Question 1

Which of the following is true if a third party comes to know of an undisclosed principal's identity and obtains a judgment against the principal?

Accepted Answer

A)  The agent remains liable to the third party. 
B)  The agent remains liable to the third party unless the dispute involves an amount less than $1,000 in which case the agent is released. 
C)  The agent remains liable to the third party unless the dispute involves an amount less than $500 in which case the agent is released. 
D)  The agent is released from liability to the third party. 
E)  The agent is released from liability to the third party unless the principal resides in another state and has not paid the judgment within 30 days from when it was rendered. 
A)  The agent remains liable to the third party. 
B)  The agent remains liable to the third party unless the dispute involves an amount less than $1,000 in which case the agent is released. 
C)  The agent remains liable to the third party unless the dispute involves an amount less than $500 in which case the agent is released. 
D)  The agent is released from liability to the third party. 
E)  The agent is released from liability to the third party unless the principal resides in another state and has not paid the judgment within 30 days from when it was rendered.

Question 2

Which of the following is false regarding termination of agency based on operation of law?

Accepted Answer

A)  Impossibility of performance terminates the agency relationship. 
B)  An agency agreement is terminated whenever the agent, unknown to the principal, acquires an interest against the principal's interest. 
C)  The agency agreement is terminated if the agent breaches the duty of loyalty he or she has to the principal. 
D)  A change in law passed subsequent to the formation of an agency agreement may not result in termination of the agency agreement. 
E)  If there is an unusual change in circumstances that leads the agent to believe that the principal's instructions do not apply, the agency relationship terminates. 
A)  Impossibility of performance terminates the agency relationship. 
B)  An agency agreement is terminated whenever the agent, unknown to the principal, acquires an interest against the principal's interest. 
C)  The agency agreement is terminated if the agent breaches the duty of loyalty he or she has to the principal. 
D)  A change in law passed subsequent to the formation of an agency agreement may not result in termination of the agency agreement. 
E)  If there is an unusual change in circumstances that leads the agent to believe that the principal's instructions do not apply, the agency relationship terminates.

Question 3

Which of the following is true regarding liability of a principal if a contract an agent makes with a third party expressly excludes the principal from the contract?

Accepted Answer

A)  The principal is liable on the contract because it is unconscionable to exclude a principal from a contract. 
B)  The principal is liable on the contract only if the principal is an unidentified principal. 
C)  The principal is liable on the contract only if the principal is a partially disclosed principal. 
D)  The principal is liable on the contract unless the principal gave the agent authority in writing to make the agreement with the third party. 
E)  The principal is not liable on the contract. 
A)  The principal is liable on the contract because it is unconscionable to exclude a principal from a contract. 
B)  The principal is liable on the contract only if the principal is an unidentified principal. 
C)  The principal is liable on the contract only if the principal is a partially disclosed principal. 
D)  The principal is liable on the contract unless the principal gave the agent authority in writing to make the agreement with the third party. 
E)  The principal is not liable on the contract.

Question 4

If an agent commits a crime in the scope of employment for a principal without the authorization of the principal,the principal is not liable for the agent's crime.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following specifies that the agent's authority is intended to continue beyond the principal's incapacitation?

Accepted Answer

A)  Special power of attorney 
B)  Durable power of attorney 
C)  Nonterminable power of attorney 
D)  Permanent power of attorney 
E)  Living power of attorney 
A)  Special power of attorney 
B)  Durable power of attorney 
C)  Nonterminable power of attorney 
D)  Permanent power of attorney 
E)  Living power of attorney

Exam 34: Liability to Third Parties and Termination

Which of the following is true if a third party comes to know of an undisclosed principal's identity and obtains a judgment against the principal?

Which of the following is false regarding termination of agency based on operation of law?

Which of the following is true regarding liability of a principal if a contract an agent makes with a third party expressly excludes the principal from the contract?

If an agent commits a crime in the scope of employment for a principal without the authorization of the principal,the principal is not liable for the agent's crime.

Which of the following specifies that the agent's authority is intended to continue beyond the principal's incapacitation?

An Introduction to Dynamic Business Law

Business Ethics

The Uslegal System

Alternative Dispute Resolution

Constitutional Principles

International and Comparative Law

Crime and the Business Community

Tort Law

Negligence and Strict Liability

Product Liability

Liability of Accountants and Other Professionals

Intellectual Property

Introduction to Contracts

Agreement

Consideration

Capacity and Illegality

Reality of Assent

Contracts in Writing

Third Party Rights to Contracts

Performance,Breach of Contract,discharge,and Remedies

Introduction to Sales and Lease Contracts

Title,Risk of Loss,and Insurable Interest

Performance and Obligations Under Sales and Lease Contracts

Remedies for Breach of Sales and Lease Contracts

Warranties

Negotiable Instruments: Negotiability and Transferability

Negotiation, Holder in Due Course, and Defenses

Liability,defenses,and Discharge

Checks and Electronic Fund Transfers

Secured Transactions

Other Creditors Remedies and Suretyship

Bankruptcy and Reorganization

Agency Formation and Duties

Forms of Business Organizations

Partnerships: Nature, Formation, and Operation

Partnerships: Termination and Limited Partnerships

Corporations: Formation and Financing

Corporations: Directors, Officers, and Shareholders

Corporations: Mergers, Consolidations, and Termination

Corporations: Securities and Investor Protection

Employment and Labor Law

Employment Discrimination

Administrative Law

Consumer Law

Environmental Law

Antitrust Law

The Nature of Property, Personal Property, and Bailments

Real Property

Landlord-Tenant Law

Insurance Law

Wills and Trusts

Filters