Question 1

Why can apparent agency be created only by representations of the principal,but not the supposed agent?

Accepted Answer

When a party represents that someone is her agent,the party making the representations is creating potential liability for herself,and the law will hold her liable.When someone makes representations that she is someone's agent,the person making the representations is creating liability for another.Assuming that the purported principal had no role in the representations,it would not be fair to impose liability on the purported principal because there would be no way for the purported principal to know about or control the representations of others claiming to be her agent.

Question 2

An agency relationship is created by the mutual consent of a principal and an agent.

Accepted Answer

A) True 
 B)False  True

Question 3

An agent can be held liable on any contract negotiated by the agent on behalf of the principal.

Accepted Answer

A) True 
 B)False  False

Question 4

The Labor-Management Reporting and Disclosure Act establishes the rights of the employer.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following best describes a negotiable promissory note?

Accepted Answer

A) Any promise to pay a fixed amount of money. 
B) An unconditional promise to pay a sum of money. 
C) A promise to pay a sum of money upon the happening of an event outside the control of the promisor. 
D) An order to a third party to make a payment in order to discharge an obligation of the promisor. 
E) Both B and C are true. 
A) Any promise to pay a fixed amount of money. 
B) An unconditional promise to pay a sum of money. 
C) A promise to pay a sum of money upon the happening of an event outside the control of the promisor. 
D) An order to a third party to make a payment in order to discharge an obligation of the promisor. 
E) Both B and C are true.

Question 6

An agent may continue to represent the principal even after the agency relationship is terminated.

Accepted Answer

A) True 
 B)False

Question 7

Sandy signs a negotiable instrument that orders Sally to pay $1,000 to the order of Pat on May 4,2001.What type of instrument is this?

Accepted Answer

A) Promissory note. 
B) Time draft. 
C) Check. 
D) Sight draft. 
E) Money order. 
A) Promissory note. 
B) Time draft. 
C) Check. 
D) Sight draft. 
E) Money order.

Question 8

The Labor-Management Relations Act gives the President the right to seek an injunction to stop a strike that would create a national emergency.

Accepted Answer

A) True 
 B)False

Question 9

An agency always requires:

Accepted Answer

A) Both an agent and principal who are adults. 
B) A written contract. 
C) Consideration on the part of both the principal and the agent. 
D) An identified underlying transaction. 
E) Intent by both the principal and agent to be in the arrangement. 
A) Both an agent and principal who are adults. 
B) A written contract. 
C) Consideration on the part of both the principal and the agent. 
D) An identified underlying transaction. 
E) Intent by both the principal and agent to be in the arrangement.

Question 10

Which of the following is true about drafts?

Accepted Answer

A) Drafts are two-party paper. 
B) A draft must have a bank as the drawee. 
C) A draft contains an order to pay. 
D) All drafts are payable on demand. 
A) Drafts are two-party paper. 
B) A draft must have a bank as the drawee. 
C) A draft contains an order to pay. 
D) All drafts are payable on demand.

Question 11

In an undisclosed agency,both the principal and the agent are liable on the contract with the third party.

Accepted Answer

A) True 
 B)False

Question 12

An undisclosed agency exists where the third party is aware that the party he is dealing with is an agent,but does not know the identity of the principal.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following would not terminate an agency by operation of law?

Accepted Answer

A) A real estate agent loses his license. 
B) A principal hires another agent with similar duties. 
C) The principal is declared bankrupt. 
D) A lightning bolt kills the principal. 
A) A real estate agent loses his license. 
B) A principal hires another agent with similar duties. 
C) The principal is declared bankrupt. 
D) A lightning bolt kills the principal.

Question 14

An agency arrangement can be terminated by:

Accepted Answer

A) Achievement of the agency's purpose. 
B) Mutual agreement. 
C) Occurrence of a specified event. 
D) Both A and B. 
E) A,B,and C. 
A) Achievement of the agency's purpose. 
B) Mutual agreement. 
C) Occurrence of a specified event. 
D) Both A and B. 
E) A,B,and C.

Question 15

A check is a form of draft that is drawn on a bank.

Accepted Answer

A) True 
 B)False

Question 16

The bankruptcy of which party(ies)will cause an agency to terminate?

Accepted Answer

A) The principal only. 
B) The agent only. 
C) Either the principal or the agent. 
D) Neither the principal nor the agent. 
A) The principal only. 
B) The agent only. 
C) Either the principal or the agent. 
D) Neither the principal nor the agent.

Question 17

Generally,if an agent negligently injures a third party within the scope of the agency,the principal can be held liable even if the agent was violating the instructions of the principal.Is this fair to the principal? What is the justification for this rule?

Accepted Answer

If the principal could avoid liability s

Question 18

Some subjects,such as wages and hours,are compulsory subjects of collective bargaining.

Accepted Answer

A) True 
 B)False

Question 19

A drawee is not liable on a draft until the drawee has accepted it.

Accepted Answer

A) True 
 B)False

Question 20

A sight draft that arises when credit is extended with the sale of the goods is known as:

Accepted Answer

A) A time draft. 
B) A trade acceptance. 
C) A check. 
D) A time note. 
E) A demand note. 
A) A time draft. 
B) A trade acceptance. 
C) A check. 
D) A time note. 
E) A demand note.

Why can apparent agency be created only by representations of the principal,but not the supposed agent?

An agency relationship is created by the mutual consent of a principal and an agent.

An agent can be held liable on any contract negotiated by the agent on behalf of the principal.

The Labor-Management Reporting and Disclosure Act establishes the rights of the employer.

Which of the following best describes a negotiable promissory note?

An agent may continue to represent the principal even after the agency relationship is terminated.

Sandy signs a negotiable instrument that orders Sally to pay $1,000 to the order of Pat on May 4,2001.What type of instrument is this?

The Labor-Management Relations Act gives the President the right to seek an injunction to stop a strike that would create a national emergency.

An agency always requires:

Which of the following is true about drafts?

In an undisclosed agency,both the principal and the agent are liable on the contract with the third party.

An undisclosed agency exists where the third party is aware that the party he is dealing with is an agent,but does not know the identity of the principal.

Which of the following would not terminate an agency by operation of law?

An agency arrangement can be terminated by:

A check is a form of draft that is drawn on a bank.

The bankruptcy of which party(ies)will cause an agency to terminate?

Generally,if an agent negligently injures a third party within the scope of the agency,the principal can be held liable even if the agent was violating the instructions of the principal.Is this fair to the principal? What is the justification for this rule?

Some subjects,such as wages and hours,are compulsory subjects of collective bargaining.

A drawee is not liable on a draft until the drawee has accepted it.

A sight draft that arises when credit is extended with the sale of the goods is known as:

Nature of Traditional and Online Contracts

Agreement

Consideration and Equity

Capacity and Legality

Genuineness of Assent

Writing,formality,and E-Commerce Signature Law

Third-Party Rights and Discharge

Remedies for Breach of Traditional and E-Contracts

E-Contracts and Internet Law

Formation of Sales and Lease Contracts

Performance of Sales and Lease Contracts

Remedies for Breach of Sales and Lease Contracts

Sales and Lease Warranties

Relationship of Tort Law to Contract Law

Filters

Exam 15: Special Forms of Contracts

Why can apparent agency be created only by representations of the principal,but not the supposed agent?

An agency relationship is created by the mutual consent of a principal and an agent.

An agent can be held liable on any contract negotiated by the agent on behalf of the principal.

The Labor-Management Reporting and Disclosure Act establishes the rights of the employer.

Which of the following best describes a negotiable promissory note?

An agent may continue to represent the principal even after the agency relationship is terminated.

Sandy signs a negotiable instrument that orders Sally to pay $1,000 to the order of Pat on May 4,2001.What type of instrument is this?

The Labor-Management Relations Act gives the President the right to seek an injunction to stop a strike that would create a national emergency.

An agency always requires:

Which of the following is true about drafts?

In an undisclosed agency,both the principal and the agent are liable on the contract with the third party.

An undisclosed agency exists where the third party is aware that the party he is dealing with is an agent,but does not know the identity of the principal.

Which of the following would not terminate an agency by operation of law?

An agency arrangement can be terminated by:

A check is a form of draft that is drawn on a bank.

The bankruptcy of which party(ies)will cause an agency to terminate?

Generally,if an agent negligently injures a third party within the scope of the agency,the principal can be held liable even if the agent was violating the instructions of the principal.Is this fair to the principal? What is the justification for this rule?

Some subjects,such as wages and hours,are compulsory subjects of collective bargaining.

A drawee is not liable on a draft until the drawee has accepted it.

A sight draft that arises when credit is extended with the sale of the goods is known as:

Nature of Traditional and Online Contracts

Agreement

Consideration and Equity

Capacity and Legality

Genuineness of Assent

Writing,formality,and E-Commerce Signature Law

Third-Party Rights and Discharge

Remedies for Breach of Traditional and E-Contracts

E-Contracts and Internet Law

Formation of Sales and Lease Contracts

Performance of Sales and Lease Contracts

Remedies for Breach of Sales and Lease Contracts

Sales and Lease Warranties

Relationship of Tort Law to Contract Law

Filters