Question 1

Constructive notice that an agency relationship has terminated is usually completed by publication.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

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

Question 3

In Larry S.Lawrence v.Bainbridge Apartments,the case in the text in which the window washer argued that he was entitled to recover against the building owner for his injuries in a fall,which of the following was the result?

Accepted Answer

A) The window washer was entitled to a recovery in tort based on the inherently dangerous activity at issue and the defendant's failure to take sufficient precautions. 
B) The window washer was not entitled to recover because he took insufficient precautions for his own safety. 
C) The window washer was entitled to no recovery based on his status as an independent contractor. 
D) The window washer was entitled to workers' compensation as an employee. 
E) The window washer was entitled to recovery for breach of contract. 
A) The window washer was entitled to a recovery in tort based on the inherently dangerous activity at issue and the defendant's failure to take sufficient precautions. 
B) The window washer was not entitled to recover because he took insufficient precautions for his own safety. 
C) The window washer was entitled to no recovery based on his status as an independent contractor. 
D) The window washer was entitled to workers' compensation as an employee. 
E) The window washer was entitled to recovery for breach of contract.

Question 4

Actual notice of agency termination may not be given orally.

Accepted Answer

A) True 
 B)False

Question 5

Which doctrine applies in the context of the principal/employer-agent/employee relationship in relation to liability of the principal/employer for acts of the agent/employee?

Accepted Answer

A) Res superior 
B) Supre superior 
C) Employment Superior 
D) Respondeat superior 
E) Stare decisis 
A) Res superior 
B) Supre superior 
C) Employment Superior 
D) Respondeat superior 
E) Stare decisis

Question 6

Which of the following is true regarding the rights of an employer who is held liable and pays a third party,not because of the employer's negligence,but under the doctrine of respondeat superior based upon negligence of an employee?

Accepted Answer

A) The employer can recover all amounts paid from a negligent employee but only if it can be shown that the employee's negligence was based upon the violation of a statute. 
B) The employer has no right to receive any reimbursement from the negligent employee. 
C) The employer has a right to recover only 50% of any amounts paid from a negligent employee. 
D) The employer has a right to recover all amounts paid from the negligent employee. 
E) The employer can recover 50% of any amounts paid from a negligent employee but only if it can be shown that the employee's negligence was based upon the violation of a statute. 
A) The employer can recover all amounts paid from a negligent employee but only if it can be shown that the employee's negligence was based upon the violation of a statute. 
B) The employer has no right to receive any reimbursement from the negligent employee. 
C) The employer has a right to recover only 50% of any amounts paid from a negligent employee. 
D) The employer has a right to recover all amounts paid from the negligent employee. 
E) The employer can recover 50% of any amounts paid from a negligent employee but only if it can be shown that the employee's negligence was based upon the violation of a statute.

Question 7

Which of the following is true regarding any liability Jun has to Beth?

Accepted Answer

A) Jun is liable to Beth under the theory of negligence. 
B) Jun is liable to Beth under the theory of misrepresentation. 
C) Jun has liability to Beth under the theory of misrepresentation but only if Hae is insolvent. 
D) Jun is liable to Beth for only 50% of any damages she can prove. 
E) Jun has no liability to Beth. 
A) Jun is liable to Beth under the theory of negligence. 
B) Jun is liable to Beth under the theory of misrepresentation. 
C) Jun has liability to Beth under the theory of misrepresentation but only if Hae is insolvent. 
D) Jun is liable to Beth for only 50% of any damages she can prove. 
E) Jun has no liability to Beth.

Question 8

If Pat sues Night Club for his injury,will it be liable?

Accepted Answer

A) Night Club would not be liable because Trevor's acts were not criminal or tortious. 
B) Night Club would not be liable because Trevor was not acting within the scope of his employment. 
C) Night Club would not be liable because Zack started the fight. 
D) Night Club would be liable because Trevor was negligent when he hit Pat with the chair. 
E) Night Club would be liable because it should have anticipated an injury similar to Pat's based on the type of business it conducts. 
A) Night Club would not be liable because Trevor's acts were not criminal or tortious. 
B) Night Club would not be liable because Trevor was not acting within the scope of his employment. 
C) Night Club would not be liable because Zack started the fight. 
D) Night Club would be liable because Trevor was negligent when he hit Pat with the chair. 
E) Night Club would be liable because it should have anticipated an injury similar to Pat's based on the type of business it conducts.

Question 9

In In re Estate of Kurrelmeyer,the case in the text in which the decedent's son sued the wife of the decedent,alleging that in violation of the power of attorney that she held,she invalidly transferred the decedent's home into a trust,which of the following was the result on appeal?

Accepted Answer

A) That based on extrinsic evidence showing the decedent's intent,the power of attorney included the power to transfer the property. 
B) That because no extrinsic evidence existed to clarify the meaning of the power of attorney,the transfer was valid. 
C) That because no extrinsic evidence existed to clarify the meaning of the power of attorney,the transfer was invalid. 
D) That based on extrinsic evidence showing the decedent's intent,the power of attorney did not include the power to transfer the property. 
E) That because the power of attorney did not specifically give the wife the power to transfer property into the trust,the transfer was invalid. 
A) That based on extrinsic evidence showing the decedent's intent,the power of attorney included the power to transfer the property. 
B) That because no extrinsic evidence existed to clarify the meaning of the power of attorney,the transfer was valid. 
C) That because no extrinsic evidence existed to clarify the meaning of the power of attorney,the transfer was invalid. 
D) That based on extrinsic evidence showing the decedent's intent,the power of attorney did not include the power to transfer the property. 
E) That because the power of attorney did not specifically give the wife the power to transfer property into the trust,the transfer was invalid.

Question 10

Which of the following is true regarding the origin and meaning of the phrase respondeat superior?

Accepted Answer

A) It is a French phrase meaning "let the agency stand." 
B) It is a Latin phrase meaning "release the agent." 
C) It is a French phrase meaning "agency liability." 
D) It is a Latin phrase meaning "let the superior speak." 
E) It is a German phrase meaning "liability without fault." 
A) It is a French phrase meaning "let the agency stand." 
B) It is a Latin phrase meaning "release the agent." 
C) It is a French phrase meaning "agency liability." 
D) It is a Latin phrase meaning "let the superior speak." 
E) It is a German phrase meaning "liability without fault."

Question 11

What is the rationale behind vicarious liability?

Accepted Answer

A) The employer should have better hiring practices. 
B) The employer typically has more money to pay for the harm. 
C) The employer benefits from the work of the employee,therefore,the employer should also be responsible for any harm the employee caused. 
D) The employer did know or should have known his or her employee would cause harm. 
E) Under the time and place theory,the employee would not have caused harm at that exact time and place had it not been for the employer. 
A) The employer should have better hiring practices. 
B) The employer typically has more money to pay for the harm. 
C) The employer benefits from the work of the employee,therefore,the employer should also be responsible for any harm the employee caused. 
D) The employer did know or should have known his or her employee would cause harm. 
E) Under the time and place theory,the employee would not have caused harm at that exact time and place had it not been for the employer.

Question 12

As discussed in the text,which of the following is true regarding electronic contracts and agency authority in Singapore?

Accepted Answer

A) Singapore passed a law providing that a principal must countersign any electronic transaction engaged in by an agent. 
B) Singapore passed a law by which lack of awareness of a principal for an agent's acts is not recognized as a defense. 
C) Singapore passed a law providing that each employer must post a list electronically of all its agents with authority to act on its behalf. 
D) In Singapore because of the fear of fraud,agents are not allowed to engage in electronic transactions on behalf of principals. 
E) Singapore relies on a type of law similar to U.S.common law in addressing agency authority in regard to electronic transactions. 
A) Singapore passed a law providing that a principal must countersign any electronic transaction engaged in by an agent. 
B) Singapore passed a law by which lack of awareness of a principal for an agent's acts is not recognized as a defense. 
C) Singapore passed a law providing that each employer must post a list electronically of all its agents with authority to act on its behalf. 
D) In Singapore because of the fear of fraud,agents are not allowed to engage in electronic transactions on behalf of principals. 
E) Singapore relies on a type of law similar to U.S.common law in addressing agency authority in regard to electronic transactions.

Question 13

A special power of attorney grants the agent express authority over specifically outlined acts.

Accepted Answer

A) True 
 B)False

Question 14

When a principal is classified as a[n] principal,a third party is aware that an agent is making an agreement on behalf of a principal,and the third party also knows the identity of the principal.

Accepted Answer

A) Uncovered 
B) Revealed 
C) Acknowledged 
D) Permitted 
E) Disclosed 
A) Uncovered 
B) Revealed 
C) Acknowledged 
D) Permitted 
E) Disclosed

Question 15

[Furniture Store Woes] Connor was hired by Jun to deliver furniture purchased from Jun's furniture store,Good Furniture.Jun had authorized Connor to drive the delivery truck home from work,but Connor was not authorized to use the truck for any personal errands.Connor decided to help his friend Adriana move,believing that Jun would never find out.Unfortunately,while moving Adriana's furniture to her new home,Connor was speeding and hit Tomás's vehicle in the rear,causing whiplash to Tomás.Tomás is threatening to sue both Jun and Connor.Then,on his way to work in the same truck the next day,Connor again bumped a car,driven by Gina,who is also threatening to sue both Connor and Jun.Jun also has another problem involving Hae,his niece,an aspiring interior designer who Jun hired to provide design services to customers.Both Hae and Jun were aware that customers would likely have no interest in the services of Hae if they knew she had no experience and no training in design.Therefore,they inflated her accomplishments to customers,telling them that she had both training and experience.In reliance on those claims,Beth agreed to have Hae do the interior design work for her new business building while Beth was out of town on an extended business trip.Unfortunately,Hae did a terrible job.Beth was outraged when she returned.She found out from Destiny,a disgruntled employee of Jun,that Hae actually had no training or experience in interior design.Beth wants to sue both Hae and jun.
-Which of the following is true regarding Jun's liability to Tomás?

Accepted Answer

A) It is unlikely that Jun will be held liable for Tomás's injuries because Connor had substantially departed from the course of his employer's business. 
B) It is unlikely that Jun will be held liable for Tomás's injuries unless it can be proven that Connor had no insurance and lacks the ability to pay. 
C) Jun will likely be held liable for Tomás's injuries because while Connor was acting outside the scope of his duties at the time of the accident,he had not substantially departed from the course of his employer's business. 
D) Jun will likely be held liable for Tomás's injuries because Jun allowed Connor to take the truck home regardless of Jun's instructions regarding the use of the truck. 
E) Jun will likely be held liable for Tomás's injuries because Connor was driving Jun's truck at the time of the accident. 
A) It is unlikely that Jun will be held liable for Tomás's injuries because Connor had substantially departed from the course of his employer's business. 
B) It is unlikely that Jun will be held liable for Tomás's injuries unless it can be proven that Connor had no insurance and lacks the ability to pay. 
C) Jun will likely be held liable for Tomás's injuries because while Connor was acting outside the scope of his duties at the time of the accident,he had not substantially departed from the course of his employer's business. 
D) Jun will likely be held liable for Tomás's injuries because Jun allowed Connor to take the truck home regardless of Jun's instructions regarding the use of the truck. 
E) Jun will likely be held liable for Tomás's injuries because Connor was driving Jun's truck at the time of the accident.

Question 16

If an agent is acting within his or her authority on a contract involving an undisclosed principal,which of the following is true regarding the agent's liability?

Accepted Answer

A) The law would not hold the agent liable on the agreement. 
B) The law will likely hold the agent liable for the agreement. 
C) The law will hold the agent liable for the agreement unless the contract the agent had with the principal impliedly or expressly provided that the agent would not be held liable in such cases. 
D) The law will hold the agent liable for the agreement unless a contract for under $1,000 is involved in which case only the principal would be held liable. 
E) The law will hold the agent liable for the agreement unless the contract the agent had with the principal expressly provided that the agent would not be held liable in such cases. 
A) The law would not hold the agent liable on the agreement. 
B) The law will likely hold the agent liable for the agreement. 
C) The law will hold the agent liable for the agreement unless the contract the agent had with the principal impliedly or expressly provided that the agent would not be held liable in such cases. 
D) The law will hold the agent liable for the agreement unless a contract for under $1,000 is involved in which case only the principal would be held liable. 
E) The law will hold the agent liable for the agreement unless the contract the agent had with the principal expressly provided that the agent would not be held liable in such cases.

Question 17

List and define the two basic types of power of attorney.Also discuss in what way a durable power of attorney is different from a power of attorney not so designated.

Accepted Answer

A special power of attorney grants the a

Question 18

Regarding the relationship between a principal and an independent contractor,which of the following statements is false?

Accepted Answer

A) The principal does not control the details of the independent contractor's performance. 
B) An independent contractor is not an employee of the principal. 
C) If an independent contractor commits a crime without the authorization of the principal,the principal is not liable for the agent's crime. 
D) A principal is not liable for extremely dangerous actions engaged in by the independent contractor. 
E) An individual who hires an independent contractor cannot be held liable for the independent contractor's tortious actions under the doctrine of respondeat superior. 
A) The principal does not control the details of the independent contractor's performance. 
B) An independent contractor is not an employee of the principal. 
C) If an independent contractor commits a crime without the authorization of the principal,the principal is not liable for the agent's crime. 
D) A principal is not liable for extremely dangerous actions engaged in by the independent contractor. 
E) An individual who hires an independent contractor cannot be held liable for the independent contractor's tortious actions under the doctrine of respondeat superior.

Question 19

Even though the home did not meet all of Wendy's requirements,what would have made Rob's offer authorized?

Accepted Answer

A) Rob's offer was authorized. 
B) If Rob would have contacted Wendy and told her that he was going to make an offer on a home that did not meet all of her requirements. 
C) If Rob would have contacted Wendy and received her approvable to extend an offer on a home that did not meet all of her requirements. 
D) If Rob would have informed the seller of Wendy's name and contact information. 
E) If Rob would have informed the seller the home did not meet all of the principal's requirements. 
A) Rob's offer was authorized. 
B) If Rob would have contacted Wendy and told her that he was going to make an offer on a home that did not meet all of her requirements. 
C) If Rob would have contacted Wendy and received her approvable to extend an offer on a home that did not meet all of her requirements. 
D) If Rob would have informed the seller of Wendy's name and contact information. 
E) If Rob would have informed the seller the home did not meet all of the principal's requirements.

Question 20

In the text case Mais,et al. ,v.Allianz Life Insurance Company of North America,the plaintiff sued claiming the defendant was responsible for acts of its former employee,even though he was not employed by the defendant at the time of the alleged acts.Which of the following was the result?

Accepted Answer

A) The defendant was not held liable because the former employee's act exceeded the scope of his employment. 
B) The defendant was held vicariously liable for the acts of its former employee because it did not notify customers that the agent had been terminated. 
C) The defendant was not held liable because the plaintiff should have known the employee was no longer employed by the defendant. 
D) The defendant was held strictly liable because the nature of the acts involved were inherently dangerous. 
E) The defendant was not held liable because it had no reason to know a former employee was stealing from its clients. 
A) The defendant was not held liable because the former employee's act exceeded the scope of his employment. 
B) The defendant was held vicariously liable for the acts of its former employee because it did not notify customers that the agent had been terminated. 
C) The defendant was not held liable because the plaintiff should have known the employee was no longer employed by the defendant. 
D) The defendant was held strictly liable because the nature of the acts involved were inherently dangerous. 
E) The defendant was not held liable because it had no reason to know a former employee was stealing from its clients.

Exam 34: Liability to Third Parties and Termination

Constructive notice that an agency relationship has terminated is usually completed by publication.

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

In Larry S.Lawrence v.Bainbridge Apartments,the case in the text in which the window washer argued that he was entitled to recover against the building owner for his injuries in a fall,which of the following was the result?

Actual notice of agency termination may not be given orally.

Which doctrine applies in the context of the principal/employer-agent/employee relationship in relation to liability of the principal/employer for acts of the agent/employee?

Which of the following is true regarding the rights of an employer who is held liable and pays a third party,not because of the employer's negligence,but under the doctrine of respondeat superior based upon negligence of an employee?

Which of the following is true regarding any liability Jun has to Beth?

If Pat sues Night Club for his injury,will it be liable?

In In re Estate of Kurrelmeyer,the case in the text in which the decedent's son sued the wife of the decedent,alleging that in violation of the power of attorney that she held,she invalidly transferred the decedent's home into a trust,which of the following was the result on appeal?

Which of the following is true regarding the origin and meaning of the phrase respondeat superior?

What is the rationale behind vicarious liability?

As discussed in the text,which of the following is true regarding electronic contracts and agency authority in Singapore?

A special power of attorney grants the agent express authority over specifically outlined acts.

When a principal is classified as a[n] principal,a third party is aware that an agent is making an agreement on behalf of a principal,and the third party also knows the identity of the principal.

If an agent is acting within his or her authority on a contract involving an undisclosed principal,which of the following is true regarding the agent's liability?

List and define the two basic types of power of attorney.Also discuss in what way a durable power of attorney is different from a power of attorney not so designated.

Regarding the relationship between a principal and an independent contractor,which of the following statements is false?

Even though the home did not meet all of Wendy's requirements,what would have made Rob's offer authorized?

In the text case Mais,et al. ,v.Allianz Life Insurance Company of North America,the plaintiff sued claiming the defendant was responsible for acts of its former employee,even though he was not employed by the defendant at the time of the alleged acts.Which of the following was the result?

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

Filters