Exam 33: A: Agency Liability and Termination

An undisclosed principal is not liable to a third party for a contract made by an agent.

Chelsea,an agent for Bountiful Seafood,Inc. ,has often done business with Alvin's Dockside Diner on Bountiful's behalf.When Chelsea and Bountiful terminate their agency,to avoid liability for later deals,Alvin's must be no?tified by

Myrna serves in a representative capacity for Locke.With respect to binding Locke to contracts,Myrna's authority

The equal dignity rule requires the parties to a transaction to treat each other with equal dignity.

Neighborly Insurance Company and Ollie put their agency agreement into a written document that describes the rights and duties of both parties.Ollie,as the agent,has

A party to an agency may have the right to terminate the relationship but not the power.

An agent's implied authority can be inferred by the position the agent occupies.

Clu serves in a representative capacity for Digger.Elmo is injured through Clu's negligence.Digger may be liable to Elmo if Clu's conduct occurred

Picabo drives a truck as an employee for Quik Delivery,Inc.Picabo would most likely be considered acting outside the scope of her employment if she

Iggy hires Joy to act as his agent to purchase Kup-a-Koffee Kompany.Iggy tells Joy to reveal only that she is buying the firm on behalf of a third party,without telling Kup-a-Koffee's seller who that third party is.Iggy is

Jock hires Kym to act as his agent to purchase Lifetime Gym & Fitness,Inc.Jock tells Kym to reveal that she is buying the firm on behalf of a third party and to tell the seller who that third party is.Jock is

Vicarious liability is liability without regard to personal fault.

Fact Pattern 33-1B Eppie hires Franz to do some remodeling work in her office.Eppie does not have the right to control the details of Franz's performance. -Refer to Fact Pattern 33-1B.The relationship be?tween Eppie and Franz is

Bud approves on behalf of Cody-but without authorization-a contract with Devon to build a new silo.Cody does not ratify the contract.Later,Devon tries to enforce the deal.This attempt will be

If a contract being executed by an agent is or must be in writing,then the agent's authority must also be in writing.

Maia hires Nero,a real estate broker,to sell her warehouse.The ware?house burns down be?fore being sold.Nero is

Geoff serves in a representative capacity for Huck.To accomplish the objectives of this relationship,Geoff's authority can be implied

A general power of attorney permits an agent to transact all business for a principal.

An agent's authority to act on behalf of a principal must be apparent to be real.

An agent does not have the power to act without communicating with the principal even if an unforeseen emergency demands action.