Exam 32: Liability to Third Parties and Termination
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Fact Pattern 32-1A
Ruby indicates that she is acting as an agent on behalf of an unidentified client when she enters into a contract with Saldana.
-Refer to Fact Pattern 32-1A. Liability to Saldana for nonper?formance of the con?tract may be imposed on
(Multiple Choice)
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(34)
A principal is liable for harm caused to a third party by an agent who commits a tort while act?ing in the scope of his or her employment.
(True/False)
4.8/5
(26)
Both parties to an agency may have the power to terminate the relationship but they may not have the right.
(True/False)
4.9/5
(38)
A principal is responsible for all intentional torts committed by an agent.
(True/False)
4.9/5
(33)
Apparent authority exists if a principal causes a third party to believe reasonably that an agent has authority to act.
(True/False)
5.0/5
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A partially disclosed principal is one whose first, but not last, name is known by a third party with whom an agent contracts on the principal's behalf.
(True/False)
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Fact Pattern 32-1A
Ruby indicates that she is acting as an agent on behalf of an unidentified client when she enters into a contract with Saldana.
-Refer to Fact Pattern 32-1A. The unidentified client is
(Multiple Choice)
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(27)
The equal dignity rule does not apply to a corporate officer who, in an or?dinary busi?ness situation, acts on behalf of his or her firm.
(True/False)
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(38)
Jock hires Kym to act as his agent to purchase Little Gym & Fitness, Inc. Jock tells Kym to reveal that she is buying the firm on behalf of a third party and to tell Little's seller who that third party is. Jock is
(Multiple Choice)
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Flo, an agent for Great Seafood, Inc., has often done business with Hakim on Great Seafood's behalf. When Flo and Great Seafood terminate their agency, to avoid liability for later deals, Hakim must be no?tified by
(Multiple Choice)
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Tire Manufacturing Company employs Uri as an agent. To terminate Uri's authority, Tire Manufacturing must notify
(Multiple Choice)
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Fact Pattern 32-1B
Eppie hires Franz to do some remodeling work in her office.
-Refer to Fact Pattern 32-1B. The relationship be?tween Eppie and Franz is
(Multiple Choice)
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Frida hires Gert, a real estate broker, to act as her agent to sell her house. The house burns down before being sold. The agency agreement is likely
(Multiple Choice)
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If an agent acts within the scope of his or her authority, an undis?closed principal is liable to a third party for contracts made by the agent.
(True/False)
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Nehru serves in a representative capacity for Olin. With respect to binding Olin to contracts, Nehru's authority
(Multiple Choice)
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If a principal does not ratify an unauthorized contract, the principal is not bound.
(True/False)
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Clu serves in a representative capacity for Digger. Elmo is injured through Clu's negligence. Digger may be liable to Elmo if Clu's conduct occurred
(Multiple Choice)
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Without authorization, Rolf contracts on behalf of Sari to have Tige paint the interior and exterior of Sari's house. Sari ratifies the contract. Later, Sari tries to rescind the part of the contract re?lat?ing to the exterior. This attempt will be
(Multiple Choice)
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