Deck 18: Agency Law

Question 1

The principal's duty to reimburse says that the principal should pay the agent all expenses prior to start of the agency.

Answer 1

False

Question 2

The principal is bound legally to pay a gratuitous agent.

Answer 2

False

Question 3

Only a lawyer can become an attorney-in-fact.

Answer 3

False

Question 4

A principal can authorize an independent contractor to enter into contracts.

Question 5

Agency law is a mixture of tort and contract laws.

Question 6

For an implied agency to function, implied authority cannot conflict with express authority.

Question 7

An agent by ratification happens when a principal ratifies an authorized act.

Question 8

A special power of attorney empowers the agent to act in any matters on the principal's behalf without limitation.

Question 9

If a principal and an agent enter into an express agency contract, the principal cannot employ any agent other than the exclusive agent.

Question 10

A principal is not bound to contracts made by an apparent agency.

Question 11

An employer-employee relationship occurs when an employer gives an employee authority to act and enter into contracts on his or her behalf.

Question 12

An express agency contract cannot be orally agreed upon.

Question 13

A general power of attorney limits the agent to those acts enumerated by the agreement.

Question 14

A durable power of attorney remains effective even if the principal is incapacitated.

Question 15

A power of attorney gives an agent the power to sign legal documents on behalf of the principal.

Question 16

An agent given a power of attorney is known as an attorney-in-fact.

Question 17

The principal works on behalf of an agent.

Question 18

An orally agreed upon power of attorney is acceptable in court.

Question 19

A principal-agent relationship exists when an employer hires an employee to perform some form of physical service.

Question 20

In an agency by ratification, the agent is relieved of any liability for misrepresentation.

Question 21

Any property, money, or other benefit received by the agent in the course of an agency belongs to the principal.

Question 22

A principal owes a duty to indemnify the agent for any losses the agent suffers because of the principal's conduct.

Question 23

If an agent reveals confidential information of a principal to a third party, the principal's course of action is to obtain an injunction against the third party.

Question 24

Based on the doctrine of respondeat superior, principals are liable for the negligent conduct of agents acting within the scope of their employment.

Question 25

An agent is liable for the tortious conduct of the principal if he or she has knowledge of the principal's conduct.

Question 26

Vicarious liability is liability with fault.

Question 27

Dual agency is permitted if all parties to a transaction agree to it.

Question 28

The principal is liable for the tortious conduct of an agent who is acting within the scope of his or her authority.

Question 29

An agent who has negligently or intentionally failed to perform his express duties is also liable to tort laws.

Question 30

Dual agency occurs when an agent acts for two or more different principals in the same transaction.

Question 31

If an agent competes with the principal without the principal's permission, the principal may recover profits made by the agent.

Question 32

Battery committed by an agent in the principal's premises and during the scope of employment is considered an unintentional tort.

Question 33

A constructive trust helps the agent retain profits made during the completion of the agency.

Question 34

Middlemen and finders are not considered dual agents.

Question 35

The duty of loyalty is a fiduciary duty owned by an agent not to act adversely to the interests of the principal.

Question 36

An agent does not violate his or her duty of loyalty by serving two parties with the same interest.

Question 37

An agent is not liable to the principal for any injuries resulting from a breach of duty to notify.

Question 38

The legal rule of imputed knowledge means that the principal is assumed to know what the agent knows.

Question 39

An agent does not owe a duty to notify the principal of important information he learns concerning the agency.

Question 40

Undisclosed self-dealing by an agent is not regarded as violation of the duty of loyalty.

Question 41

In an undisclosed agency, the principal is solely liable on the contract with the third party.

Question 42

An independent contractor cannot represent more than one principal at a time.

Question 43

Undisclosed agencies are not lawful in the United States.

Question 44

The principal is not liable for an agent's negligence while the agent is on a dual-purpose mission.

Question 45

The agent is not liable on the contract in a fully disclosed agency.

Question 46

Principals do not control the means by which independent contractors achieve results.

Question 47

A partially disclosed agency can be created by mistake.

Question 48

In a fully disclosed agency, an agent is not liable on the contract if he or she guarantees that the principal will perform the contract.

Question 49

The principal is liable for all torts of independent contractors.

Question 50

The principal is obliged to perform the contract made with a third-party.

Question 51

A fully disclosed agency results if a third party entering into a contract knows the actual identity of the principal.

Question 52

The principal is liable for the innocent misrepresentation made by an agent acting within the scope of employment.

Question 53

The work-related test puts liability on the employee if the intentional tort is committed within work-related time and space.

Question 54

Ratification of a contract is a situation in which a principal accepts an agent's unauthorized contract.

Question 55

The agent is compulsorily liable for any intentional or innocent misrepresentation made by the principal in a transaction.

Question 56

If an agent exceeds his or her scope of authority, a principal is bound on the contract only if he or she ratifies the contract.

Question 57

In a partially disclosed agency, the contracting third party transacts directly with the principal and does not know the identity of the agent.

Question 58

The party that employs an independent contractor is called an agent.

Question 59

The coming and going rule says that a principal is generally not liable for injuries caused by its agents and employees while they are on their way to or from work.

Question 60

Principals are liable for negligence caused by an agent during substantial frolic and detour.

Question 61

What role does Chris perform?

A) independent contractor
B) agent
C) principal
D) trustee

Question 62

Who is an agent?

A) a party who agrees to act on behalf of another
B) a party who employs another person to act on his or her behalf
C) a party that directs a worker under an express or implied contract of employment
D) a party who receives the services of another for remuneration

Question 63

What kind of contract existed between Marlon and Nita?

A) an apparent agency contract
B) a ratified contract
C) an exclusive agency contract
D) an exclusive principal contract

Question 64

Who performs the role of the agent in this land sale transaction?

A) Wilhelm
B) Martin
C) Chris
D) George

Question 65

Which of the following is true of an employer-employee relationship?

A) An employee has implied power of attorney towards the principal.
B) An employee has authority to act on behalf of the principal.
C) An employee can enter into contracts on behalf of the employer.
D) An employee is hired to perform a task or service.

Question 66

A(n)________ is a relationship formed when an employer hires an employee and gives that employee authority to act and enter into contracts on his or her behalf.

A) agent-independent contractor relationship
B) principal-agent relationship
C) agent-agent relationship
D) employer-employee relationship

Question 67

What sort of commercial relationship exists between Martin and William have?

A) employer-employee relationship
B) agent-agent relationship
C) agent-independent contractor relationship
D) principal-agent relationship

Question 68

Parties with whom the agent has dealt with directly must be given direct notices of termination of agency.

Question 69

The bankruptcy of the principal is not a valid reason to terminate an agency.

Question 70

What role does ReNowait Goodhouses perform?

A) agent
B) independent contractor
C) principal
D) trustee

Question 71

A(n)________ is a fiduciary relationship which results from the manifestation of consent by one person to another that the other shall act in his behalf and subject to his control, and consent by the other so to act.

A) assignment
B) garnishment
C) accommodation
D) agency

Question 72

Which of the following types of relationship exists when a person hires another person to perform some form of physical service but does not authorize that person to enter into contracts on behalf his or her behalf?

A) employer-employee relationship
B) employer-agent relationship
C) principal-third party relationship
D) principal-agent relationship

Question 73

The outbreak of a war between the principal's country and the agent's country is grounds for terminating an agency.

Question 74

Constructive notices are not valid against strangers who assert claims of apparent agency.

Question 75

The ________ is the party who employs another person to act on his or her behalf.

A) agent
B) principal
C) independent contractor
D) employee

Question 76

An agency that occurs when a principal and an agent categorically agree to enter into an agency agreement with each other is known as a(n)________.

A) agency by ratification
B) implied agency
C) apparent agency
D) express agency

Question 77

Which of the following constitutes an agency?

A) principal-agent relationship
B) agent-agent relationship
C) principal-principal relationship
D) agent-independent contractor relationship

Question 78

If an agency terminates by operation of law, there is no duty to notify third parties about the termination.

Question 79

Who is the principal during the land sale transaction?

A) ReNowait Goodhouses
B) George
C) Martin
D) William

Question 80

Which of the following types of agency had Marlon and Nita entered into?

A) apparent agency
B) agency by ratification
C) implied agency
D) express agency