Question 1

Vicarious liability is direct liability.

Accepted Answer

A) True 
 B)False  False

Question 2

Fact Pattern 33-1A
Ulani indicates that she is acting as an agent on behalf of an unidentified client-Thoroughbred Stallions,LLC-when she enters into a contract with Shana.
-Refer to Fact Pattern 33-1A.Thoroughbred Stallions is

Accepted Answer

A) a disclosed principal. 
B) a non-existent principal. 
C) an undisclosed principal. 
D) a partially disclosed principal. 
A) a disclosed principal. 
B) a non-existent principal. 
C) an undisclosed principal. 
D) a partially disclosed principal. D

Question 3

Brenda is a purchasing agent for Commodities Exchange Corporation.Dennis,a Commodities corporate officer,gives Brenda written authority to buy for the firm as many computers and peripheral devices as necessary.The next day,Dennis calls Brenda and tells her to buy only fifty note?book computers and nothing else.Brenda shows the written authority to E-Products,Inc. ,and enters into a contract with E-Products to buy sixty note?book computers and a selection of printers,scanners,and extra storage media.E-Products ships the order to Commodities.Is Commodities li?able to E-Products under the contract? Is Brenda liable? In each case,if so,why? If not,why not?

Accepted Answer

Commodities is liable to E-Products.Brenda is not liable to E-Products.A principal is liable for the contracts of its agents entered into with actual or apparent authority.Actual authority may be express or implied.Apparent authority arises from what the principal causes a third party reasonably to believe regarding the agent's authority to act,even if the agent does not have actual authority to act.If the third party changes its position in reliance on the principal's representations,the principal is estopped from denying that the agent had authority.In this problem,Brenda had the actual authority to order fifty notebook comput?ers and ap?parent authority to order the rest of the equipment,according to the writ?ten authorization that Dennis gave to Brenda and Brenda showed to E-Products.E-Products's contract rights are not limited by the limits placed on that authority by Dennis's call to Brenda.Brenda is not liable to E-Products because she acted with apparent authority.Brenda is liable to Commodities,however,for exceeding her authority.

Question 4

Security Armored Car Corporation employs Theo as an agent.Without Security's knowledge but otherwise acting within the scope of em?ployment,Theo commits a crime.The state can successfully prosecute

Accepted Answer

A) neither Security nor Theo. 
B) Security only. 
C) Security or Theo. 
D) Theo only. 
A) neither Security nor Theo. 
B) Security only. 
C) Security or Theo. 
D) Theo only.

Question 5

Based on Nan's conduct,Odel reasonably believes that Poppy has the authority to act on Nan's behalf even though Poppy does not have the actual authority to do so.In this circumstance,Poppy has

Accepted Answer

A) apparent authority. 
B) express authority. 
C) implied authority. 
D) no authority. 
A) apparent authority. 
B) express authority. 
C) implied authority. 
D) no authority.

Question 6

Apparent authority arises from what the principal makes clear to the agent.

Accepted Answer

A) True 
 B)False

Question 7

Emery is an agent for Downtown Market Corporation.Emery makes an innocent mis?representation when entering into a contract on be?half of Downtown Market with Cool Fruits,Inc.Cool Fruits

Accepted Answer

A) is directly responsible for performing the contract. 
B) is estopped from performing the contract. 
C) may rescind the contract. 
D) must ratify the contract. 
A) is directly responsible for performing the contract. 
B) is estopped from performing the contract. 
C) may rescind the contract. 
D) must ratify the contract.

Question 8

A power of attorney confers express authority.

Accepted Answer

A) True 
 B)False

Question 9

Before a principal can ratify a contract,the third party must withdraw from the deal.

Accepted Answer

A) True 
 B)False

Question 10

A power of attorney can be special or general.

Accepted Answer

A) True 
 B)False

Question 11

BizOnline.com uses an electronic agent,or e-agent,to perform certain tasks in e-commerce.With respect to the e-agent's actions,BizOnline.com is bound by

Accepted Answer

A) all of the actions. 
B) only those actions of which BizOnline.com is aware. 
C) only those actions that BizOnline.com does not refute. 
D) only those actions that BizOnine.com ratifies. 
A) all of the actions. 
B) only those actions of which BizOnline.com is aware. 
C) only those actions that BizOnline.com does not refute. 
D) only those actions that BizOnine.com ratifies.

Question 12

An agent's implied authority can contradict his or her express authority.

Accepted Answer

A) True 
 B)False

Question 13

A principal whose identity is known by a third party with whom an agent contracts on the principal's behalf is a disclosed principal.

Accepted Answer

A) True 
 B)False

Question 14

An agent's authority must be express for the agent's act to bind a principal.

Accepted Answer

A) True 
 B)False

Question 15

A principal may be liable for the tort of an agent committed within the scope of the agency or employment.

Accepted Answer

A) True 
 B)False

Question 16

Tropical Vittles,LLC,hires Sophie to act as its agent to buy a ten-acre tract of land from Rico for $1,000 per acre.Tropical Vittles does not want Rico to know that it is the principal or that Sophie is its agent.Tropical Vittles wants the land for a new fast-food restaurant,and believes that Rico may not sell the land for that purpose or may demand a premium price.Sophie makes the purchase,signing only her name to the contract as the buyer and not disclosing to Rico the agency relationship.The transfer of the deed is to occur on May 1.Rico learns of Tropical Vittles's identity on April 15.Can Rico legally refuse to deed the property on May 1? Explain.

Accepted Answer

Generally,no.Although the identity of th

Question 17

An agency coupled with an interest is an agency created for the agent's benefit.

Accepted Answer

A) True 
 B)False

Question 18

Jaclyn,an agent for Kilpatrick,enters into a contract on Kilpatrick's behalf with Leif that must be in writing to be enforceable under the Statute of Frauds.Under the equal dignity rule,Jaclyn's authority to enter into this contract

Accepted Answer

A) may be oral or written. 
B) must be oral and written. 
C) must be written. 
D) cannot be oral or written. 
A) may be oral or written. 
B) must be oral and written. 
C) must be written. 
D) cannot be oral or written.

Question 19

Clive is a purchasing agent for Double D Ranch with the authority to buy cat?tle at a certain auction.After the cattle are bought,the agency rela?tionship terminates

Accepted Answer

A) automatically. 
B) following notice to all actual cattle sellers. 
C) following notice to all potential cattle sellers. 
D) following published notice in a local newspaper. 
A) automatically. 
B) following notice to all actual cattle sellers. 
C) following notice to all potential cattle sellers. 
D) following published notice in a local newspaper.

Question 20

Omar hires Petra,a real estate broker,to act as his agent to sell his land for $150,000.Oil is discovered beneath the land,causing its market value to in?crease considerably.The agency agreement is likely

Accepted Answer

A) still in force if Omar gives Petra additional consideration. 
B) still in force if Petra does not tell prospective customers. 
C) terminated by mutual consent of the parties. 
D) terminated by operation of law. 
A) still in force if Omar gives Petra additional consideration. 
B) still in force if Petra does not tell prospective customers. 
C) terminated by mutual consent of the parties. 
D) terminated by operation of law.

Exam 33: B: Agency Liability and Termination

Vicarious liability is direct liability.

Fact Pattern 33-1A Ulani indicates that she is acting as an agent on behalf of an unidentified client-Thoroughbred Stallions,LLC-when she enters into a contract with Shana. -Refer to Fact Pattern 33-1A.Thoroughbred Stallions is

Security Armored Car Corporation employs Theo as an agent.Without Security's knowledge but otherwise acting within the scope of em?ployment,Theo commits a crime.The state can successfully prosecute

Based on Nan's conduct,Odel reasonably believes that Poppy has the authority to act on Nan's behalf even though Poppy does not have the actual authority to do so.In this circumstance,Poppy has

Apparent authority arises from what the principal makes clear to the agent.

Emery is an agent for Downtown Market Corporation.Emery makes an innocent mis?representation when entering into a contract on be?half of Downtown Market with Cool Fruits,Inc.Cool Fruits

A power of attorney confers express authority.

Before a principal can ratify a contract,the third party must withdraw from the deal.

A power of attorney can be special or general.

BizOnline.com uses an electronic agent,or e-agent,to perform certain tasks in e-commerce.With respect to the e-agent's actions,BizOnline.com is bound by

An agent's implied authority can contradict his or her express authority.

A principal whose identity is known by a third party with whom an agent contracts on the principal's behalf is a disclosed principal.

An agent's authority must be express for the agent's act to bind a principal.

A principal may be liable for the tort of an agent committed within the scope of the agency or employment.

An agency coupled with an interest is an agency created for the agent's benefit.

Jaclyn,an agent for Kilpatrick,enters into a contract on Kilpatrick's behalf with Leif that must be in writing to be enforceable under the Statute of Frauds.Under the equal dignity rule,Jaclyn's authority to enter into this contract

Clive is a purchasing agent for Double D Ranch with the authority to buy cat?tle at a certain auction.After the cattle are bought,the agency rela?tionship terminates

Omar hires Petra,a real estate broker,to act as his agent to sell his land for $150,000.Oil is discovered beneath the land,causing its market value to in?crease considerably.The agency agreement is likely

A: Introduction to Law and Legal Reasoning

B: Introduction to Law and Legal Reasoning

C: Introduction to Law and Legal Reasoning

D: Introduction to Law and Legal Reasoning

A: Courts and Alternative Dispute Resolution

B: Courts and Alternative Dispute Resolution

A: Court Procedures

B: Court Procedures

A: Constitutional Authority to Regulate Business

B: Constitutional Authority to Regulate Business

A: Ethics and Business Decision Making

B: Ethics and Business Decision Making

A: Intentional Torts and Privacy

B: Intentional Torts and Privacy

A: Negligence and Strict Liability

B: Negligence and Strict Liability

C: Negligence and Strict Liability

D: Negligence and Strict Liability

A: Intellectual Property and Internet Law

B: Intellectual Property and Internet Law

A: Criminal Law and Cyber Crimes

B: Criminal Law and Cyber Crime

A: Nature and Terminology

B: Nature and Terminology

C: Nature and Terminology

D: Nature and Terminology

A: Agreement in Traditional and E-Contracts

B: Agreement in Traditional and E-Contracts

A: Consideration

B: Consideration

A: Capacity and Legality

B: Capacity and Legality

A: Mistakes,fraud,and Voluntary Consent

B: Mistakes,fraud,and Voluntary Consent

A: The Statute of Frauds

B: The Statute of Frauds

A: Third Party Rights

B: Third Party Rights

A: Performance and Discharge

B: Performance and Discharge

A: Breach of Contract and Remedies

B: Breach of Contract and Remedies

A: The Formation of Sales and Lease Contracts

B: The Formation of Sales and Lease Contracts

C: The Formation of Sales and Lease Contracts

D: The Formation of Sales and Lease Contracts

A: Title,risk,and Insurable Interest

B: Title,risk,and Insurable Interest

A: Performance Breach of Sales Lease Contracts

B: Performance Breach of Sales Lease Contracts

A: Warranties and Product Liability

B: Warranties and Product Liability

A: International Law in a Global Economy

B: International Law in a Global Economy

A: The Function Creation of Negotiable Instruments

B: The Function Creation of Negotiable Instruments

C: The Function Creation of Negotiable Instruments

D: The Function Creation of Negotiable Instruments

A: Transferability and Holder in Due Course

B: Transferability and Holder in Due Course

A: Liability,defenses,and Discharge