Question 1

Discuss the nature of agency,including the scope of agency purposes.

Accepted Answer

Agency is a consensual relationship betw

Question 2

The duty of obedience owed by an agent to a principal is not breached and will not result in liability to the principal by an agent's refusal to do an illegal or tortious act for the principal.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not a breach of an agent's duty of obedience?

Accepted Answer

A) Entering into an unauthorized contract for which his or her principal is then liable. 
B) Committing a tort for which the principal is now liable. 
C) Improperly delegating her authority. 
D) Not following a principal's instruction to misrepresent the quality of a competitor's goods to a potential customer. 
A) Entering into an unauthorized contract for which his or her principal is then liable. 
B) Committing a tort for which the principal is now liable. 
C) Improperly delegating her authority. 
D) Not following a principal's instruction to misrepresent the quality of a competitor's goods to a potential customer.

Question 4

The Third Restatement specifies that an agency is automatically terminated when the principal goes bankrupt.

Accepted Answer

A) True 
 B)False

Question 5

The concept of conflict of interest as it relates to the law of agency includes which of the following?

Accepted Answer

A) An agent may take a position that conflicts with the principal only if the principal, with full knowledge of all the facts, consents. 
B) An agent may not represent her principal in a transaction in which the agent has a personal interest. 
C) An agent may not act on behalf of adverse parties to a transaction without both principals' approval of the dual agency. 
D) All of the above. 
A) An agent may take a position that conflicts with the principal only if the principal, with full knowledge of all the facts, consents. 
B) An agent may not represent her principal in a transaction in which the agent has a personal interest. 
C) An agent may not act on behalf of adverse parties to a transaction without both principals' approval of the dual agency. 
D) All of the above.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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.Mark has not breached his fiduciary duty to his principal.

Accepted Answer

A) True 
 B)False

Question 8

When the agency terminates,the agent's duty of confidentiality continues.

Accepted Answer

A) True 
 B)False

Question 9

Linton,as a sales agent for Nancy,may keep the money for the sales in his personal bank account until due to her as long as he keeps accurate records of the amounts he must separate out to pay to her.

Accepted Answer

A) True 
 B)False

Question 10

If Elizabeth,agent for Wade,finds out one of Wade's customers has become insolvent,she has the duty to communicate this information to Wade.

Accepted Answer

A) True 
 B)False

Question 11

An agency contract appointing the agent for a period of more than one year must be in writing.

Accepted Answer

A) True 
 B)False

Question 12

An agent is not required to keep which of the following information confidential?

Accepted Answer

A) Unique business methods. 
B) Customer lists. 
C) Information that his or her principal is engaged in criminal activity. 
D) Business plans. 
A) Unique business methods. 
B) Customer lists. 
C) Information that his or her principal is engaged in criminal activity. 
D) Business plans.

Question 13

All employees are agents,but not all agents are employees.

Accepted Answer

A) True 
 B)False

Question 14

If an agent receives a gift from a third person with whom he is dealing on behalf of the principal,he can keep it without notifying the principal.

Accepted Answer

A) True 
 B)False

Question 15

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.

Question 16

An "electronic agent" is not a true agent since it is not a person.

Accepted Answer

A) True 
 B)False

Question 17

A minor cannot act as an agent.

Accepted Answer

A) True 
 B)False

Question 18

Carson,who is an agent for Peter,breaches his fiduciary duty to Peter.Carson:

Accepted Answer

A) is liable to Peter for breach of contract. 
B) is liable to Peter in tort for any losses caused by the breach. 
C) must make restitution for any profits or property received in breach of this duty. 
D) All of the above are correct. 
A) is liable to Peter for breach of contract. 
B) is liable to Peter in tort for any losses caused by the breach. 
C) must make restitution for any profits or property received in breach of this duty. 
D) All of the above are correct.

Question 19

In the case of Del Pilar v.DHL Global Customer Solutions (USA),Inc.,the court determined that:

Accepted Answer

A) whether a person is an employee or an independent contractor is a question of fact. 
B) generally a principal is vicariously liable for the negligence of its agent or its independent contractor. 
C) whether someone is an employee or an independent contractor is determined by the descriptive labels employed by the parties in their contract. 
D) Both (a) and (c). 
E) All of the above. 
A) whether a person is an employee or an independent contractor is a question of fact. 
B) generally a principal is vicariously liable for the negligence of its agent or its independent contractor. 
C) whether someone is an employee or an independent contractor is determined by the descriptive labels employed by the parties in their contract. 
D) Both (a) and (c). 
E) All of the above.

Question 20

A plumber hired to redo the plumbing in a building is an independent contractor and an agent of the owner of the building.

Accepted Answer

A) True 
 B)False

Exam 28: Relationship of Principal and Agent

Discuss the nature of agency,including the scope of agency purposes.

The duty of obedience owed by an agent to a principal is not breached and will not result in liability to the principal by an agent's refusal to do an illegal or tortious act for the principal.

Which of the following is not a breach of an agent's duty of obedience?

The Third Restatement specifies that an agency is automatically terminated when the principal goes bankrupt.

The concept of conflict of interest as it relates to the law of agency includes which of the following?

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

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.Mark has not breached his fiduciary duty to his principal.

When the agency terminates,the agent's duty of confidentiality continues.

Linton,as a sales agent for Nancy,may keep the money for the sales in his personal bank account until due to her as long as he keeps accurate records of the amounts he must separate out to pay to her.

If Elizabeth,agent for Wade,finds out one of Wade's customers has become insolvent,she has the duty to communicate this information to Wade.

An agency contract appointing the agent for a period of more than one year must be in writing.

An agent is not required to keep which of the following information confidential?

All employees are agents,but not all agents are employees.

If an agent receives a gift from a third person with whom he is dealing on behalf of the principal,he can keep it without notifying the principal.

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.

An "electronic agent" is not a true agent since it is not a person.

A minor cannot act as an agent.

Carson,who is an agent for Peter,breaches his fiduciary duty to Peter.Carson:

In the case of Del Pilar v.DHL Global Customer Solutions (USA),Inc.,the court determined that:

A plumber hired to redo the plumbing in a building is an independent contractor and an agent of the owner of the building.

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 and 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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