Exam 34: Liability to Third Parties and Termination

"Unreliable Boyfriend." Bobby needs a business law book. He hears that Gwen has one for sale. Bobby asks his girlfriend Susie to buy it for him from Gwen if Susie can get it for under $40. Susie sees Gwen in the hall and asks if she will sell the book for $30, and Gwen agrees. They are between classes, and Susie does not mention that the book is for Bobby although all the parties were on good terms, and the identity of the buyer should not have affected Susie's agreement. Later, however, Polly agrees to give Bobby her used business law book. Bobby tells Susie that he no longer wants the book. Susie tells Gwen about the situation with Bobby. Gwen replies that she does not care if Bobby wants the book or not. Gwen says that she passed up a couple of opportunities to sell the book because she thought she already had it sold and that she wants her money from either Gwen or Bobby - she doesn't care who pays. -What type of principal is Bobby?

Which of the following is false regarding the relationship between a principal and an independent contractor?

A special power of attorney grants the agent express authority over specifically outlined acts.

Which of the following specifies that the agent's authority is intended to continue beyond the principal's incapacitation?

Which of the following allows an agent to conduct all business for the principal?

"Furniture Store Woes." Manny was hired by John to deliver furniture purchased from John's furniture store, Good Furniture. John had authorized Manny to drive the delivery truck home from work, but Manny was not authorized to use the truck for any personal errands. Manny decided to help his friend Helen move believing that John would never find out. Unfortunately, while moving Helen's furniture to her new home, Manny was speeding and hit Bobby's vehicle in the rear causing whiplash to Bobby. Bobby is threatening to sue both John and Manny. Then, on his way to work in the same truck the next day, Manny again bumped a car driven by Joan who is threatening to sue both Manny and John. John also has another problem involving Connie, his niece, an aspiring interior designer who John hired to provide design services to customers. Both Connie and John were aware that customers would likely have no interest in the services of Connie if they knew she had no experience and no training in design. Therefore, they inflated her accomplishments to customers telling them that she had both training and experience. In reliance on those claims, Beth agreed to have Connie do the interior design work for her new business building while Beth was out of town on an extended business trip. Unfortunately, Connie did a terrible job. For example, she put in purple carpeting and painted the walls orange. Beth was outraged when she returned. She found out from Sandy, a disgruntled employee of John, that Connie actually had no training or experience in interior design. Sandy wants to sue both Connie and John. -If John pays for the damage to Joan's car, does he have any remedy against Manny?

Which of the following is false regarding termination of agency based on operation of law?

"Furniture Store Woes." Manny was hired by John to deliver furniture purchased from John's furniture store, Good Furniture. John had authorized Manny to drive the delivery truck home from work, but Manny was not authorized to use the truck for any personal errands. Manny decided to help his friend Helen move believing that John would never find out. Unfortunately, while moving Helen's furniture to her new home, Manny was speeding and hit Bobby's vehicle in the rear causing whiplash to Bobby. Bobby is threatening to sue both John and Manny. Then, on his way to work in the same truck the next day, Manny again bumped a car driven by Joan who is threatening to sue both Manny and John. John also has another problem involving Connie, his niece, an aspiring interior designer who John hired to provide design services to customers. Both Connie and John were aware that customers would likely have no interest in the services of Connie if they knew she had no experience and no training in design. Therefore, they inflated her accomplishments to customers telling them that she had both training and experience. In reliance on those claims, Beth agreed to have Connie do the interior design work for her new business building while Beth was out of town on an extended business trip. Unfortunately, Connie did a terrible job. For example, she put in purple carpeting and painted the walls orange. Beth was outraged when she returned. She found out from Sandy, a disgruntled employee of John, that Connie actually had no training or experience in interior design. Sandy wants to sue both Connie and John. -Which of the following is true regarding John's liability to Bobby?

Which of the following is false regarding agency law in the United Arab Emirates (UAE)?

Agents who go beyond their authority when the principal is disclosed or partially disclosed are liable to third parties for breach of contract, not breach of implied warranty.

If an agent makes _____ from the course of the employer's business, the employer is not liable.

Which of the following is true if a third party comes to know of an undisclosed principal's identity and obtains a judgment against the principal?

"Unreliable Boyfriend." Bobby needs a business law book. He hears that Gwen has one for sale. Bobby asks his girlfriend Susie to buy it for him from Gwen if Susie can get it for under $40. Susie sees Gwen in the hall and asks if she will sell the book for $30, and Gwen agrees. They are between classes, and Susie does not mention that the book is for Bobby although all the parties were on good terms, and the identity of the buyer should not have affected Susie's agreement. Later, however, Polly agrees to give Bobby her used business law book. Bobby tells Susie that he no longer wants the book. Susie tells Gwen about the situation with Bobby. Gwen replies that she does not care if Bobby wants the book or not. Gwen says that she passed up a couple of opportunities to sell the book because she thought she already had it sold and that she wants her money from either Gwen or Bobby - she doesn't care who pays. -Which of the following is true regarding whether Susie is personally bound on the contract with Gwen?

Which of the following is false regarding classification of principals?

As set forth in the text, which of the following is true regarding respondeat superior in Iraq?

Bobby wants to purchase a lot next door to Sarah's home that is owned by Sarah. Bobby knows Sarah will not sell the lot to him because of his barking dogs that she dislikes. Bobby agrees with Susie that Susie will purchase the lot from Sarah for him. Susie and Sarah reach an agreement and enter into a contract whereby Sarah is to sell the lot to Susie for a price within the scope of Susie's authority. Susie tells Sarah nothing about her plan to later transfer the lot to Bobby. Before title to the lot is transferred to Susie, Bobby tells Susie that he no longer wants the lot. Susie tells Sarah about Bobby. Sarah tells Susie that as far as she is concerned, Susie has bought a lot. Sarah says that she plans to move anyway and really does not care whether Susie or Bobby end up with the lot. She just wants her money and is unconcerned about barking dogs. They will be the next owner's problem. Which of the following is true regarding whether Susie is personally bound on the contract with Sarah?

The principal may terminate an agency coupled with an interest.

"Furniture Store Woes." Manny was hired by John to deliver furniture purchased from John's furniture store, Good Furniture. John had authorized Manny to drive the delivery truck home from work, but Manny was not authorized to use the truck for any personal errands. Manny decided to help his friend Helen move believing that John would never find out. Unfortunately, while moving Helen's furniture to her new home, Manny was speeding and hit Bobby's vehicle in the rear causing whiplash to Bobby. Bobby is threatening to sue both John and Manny. Then, on his way to work in the same truck the next day, Manny again bumped a car driven by Joan who is threatening to sue both Manny and John. John also has another problem involving Connie, his niece, an aspiring interior designer who John hired to provide design services to customers. Both Connie and John were aware that customers would likely have no interest in the services of Connie if they knew she had no experience and no training in design. Therefore, they inflated her accomplishments to customers telling them that she had both training and experience. In reliance on those claims, Beth agreed to have Connie do the interior design work for her new business building while Beth was out of town on an extended business trip. Unfortunately, Connie did a terrible job. For example, she put in purple carpeting and painted the walls orange. Beth was outraged when she returned. She found out from Sandy, a disgruntled employee of John, that Connie actually had no training or experience in interior design. Sandy wants to sue both Connie and John. -Which of the following is true regarding any liability John has to Sandy?

Which of the following represented the position of the Supreme Court of Tennessee in the Case Opener in which the plaintiff attempted to hold a hospital vicariously liable for her injuries?

Which of the following is true regarding notice of termination of an agency relationship?