Exam 28: Agency Relationships in Business

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

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

An agency relationship can only be formed with a written agreement.

The equal dignity rule requires that a principal and agent treat each other with "equal dignity."

George and James create an agency relationship to facilitate the sale of illegal narcotics. This agency relationship

Genetic Seed Company hires Howie to work on Genetic's shipping dock, accepting deliveries and dealing with other companies' drivers. With respect to Genetic, Howie is most likely

An employer has no control over an employee's work.

An agent has a duty to keep and make available to the principal an account of all property and funds received and paid out on behalf of the principal.

Will is an agent for MaryElise. MaryElise gives Will clear instructions to only enter into contracts on Mondays, Wednesdays, or Fridays. Will enters into a contract on MaryElise's behalf on Tuesday. Will has breached

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

Iggy hires Joy to act as his agent to purchase Kup-a-Koffee Company. Iggy tells Joy to reveal only that she is buying the firm on behalf of a third party, without telling Kup-a-Koffee's seller who that third party is. Iggy is

In a principal-agent relationship, the parties agree that the principal will act on behalf and instead of the agent in negotiating and transacting business with third persons.

Giving an agent a power of attorney confers implied authority.

A principal has the right to control an agent's conduct in matters entrusted to the agent.

Remedies of the agent for breach of duty by the principal arise out of contract and tort law.

The relationship between a principal and an independent contractor always involves an agency relationship.

Ester is a lighting technician who hires out on a per-project basis to film and television production companies, as well as theatres and other venues that stage dramatic and musical performances. In this capacity, Ester is

Picabo drives a truck as an employee for Quik Delivery, Inc. Picabo would most likely be considered acting outside the scope of her employment if she

If a principal does not ratify an unauthorized contract, the principal is not bound.

An agency relationship must be based on an express or implied agreement that the agent will act for principal and that the principal agrees to have the agent so act.