Exam 21: Liability of Principal and Agent; Termination of Agency

A principal can be held liable for actions by an agent that the principal had no knowledge of.

The agent's unilateral termination of the agency relationship is known as _____.

Under the family purpose doctrine for the use of automobiles, a family member who negligently injures someone with a car subjects the owner to liability if the family member was furthering family purposes.

Kevin, a close friend of Dave's, borrowed Dave's car for the weekend, with Dave's permission. While driving, Kevin accidently ran into someone on the street. According to which of the following statutes would Dave be responsible or liable for Kevin's act?

According to the doctrine of _____, a person will not be allowed to deny a promise or assertion he/she previously made where there has been detrimental reliance on that promise or assertion.

Differentiate between direct liability and vicarious liability of the principal.

According to the _____ standard, an employer can be held liable for his employee's conduct even when devoted entirely to the employee's own purposes, as long as it was foreseeable that the agent might act as he did.

A principal is considered to be vicariously responsible for his/her agent's torts if:

Termination of agency by operation of law occurs:

A principal can be held responsible for an agent whose authority has previously been terminated if the principal does not make the termination known to the parties who previously did business with the agent. This is known as _____ authority.

Under the zone of risk test an employer may be held liable for his employee's conduct even when devoted entirely to the employee's own purposes.

An agent is not liable for torts of other agents unless he is personally at fault.

The principal's unilateral termination of agency is known as _____ of agency.

Vicarious liability is not limited to harm caused in the course of an agency relationship.

As long as an agent has authorization, either express or implied, she may bind the principal legally.

In which of the following cases would an agent be personally liable to the other party in a contract?

The vicarious tort liability is primarily a function of agency status and not employment relationships.

Bob, a professional hockey player, asks Will to be his sports agent and Will accepts. Bob tells Will that Will can review the contracts offered to Bob from the various state hockey teams. Here, Will has _____ authority to review contracts.

Unlike wives, children are not presumed at common law to be agents or extensions of the father.

Where a third party deals with an agent, but is unaware that he/she is dealing with an agent, the principal would be contractually bound to the third party for any tort.