Question 1

Which of the following is true of general agents?

Accepted Answer

A)  They can alter the principal's legal relationships with third parties. 
B)  They are appointed for business purposes but not personal purposes. 
C)  They cannot appoint subagents to carry out the principal's business. 
D)  They are also known as independent contractors. 
E)  They have authority to act only in a specifically designated instance. 
A)  They can alter the principal's legal relationships with third parties. 
B)  They are appointed for business purposes but not personal purposes. 
C)  They cannot appoint subagents to carry out the principal's business. 
D)  They are also known as independent contractors. 
E)  They have authority to act only in a specifically designated instance. A

Question 2

A contract is no less binding when negotiated by an agent than by the principal.

Accepted Answer

A) True 
 B)False  True

Question 3

Merlin gives Ralph authority to sell her land, and to pay himself out of the proceeds, the debts due to him from Merlin. Under such circumstances, it can be said that Ralph:

Accepted Answer

A)  is acting as Merlin's servant. 
B)  is an independent contractor. 
C)  is a subagent, the principal being Merlin. 
D)  has an agency coupled with an interest. 
E)  is a general agent to Merlin. 
A)  is acting as Merlin's servant. 
B)  is an independent contractor. 
C)  is a subagent, the principal being Merlin. 
D)  has an agency coupled with an interest. 
E)  is a general agent to Merlin. D

Question 4

The fiduciary responsibility of an agent is imposed by law.

Accepted Answer

A) True 
 B)False

Question 5

Differentiate between a servant and an independent contractor as under agency law).

Accepted Answer

Until, the early nineteenth century, any

Question 6

Employers may comply with workers' compensation laws by insuring through a state fund established for the purpose.

Accepted Answer

A) True 
 B)False

Question 7

The _____ rule bars any form of recovery from an employer for torts committed by one employee against another.

Accepted Answer

A)  shop rights 
B)  fellow-servant 
C)  ultra vires 
D)  ad valorem 
E)  no-faults 
A)  shop rights 
B)  fellow-servant 
C)  ultra vires 
D)  ad valorem 
E)  no-faults

Question 8

The fiduciary relation between an agent and principal is two-way, that is, the agent is the principal's fiduciary and the principal is the agent's fiduciary.

Accepted Answer

A) True 
 B)False

Question 9

Workers' compensation is a no-fault system.

Accepted Answer

A) True 
 B)False

Question 10

Most agencies are created by contracts.

Accepted Answer

A) True 
 B)False

Question 11

Oral agencies are not legally binding unless reduced to writing.

Accepted Answer

A) True 
 B)False

Question 12

Children in most states may purchase necessary items-food or medical services-on the parent's account. This is an example of _____ agency.

Accepted Answer

A)  general 
B)  specific 
C)  express 
D)  implied 
E)  apparent 
A)  general 
B)  specific 
C)  express 
D)  implied 
E)  apparent

Question 13

Under the traditional _____ doctrine, an employee who is not hired for a specific period can be fired at any time, for any reasons except bad reasons.

Accepted Answer

A)  employment-at-will 
B)  shop rights 
C)  master-servant 
D)  delectus personae 
E)  ultra vires 
A)  employment-at-will 
B)  shop rights 
C)  master-servant 
D)  delectus personae 
E)  ultra vires

Question 14

The agent's duty to preserve the confidential information of a principal exists only until the agency relationship lasts.

Accepted Answer

A) True 
 B)False

Question 15

The shop rights doctrine allows a company to use an invention developed by an employee on its premises, using company resources, without payment of royalties.

Accepted Answer

A) True 
 B)False

Question 16

In which of the following states of the U.S. are workers' compensation laws not compulsory?

Accepted Answer

A)  Oklahoma 
B)  California 
C)  New York 
D)  New Jersey 
E)  Washington 
A)  Oklahoma 
B)  California 
C)  New York 
D)  New Jersey 
E)  Washington

Question 17

An agent may appoint his or her own agents to carry out his/her duties, with or without the authorization of his/her principal.

Accepted Answer

A) True 
 B)False

Question 18

An) _____ is defined as a person who acts in the name of and on behalf of another, having been given and assumed some degree of authority to do so.

Accepted Answer

A)  grantor 
B)  insured 
C)  agent 
D)  testator 
E)  tenant 
A)  grantor 
B)  insured 
C)  agent 
D)  testator 
E)  tenant

Question 19

Which of the following is true of worker's compensation?

Accepted Answer

A)  Household workers and domestic employees are not eligible to receive worker's compensation. 
B)  Worker's compensation is compulsory in all states of the U.S. 
C)  Worker's compensation acts cover the costs of medical care, but not payment of lost wages. 
D)  Worker's compensation is a no-fault system. 
E)  The employees covered by worker's compensation retain the right to sue the employer for any injury. 
A)  Household workers and domestic employees are not eligible to receive worker's compensation. 
B)  Worker's compensation is compulsory in all states of the U.S. 
C)  Worker's compensation acts cover the costs of medical care, but not payment of lost wages. 
D)  Worker's compensation is a no-fault system. 
E)  The employees covered by worker's compensation retain the right to sue the employer for any injury.

Question 20

The _____ doctrine states that a company has the rights to exploit the inventions made by its employees on the company time and resources.

Accepted Answer

A)  employment- at-will 
B)  shop rights 
C)  master-servant 
D)  delectus personae 
E)  ultra vires 
A)  employment- at-will 
B)  shop rights 
C)  master-servant 
D)  delectus personae 
E)  ultra vires

Exam 20: Relationships Between Principal and Agent

Which of the following is true of general agents?

A contract is no less binding when negotiated by an agent than by the principal.

Merlin gives Ralph authority to sell her land, and to pay himself out of the proceeds, the debts due to him from Merlin. Under such circumstances, it can be said that Ralph:

The fiduciary responsibility of an agent is imposed by law.

Differentiate between a servant and an independent contractor as under agency law).

Employers may comply with workers' compensation laws by insuring through a state fund established for the purpose.

The _____ rule bars any form of recovery from an employer for torts committed by one employee against another.

The fiduciary relation between an agent and principal is two-way, that is, the agent is the principal's fiduciary and the principal is the agent's fiduciary.

Workers' compensation is a no-fault system.

Most agencies are created by contracts.

Oral agencies are not legally binding unless reduced to writing.

Children in most states may purchase necessary items-food or medical services-on the parent's account. This is an example of _____ agency.

Under the traditional _____ doctrine, an employee who is not hired for a specific period can be fired at any time, for any reasons except bad reasons.

The agent's duty to preserve the confidential information of a principal exists only until the agency relationship lasts.

The shop rights doctrine allows a company to use an invention developed by an employee on its premises, using company resources, without payment of royalties.

In which of the following states of the U.S. are workers' compensation laws not compulsory?

An agent may appoint his or her own agents to carry out his/her duties, with or without the authorization of his/her principal.

An) _____ is defined as a person who acts in the name of and on behalf of another, having been given and assumed some degree of authority to do so.

Which of the following is true of worker's compensation?

The _____ doctrine states that a company has the rights to exploit the inventions made by its employees on the company time and resources.

Introduction to Law and Legal Systems

Corporate Social Responsibility and Business Ethics

Courts and the Legal Process

Constitutional Law and Us Commerce

Administrative Law

Criminal Law

Introduction to Tort Law

Introduction to Contract Law

The Agreement

Real Assent

Consideration

Legality

Form and Meaning

Third-Party Rights

Discharge of Obligations

Remedies

Products Liability

Intellectual Property

Insurance

Liability of Principal and Agent; Termination of Agency

Partnerships: General Characteristics and Formation

Partnership Operation and Termination

Hybrid Business Forms

Corporation: General Characteristics and Formation

Legal Aspects of Corporate Finance

Corporate Powers and Management

Securities Regulation

Corporate Expansion, State and Federal Regulation of Foreign Corporations, and Corporate Dissolution

Employment Law

Labor-Management Relations

Consumer Credit Transactions

Secured Transactions and Suretyship

Mortgages and Nonconsensual Liens

Bankruptcy

Introduction to Property: Personal Property and Fixtures

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