Exam 33: Agency Liability and Termination

An executive officer of a corporation normally can conduct ordinary business transactions without obtaining written authority from the corporation.

Lena is a salesperson for Musical Instruments, Inc. She tells Nayda, a customer, that an instrument has a certain quality when, as Lena knows, it does not. In reliance, Nayda buys the instrument. Liable for this misrepresen?ta?tion is

When the parties terminate an agency, it is the principal's duty to notify any third parties who know of the existence of the agency that it has been terminated.

Apparent authority usually comes into existence through a principal's pattern of conduct over time.

An agent's implied authority can be implied by custom.

Donald approves on behalf of Evelyn-but without authorization-a contract with Farouk to build a new silo. Evelyn does not ratify the contract. The deal with Farouk is

Bayou Development Corporation hires Coastal Brokerage Associates to sell the condominiums in a building at Bayou Development's resort. The agency will terminate

A principal's ratification of an agent's unauthorized act must be express.

Darwin serves in a representative capacity for Ewan. To accomplish the objectives of this relationship, Darwin's authority can be implied

Linus hires Mieko to act as his agent to purchase Ngoc's Southeast Asian Buffet. Linus tells Mieko to reveal only that she is buying the restaurant on behalf of a third party, without telling Ngoc's seller who that third party is. Linus is

Clark hires Dimitri to act as his agent to purchase Expo Sports Arena, Inc. Clark tells Dimitri to reveal that he is buying the firm and its assets on behalf of a third party and to tell the seller who that third party is. Clark is

Garry drives a truck as an employee for Heavy Hauling, Inc. Garry would most likely be considered acting outside the scope of her employment if he

An undisclosed principal is not liable to a third party for a contract made by an agent.

Rodney is an employee of Security Services, Inc. In deciding whether Rodney acts within the scope of his employment when he commits a tort against Tracy, a court will not con?sider whether

Mikayla, an agent for Nahir, enters into a contract on Nahir's behalf with Onora that must be in writing to be enforceable under the Statute of Frauds. Mikayla's authority to enter into this contract is not in writing. Under the equal dignity rule, this contract is

Reliable Insurance Company employs Stuart as an agent. To terminate Stuart's authority, Reliable Insurance must notify

Orina hires Padget, a real estate broker, to sell her oceanfront house. The house is destroyed in a hurricane be?fore being sold. Padget is

A special power of attorney permits an agent to transact all business for a principal.

Under the doctrine of respondeat superior, a principal may be liable for any harm that his or her agent causes to a third party.

Fact Pattern 33-1B (Questions B14-B15 apply) Barney hires Clean Air, Inc., to install a new air conditioning system in his Dental Clinic, LLP. Barney does not have the right to control the details of Clean Air's performance. -Refer to Fact Pattern 33-1B. The relationship be?tween Barney and Clean Air is