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

Which of the following statements is true of an agent taking an opportunity?

Principals are liable for negligence caused by an agent during a substantial frolic and detour.

If an agent competes with the principal without the principal's permission, the principal may recover profits made by the agent.

Under the ________ test, if the agent committed an intentional tort to promote the principal's business, the principal is liable for any injury caused by the tort.

________ occurs where a principal is liable for an agent's tortious conduct because of the employment contract between the principal and agent, not because the principal was personally at fault.

Why can an agent generally not take an opportunity meant for the principal? Is an agent ever permitted to take such an opportunity? Give an example of an agent's violation of the duty of loyalty.

Which of the following is true of a fully disclosed agency?

Undisclosed agencies are not lawful in the United States.

Harrison hires an agent to look for a three-bedroom house in Atlanta. Elaine, the agent, finds a three-bedroom house in Harrison's budget but buys it herself without informing Harrison. This is an instance of an agent ________.

The principal is liable for an innocent misrepresentation made by an agent acting within the scope of employment.

An actor asks an agent to place an order for a couch on the agent's way back to work. This is an instance of ________.

Most jurisdictions hold the ________ liable for injuries caused on a dual-purpose mission.

A partially disclosed agency can be created by mistake.

On the advice of her colleague, Stacey hires Harold, a lawyer and an independent contractor, to represent her in a court case. While driving to the courthouse to represent Stacey at trial, Harold negligently causes an automobile accident in which Mildred, a bystander, is severely injured. Who is liable to Mildred?

A ________ occurs when an agent makes an untrue statement that he or she knows is not true.

Briefly explain the liability for an independent contractor's torts.

Which of the following is a fiduciary duty owed by an agent not to act adversely to the interests of the principal?

Under the ________ test, the principal is liable for any intentional torts committed by an agent during working hours on the principal's premises.

Dual agency is permitted if all parties to a transaction agree to it.

Which of the following is intentional misrepresentation?