoming motorists onto a detour.Reliable,however,does not do an adequate job in this regard and motorists are continually driving their cars into the construction area at high speed.One of these drivers,Tim,is unable to stop in time,and drives his car into the hole,suffering severe personal injury and damage to his car.Tim sues Reliable and the state for Reliable's negligence.In this case:

Why is estoppel different from apparent authority?

The principal's ratification of a contract can be implied from his conduct,even if the principal says nothing to ratify.

A principal is ________ if a third party knows or has a reason to know that the agent is acting for a principal and the principal's identity.

Phillips hires Addis,who had sixteen prior convictions for the use of hallucinogenic drugs,as an air traffic controller for his private airport.Phillips could easily have discovered the convictions had he made a routine criminal record check,but that was too much trouble.Phillips knew nothing whatsoever about the job of an air traffic controller,and,when he hired Addis,merely told him to "get the planes in safely the best way you know how;the details are up to you." One day,Phillips held a private birthday party for a celebrity and invited 20 of his rich and famous friends,all of whom were to arrive by a private jet.As it turned out,Addis was under the influence of drugs on this day and,as a result,all 20 of Phillips's friends were killed.After this national tragedy,Phillips and Addis were sued for negligence by the estates of the victims.In this case:

Lee,a landlord,hires Shomo,a repairman,to fix a broken staircase in the house occupied by his tenants,the Grants.However,Mrs.Grant has an accident while climbing down the stairs and injures herself severely.It was found that Shomo had not fixed the staircase properly,which caused this accident.Which of the following is true of this situation?

Why is it impossible for there to be apparent authority on behalf of an undisclosed principal?

An agent is not liable for making an unauthorized contract if:

A principal is liable for the misrepresentations made by an agent during a transaction with a third party.

When is a principal directly liable for tortious behavior connected with the retention of a nonemployee agent?

When do exculpatory clauses not protect a principal?

If an agent has,within the scope of the agency relationship,committed both negligent and intentional acts resulting in injury to third parties,the principal:

The doctrine of respondeat superior means:

Implied ratification arises when:

Yvonne authorizes Warren to act as her agent and sell her vehicle.Yvonne tells Warren her vehicle has never been in an accident,and Warren,despite knowing Yvonne had been in an accident a year ago in the car,passes this information on to the buyer.Is Warren liable for the misrepresentation?

What is the nature of the principal if a third party knows that the agent is acting for the principal and also is aware of the principal's identity?

Stan hired Mason to work as a janitor in Stan's apartment building.Mason was negligent.He left the floor in the building lobby wet and slippery without putting up a warning sign.Martha slipped and fell on the wet floor.If Stan is liable for this accident,what is the source of his liability?

Marcus is an agent for Leo and Marcus is authorized to buy a car for Leo.Marcus discloses to all car dealers that he is acting on Leo's behalf to buy the car.Leo is a(n)________.

________ occurs when a principal manifests assent that his legal relations be affected,such as stating orally that he wishes to be bound by a contract that has already been made.