Question 1

Agency law imposes both fiduciary as well as nonfiduciary duties on an agent.

Accepted Answer

A) True 
 B)False  True

Question 2

Which of the following is true of worker's compensation?

Accepted Answer

A) Household workers and domestic employees are not eligible to receive worker's compensation. 
B) Worker's compensation is compulsory in all states of the U.S. 
C) Worker's compensation acts cover the costs of medical care,but not payment of lost wages. 
D) Worker's compensation is a no-fault system. 
E) The employees covered by worker's compensation retain the right to sue the employer for any injury. 
A) Household workers and domestic employees are not eligible to receive worker's compensation. 
B) Worker's compensation is compulsory in all states of the U.S. 
C) Worker's compensation acts cover the costs of medical care,but not payment of lost wages. 
D) Worker's compensation is a no-fault system. 
E) The employees covered by worker's compensation retain the right to sue the employer for any injury. D

Question 3

Children in most states may purchase necessary items-food or medical services-on the parent's account.This is an example of _____ agency.

Accepted Answer

A) general 
B) specific 
C) express 
D) implied 
E) apparent 
A) general 
B) specific 
C) express 
D) implied 
E) apparent D

Question 4

An agent may appoint his or her own agents to carry out his/her duties,with or without the authorization of his/her principal.

Accepted Answer

A) True 
 B)False

Question 5

Oral agencies are not legally binding unless reduced to writing.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is true of general agents?

Accepted Answer

A) They can alter the principal's legal relationships with third parties. 
B) They are appointed for business purposes but not personal purposes. 
C) They cannot appoint subagents to carry out the principal's business. 
D) They are also known as independent contractors. 
E) They have authority to act only in a specifically designated instance. 
A) They can alter the principal's legal relationships with third parties. 
B) They are appointed for business purposes but not personal purposes. 
C) They cannot appoint subagents to carry out the principal's business. 
D) They are also known as independent contractors. 
E) They have authority to act only in a specifically designated instance.

Question 7

Employers may comply with workers' compensation laws by insuring through a state fund established for the purpose.

Accepted Answer

A) True 
 B)False

Question 8

The agent's duty to preserve the confidential information of a principal exists only until the agency relationship lasts.

Accepted Answer

A) True 
 B)False

Question 9

Under the traditional _____ doctrine,an employee who is not hired for a specific period can be fired at any time,for any reasons except bad reasons.

Accepted Answer

A) employment-at-will 
B) shop rights 
C) master-servant 
D) delectus personae 
E) ultra vires 
A) employment-at-will 
B) shop rights 
C) master-servant 
D) delectus personae 
E) ultra vires

Question 10

In the legal relationship known as "agency":

Accepted Answer

A) the agent cannot have any personal property interest in the principal's business. 
B) the principal must authorize all subagents appointed by an agent. 
C) a general agent has the authority to act in any way required by the principal's business. 
D) the principal is primarily liable for all actions undertaken by agents and subagents. 
E) a general agent must be appointed for business purposes,while a special agent can be appointed for personal purposes. 
A) the agent cannot have any personal property interest in the principal's business. 
B) the principal must authorize all subagents appointed by an agent. 
C) a general agent has the authority to act in any way required by the principal's business. 
D) the principal is primarily liable for all actions undertaken by agents and subagents. 
E) a general agent must be appointed for business purposes,while a special agent can be appointed for personal purposes.

Question 11

Most agencies are created by contracts.

Accepted Answer

A) True 
 B)False

Question 12

In which of the following states of the U.S.are workers' compensation laws not compulsory?

Accepted Answer

A) Oklahoma 
B) California 
C) New York 
D) New Jersey 
E) Washington 
A) Oklahoma 
B) California 
C) New York 
D) New Jersey 
E) Washington

Question 13

An agent who accepts a bribe to purchase goods for a principal only from a seller who is a personal friend breaches his _____ duty by taking the money,since it is the agent's duty to work only for the best interests of the principal.

Accepted Answer

A) statutory 
B) gratuitous 
C) fiduciary 
D) expressed 
E) apparent 
A) statutory 
B) gratuitous 
C) fiduciary 
D) expressed 
E) apparent

Question 14

Workers' compensation is a no-fault system.

Accepted Answer

A) True 
 B)False

Question 15

Garry hired Draco,who is a realtor,to help him buy a house.Draco has rights to speak to Ron,the realtor of a house that Garry wants to buy,on Garry's behalf.He may discuss prices that Garry is willing to pay for the house,but does not have the right to close the sale by himself.It can be said that Draco is an)_____.

Accepted Answer

A) servant 
B) term agent 
C) subagent 
D) special agent 
E) independent contractor 
A) servant 
B) term agent 
C) subagent 
D) special agent 
E) independent contractor

Question 16

The penalty for breach of the fiduciary duty of an agent is:

Accepted Answer

A) loss of compensation and profit. 
B) imprisonment for a period of 5 years. 
C) $1000 for each instance of the act. 
D) permanent reduction in the rate of commission. 
E) loss of possession and title to the property. 
A) loss of compensation and profit. 
B) imprisonment for a period of 5 years. 
C) $1000 for each instance of the act. 
D) permanent reduction in the rate of commission. 
E) loss of possession and title to the property.

Question 17

A person who is hired to accomplish a result but is not subject to specific control by the one hiring is known as an)_____.

Accepted Answer

A) servant 
B) general agent 
C) independent contractor 
D) subagent 
E) agent with an interest 
A) servant 
B) general agent 
C) independent contractor 
D) subagent 
E) agent with an interest

Question 18

A general agent has the authority to act in any way required by the principal's business.

Accepted Answer

A) True 
 B)False

Question 19

The _____ doctrine states that a company has the rights to exploit the inventions made by its employees on the company time and resources.

Accepted Answer

A) employment- at-will 
B) shop rights 
C) master-servant 
D) delectus personae 
E) ultra vires 
A) employment- at-will 
B) shop rights 
C) master-servant 
D) delectus personae 
E) ultra vires

Question 20

An)_____ is defined as a person who acts in the name of and on behalf of another,having been given and assumed some degree of authority to do so.

Accepted Answer

A) grantor 
B) insured 
C) agent 
D) testator 
E) tenant 
A) grantor 
B) insured 
C) agent 
D) testator 
E) tenant

Exam 14: Relationships Between Principal and Agent

Agency law imposes both fiduciary as well as nonfiduciary duties on an agent.

Which of the following is true of worker's compensation?

Children in most states may purchase necessary items-food or medical services-on the parent's account.This is an example of _____ agency.

An agent may appoint his or her own agents to carry out his/her duties,with or without the authorization of his/her principal.

Oral agencies are not legally binding unless reduced to writing.

Which of the following is true of general agents?

Employers may comply with workers' compensation laws by insuring through a state fund established for the purpose.

The agent's duty to preserve the confidential information of a principal exists only until the agency relationship lasts.

Under the traditional _____ doctrine,an employee who is not hired for a specific period can be fired at any time,for any reasons except bad reasons.

In the legal relationship known as "agency":

Most agencies are created by contracts.

In which of the following states of the U.S.are workers' compensation laws not compulsory?

An agent who accepts a bribe to purchase goods for a principal only from a seller who is a personal friend breaches his _____ duty by taking the money,since it is the agent's duty to work only for the best interests of the principal.

Workers' compensation is a no-fault system.

The penalty for breach of the fiduciary duty of an agent is:

A person who is hired to accomplish a result but is not subject to specific control by the one hiring is known as an)_____.

A general agent has the authority to act in any way required by the principal's business.

The _____ doctrine states that a company has the rights to exploit the inventions made by its employees on the company time and resources.

An)_____ is defined as a person who acts in the name of and on behalf of another,having been given and assumed some degree of authority to do so.

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

Liability of Principal and Agent; Termination of Agency

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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