Question 1

Termination of agency by operation of law occurs:

Accepted Answer

A) upon renunciation of agency by the agent. 
B) on the death of the principal or agent. 
C) upon revocation of agency. 
D) upon the expiration of a fixed period of time. 
E) on the accomplishment of a specific task. 
A) upon renunciation of agency by the agent. 
B) on the death of the principal or agent. 
C) upon revocation of agency. 
D) upon the expiration of a fixed period of time. 
E) on the accomplishment of a specific task. B

Question 2

Vicarious liability is not limited to harm caused in the course of an agency relationship.

Accepted Answer

A) True 
 B)False  True

Question 3

When an agency is terminated after lapse of time or completion of work,it is said to be expressly terminated.

Accepted Answer

A) True 
 B)False  True

Question 4

Respondeat superior is the Latin term for the shop rights doctrine.

Accepted Answer

A) True 
 B)False

Question 5

Even if the agent possessed no actual authority and there was no apparent authority on which the third party could rely,the principal may still be liable if he ratifies or adopts the agent's acts before the third party withdraws from the contract.

Accepted Answer

A) True 
 B)False

Question 6

According to the _____ standard,an employer can be held liable for his employee's conduct even when devoted entirely to the employee's own purposes,as long as it was foreseeable that the agent might act as he did.

Accepted Answer

A) employment-at-will 
B) no-fault 
C) zone of tolerance 
D) zone of risk 
E) scope of employment 
A) employment-at-will 
B) no-fault 
C) zone of tolerance 
D) zone of risk 
E) scope of employment

Question 7

The _____ doctrine imposes vicarious liability on the principal in case of an agency relationship.

Accepted Answer

A) employment-at-will 
B) estoppel 
C) master-servant 
D) ultra vires 
E) family purpose 
A) employment-at-will 
B) estoppel 
C) master-servant 
D) ultra vires 
E) family purpose

Question 8

The vicarious tort liability is primarily a function of agency status and not employment relationships.

Accepted Answer

A) True 
 B)False

Question 9

The agent's unilateral termination of the agency relationship is known as _____.

Accepted Answer

A) revocation 
B) renunciation 
C) cancellation 
D) falsification 
E) liquidation 
A) revocation 
B) renunciation 
C) cancellation 
D) falsification 
E) liquidation

Question 10

Under the zone of risk test an employer may be held liable for his employee's conduct even when devoted entirely to the employee's own purposes.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is true of ratification by the principal?

Accepted Answer

A) It can only occur prior to the actions of the agent. 
B) It is a voluntary act by the principal. 
C) It discharges the principal of liability for the agent's actions. 
D) It requires the usual consideration of contract law. 
E) It must be made in writing to be effective. 
A) It can only occur prior to the actions of the agent. 
B) It is a voluntary act by the principal. 
C) It discharges the principal of liability for the agent's actions. 
D) It requires the usual consideration of contract law. 
E) It must be made in writing to be effective.

Question 12

Bob,a professional hockey player,asks Will to be his sports agent and Will accepts.Bob tells Will that Will can review the contracts offered to Bob from the various state hockey teams.Here,Will has _____ authority to review contracts.

Accepted Answer

A) implied 
B) express 
C) written 
D) apparent 
E) irrecoverable 
A) implied 
B) express 
C) written 
D) apparent 
E) irrecoverable

Question 13

The principal's unilateral termination of agency is known as _____ of agency.

Accepted Answer

A) revocation 
B) renunciation 
C) cancellation 
D) falsification 
E) liquidation 
A) revocation 
B) renunciation 
C) cancellation 
D) falsification 
E) liquidation

Question 14

Differentiate between direct liability and vicarious liability of the principal.

Accepted Answer

There is a distinction between torts pro

Question 15

The key to determining whether a principal is liable for contracts made by his agent is the amount of compensation paid to the agent.

Accepted Answer

A) True 
 B)False

Question 16

Under the family purpose doctrine for the use of automobiles,a family member who negligently injures someone with a car subjects the owner to liability if the family member was furthering family purposes.

Accepted Answer

A) True 
 B)False

Question 17

Where a third party deals with an agent,but is unaware that he/she is dealing with an agent,the principal would be contractually bound to the third party for any tort.

Accepted Answer

A) True 
 B)False

Question 18

According to the doctrine of _____,a person will not be allowed to deny a promise or assertion he/she previously made where there has been detrimental reliance on that promise or assertion.

Accepted Answer

A) employment-at-will 
B) shop rights 
C) ultra vires 
D) respondeat superior 
E) estoppel 
A) employment-at-will 
B) shop rights 
C) ultra vires 
D) respondeat superior 
E) estoppel

Question 19

Kevin,a close friend of Dave's,borrowed Dave's car for the weekend,with Dave's permission.While driving,Kevin accidently ran into someone on the street.According to which of the following statutes would Dave be responsible or liable for Kevin's act?

Accepted Answer

A) The direct liability statute 
B) The family purpose statute 
C) The doctrine of estoppel 
D) The owner's consent statute 
E) The no-fault statute 
A) The direct liability statute 
B) The family purpose statute 
C) The doctrine of estoppel 
D) The owner's consent statute 
E) The no-fault statute

Question 20

The modern basis for vicarious liability is termed the _____ theory as it assumes that the principal is better equipped to pay damages than an agent.

Accepted Answer

A) no-fault 
B) ultra vires 
C) deep pockets 
D) entity 
E) delectus personae 
A) no-fault 
B) ultra vires 
C) deep pockets 
D) entity 
E) delectus personae

Exam 15: Liability of Principal and Agent; Termination of Agency

Termination of agency by operation of law occurs:

Vicarious liability is not limited to harm caused in the course of an agency relationship.

When an agency is terminated after lapse of time or completion of work,it is said to be expressly terminated.

Respondeat superior is the Latin term for the shop rights doctrine.

Even if the agent possessed no actual authority and there was no apparent authority on which the third party could rely,the principal may still be liable if he ratifies or adopts the agent's acts before the third party withdraws from the contract.

According to the _____ standard,an employer can be held liable for his employee's conduct even when devoted entirely to the employee's own purposes,as long as it was foreseeable that the agent might act as he did.

The _____ doctrine imposes vicarious liability on the principal in case of an agency relationship.

The vicarious tort liability is primarily a function of agency status and not employment relationships.

The agent's unilateral termination of the agency relationship is known as _____.

Under the zone of risk test an employer may be held liable for his employee's conduct even when devoted entirely to the employee's own purposes.

Which of the following is true of ratification by the principal?

Bob,a professional hockey player,asks Will to be his sports agent and Will accepts.Bob tells Will that Will can review the contracts offered to Bob from the various state hockey teams.Here,Will has _____ authority to review contracts.

The principal's unilateral termination of agency is known as _____ of agency.

Differentiate between direct liability and vicarious liability of the principal.

The key to determining whether a principal is liable for contracts made by his agent is the amount of compensation paid to the agent.

Under the family purpose doctrine for the use of automobiles,a family member who negligently injures someone with a car subjects the owner to liability if the family member was furthering family purposes.

Where a third party deals with an agent,but is unaware that he/she is dealing with an agent,the principal would be contractually bound to the third party for any tort.

According to the doctrine of _____,a person will not be allowed to deny a promise or assertion he/she previously made where there has been detrimental reliance on that promise or assertion.

Kevin,a close friend of Dave's,borrowed Dave's car for the weekend,with Dave's permission.While driving,Kevin accidently ran into someone on the street.According to which of the following statutes would Dave be responsible or liable for Kevin's act?

The modern basis for vicarious liability is termed the _____ theory as it assumes that the principal is better equipped to pay damages than an agent.

Introduction to Law and Legal Systems

Corporate Social Responsibility and Business Ethics

Courts and the Legal Process

Constitutional Law and Uscommerce

Administrative Law

Criminal Law

Introduction to Tort Law

Contracts

Products Liability

Consumer Credit Transactions

Secured Transactions and Suretyship

Mortgages and Nonconsensual Liens

Bankruptcy

Relationships Between Principal and Agent

Employment Law

Labor-Management Relations

Partnerships: General Characteristics and Formation

Partnership Operation and Termination

Hybrid Business Forms

Corporation: General Characteristics and Formation

Legal Aspects of Corporate Finance

Corporate Powers and Management

Securities Regulation

Corporate Expansion,state and Federal Regulation of Foreign Corporations,and Corporate Dissolution

Antitrust Law

Unfair Trade Practices and the Federal Trade Commission

The Nature and Regulation of Real Estate and the Environment

Introduction to Property: Personal Property and Fixtures

Intellectual Property

The Transfer of Real Estate by Sale

Landlord and Tenant Law

International Law

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