Exam 19: Secured Transactions and Bankruptcy

Which of the following is true if there is no agreement between a principal and an agent regarding the amount for which the principal will compensate the agent?

Reference - Roofing Issues. Sally agrees to roof a house for Bob. After doing his research, Bob chooses Sally based on her great reputation for being conscientious and doing good work. Bob knows little about roofing and stays away from all the noise involved. Sally provides her own tools for herself and other workers, sets her own schedule, and charges a flat rate of $10,000 to be paid when the job is completed. Sally hires Trudy, Glen, and Fred to help with the roofing. She pays them an hourly rate, supervises their work, provides them with tools and materials, and sets their schedules. Curious about what is going on there, Bob's friend Spencer walks by the house while the roofing is being done. Glen absent-mindedly throws some old shingles off the roof and hits Spencer in the head resulting in him going to the local emergency room and receiving a couple of stitches in his scalp. Spencer decides to sue all the roofers and also Bob and Sally for his hospital expenses and for pain and suffering. Assuming Glen was negligent, which of the following is the most likely result in a lawsuit against Bob brought by Spencer?

Which of the following is true regarding the liability in tort of employers for the actions of employees and independent contractors?

Reference - Roofing Issues. Sally agrees to roof a house for Bob. After doing his research, Bob chose Sally based on her great reputation for being conscientious and doing good work. Bob knows little about roofing and stays away from all the noise involved. Sally provides her own tools for herself and other workers, sets her own schedule, and charges a flat rate of $10,000 to be paid when the job is completed. Sally hires Trudy, Glen, and Fred to help with the roofing. She pays them an hourly rate, supervises their work, provides them with tools and materials, and sets their schedules. Curious about what is going on there, Bob's friend Spencer walks by the house while the roofing is being done. Glen absent-mindedly throws some old shingles off the roof and hits Spencer in the head resulting in him going to the local emergency room and receiving a couple of stitches in his scalp. Spencer decides to sue all the roofers and also Bob and Sally for his hospital expenses and for pain and suffering. Which of the following is the most likely characterization of Sally in relation to Bob?

In noncontractual relationships which of the following may the agent seek in order to force the principal to perform the contract?

Reference - The Big Sale. Christy, the owner of ABC department store, needed to hire a number of employees in a hurry because of a planned big summer sale. Bob was hired by Christy to run a cash register and to assist customers with taking large purchases to their cars. Bob encountered a particularly annoying customer, Frank. Frank started complaining the minute he saw Bob. Frank complained about having to wait for Bob to assist him with carrying his television purchase to his car, about the merchandise in the store, and about the quality of the store's employees. Bob tried to control himself while he carted Frank's television to the car. The final straw, however, came when Frank told Bob that he should get the earring out of his ear, cut his hair, and act professionally. Bob threw the television to the ground and punched Frank in the nose. Frank did investigation and discovered that Bob has just been fired from his last three jobs for violent actions against customers. Two of his former employers are willing to testify that if Christy had called them, they would have disclosed Bob's tendencies to her. Bob listed the former employers on his application, but because she was in a hurry to hire employees, Christy did not take the time to check with the former employers. Another problem confronting Christy during the big sale is that Susie, a long time employee of Christy who had never caused any problem before, negligently dropped a box on the foot of Greg, a customer. Greg had to have an X-ray and is threatening to sue both Christy and Susie. Which of the following is true regarding whether Greg has any right of recovery against Christy for his injured foot?

Which of the following is true regarding liability of a principal to an agent based on a contract an agent makes with a third party that expressly excludes the principal from the contract?

To which of the following is the employer-independent contractor relationship not subject?

Whenever an employer hires an employee to perform some sort of physical service, the parties have created a[n] ______________ relationship.

To which of the following is the employer-employee relationship subject?

All employees are agents of their employers, and all agents are employees.

Because an agent with express authority has specific goals he or she is to achieve, the agent is also granted the use of other means, beyond the express agreement, reasonably necessary to achieve the desired goal.

The equal dignity rule requires that all agency agreements be in writing.

How long does an agent's apparent authority continue once an agency relationship is terminated?

Which of the following is the most typical way in which to provide constructive notice of agency termination?

Which of the following is a document that gives an agent authority to sign legal documents on behalf of the principal?

Reference - Lakeside Property. Ronnie agreed to act as the agent of Sue in finding a piece of lakeside property for her at a good price and also in obtaining a loan for her with which to purchase the property. She agreed to pay him $500 for doing so. To assist Ronnie in his duties, Sue disclosed to Ronnie confidential information about her finances and debts. Ronnie decided that he needed help and paid Rick $300 to look for property for Sue. Bruce told Ronnie about a great deal on a piece of lakeside property that Bruce had for sale. In fact, the deal was so good that Ronnie purchased the property for himself. When Sue found out about the property Ronnie bought for himself, she complained to Ronnie. He defended himself on the basis that he was not actually working for Sue when he found out about the deal. At the time, he was playing golf with Bruce. He also told Sue that he had hired Rick for $300 to assist him and that he could not be held liable because he had turned the job over to Rick. He asked Sue for reimbursement of that amount. Sue fired Ronnie threatening to sue him. Ronnie told Sue that he would counterclaim for the $300 owed to Rick. Only after he was fired, Ronnie disclosed to a number of parties information regarding Sue's spending habits which he thought were excessive. What remedy should Sue seek if she wants possession of the lakeside lot Ronnie purchased?