Question 1

A principal must ratify a contract to be bound to it.

Accepted Answer

A) True 
 B)False  False

Question 2

Jay holds himself out as possessing special accounting skills.As an agent,he must exercise the degree of skill or care expected of

Accepted Answer

A) a person having those skills. 
B) an average,unskilled person. 
C) a reasonable person. 
D) the principal. 
A) a person having those skills. 
B) an average,unskilled person. 
C) a reasonable person. 
D) the principal. A

Question 3

An independent contractor always acts in the capacity of an agent.

Accepted Answer

A) True 
 B)False  False

Question 4

Elle is an agent for Fresh Organics Corporation.Elle makes a mis?representa?tion when entering into a contract on be?half of Fresh with Gala Grocery Stores,Inc.Gala

Accepted Answer

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

Question 5

Gil is a purchasing agent for H&H Ranch with the authority to buy cat?tle at a certain auction.After the cattle have been 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 6

When a principal places an agent in a position to defraud a third party,the principal is liable for the agent's fraudulent acts.

Accepted Answer

A) True 
 B)False

Question 7

If an agent acts within the scope of authority,a partially dis?closed prin?cipal is liable to a third party for contracts made by the agent.

Accepted Answer

A) True 
 B)False

Question 8

An officer of a corporation cannot possess the power to bind the corporation.

Accepted Answer

A) True 
 B)False

Question 9

If an agent acts within the scope of authority,a disclosed prin?cipal is li?able to a third party for contracts made by the agent.

Accepted Answer

A) True 
 B)False

Question 10

If an agent acts within the scope of authority,an undis?closed principal is liable to a third party for contracts made by the agent.

Accepted Answer

A) True 
 B)False

Question 11

Igor,an agent for Jules,signs an agreement with Kali on Jules's behalf but ne?glects to tell Jules that the agreement requires the payment of a certain tax.The government prosecutes Jules for failing to pay the tax.Jules is

Accepted Answer

A) liable,because Igor's knowledge is imputed to Jules. 
B) liable,because Kali's knowledge is imputed to Jules. 
C) not liable,because Igor did not tell Jules about the tax. 
D) not liable,because Kali did not tell Jules about the tax. 
A) liable,because Igor's knowledge is imputed to Jules. 
B) liable,because Kali's knowledge is imputed to Jules. 
C) not liable,because Igor did not tell Jules about the tax. 
D) not liable,because Kali did not tell Jules about the tax.

Question 12

Wrongful termination of an agency relationship can subject the cancel?ing party to a suit for damages.

Accepted Answer

A) True 
 B)False

Question 13

Common Carrier Corporation (CCC)employs Devin as an agent.Without CCC's knowledge but otherwise acting within the scope of em?ployment,Devin commits a crime.The state can successfully prosecute

Accepted Answer

A) CCC only. 
B) CCC or Devin. 
C) Devin only. 
D) neither CCC nor Devin. 
A) CCC only. 
B) CCC or Devin. 
C) Devin only. 
D) neither CCC nor Devin.

Question 14

Fact Pattern 22-2 
Qacy employs Royce as his authorized business agent on April 1.Qacy's son Stan peti?tions a court to declare Qacy mentally incompetent.The court grants Stan's request on May 1.
-Refer to Fact Pattern 22-2.Royce enters into a contract on Qacy's be?half on April 15.After May 1,the contract,which has not been performed,is

Accepted Answer

A) binding on Qacy. 
B) binding on Royce. 
C) binding on Stan. 
D) void. 
A) binding on Qacy. 
B) binding on Royce. 
C) binding on Stan. 
D) void.

Question 15

LikNu Auto Sales,Inc. ,employs Miserly Collection Company as an agent.While repossessing a truck from Niki,one of LikNu's customers,Miserly intentionally injures her.Niki can recover from

Accepted Answer

A) LikNu only. 
B) LikNu or Miserly. 
C) Miserly only. 
D) Niki's insurance company only. 
A) LikNu only. 
B) LikNu or Miserly. 
C) Miserly only. 
D) Niki's insurance company only.

Question 16

A principal owes his or her agent a duty to act in good faith.

Accepted Answer

A) True 
 B)False

Question 17

There does not need to be a written agreement between two parties to cre?ate an agency relationship.

Accepted Answer

A) True 
 B)False

Question 18

Dahlia is a minor.Dahlia may be

Accepted Answer

A) an agent but not a principal. 
B) an agent or a principal. 
C) a principal but not an agent. 
D) neither an agent nor a principal. 
A) an agent but not a principal. 
B) an agent or a principal. 
C) a principal but not an agent. 
D) neither an agent nor a principal.

Question 19

Sedate Investment Corporation (SIC)hires Tiger,a real estate agent,to locate investment properties for SIC.Tiger learns of a warehouse avail?able for $100,000,buys it himself,and offers it to SIC for $110,000.Tiger

Accepted Answer

A) breached the duty of loyalty. 
B) did nothing wrong. 
C) should have made the offer to sell through a neutral third party to avoid any conflict of interest. 
D) should have offered the property for sale to others to avoid the appearance of a conflict of interest. 
A) breached the duty of loyalty. 
B) did nothing wrong. 
C) should have made the offer to sell through a neutral third party to avoid any conflict of interest. 
D) should have offered the property for sale to others to avoid the appearance of a conflict of interest.

Question 20

A principal may affirm the desirable parts of a contract and reject the undesirable parts of the contract.

Accepted Answer

A) True 
 B)False

Exam 22: Agency Relationships

A principal must ratify a contract to be bound to it.

Jay holds himself out as possessing special accounting skills.As an agent,he must exercise the degree of skill or care expected of

An independent contractor always acts in the capacity of an agent.

Elle is an agent for Fresh Organics Corporation.Elle makes a mis?representa?tion when entering into a contract on be?half of Fresh with Gala Grocery Stores,Inc.Gala

Gil is a purchasing agent for H&H Ranch with the authority to buy cat?tle at a certain auction.After the cattle have been bought,the agency rela?tionship terminates

When a principal places an agent in a position to defraud a third party,the principal is liable for the agent's fraudulent acts.

If an agent acts within the scope of authority,a partially dis?closed prin?cipal is liable to a third party for contracts made by the agent.

An officer of a corporation cannot possess the power to bind the corporation.

If an agent acts within the scope of authority,a disclosed prin?cipal is li?able to a third party for contracts made by the agent.

If an agent acts within the scope of authority,an undis?closed principal is liable to a third party for contracts made by the agent.

Igor,an agent for Jules,signs an agreement with Kali on Jules's behalf but ne?glects to tell Jules that the agreement requires the payment of a certain tax.The government prosecutes Jules for failing to pay the tax.Jules is

Wrongful termination of an agency relationship can subject the cancel?ing party to a suit for damages.

Common Carrier Corporation (CCC)employs Devin as an agent.Without CCC's knowledge but otherwise acting within the scope of em?ployment,Devin commits a crime.The state can successfully prosecute

LikNu Auto Sales,Inc. ,employs Miserly Collection Company as an agent.While repossessing a truck from Niki,one of LikNu's customers,Miserly intentionally injures her.Niki can recover from

A principal owes his or her agent a duty to act in good faith.

There does not need to be a written agreement between two parties to cre?ate an agency relationship.

Dahlia is a minor.Dahlia may be

Sedate Investment Corporation (SIC)hires Tiger,a real estate agent,to locate investment properties for SIC.Tiger learns of a warehouse avail?able for $100,000,buys it himself,and offers it to SIC for $110,000.Tiger

A principal may affirm the desirable parts of a contract and reject the undesirable parts of the contract.

The Legal and Constitutional Environment of Business

Traditional and Online Dispute Resolution

Ethics and Business Decision Making

Torts and Cyber Torts

Intellectual Property and Internet Law

Criminal Law and Cyber Crimes

Nature and Classification

Agreement and Consideration

Capacity and Legality

Defenses to Contract Enforceability

Third Party Rights and Discharge

Breach and Remedies

E-Contracts and E-Signatures

The Formation of Sales and Lease Contracts

Title and Risk of Loss

Performance Breach of Sales Lease Contracts

Warranties and Product Liability

Negotiability, transferability, and Liability

Checks and Banking in the Digital Age

Security Interest in Personal Property

Creditors Rights and Bankruptcy

Employment Law and Immigration

Sole Proprietorships, partnerships, Ltd Liability

Corporate Formation, financing, and Termination

Corporate Directors, officers, and Shareholders

Investor Protection, insider Trading, Corpgov

Personal Property and Bailments

Real Property and Landlord-Tenant Law

Insurance, wills, and Trusts

Liability of Accountants Other Professionals

International Law in a Global Economy

Regulations, Contracts, and Discovery

Legal Issues in Business and Commerce

Legal Issues in Online Relationships and Agreements

Contracts and Consumer Protection

Liability of Silverado Bank in Prestridge v. Bank of Jena for Forged Checks.

Sovereign Immunity and Bankruptcy Law

Legal Issues in Employment and Liability Cases

Corporate Governance and Securities Law

Real Estate Law: Cases and Controversies

Corporate Ownership and Liability in Chilean Firms

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