Exam 39: Liability of Principal and Agent; Termination of Agency

Kevin, a close friend of Dave's, borrowed Dave's car for the weekend, with Dave's permission. While driving, Kevin accidently ran into someone on the street. According to which of the following statutes would Dave be responsible or liable for Kelvin's act?

In which of the following cases would an agent be personally liable to the other party in a contract?

Arthur Agent was hired to manage the Main Street Apartments for Pauline Principal; nothing was said as to maintenance expenses. Tenant informed Agent of a plumbing problem, and Agent telephoned Plumber to fix it. Plumber sent the bill to Principal, who denied Agent's authority to hire a plumber ("My cousin is a plumber, and that's who I use," she said). Principle is not liable.

Mallory told his employee Wilmot to stop taking clients to Expensive Restaurant any more, but didn't say anything to the restaurant. Two days later Wilmot took Client to the restaurant for a business lunch. Mallory is liable.

The vicarious tort liability is primarily a function of agency status and not employment relationships.

According to the _____ standard, an employer can be held liable for his employee's conduct even when devoted entirely to the employee's own purposes, as long as it was foreseeable that the agent might act as he did.

A partially disclosed agent can be a liable on a contract he makes.

A modern basis for vicarious liability is termed the _____ theory as it assumes that the principal is better equipped to pay damages than an agent.

Respondeat superior is the Latin term for the shop rights doctrine.

An agent may exceed his express authority and still bind the principal.

A principal can be held liable for actions by an agent that the principal had no knowledge of.

Vicarious liability is not limited to harm caused in the course of an agency relationship.

The agent's unilateral termination of the agency relationship is known as _____.

Agent acts within her authority but doesn't disclose to third party the existence of any agency. Agent's principal is not bound.

Differentiate between direct liability and vicarious liability of the principal.

Creditor has dealt with the partnership of A, B, and C for some years. Unknown to Creditor C withdrew from the firm. Not long after, A and B approach Creditor, who extends credit to the firm. If A or B don't pay, C is liable.

An employer cannot be criminally liable for acts of the employee.

An employer will never be liable for her employee's intentional tort.

Under the zone of risk test an employer may be held liable for his employee's conduct even when devoted entirely to the employee's own purposes.

As long as an agent has authorization, express, implied or apparent, she may bind the principal legally.