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

In which of the following cases is a motivation test used to establish the employee's motive?

An agent does not violate his or her duty of loyalty by serving two parties with the same interest.

A fully disclosed agency results if a third party entering into a contract knows the actual identity of the principal.

________ is a situation in which an agent does something during the course of his or her employment to further his or her own interests rather than the principal's.

In a fully disclosed agency, the contract is between ________.

Undisclosed self-dealing by an agent is not regarded as violation of the duty of loyalty.

Which of the following torts committed by an agent is the liability of the principal?

Lucas, a car salesperson, has to sell John's car. John informs Lucas that the car was repaired after it was involved in a major accident. If Lucas intentionally tells the buyer of the car that the car was never involved in an accident, he has committed the tort of ________.

An agent owes a fiduciary duty not to act adversely to the interests of the principal.

A third-party offer to an agent must be conveyed to the principal.

A principal has no course of action if an agent discloses his or her confidential information to a third party.

Does an agent competing with the principal breach his or her duty of loyalty? What is the proper course of action for the principal in such a case?

The work-related test puts liability on the employee if the intentional tort is committed within work-related time and space.

Which of the following is true of an agent's undisclosed self-dealing?

Labeling someone an independent contractor is only one factor in determining whether independent contractor status exists.

Which of the following is a course of action for a principal if an agent is found competing with him or her?

The party that employs an independent contractor is called an agent.

In a fully disclosed agency, an agent is not liable on the contract if he or she guarantees that the principal will perform the contract.

If an independent contractor enters into a contract with a third party on behalf of the principal without express or implied authority from the principal to do so, who among the following is liable on the contract?

Fiona works for Open Heart Hospital and lives 10 miles away from her place of work. The hospital has provided her with a car to commute and also pays for its upkeep. If she accidentally injures a person while driving to work in the morning, which of the following would be true?