Exam 10: Agency and Employment Relationships

If an agent possesses important facts directly related to his agency relationship but withholds those facts from the principal,the agent has breached her duty of ______.

Courts will apply the ________ analysis to determine the classification of an agent.

If an agent suffers losses while acting for the principal,the principal has a duty to indemnify the agent for those losses.

Robin is an employee-at-will and works from 8 am until 6:30 pm Monday through Thursday.She gets ½ hour for lunch.It is a presidential election day and she goes to the polls at lunch where she discovers a one hour line.She calls her employer who tells her she has to be back within the ½ hour.She is told that the polls close at 6 pm so she stays because she really wants to vote.When she returns to work late she is fired.The employer may do so under the employment-at-will doctrine.

Vince is a general contractor who hires Brad to install plumbing in a government building under construction.The morning that Brad is to begin work,Vince discovers that Brad has lost his plumbing license and is no longer eligible to do work on government buildings.When Brad shows up ready to work,Vince informs him that he can't use his services and sends him away.The agency relationship terminated due to operation of law.

In a disclosed agency situation,the agent is not contractually liable to the third party.

The Restatement (Third)of Agency has been adopted in about half of the states.

Rob agrees to act as an agent for Diane in selling her car.Diane has a duty of loyalty to Rob.

Actual authority is the authority that the third party may reasonably assume that the agent possesses.

What is meant by ratification and what three options does a principal have when confronted by a situation involving ratification?

The nonagent employee relationship is sometimes referred too as the:

Courts will apply a subjective standard when examining the existence of offer and acceptance by the parties when creating an agency relationship.

Mike worked for Frank's Pizza as a driver and is an agent.His duties consisted of making deliveries along a designated route.One day Mike decided to see his girlfriend,Jackie,who lived 50 miles out of his pizza route.While driving to his girlfriend's,Mike injured a pedestrian,Chuck.The accident was caused because of Mike's negligent driving.Chuck is now suing both Mike and Frank's for personal injuries.Under the circumstances:

Sanchez borrowed money from Fifth National Bank to buy a car.She defaulted on the loan.Fifth National hired Rex's Recovery Service to repossess the car for a set fee.They were simply told to locate and seize the car.Rex's would be classified as a/an:

Which of the following is not an exception to the employment-at-will doctrine?

An agent may work for two principals at the same time if the agent deals fairly with both.

In an agency relationship the principal's control must be total and continuous over the agent.

Craig has been hired by Brian to negotiate a deal with Rudy.Brian instructs Craig that while in Rudy's office,should he be able to steal the Johnson file he is to do so.If Craig has the opportunity to steal the file but fails to do so,he is in violation of his duty of obedience and to follow his principal's instructions.

Each state follows its own individual whistle-blower statute.

A gratuitous agent: