Exam 32: Liability to Third Parties and Termination

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Based on Nan's conduct, Odel reasonably believes that Poppy has the authority to act on Nan's behalf even though Poppy does not have the actual authority to do so. In this circumstance, Poppy has

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Before a principal can ratify a contract, the agent must withdraw from the deal.

(True/False)
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An agency is terminated if the principal demands an accounting.

(True/False)
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Under the doctrine of respondeat superior, a principal has a superior duty of caring for the agent.

(True/False)
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Commercial Development Corporation (CDC) hires Delta Construction Company to work at a site as an independent contractor. Whether CDC will be liable for torts committed at the site by Delta depends on

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A power of attorney may be created orally.

(True/False)
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Under the doctrine of respondeat superior, an agent is liable for the principal's negligence.

(True/False)
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Cory employs Daily Delivery Agency as an agent under a writ?ten agreement that describes the rights and duties of both parties. This is

(Multiple Choice)
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Trey, an agent for Uno Music Corporation, executes an unau?thor?ized contract with Variety Recording, Inc., that is highly ad?vanta?geous to Uno. Variety withdraws from the deal before Uno ratifies the con?tract. The contract is

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Ezra is an agent for Fresh Food Corporation. Ezra makes an innocent mis?representation when entering into a contract on be?half of Fresh with Gala Grocery Stores, Inc. Gala

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An disclosed principal is liable to a third party for contracts made by the agent acting outside the scope of his or her authority.

(True/False)
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Brad is an employee of Custodial Service, Inc. In deciding whether Brad acts within the scope of his employment when he commits a tort against Didi, a court will not con?sider whether

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Miklos grants an ordinary power of attorney to Nathalie to handle a list of financial transactions on Miklos's behalf. This power will terminate on

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An agent's authority to act on behalf of a principal derives exclusively from the agent's express au?thor?ity.

(True/False)
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Sonia manages a Tasty Pastry store for United Food Company. To manage the business, Sonia's authority can be implied by

(Multiple Choice)
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State Bank employs Troy as an information clerk. Troy has author?ity only to an?swer customers' questions. During a renovation, State Bank temporarily moves Troy from the information desk to a teller's window. Ubi, a customer, believes that Troy is a teller and leaves a deposit with him. Troy keeps the money. Is State Bank liable?

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An agent's authority to act on behalf of a principal derives exclusively from the agent's express or implied au?thor?ity.

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Maia hires Nero, a real estate broker, to sell her warehouse. The ware?house burns down be?fore being sold. Nero is

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Malachi hires Nadine to sell Malachi's land. Before the land is sold, Nadine discov?ers that there is a rich vein of gold in a hill on the property. Can Nadine con?sider the agency terminated?

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Fab Auto Sales, Inc., employs GR8 Collection Company as a collection agent. While repossessing a car from Hadji, one of Fab's customers, GR8 causes an accident in which Hadji is injured. Hadji can recover from

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