Deck 18: Warranties

Question 1

Match each of the numbered definitions with the correct term in the following list. Write the letter of your choice in the answer column.
a. agent
b. agency by necessity
c. agency by ratification
d. apparent authority
e. attorney in fact
f. express authority
g. contract of agency
h. disclosed principal
i. implied authority
j. irrevocable agency
k. partially disclosed principal
l. power of attorney
m. principal
n. undisclosed principal
The party in an agency contract who represents another.

Answer 1

The correct answer is .
An agency contract defines the relationship of two parties: the agent and the principal. According to this contract, agent is required to act on behalf of the other (principal). Whole business of the principal can be dealt by general agent but in some case a particular deal of the principal can be done by the special agent.
In the given statement, party in an agency is agent that represents the principal. Therefore, the correct answer is option (a).

Question 2

Match each of the numbered definitions with the correct term in the following list. Write the letter of your choice in the answer column.
a. agent
b. agency by necessity
c. agency by ratification
d. apparent authority
e. attorney in fact
f. express authority
g. contract of agency
h. disclosed principal
i. implied authority
j. irrevocable agency
k. partially disclosed principal
l. power of attorney
m. principal
n. undisclosed principal
A principal whose existence and identity are not known to third parties.

Answer 2

The correct answer is .
An agency contract defines the relationship of two parties: the agent and the principal. According to this contract, agent is required to act on behalf of the other (principal).
In dealings with third parties, the agent's accountability and responsibility depends on whether his or her representative function and the identity of the principal he or she represents are revealed to the third party.
In case the third party is aware both that the agent represents a principal and of the identity of the represented principal, the agent has no personal responsibility if his or her actions remain within the confines of the agency contract. In this situation the principal is known as disclosed principal.
The agent can be held responsible only if and only until the third party is not informed about the identity of the principal.
There are two ways in which the identity of the principal can be undisclosed. The principal whose identity is unknown, but whose existence is known to the third party, is a partially disclosed principal.
The principal whose identity and existence are equally unknown to the third party is called undisclosed principal.
Therefore, given statement is matched with undisclosed principal. Therefore, the correct answer is option (n).

Question 3

Match each of the numbered definitions with the correct term in the following list. Write the letter of your choice in the answer column.
a. agent
b. agency by necessity
c. agency by ratification
d. apparent authority
e. attorney in fact
f. express authority
g. contract of agency
h. disclosed principal
i. implied authority
j. irrevocable agency
k. partially disclosed principal
l. power of attorney
m. principal
n. undisclosed principal
The name given to a legal document that formally creates an agency.

Answer 3

The correct answer is .
An agency contract defines the relationship of two parties: the agent and the principal. According to this contract, agent is required to act on behalf of the other (principal).
Whole business of the principal can be dealt by general agent but in some case a particular deal of the principal can be done by the special agent.
Agency will be created formally by a legal document called power of attorney. In this regard, legally, agent will be called attorney in fact.
Therefore, correct answer is option (l).

Question 4

Match each of the numbered definitions with the correct term in the following list. Write the letter of your choice in the answer column.
a. agent
b. agency by necessity
c. agency by ratification
d. apparent authority
e. attorney in fact
f. express authority
g. contract of agency
h. disclosed principal
i. implied authority
j. irrevocable agency
k. partially disclosed principal
l. power of attorney
m. principal
n. undisclosed principal
The party in an agency contract who delegates power to another.

Question 5

Match each of the numbered definitions with the correct term in the following list. Write the letter of your choice in the answer column.
a. agent
b. agency by necessity
c. agency by ratification
d. apparent authority
e. attorney in fact
f. express authority
g. contract of agency
h. disclosed principal
i. implied authority
j. irrevocable agency
k. partially disclosed principal
l. power of attorney
m. principal
n. undisclosed principal
An agreement between a principal and an agent in which the agent is vested with authority to represent the principal.

Question 6

Match each of the numbered definitions with the correct term in the following list. Write the letter of your choice in the answer column.
a. agent
b. agency by necessity
c. agency by ratification
d. apparent authority
e. attorney in fact
f. express authority
g. contract of agency
h. disclosed principal
i. implied authority
j. irrevocable agency
k. partially disclosed principal
l. power of attorney
m. principal
n. undisclosed principal
An agency coupled with an interest.

Question 7

Match each of the numbered definitions with the correct term in the following list. Write the letter of your choice in the answer column.
a. agent
b. agency by necessity
c. agency by ratification
d. apparent authority
e. attorney in fact
f. express authority
g. contract of agency
h. disclosed principal
i. implied authority
j. irrevocable agency
k. partially disclosed principal
l. power of attorney
m. principal
n. undisclosed principal
The authority possessed by an agent that may be reasonably assumed by a third party.

Question 8

Match each of the numbered definitions with the correct term in the following list. Write the letter of your choice in the answer column.
a. agent
b. agency by necessity
c. agency by ratification
d. apparent authority
e. attorney in fact
f. express authority
g. contract of agency
h. disclosed principal
i. implied authority
j. irrevocable agency
k. partially disclosed principal
l. power of attorney
m. principal
n. undisclosed principal
The authority possessed by an agent that is specifically stated in the agency contract.

Question 9

Match each of the numbered definitions with the correct term in the following list. Write the letter of your choice in the answer column.
a. agent
b. agency by necessity
c. agency by ratification
d. apparent authority
e. attorney in fact
f. express authority
g. contract of agency
h. disclosed principal
i. implied authority
j. irrevocable agency
k. partially disclosed principal
l. power of attorney
m. principal
n. undisclosed principal
A principal who is known to third parties.

Question 10

Match each of the numbered definitions with the correct term in the following list. Write the letter of your choice in the answer column.
a. agent
b. agency by necessity
c. agency by ratification
d. apparent authority
e. attorney in fact
f. express authority
g. contract of agency
h. disclosed principal
i. implied authority
j. irrevocable agency
k. partially disclosed principal
l. power of attorney
m. principal
n. undisclosed principal
The precise legal term for an agent.

Question 11

Match each of the numbered definitions with the correct term in the following list. Write the letter of your choice in the answer column.
a. agent
b. agency by necessity
c. agency by ratification
d. apparent authority
e. attorney in fact
f. express authority
g. contract of agency
h. disclosed principal
i. implied authority
j. irrevocable agency
k. partially disclosed principal
l. power of attorney
m. principal
n. undisclosed principal
The agency that results when a person approves an unauthorized act done in the principal's name by a person who had no authority to act as agent.

Question 12

Match each of the numbered definitions with the correct term in the following list. Write the letter of your choice in the answer column.
a. agent
b. agency by necessity
c. agency by ratification
d. apparent authority
e. attorney in fact
f. express authority
g. contract of agency
h. disclosed principal
i. implied authority
j. irrevocable agency
k. partially disclosed principal
l. power of attorney
m. principal
n. undisclosed principal
The agency that results when a person fails to support his or her spouse or minor children.

Question 13

Match each of the numbered definitions with the correct term in the following list. Write the letter of your choice in the answer column.
a. agent
b. agency by necessity
c. agency by ratification
d. apparent authority
e. attorney in fact
f. express authority
g. contract of agency
h. disclosed principal
i. implied authority
j. irrevocable agency
k. partially disclosed principal
l. power of attorney
m. principal
n. undisclosed principal
The authority an agent reasonably assumes he or she has that relates to the express authority granted by the principal.

Question 14

Match each of the numbered definitions with the correct term in the following list. Write the letter of your choice in the answer column.
a. agent
b. agency by necessity
c. agency by ratification
d. apparent authority
e. attorney in fact
f. express authority
g. contract of agency
h. disclosed principal
i. implied authority
j. irrevocable agency
k. partially disclosed principal
l. power of attorney
m. principal
n. undisclosed principal
A principal whose identity is not known to a third party who knows he or she is dealing with an agent.

Question 15

Indicate whether each of the following statements is true or false by writing T or F in the answer column.
A general agent is a person authorized to assume complete charge of his or her principal's business.

Question 16

Indicate whether each of the following statements is true or false by writing T or F in the answer column.
A competent party may delegate his or her service on a jury to another by appointing an agent.

Question 17

Indicate whether each of the following statements is true or false by writing T or F in the answer column.
An agent is reasonable in assuming that he or she has the authority that is related to the responsibilities covered in the contract of agency.

Question 18

Indicate whether each of the following statements is true or false by writing T or F in the answer column.
An agent is liable to the principal for any losses that result from the agent's neglect or incompetence.

Question 19

Indicate whether each of the following statements is true or false by writing T or F in the answer column.
A principal is liable for an agent's torts and crimes if they were committed in the ordinary course of the agent's performance of authorized duties.

Question 20

Indicate whether each of the following statements is true or false by writing T or F in the answer column.
An agent representing a partially disclosed principal becomes a party to the contract.

Question 21

Indicate whether each of the following statements is true or false by writing T or F in the answer column.
In a contract between an agent and a third party, the agent can be held responsible to the third party if the identity of the principal is not disclosed.

Question 22

Indicate whether each of the following statements is true or false by writing T or F in the answer column.
An employee who performs only mechanical acts under the employer's direction and is subject to the employer's control is still legally an agent.

Question 23

Indicate whether each of the following statements is true or false by writing T or F in the answer column.
Acts of an employee while performing duties of employment are considered the acts of the employer.

Question 24

Indicate whether each of the following statements is true or false by writing T or F in the answer column.
If an agency exists "at will," the principal has the right to revoke the agency agreement and discharge the agent, provided such discharge is for a good reason.

Question 25

Answer the following question and discuss them in class.
Identify the parties to an agency agreement and describe the relationship of the parties.
_____________________________________________________
_______________________________________________________

Question 26

Answer the following question and discuss them in class.
Classify the two major kinds of agents and discuss the four ways in which an agency may be created.
_____________________________________________________
_______________________________________________________

Question 27

Answer the following question and discuss them in class.
Differentiate between disclosed principal, partially disclosed principal, and undisclosed principal.
_____________________________________________________
_______________________________________________________

Question 28

Answer the following question and discuss them in class.
Explain how an agency may be terminated.
_____________________________________________________
_______________________________________________________

Question 29

Answer the following question and discuss them in class.
Differentiate between the principal-agent and employer-employee relationships.
_____________________________________________________
_______________________________________________________

Question 30

Answer the following question and discuss them in class.
Distinguish among express, implied, and apparent authority.
_____________________________________________________
_______________________________________________________

Question 31

Answer the following questions, which require you to think critically about the legal principles that you learned in this chapter.
Agency It is often difficult for a third party to distinguish between an agent and an employee. Are there times when it is important to distinguish between the two? Should there be a clear identification system established?
_______________________________________________________
_______________________________________________________

Question 32

Answer the following questions, which require you to think critically about the legal principles that you learned in this chapter.
Agent's Liability A principal is liable for the torts and crimes committed by an agent if he or she is performing authorized duties. To what extent should the agent also be liable?
_______________________________________________________
_______________________________________________________

Question 33

Answer the following questions, which require you to think critically about the legal principles that you learned in this chapter.
Undisclosed Principal Does it seem likely that a third party would be suspicious if an agent disclosed the existence but not the identity of his or her principal?
______________________________________________________
_______________________________________________________

Question 34

Answer the following questions, which require you to think critically about the legal principles that you learned in this chapter.
Employees as Agents Does it place an unnecessary burden on a third party to determine whether he or she is dealing with an employee who has the authority of an agent?
______________________________________________________
_______________________________________________________

Question 35

Answer the following questions, which require you to think critically about the legal principles that you learned in this chapter.
A Question of Ethics In some states, an agent's contracts may be voided if he or she is acting for a principal who is a minor. Is this fair to a third party with whom the contract is signed?
______________________________________________________
_______________________________________________________

Question 36

Study each of the following cases. Answer the question that follow by writing Yes or No in the answer column.
Authority of an Agent Peterman, a resident of Florida, sold a home in California to Oliveras. Peterman hired Fogelman, an attorney-at-law, to represent her at the real estate closing and provided Fogelman with a contract of agency giving Fogelman the authority to sell the home. At the closing, Fogelman also agreed to sell Oliveras an expensive piano owned by Peterman that was still in the home.
a. Does Fogelman have implied authority to sell the piano?
b. Does Fogelman have apparent authority to sell the piano?
c. Is Fogelman a special agent?
d. Is Fogelman an attorney in fact?

Question 37

Study each of the following cases. Answer the question that follow by writing Yes or No in the answer column.
Apparent Authority A shipper asked a truck driver to deliver a shipment of chemicals and to protect them from freezing while en route. The driver assured the shipper that the chemicals would be carried in heated trucks. When the shipper learned that the shipment had been damaged in transit by freezing, she demanded payment from the trucking company.
a. Did the truck driver have any authority to assure the shipper that the chemicals would be protected from freezing?
b. Would the trucking company be responsible for the damaged chemicals?
c. Did the truck driver have apparent authority?
d. Was the truck driver acting as an agent?

Question 38

Study each of the following cases. Answer the question that follow by writing Yes or No in the answer column.
Agency by Necessity The Chalmers family lived in poverty. Despite their destitute condition, Mrs. Chalmers bought several articles of jewelry for herself and an expensive painting for their home. When the retailer attempted to collect payment, Mr. Chalmers refused to pay. The merchant claimed that Mrs. Chalmers was acting as an agent for Mr. Chalmers.
a. Is this an example of agency by necessity?
b. Is this an example of agency by ratification?
c. Will the retailer succeed in collecting from Mr. Chalmers?
d. Does the law recognize agency by necessity when a spouse makes essential purchases?

Question 39

Study each of the following cases carefully. Briefly state the principle of law and your decision.
Responsibility of Employer Franklyn, a clerical employee of Woodbury Manufacturing Company, told Buron that he was an agent of the company and made a contract on behalf of Woodbury. Later Woodbury repudiated the contract and claimed that Franklyn had no authority to enter into a contract. Buron then sued Franklyn, who claimed that he thought he had the authority. Will Buron succeed in her suit?
Principle of Law:
_____________________________________________________
_______________________________________________________
Decision:
_____________________________________________________
_______________________________________________________

Question 40

Question 41

Study each of the following cases carefully. Briefly state the principle of law and your decision.
Agency Washington purchased an automobile from Courtesy Motor Sales, a Ford automobile dealer. After the car was delivered, she discovered that the car she thought was new was in fact used and that the odometer had been turned back to conceal the mileage. Washington sued Courtesy and named Ford Motor Company in the suit on the grounds that Courtesy was acting as an agent for the manufacturer. Will Washington succeed in her suit against Ford Motor? [ Washington v. Courtesy Motor Sales, Inc., 199 N.E.2d 263 (Illinois)]
Principle of Law:
______________________________________________________
_______________________________________________________
Decision:
______________________________________________________
_______________________________________________________

Question 42

Study each of the following cases carefully. Briefly state the principle of law and your decision.
Agency Blodgett, while walking on a public sidewalk, was injured when a large piece of wood fell from a construction job at the offices of Olympic Savings and Loan Association. The construction work was being done by Drury Construction Company. Blodgett sued both Olympic and Drury, claiming that Drury was an agent for Olympic. Olympic denied both responsibility for the injury and the existence of an agency relationship with Drury. Will Blodgett succeed in her suit against Olympic? [ Blodgett v. Olympic Savings and Loan Association, 646 P.2d 139 (Washington)]
Principle of Law:
______________________________________________________
_______________________________________________________
Decision:
______________________________________________________
_______________________________________________________

Question 43

Complete the following activities. Share your findings with the class.
Working in Teams In teams of three or four, interview managers of small real estate agencies. Discuss with these managers the nature of the agent's relationship with the principal, including agent's authority and other matters.
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_______________________________________________________

Question 44

Complete the following activities. Share your findings with the class.
Using Technology Using the Internet and search engines, investigate "contract of agency" and identify key terms in such a contract.
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