Question 1

Which of the following is not a way an agency relationship will terminate by acts of the parties?

Accepted Answer

A) Fulfillment of purpose 
B) Mutual agreement by the parties 
C) Change in circumstances 
D) Agency coupled with interest 
E) Renunciation by the agent 
A) Fulfillment of purpose 
B) Mutual agreement by the parties 
C) Change in circumstances 
D) Agency coupled with interest 
E) Renunciation by the agent C

Question 2

The most typical way to provide constructive notice of agency termination is ________.

Accepted Answer

A) By posting a notice at the courthouse 
B) By telephone 
C) By newspaper publication 
D) By e-mail 
E) By letter 
A) By posting a notice at the courthouse 
B) By telephone 
C) By newspaper publication 
D) By e-mail 
E) By letter C

Question 3

Provide the rationale behind the doctrine of respondeat superior and discuss whether ethically you believe this doctrine is an appropriate doctrine for our society.

Accepted Answer

The rationale behind the doctrine is that if the employer is benefiting by the work of the employee,the employer should also be responsible for the harms caused by the employee.Students will vary on whether ethically the doctrine is appropriate.On one hand,it seems unfair to hold a business owner liable for acts of negligence that were not his or her own.On the other hand,the employer hired the agent or employee and is benefiting from work performed.Additionally,the doctrine should encourage the exercise of care in hiring employees.

Question 4

Vicarious liability is assigned liability without fault.

Accepted Answer

A) True 
 B)False

Question 5

If a manager has business transactions in one of the European Union countries and wants to terminate an agency relationship,he or she would want to have access to knowledge about which of the following?

Accepted Answer

A) Chapter IV of the Agency Relationship Law 
B) Article VII of the European Union Regulations 
C) Article VI of the European Union Regulations 
D) Chapter VII of the Employment Relationship 
E) Section X of the Agency Regulations 
A) Chapter IV of the Agency Relationship Law 
B) Article VII of the European Union Regulations 
C) Article VI of the European Union Regulations 
D) Chapter VII of the Employment Relationship 
E) Section X of the Agency Regulations

Question 6

Courts must first identify whether property damage or personal injury,or both,is at issue when making decisions about an agency relationship's liability to third parties.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is true if an agent has no authority to act on behalf of a principal,but the agent still enters into a contract with a third party?

Accepted Answer

A) The principal is not bound unless the principal ratifies the agreement. 
B) The principal is bound only if the principal is a disclosed principal. 
C) The principal is bound only if the principal is a partially disclosed principal. 
D) The principal is bound unless the principal can establish clearly and convincingly that the agent was expressly barred from engaging in the conduct at issue. 
E) The principal is bound only if the principal is an unidentified principal. 
A) The principal is not bound unless the principal ratifies the agreement. 
B) The principal is bound only if the principal is a disclosed principal. 
C) The principal is bound only if the principal is a partially disclosed principal. 
D) The principal is bound unless the principal can establish clearly and convincingly that the agent was expressly barred from engaging in the conduct at issue. 
E) The principal is bound only if the principal is an unidentified principal.

Question 8

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

Accepted Answer

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

Question 9

Which of the following represented the position of the Supreme Court of Tennessee in the Case Opener in which the plaintiff attempted to hold a hospital vicariously liable for her injuries?

Accepted Answer

A) That because the plaintiff dismissed the hospital's alleged agent from the lawsuit,she could not proceed even though she had sued the hospital before dismissing the agent. 
B) That the plaintiff could proceed but only because she had already established liability on the part of the physician employees involved. 
C) That the plaintiff was barred from proceeding because vicarious liability is not recognized in the medical malpractice arena. 
D) That the hospital could be held vicariously liable if the plaintiff established that a wrongful act harming her occurred within the scope of the agent's employment. 
E) That a defendant in the position of the hospital is vicariously liable for injuries received within its premises without a need for further proof. 
A) That because the plaintiff dismissed the hospital's alleged agent from the lawsuit,she could not proceed even though she had sued the hospital before dismissing the agent. 
B) That the plaintiff could proceed but only because she had already established liability on the part of the physician employees involved. 
C) That the plaintiff was barred from proceeding because vicarious liability is not recognized in the medical malpractice arena. 
D) That the hospital could be held vicariously liable if the plaintiff established that a wrongful act harming her occurred within the scope of the agent's employment. 
E) That a defendant in the position of the hospital is vicariously liable for injuries received within its premises without a need for further proof.

Question 10

There are two basic types of power of attorney: special and allocated.

Accepted Answer

A) True 
 B)False

Question 11

Lena,who was angry with her business law teacher,Dominick,because of a hard test,angrily watched him come into the restaurant where she worked as a server.She noticed that he had on his new designer suit,the one he wore when he wanted to impress the chancellor.Lena completely lost her temper,threw a drink on Dominick,and then reached across the table and punched him in the eye.The police were called.Dominick says that he wants both Lena and the owner of the restaurant,Aaliyah,arrested.Assuming that Lena committed the crimes of assault and battery,is Aaliyah also criminally responsible? Provide reasoning in support of the conclusion.

Accepted Answer

If an agent commits a crime,clearly the

Question 12

Agent liability not only applies to how an agent treats a customer,they also apply to how the agent treats employees too.

Accepted Answer

A) True 
 B)False

Question 13

Under the UCC,if an agent enters into a contract that is a negotiable instrument,which of the following is true regarding the liability of the principal?

Accepted Answer

A) The principal cannot be held liable unless the agent's signature indicates that it was made in a representative capacity. 
B) The principal cannot be held liable unless the principal's name is on the instrument or the agent's signature indicates that it was made in a representative capacity,or the agent has been ruled insolvent. 
C) The principal cannot be held liable unless the principal's name is on the instrument. 
D) The principal is liable to the same extent as if no negotiable instrument were involved because the negotiable instrument has no effect on the principal's liability. 
E) The principal cannot be held liable unless the principal's name is on the instrument or the agent's signature indicates that it was made in a representative capacity. 
A) The principal cannot be held liable unless the agent's signature indicates that it was made in a representative capacity. 
B) The principal cannot be held liable unless the principal's name is on the instrument or the agent's signature indicates that it was made in a representative capacity,or the agent has been ruled insolvent. 
C) The principal cannot be held liable unless the principal's name is on the instrument. 
D) The principal is liable to the same extent as if no negotiable instrument were involved because the negotiable instrument has no effect on the principal's liability. 
E) The principal cannot be held liable unless the principal's name is on the instrument or the agent's signature indicates that it was made in a representative capacity.

Question 14

What type of principal exists when his or her identity is not known but the third party is aware that the agent is making an agreement on behalf of the principal?

Accepted Answer

A) Partially disclosed principal 
B) Identified principal 
C) Undisclosed principal 
D) Partially identified principal 
E) Disclosed principal 
A) Partially disclosed principal 
B) Identified principal 
C) Undisclosed principal 
D) Partially identified principal 
E) Disclosed principal

Question 15

In Iglesia Cristiana La Casa Del Senor Inc. ,Etc.v.L.M. ,the case in the text in which an alleged victim sued the former pastor and a church,alleging the pastor had sexually assaulted her when she was a minor,which of the following was the result?

Accepted Answer

A) That the assault occurred within the scope of the pastor's employment and that the church was vicariously liable for his act. 
B) That although the assault did not occur within the scope of the pastor's employment,the church was vicariously liable for the act because of its criminal nature. 
C) That regardless of whether or not the assault occurred within the scope of the pastor's employment,the church was vicariously liable because it had negligently hired the priest. 
D) That the church was vicariously liable because it knew of the criminal act but did nothing. 
E) That the assault did not occur within the scope of the pastor's employment and that the church was not vicariously liable for his act. 
A) That the assault occurred within the scope of the pastor's employment and that the church was vicariously liable for his act. 
B) That although the assault did not occur within the scope of the pastor's employment,the church was vicariously liable for the act because of its criminal nature. 
C) That regardless of whether or not the assault occurred within the scope of the pastor's employment,the church was vicariously liable because it had negligently hired the priest. 
D) That the church was vicariously liable because it knew of the criminal act but did nothing. 
E) That the assault did not occur within the scope of the pastor's employment and that the church was not vicariously liable for his act.

Question 16

Which of the following is true regarding whether Greg has any right of recovery against Lea for his injured foot?

Accepted Answer

A) Greg has a right of recovery against Lea. 
B) Greg has a right of recovery against Lea only if Simone cannot be located for service of process. 
C) Greg has no right of recovery against Lea because of her status as an employee. 
D) Greg has a right of recovery against Lea only if Simone is bankrupt. 
E) Greg has no right of recovery against Lea because she did not intentionally harm him. 
A) Greg has a right of recovery against Lea. 
B) Greg has a right of recovery against Lea only if Simone cannot be located for service of process. 
C) Greg has no right of recovery against Lea because of her status as an employee. 
D) Greg has a right of recovery against Lea only if Simone is bankrupt. 
E) Greg has no right of recovery against Lea because she did not intentionally harm him.

Question 17

Which of the following is true regarding an agent's liability when the agent commits a tort while acting as an agent for a principal?

Accepted Answer

A) The agent is not liable if the principal is liable. 
B) The agent is liable regardless of the classification of the principal or the liability of the principal. 
C) The agent is personally liable only if the agent was on a mission for an identified principal or a partially disclosed principal. 
D) The agent is not liable unless the principal is insolvent. 
E) The agent is personally liable only if the agent was on a mission for an unidentified principal. 
A) The agent is not liable if the principal is liable. 
B) The agent is liable regardless of the classification of the principal or the liability of the principal. 
C) The agent is personally liable only if the agent was on a mission for an identified principal or a partially disclosed principal. 
D) The agent is not liable unless the principal is insolvent. 
E) The agent is personally liable only if the agent was on a mission for an unidentified principal.

Question 18

An employee's significant deviation from the employer's business is often referred to as a ________.

Accepted Answer

A) Frolic of his own 
B) Leisure against direction 
C) Pleasure seeking spree 
D) Spree of his own choosing 
E) Romp against instruction 
A) Frolic of his own 
B) Leisure against direction 
C) Pleasure seeking spree 
D) Spree of his own choosing 
E) Romp against instruction

Question 19

If Wendy refuses to compensate Rob for his services rendered,what would be the result it Rob sued Wendy for unpaid wages?

Accepted Answer

A) Rob would prevail because Wendy owed him money for services rendered. 
B) Wendy would prevail because she did not authorize Rob to extend an offer. 
C) Wendy would prevail because Rob should sue the seller,not Wendy. 
D) Wendy would prevail because Rob exceeded his authority in the transaction. 
E) Rob would prevail because he negotiated a vacation home for Wendy that met most of her requirements. 
A) Rob would prevail because Wendy owed him money for services rendered. 
B) Wendy would prevail because she did not authorize Rob to extend an offer. 
C) Wendy would prevail because Rob should sue the seller,not Wendy. 
D) Wendy would prevail because Rob exceeded his authority in the transaction. 
E) Rob would prevail because he negotiated a vacation home for Wendy that met most of her requirements.

Question 20

Which of the following is not necessarily a means an agency relationship may be terminated?

Accepted Answer

A) Revocation of authority 
B) Insolvency of the principal 
C) Renunciation by the agent 
D) Occurrence of a specific event 
E) Fulfillment of purpose 
A) Revocation of authority 
B) Insolvency of the principal 
C) Renunciation by the agent 
D) Occurrence of a specific event 
E) Fulfillment of purpose

Exam 34: Liability to Third Parties and Termination

Which of the following is not a way an agency relationship will terminate by acts of the parties?

The most typical way to provide constructive notice of agency termination is ________.

Provide the rationale behind the doctrine of respondeat superior and discuss whether ethically you believe this doctrine is an appropriate doctrine for our society.

Vicarious liability is assigned liability without fault.

If a manager has business transactions in one of the European Union countries and wants to terminate an agency relationship,he or she would want to have access to knowledge about which of the following?

Courts must first identify whether property damage or personal injury,or both,is at issue when making decisions about an agency relationship's liability to third parties.

Which of the following is true if an agent has no authority to act on behalf of a principal,but the agent still enters into a contract with a third party?

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

Which of the following represented the position of the Supreme Court of Tennessee in the Case Opener in which the plaintiff attempted to hold a hospital vicariously liable for her injuries?

There are two basic types of power of attorney: special and allocated.

Agent liability not only applies to how an agent treats a customer,they also apply to how the agent treats employees too.

Under the UCC,if an agent enters into a contract that is a negotiable instrument,which of the following is true regarding the liability of the principal?

What type of principal exists when his or her identity is not known but the third party is aware that the agent is making an agreement on behalf of the principal?

In Iglesia Cristiana La Casa Del Senor Inc. ,Etc.v.L.M. ,the case in the text in which an alleged victim sued the former pastor and a church,alleging the pastor had sexually assaulted her when she was a minor,which of the following was the result?

Which of the following is true regarding whether Greg has any right of recovery against Lea for his injured foot?

Which of the following is true regarding an agent's liability when the agent commits a tort while acting as an agent for a principal?

An employee's significant deviation from the employer's business is often referred to as a ________.

If Wendy refuses to compensate Rob for his services rendered,what would be the result it Rob sued Wendy for unpaid wages?

Which of the following is not necessarily a means an agency relationship may be terminated?

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 Legality

Legal Assent

Contracts in Writing

Third-Party Rights to Contracts

Discharge and Remedies

Introduction to Sales and Lease Contracts

Title,risk of Loss,and Insurable Interest

Performance and Obligations Under Sales and Leases

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 Organization

Partnerships: Nature, formation, and Operation

Partnerships: Termination and Limited Partnerships

Corporations: Formation and Financing

Corporations: Directors, officers, and Shareholders

Corporations: Mergers, consolidations, terminations

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

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