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

A principal will not be liable to a third party for a tort committed by an agent:

How does agency law stimulate business activity?

An agent's implied authority is always considered superior in law,and thus can contradict principal's express statements.

Corine engaged Datz as her agent.It was mutually agreed that Datz would not disclose that he was acting as Corine's agent.Instead he was to deal with prospective customers as if he were a principal acting on his own behalf.In accordance with this agreement,he made several contracts for Corine.If a third party filed a lawsuit on one of the contracts,which of the following statements would be true?

Adam hired Kim as his agent to drive a cab.On his first day on the job,Kim hit a pedestrian who suffered serious injuries.The pedestrian wants to file a suit against both Adams and Kim.Can he file a single suit against both of them?

Dart Corp.dismissed Ritz as its general sales agent and hired Parker as its new general sales agent.Parker provided notice to Bing Corp. ,a retail outlet,that he was taking over as general sales agent and Bing was no longer authorized to make sales for Dart Corp.Ritz subsequently sold Bing Corp.goods to be delivered by Dart Corp.and accepted a standard 20 percent cash deposit for the sale of goods,which is common in the industry.  In an action by Bing against Dart on the sales contract,which of the following is true?

Maco Corp.is a real estate development firm and regularly engages real estate brokers to act on its behalf in acquiring parcels of land.The brokers are authorized to enter into such contracts,but are instructed to do so in their own names without disclosing Maco's identity or Maco's relationship to the transaction.If a broker enters into a contract with a seller on Maco's behalf:

Jerry is a janitor for Marry Hotel.Jerry negligently left a mop and a bucket of water in the hallway.Gina,a guest of the Marry Hotel,exited her guest room and tripped over the bucket.She broke her leg.Who is liable? Discuss.

In which of the following cases is the agent,but not the principal,liable?

Principals may try to escape liability for an agent's misrepresentations by including ________.

Ordinarily a principal is not made liable for any of the torts committed by:

Apparent authority protects third parties who reasonably rely on the principal's manifestations that the agent has authority.

A principal is liable on a contract made by his agent if the agent had actual authority to make the contract.

What are the two types of authority an agent can have to make the principal liable on a contract made by the agent?

Respondeat superior liability depends on whether the principal himself was at fault.

Borg is the vice-president of purchasing for Crater Corp.He has authority to enter into purchase contracts on behalf of Crater provided that the price under a contract does not exceed $2 million.Dent,who is the president of Crater,is required to approve any contract that exceeds $2 million.Borg entered into a $2.5 million purchase contract with Shady Corp.without Dent's approval.Shady was unaware that Borg exceeded his authority.Neither party substantially changed its position in reliance on the contract.What is the most likely result of this transaction?

Nina hired Sue to work as a janitor in Nina's apartment building.Sue was negligent in that she left a crack in the marble staircase unrepaired,without putting up a warning sign.Seth slipped on the staircase and suffered severe injuries.Who is liable for this accident?

Respondeat superior makes a principal liable for which of the following?

To be within the scope of employment,the agent's conduct must have been completely motivated by the desire to serve his employer.

If a subagent contracts with a third party in an authorized transaction then who is liable by the subagent's actions?