Exam 19: Secured Transactions and Bankruptcy

Which of the following is a term used to describe the duty of an agent to communicate any information to the principal that the agent thinks could be important to the principal?

Which of the following is true regarding the status of an agent as a fiduciary?

In most situations how many principals may an agent represent in any one agreement?

Reference - Cheap Principal. Jason, who is very knowledgeable regarding computers, agrees to purchase computers for Nick's business. Jason is retained for that purpose only, he is paid a set rate for the job, and Nick exercised no control over the manner in which Jason did his work. Jason purchased computers on credit from ABC Computers without any mention of Nick. The computers worked well and were not defective in any way. Unfortunately, Nick did not pay ABC Computers on a timely basis. Jason, therefore, paid ABC Computers out of his own pocket because he wanted to be able to do business with ABC in the future and also because his name was on the invoice. Jason asked Nick for reimbursement, but Nick refused. Nick claimed that if Jason had only waited, ABC Computers might have agreed to take less. Which of the following is true regarding any right of reimbursement Jason is due from Nick?

Set forth the two key exceptions to the equal dignity rule.

Agents who go beyond their authority when the principal is disclosed or partially disclosed are liable for breach of contract, not breach of implied warranty.

When a third party is aware that an agent who exceeds his or her authority does not represent the principal, the law does not hold the agent liable for an agreement in cases in which the agent exceeds his or her authority to act on behalf of the principal.

Which of the following are factors considered by courts in determining whether an act committed by an employee occurred within the course and scope of employment?

When parties form an agency relationship by making a written or oral agreement, the agency is known as a[n] _______________.

Which of the following is true in situations in which a principal was undisclosed and the third party comes to know of the undisclosed principal's identity, but proceeds to get a judgment against the agent?

Which of the following is another name for apparent agency?

An agent's implied authority is derived from an agent's apparent authority and consists of what is reasonably necessary for carrying out the agent's grant of express authority.

Which of the following are types of business relationships to which agency laws are relevant?

Reference - High Maintenance. Paul, who runs a retail jewelry store, went with Jane, to whom he was engaged to be married, to a wholesale jewelry store. Paul had no express, written agreement with Jane by which she was his agent. In fact, Paul had told Jane not to buy anything at the store. The wholesale jeweler, Pam, asked Paul if Jane was buying for him. Paul did not want to embarrass Jane so he nodded in agreement. A few minutes later Paul reminded Jane, outside the hearing of the wholesaler, that she should not make any purchases. Paul and Jane had a big disagreement over money that evening, and Jane broke off their engagement. The next day Jane went back to the wholesale jeweler and purchased a string of pearls for $2,000. Jane also purchased a fur jacket for $3,000 from a store owned by Harry that was next door to the jewelry store. She told Harry that Paul wanted a fur jacket for a model in his store and that Paul would be glad to pay Harry for the jacket. Which of the following is the most likely result if Pam, the wholesaler jeweler, sues Paul for the price of the pearls?

In a[n] _____ relationship, the agent is authorized to act for and on behalf of the principal, who hires the agent to represent him or her.

Agency law is primarily federal law.

Which of the following is a term for persons who are not employees but who are hired by employers to perform certain tasks?

In which types of agency relationships is the agency relationship inferred from the conduct of the parties?

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?

Which of the following results in termination of agency by operation of law?