Exam 24: Liability of Principals and Agents to Third Parties

A principal's intent to ratify a contract:

An agent acting at the direction of the principal may render the principal liable if the agent:

Principals often are liable for the torts of their agents under the doctrine of res ipsa loquitur, which means "let the master answer."

An agent will be relieved from liability for representations in excess of the agent's authority if the:

Marissa, the CEO of Carmine Laboratories, appointed Raphael as a marketing manager and gave him express authority to hire other people to help him carry out his duties. Raphael hired Dana as his secretary. Based on these facts, which of the following statements is true?

There can be ratification of an act done in the name of a corporation that was not in existence when the act was done.

Liability is imposed on an agent who has exceeded his authority on the basis of a(n):

Under the theory of _____ the principal basically is liable because of its own tort.

Pascal is a buyer for Kelly Benjamin department store in Kentucky. While Pascal was buying visiting California, he found a solar car on sale for $3,000. Pascal contracts to buy the car for Kelly Benjamin, who wants to buy a solar car. Kelly instructs the seller to ship the car. Under these circumstances:

Which of the following statements is true for the principle of respondeat superior?

Ratification may be inferred by a court from the:

An agent can exercise his implied authority when:

Ratification may occur with respect to either an act of an agent who has exceeded the authority given or an act by someone who has not been appointed an agent at all.

David signs a contract to purchase Orrin's property. David informs Orrin that the property is being purchased for one of his clients but refuses to tell Orrin who the client is. The principal here is _____.

Apparent authority is the true authority granted to the agent by the principal.

When an agent takes an unauthorized action, the:

Ralph and Aisha engaged Emma, a realtor, to sell their variety store. Emma represented to buyer Pavel that "this was a typical general store," selling gas, oil, hardware, beer, and groceries. She reported that the store had an annual gross income of over $1 million. Emma failed to inform Pavel that one-third of the store's profit was attributable to an accompanying lawn and garden equipment distributorship that Ralph and Aisha were not including in the sale. When Pavel visited the business, Emma directed him away from the garage area where the lawn and garden equipment was stored. Throughout all of these negotiations, Ralph and Aisha were unaware of Emma's misrepresentations. After purchasing the store, Pavel learned of the importance of the equipment sales from Ralph and Aisha. Are Ralph and Aisha liable for Emma's misrepresentation?

Ratification releases the:

Which of the following statements is true of the liability of an agent who is acting for a nonexistent or incompetent principal?

If an agent acts for a corporation that is not yet formed or for an entity that has no legal existence, such as an unincorporated association, the agent is not personally liable on a resulting contract.