Exam 22: Agency Law

Iris represents Drew, an eccentric billionaire who lives alone on a Pacific Island. Although Drew passes away on May 1^st, this fact is not revealed until June 1^st. On May 15^th, Iris enters into a contract with Peggy on behalf of Drew. What is the legal liability, if any, of Iris to Peggy?

When the purpose for which the agency was created is fulfilled, the agency is automatically terminated.

Smith, an agent, buys and sells used computer equipment on behalf of New Life Technologies, Inc. In the absence of an agreement, which of the following tasks may Smith delegate to Elizabeth?

Cars and Cars sells rebuilt parts to repair shops. Allan is Cars and Cars' agent in Smallville. He is paid a commission, but also has a quota to meet. Cars and Cars appoints a second agent, Amanda, in Smallville. This makes it difficult for Allan to meet his quota and also reduces his commissions. Discuss if Cars and Cars has violated any duty it owes Allan.

Henry owns a movie production house which is represented by a BigLaw Firm. He also owns a shipping agency which is represented by Chase Bank. The agency relationships will be terminated by the bankruptcy of which of the parties?

Jackson is a car purchasing agent for Highway Motors, a used car dealer. Jackson attends wholesale auto auctions and notices that some autos have consistently greater demand and higher prices. Jackson forms a car purchasing partnership with Viva Inc. to buy these cars from "for sale by owner" advertisements and then sell them in Viva's name at the auto auctions where Jackson purchases them for Highway. Discuss if Jackson has violated any duty he owes Highway Motors.

Repair Garage Company rents tools and stalls to independent auto mechanics to repair cars. Repair Garage allows Joe to print business cards reading "Repair Garage Company-Joe, Certified Mechanic." A customer is unhappy with the repairs Joe made to her car and sues Repair Garage. What legal theory, if any, would allow Repair to be sued by the customer?

An agent's duty of loyalty means she likely cannot act for:

Greta, an agent, receives money from clients of Wayne, her principal, on the fifteenth of each month. In the absence of an agreement, how frequently must Greta account to Wayne for the money she receives?

An independent contractor has no power to bind the proprietor to a contract, even if expressly authorized to do so.

If an agent becomes insane, it automatically terminates the authority of the agent.

Agency is a legal relationship in which an agent transacts business for a principal.

In which of the following situations can an agent legally appoint a subagent?

An agent must terminate an agency relationship by a written revocation.

The control test was created by the courts to uncover the true nature of the employment relationship for cases falling under statutory liability.

The "Opening Case" involved a question of whether the Diocese was vicariously liable for the intentional acts of one of its priests.

Tom is a real estate agent for Great Housing Co., which plans to purchase and build on a plot of land near Leadville. Tom learns that the building site may have been polluted with lead, but does not inform Great Housing Co. Great Housing Co. purchases the land and discovers the pollution when construction starts. Great Housing Co. asserts that it did not know of the lead pollution and should not be required to pay the clean-up cost. Discuss Great Housing's assertion.

Betty, the manager of The Great Retail Store, purchases a variety of merchandise on credit. When Betty quits, what notice must The Great Retail Store provide to its creditors?

The Uniform Electronic Transactions Act (UETA):

Simon sells illegal drugs for JY Laboratories with the understanding that JY Laboratories will receive fifty percent of the gross profits. JY Laboratories fails to honor this agreement. Discuss whether Simon may sue JY Laboratories to enforce the agreement.