Exam 38: Relationships Between Principal and Agent

Raul asks his friend Alberto to make a run to the lumber yard to buy lumber and screws for Raul's deck project. Alberto is not paid. He is, legally, an agent.

Whether a person is an employee (a "servant") or an independent contractor is dependent on the facts, not on the agreement between the parties.

_____ is a form of agency where the agent receives no compensation.

Which of the following is true of worker's compensation?

Alberto, a carpenter, was hired by Raul for the building season, through September 30 when his employment would end. During the summer Alberto regularly charged items on Raul's account at the lumber yard, and Raul always pays the bill; the lumber yard knew nothing of Alberto's contract with Raul. On October 1 Alberto, as he has done for several months, charged items on Raul's account, but these were for Alberto's personal use. Raul is not responsible for these items.

The agent's duty to preserve the confidential information of a principal exists only until the agency relationship lasts.

A contract is no less binding when negotiated by an agent than by the principal.

A person who is hired to accomplish a result but is not subject to specific control by the one hiring is known as a(n) _____.

A person can do via an agent whatever business activity she could do herself.

A plumber hired to fix a broken toilet for a homeowner is a "servant."

Merlin gives Ralph authority to sell her land, and to pay himself out of the proceeds, the debts due to him from Merlin. Under such circumstances, it can be said that Ralph:

The _____ doctrine states that a company has the rights to exploit the inventions made by its employees on the company time and resources.

An independent contractor is, by definition, not an agent.

Children in most states may purchase necessary items-food or medical services-on the parent's account. This is an example of _____ agency.

The shop rights doctrine allows a company to use an invention developed by an employee on its premises, using company resources, without payment of royalties.

A "servant" is an employee who is hired to accomplish a result, but the employer does not directly control how the task is accomplished.

An attorney hired by a client is an independent contractor.

a(n. _____ is defined as a person who acts in the name of and on behalf of another, having been given and assumed some degree of authority to do so.

The _____ rule bars any form of recovery from an employer for torts committed by one employee against another.

Garry hired Draco, who is a realtor, to help him buy a house. Draco has rights to speak to Ron, the realtor of a house that Garry wants to buy, on Garry's behalf. He may discuss prices that Garry is willing to pay for the house, but does not have the right to close the sale by himself. It can be said that Draco is a(n) _____.