Exam 30: Liability of Principals, Agents, and Independent Contractors

Which of the following is true of dual agency?

Gem's principal asked her to pick up his dry-cleaning on her way to work. After she had picked up the dry-cleaning and was driving to work, Gem knocked over an old man crossing the street because she did not apply the brakes in time. Under the theory of ________, Gem's principal is liable to the injured man.

Based on the doctrine of respondeat superior, principals are liable for the negligent conduct of agents acting within the scope of their employment.

In an undisclosed agency, the principal is solely liable on the contract with the third party.

Which of the following is true of tort liability for principals and agents?

The agent is liable for any intentional or innocent misrepresentation made by the principal in a transaction.

The amount of time that an agent works for a principal is not one of the factors in determining independent contractor status.

Ratification of a contract is a situation in which a principal accepts an agent's unauthorized contract.

An agent is liable for the tortious conduct of the principal if he or she has knowledge of the principal's conduct.

Dan asks his agent Jude to drop off some medicines at his mother's house. On his way back, Jude decides to have lunch at a diner two blocks from his workplace. While walking back to work, he jaywalks at a green signal on the road causing a motorcyclist to hit the curb and injure himself while attempting to avoid hitting Jude. Under the concept of ________, Dan is liable for the injuries caused to the motorcyclist.

Independent contractors usually work for a number of clients, have their own offices, hire employees, and control the performance of their work.

The coming and going rule says that a principal is generally not liable for injuries caused by its agents and employees while they are on their way to or from work.

The principal is liable for the tortious conduct of an agent who is acting within the scope of his or her authority.

Describe the operation of a fully disclosed agency.

The principal is not liable for an agent's negligence if the agent is on a dual-purpose mission.

What is vicarious liability?

If an agent exceeds his or her scope of authority, a principal is bound on the contract only if he or she ratifies the contract.

A dual-purpose mission is a situation that occurs when ________.

Vicarious liability is liability with fault.

Minksine Corporation employs Sandy as its marketing manager. Sandy is driving her sedan to attend a meeting with a client on behalf of her employer. On her way to the meeting, Sandy is involved in an automobile accident that is caused by her negligence. Several people are seriously injured in the accident. Which of the following is true of this case?