Deck 33: Agency Formation and Duties

Question 1

An agent may use the agency relationship to obtain property for himself or herself when the principal desired to obtain the same property.

Answer 1

False

Question 2

The principal can sue the agent,and may be entitled to a variety of contract and tort remedies beyond those stated in the contract,if an agent breaches his or her duties.

Answer 2

True

Question 3

In Ralph T.Leonard v.Jerry D.McMorris,the text case that discussed whether,under the Colorado Wage Claim Act,company executives of a bankrupt company were liable to employees for unpaid wages and benefits,which of the following was the result?

A)If a company is bankrupt,its executives are liable for wages,but not for benefits.
B)If a company is bankrupt,its executives are liable for wages and benefits in an amount up to $5,000 per employee.
C)Company executives are not individually liable for unpaid wages or benefits.
D)If a company is bankrupt,its executives are liable for wages and benefits in an amount up to $50,000 per executive to be allocated equally among employees.
E)If a company is bankrupt,its executives are liable for benefits,but not for wages.

Answer 3

C
Explanation: A)According to the court,"[T]he officers and agents of a corporation are not jointly
and severally liable for payment of employee wages and other compensation the corporation owes to its employees under the employment contract and the Colorado Wage Claim Act." Although there is a duty to compensate for the corporation,the executives who were the defendants were not individually liable to the former employees for the unpaid wages.
B)According to the court,"[T]he officers and agents of a corporation are not jointly and severally liable for payment of employee wages and other compensation the corporation owes to its employees under the employment contract and the Colorado Wage Claim Act." Although there is a duty to compensate for the corporation,the executives who were the defendants were not individually liable to the former employees for the unpaid wages.
C)According to the court,"[T]he officers and agents of a corporation are not jointly and severally liable for payment of employee wages and other compensation the corporation owes to its employees under the employment contract and the Colorado Wage Claim Act." Although there is a duty to compensate for the corporation,the executives who were the defendants were not individually liable to the former employees for the unpaid wages.
D)According to the court,"[T]he officers and agents of a corporation are not jointly and severally liable for payment of employee wages and other compensation the corporation owes to its employees under the employment contract and the Colorado Wage Claim Act." Although there is a duty to compensate for the corporation,the executives who were the defendants were not individually liable to the former employees for the unpaid wages.
E)According to the court,"[T]he officers and agents of a corporation are not jointly and severally liable for payment of employee wages and other compensation the corporation owes to its employees under the employment contract and the Colorado Wage Claim Act." Although there is a duty to compensate for the corporation,the executives who were the defendants were not individually liable to the former employees for the unpaid wages.

Question 4

When parties form an agency relationship by making a written or oral agreement,the agency is known as a[n] ________.

A)Ratification
B)Apparent agency
C)Expressed agency
D)Endorsement
E)Implied agency

Question 5

In Ackerman v.Sobol Family Partnership,LLP,the text case that discussed whether the plaintiffs were bound by representations of their attorney regarding settlement that they had not approved,which of the following was the result?

A)The agreement entered into by plaintiffs' attorney would not be enforced because the plaintiffs had not given the attorney express authority to enter into the agreement.
B)The agreement entered into by plaintiffs' attorney would not be enforced because the plaintiffs had not lead the opposing defense attorneys reasonably to believe that the plaintiffs' attorney had full and final authority to settle the litigation.
C)The agreement would be enforced because the plaintiffs' attorney had express authority to enter into the agreement.
D)The agreement entered into by plaintiffs' attorney would not be enforced because the plaintiffs had not signed it.
E)The agreement would be enforced because the plaintiffs' attorney had apparent authority to enter into the agreement.

Question 6

Which of the following is true regarding the form of authority upon which an agency relationship may be created?

A)Agency relationships can be created through expressed agency,implied authority,apparent agency,or ratification.
B)Agency relationships can be created through ratification or expressed agency,but not through implied authority or apparent agency.
C)Agency relationships can be created through expressed agency,but not through implied authority,apparent agency,or through ratification.
D)Agency relationships can be created through expressed agency or through implied authority,but not through apparent agency or through ratification.
E)Agency relationships can be created through ratification,but not through implied authority,apparent agency,or expressed authority.

Question 7

Agents in Australia are obligated to act personally on behalf of the principal.

Question 8

Not only must a principal agree to have a person act as an agent,but the agent must also agree to act for the principal.

Question 9

A person who has a duty to act primarily for another person's benefit is called a[n] ________.

A)Employer
B)Principal
C)Benefitor
D)Fiduciary
E)Trustor

Question 10

An individual who lacks contractual capacity may hire an agent to make contracts on his or her behalf.

Question 11

All employees are agents of their employers,and all agents are employees.

Question 12

An agency relationship exists when an agent is authorized to act for and on behalf of the principal,who hires an agent to represent him or her.

Question 13

One who acts without consideration is called a gratuitous agent.

Question 14

An expressed agency is the most common type of agency but it does not give the agent the authority to contract on behalf of the principal.

Question 15

Agency law is primarily federal law.

Question 16

Agents may have contract remedies available against a principal,but not tort remedies.

Question 17

A principal may not enact a power of attorney after becoming incompetent.

Question 18

The principal does not owe duties to an agent even though an agent owes duties to a principal.

Question 19

The law assumes that the principal is aware only of information actually provided to the principal by the agent.

Question 20

An agency relationship may be created only for a lawful purpose.

Question 21

The Case Opener discussed whether FedEx illegally refused to collectively bargain with single-route drivers on the basis that they were independent contractors,not employees.Which of the following is true regarding the result?

A)The court found that at times the drivers acted as employees and that other times they acted as independent contractors and that they would,therefore,be classified as independent contractors.
B)The court found that at times the drivers acted as employees and that other times they acted as independent contractors and that they would,therefore,be classified as employees.
C)The court found that all the rights and duties of employees as agents applied to their relationship with FedEx.
D)The court found that FedEx did not exercise the degree of control necessary for the relationship to be considered employer-employee.
E)To determine whether the FedEx drivers should be classified as employees or independent contractors,the court applied federal statutory law.

Question 22

Which document gives an agent authority to sign legal documents on behalf of the principal?

A)Legal empowerment
B)Power of attorney
C)Order of authority
D)Respondeat superior
E)Power of order

Question 23

Which of the following types of agency occurs when a principal leads a third party to believe another individual serves as his or her agent,but the principal has actually made no agreement with the so-called agent?

A)Ratification
B)Endorsement
C)Apparent agency
D)Expressed agency
E)Implied agency

Question 24

Which of the following is false regarding civil law and a power of attorney in Luxembourg?

A)One type of power of attorney in Luxembourg is a power of attorney that is valid until death.
B)In Luxembourg,the person on whose behalf the power of attorney is created is called a donor,instead of a principal.
C)In civil law countries,a power of attorney authorizes the agent only to conduct a series of transactions under instruction from the principal.
D)The law in Luxembourg requires that the power of attorney be authenticated by a public authority or a public notary.
E)One type of power of attorney in Luxembourg is a power of attorney that has unlimited validity even after death.

Question 25

Under which of the following does a principal give authority to an agent only for the specific areas or purposes listed in the agency agreement?

A)A specific power of order
B)A limited power of responeat superior
C)An exact legal empowerment
D)An exact order of authority
E)A specific power of attorney

Question 26

Which of the following is the most common form of agency?

A)Implied agency
B)Endorsement
C)Expressed agency
D)Ratification
E)Apparent agency

Question 27

A is a written document,created by a principal,expressing his or her wishes for an agent's authority not to be affected by the principal's subsequent incapacity.

A)Lasting power of authority
B)Durable power of attorney
C)Living legal empowerment
D)Notarized order
E)General purpose order of authority

Question 28

Which of the following is not a type of independent contractor?

A)Building contractor
B)Lawyer
C)Stockbroker
D)Elementary school teacher
E)Doctor

Question 29

Under which of the following does a principal give an agent broad authority to sign legal documents on behalf of the principal?

A)A specific order of authority
B)A general power of attorney
C)A recognized power of order
D)A localized legal empowerment
E)A broad power of responeat superior

Question 30

If a principal agrees to hire no other agent for a period of time or until a particular job is done,the principal and agent have entered into a[n] _ agency contract.

A)Exclusive
B)Exact
C)Identified
D)Encompassing
E)Specific

Question 31

Which of the following is false regarding intellectual property rights?

A)The employer owns the copyright to a work for hire completed by an employee.
B)Only by an agreement of both parties that a specific work is a work for hire may an employer gain copyright ownership of the work of an independent contractor.
C)When an employee completes work at the request of the employer,the product is considered a "work for hire."
D)Federal law does not address the issue of when a work is a "work for hire" because such issues are left to state legislatures.
E)The classification as an employee or independent contractor is also important in determining who owns the output of a work project.

Question 32

A person who contracts with another to do something for the other person,but is not controlled by the other,nor subject to the other's right to control with respect to his physical conduct in the performance of the undertaking,is referred to as which of the following?

A)An authorized contractor
B)A partial contractor
C)An independent contractor
D)An employee
E)A task-specific contractor

Question 33

Which of the following is false regarding implied agency and apparent agency?

A)Circumstances may determine the extent of implied agency.
B)Implied agency may conflict with express authority.
C)An implied agency as well as an apparent agency may be created by conduct.
D)Apparent agency is also known as agency by estoppel.
E)If a principal in an alleged apparent agency situation denies that an agency existed,the third party alleging agency must demonstrate that he or she reasonably believed,based on the principal's conduct,that an agency relationship existed.

Question 34

Which of the following is another name for apparent agency?

A)Approved agency
B)Simplified agency
C)Equitable agency
D)Agency by estoppel
E)Agency by law

Question 35

As set forth in the text,which of the following is false regarding agency law in relation to sports agents?

A)Efforts are underway to develop a uniform act addressing regulation of sports agents because none exists at the present time.
B)The Major League Baseball Players Association's Regulations Governing Player Agents expressly state that agents act in a fiduciary capacity vis-à-vis their athlete clients.
C)Players associations' model contracts describe the nature of the services agents can perform on behalf of their principals and the duties the parties owe to one another.
D)Some states have established criminal penalties for athletes who violate the state law addressing regulation of sports agents,but most states focus on criminalizing the activity of sports agents.
E)Over half of the states have enacted statutes governing the behavior of sports agents.

Question 36

In the text case,Penny Garrison v.The Superior Court of Los Angeles,plaintiffs sought to sue a residential care facility and avoid the effect of a durable power of attorney by which the decedent's daughter signed agreements to arbitrate disputes involving the facility.Which of the following was the result?

A)The durable power of attorney was effective and the agreements to arbitrate would be upheld.
B)The durable power of attorney was effective but the arbitration agreements were void as against public policy.
C)The durable power of attorney was ineffective because it was revoked after the decedent became ill and the arbitration agreements,therefore,were unenforceable.
D)The durable power of attorney was ineffective because it did not grant the holder authority to enter into arbitration agreements and the arbitration agreements,therefore,were unenforceable.
E)The durable power of attorney was ineffective because it did not specifically give the daughter authority to enter into agreements involving health care and the arbitration agreements,therefore,were unenforceable.

Question 37

Which of the following is true regarding an employer's tort liability for the actions of employees and independent contractors?

A)Employers are generally liable in tort for the actions of independent contractors,while they are generally not liable for the actions of employees.
B)Employers are generally liable in tort for the actions of independent contractors and for the actions of employees.
C)Employers are not generally liable in tort for the actions of independent contractors or the actions of employees.
D)Employers are generally liable in tort for the actions of their employees,while they are generally not liable for the actions of independent contractors.
E)Employers are generally liable in tort for the actions of independent contractors and for the actions of employees,but only if the employer has agreed to be liable in a written contract with the employee or independent contractor.

Question 38

Which of the following is true regarding criteria needed for creation of the agency relationship?

A)The agency must be created for an equitable as well as a lawful purpose;and,although there is no requirement that the person hiring an agent have capacity,the person acting as an agent must have contractual capacity.
B)The agency must be created for a lawful purpose;and,although there is no requirement that the person hiring an agent have capacity,the person acting as an agent must have contractual capacity.
C)The agency must be created for a business and lawful purpose,and the person hiring an agent must have contractual capacity.
D)The agency must be created for an equitable as well as a lawful purpose,and the person hiring an agent must have contractual capacity.
E)The agency must be created for a lawful purpose,and the person hiring an agent must have contractual capacity.

Question 39

Which of the following is not one of the criteria listed in the text as indicative of whether a worker is an employee or an independent contractor?

A)The amount of time the worker has been involved in the trade or area at issue.
B)Whether the worker is engaged in a distinct occupation or an independently established business.
C)Whether the employer supplying the tools.
D)How the worker is paid.
E)The length of time for which the worker is employed.

Question 40

Which of the following is false regarding the employer-employee relationship?

A)Independent contractors fall under the employer-employee relationship.
B)Generally,all employees are considered to be agents of the employer.
C)In an employer-employee relationship,the employee is subject to the employer's control.
D)The employee is subject to the control of the employer.
E)Employees who are not legally authorized to enter into contracts binding their employer are nevertheless generally considered agents of the employer.

Question 41

Which of the following is true regarding the status of an agent as a fiduciary?

A)An agent is a fiduciary only if the principal and agent agreed by written or oral contract that the agent is a fiduciary.
B)Although the principal is a fiduciary,an agent is not a fiduciary.
C)An agent is a fiduciary only if the principal and agent agreed by written contract that the agent is a fiduciary.
D)An agent is only a fiduciary to the principal only if a transaction in excess of $10,000 is involved.
E)An agent is a fiduciary to the principal.

Question 42

In non-contractual relationships,in order to force the principal to perform the contract,the agent may seek which of the following?

A)Specific performance
B)Recover for services rendered
C)Specific recoupment
D)Reformation
E)Adequate performance

Question 43

An agent cannot represent both the principal and a third party in an agreement because there could be a[n] .

A)Conflict of interest
B)Consortium
C)Absolution
D)Disagreement
E)Delineation of interest

Question 44

Which of the following is false regarding a principal's duties to an agent?

A)If the principal has failed to meet duties owed to the agent,the agent can refuse to act on behalf of the principal until the failure is remedied.
B)The principal has a duty of reimbursement and indemnification to the agent for authorized expenditures.
C)An agent may be entitled to contract remedies but not tort remedies.
D)An agent can sue the principal if the principal does not fulfill duties owed to the agent.
E)The principal has a duty to compensate an agent for services provided unless the parties have agreed that the agent will act gratuitously.

Question 45

[High Maintenance] Malcolm,who runs a retail jewelry store,went to a wholesale jewelry store with Ashley,to whom he was engaged to be married.Malcolm had no express,written agreement with Ashley by which she was his agent.The wholesaler jeweler,Rebecca,asked Malcolm if Ashley was buying for him.Malcolm did not want to embarrass Ashley so he nodded in agreement.A few minutes later Malcolm whispered to Ashley,outside the hearing of the wholesaler,that she should not make any purchases.Malcolm and Ashley had a big disagreement over money that evening,and Ashley broke off their engagement.The next day Ashley went back to the wholesale jeweler and purchased a string of pearls for $2,000.Ashley also purchased a fur jacket for $3,000 from a store next door to the jewelry store owned by Harry.She told Harry that Malcolm wanted a fur jacket for a model in his store and that Malcolm would be glad to pay Harry for the jacket.
What type of agency,if any,did Ashley have to act on behalf of Malcolm as far as Rebecca is concerned?

A)An apparent agency.
B)An express agency.
C)No type of agency was in effect because no written agreement was in place by which Ashley was Malcolm's agent.
D)An implied agency.
E)No type of agency was in effect because,in fact,Ashley was not Malcolm's agent.

Question 46

Which of the following is the term used to describe the duty and responsibilities of the agent as specified in the agency agreement?

A)Duty of contract
B)Duty of performance
C)Duty of action
D)Duty of obedience
E)Express duty of action

Question 47

A[n] ________ trust is an equitable trust imposed on one who wrongfully obtains or holds legal right to property he or she should not possess.

A)Actual
B)Resolute
C)Absolute
D)Defined
E)Constructive

Question 48

Which of the following is a term used to describe the duty of an agent to communicate any information to the principal that the agent thinks could be important to the principal?

A)Constructive information
B)Duty of information
C)Requirement of conveyance
D)Duty of notification
E)Constructive notification

Question 49

Which of the following is the term used to describe the duty an agent has to follow the lawful instruction and direction of the principal?

A)Express duty of action
B)Duty of performance
C)Duty of obedience
D)Duty of action
E)Duty of contract

Question 50

Which of the following may an agent demand if the agent believes that he or she is not being properly compensated?

A)Specific performance
B)A contractual documentation
C)An accounting
D)Accounting performance
E)A contractual audit

Question 51

Which of the following is the most likely result if Harry sues Malcolm for the price of the jacket?

A)Harry will win because Ashley indicated that she had apparent authority to buy the jacket for Malcolm.
B)Harry will win only if he can show that Ashley has no assets with which to pay for the necklace.
C)Harry will win on an implied agency theory.
D)Malcolm will win because he did nothing to cause Harry to believe that he would pay for the jacket.
E)Harry will win only if he can show that through reasonable investigative efforts on his part Ashley cannot be located.

Question 52

Did Paolo have any legal liability to AAA Computers?

A)Yes,because he made the purchase from AAA Computers without mention of Joe.
B)Yes,but only if Joe refused to pay.
C)Yes,but only because office equipment is involved.
D)Yes,but only if Joe were declared judicially insolvent.
E)No,because his status was as an agent regardless of whether AAA Computers was aware of that fact.

Question 53

If there is no agreement between a principal and an agent regarding the amount for which the principal will compensate the agent,which of the following statements is true?

A)The agent will be allowed to set the price which will be enforced unless it is unconscionable.
B)The court will appoint a magistrate to set the price.
C)The principal will be allowed to set the price which will be enforced unless it is unconscionable.
D)Compensation will be calculated according to the customary fee in the situation.
E)It will be assumed that the agent agreed to work for free on a gratuitous basis.

Question 54

The right of a principal to sue an agent to recover any amount assessed against the principal for a breach of contract caused by the agent's negligence is referred to as which of the following?

A)Contribution
B)Recoupment
C)Reformation
D)Reimbursement
E)Indemnification

Question 55

In determining whether a worker is an independent contract or an employee,which of the following areas of law will not be seriously affected?

A)Discrimination law
B)Wage law
C)Tax law
D)Constitutional law
E)Tort law

Question 56

If Rebecca,the wholesaler jeweler,sues Malcolm for the price of the pearls,which of the following is the most likely result?

A)Rebecca will lose because it was her responsibility to ask Malcolm for written documentation that Ashley was his agent.
B)Rebecca will lose unless it can be established that Ashley at some time in the past had actual authority to act as Malcolm's agent.
C)Rebecca will win only if she can show that Ashley has no assets with which to pay for the necklace.
D)Rebecca will win assuming that she can prove that she reasonably believed,based on Malcolm's conduct,that Ashley was acting as his agent.
E)Rebecca will win only if she can show that through reasonable investigative efforts on her part Ashley cannot be located.

Question 57

[Cheap Principal] Paolo,who is very knowledgeable regarding computers,agrees to purchase computers for Joe's business.Paolo is retained for that purpose only,he is paid a set rate for the job,and Joe exercised no control over the manner in which Paolo did his work.Paolo purchased computers from AAA Computers without any mention of Joe.The computers worked well and were not defective in any way.Unfortunately,Joe did not pay AAA Computers on a timely basis.Paolo,therefore,paid AAA Computers out of his own pocket because he wanted to be able to do business with AAA Computers in the future and also because his name was on the invoice.Paolo asked Joe for reimbursement,but Joe refused.Joe claimed that if Paolo had only waited,AAA Computers might have agreed to take less.
Which of the following likely represents Paolo's status in regards to his employment with Joe?

A)He was an employee.
B)He had a special status called employee-contractor,a term used to represent a contractor with some responsibilities indicating status as an employee and some responsibilities indicating otherwise.
C)He was an independent contractor.
D)He was an express contractor.
E)He was an implied contractor.

Question 58

Which of the following would an agent seek in order to attempt to force the principal to perform the contract as stipulated,when a contract exists and a principal agrees to certain conditions,but fails to perform?

A)Adequate performance
B)Specific performance
C)Reformation
D)Recognition
E)Specific recoupment

Question 59

The duty of an agent to perform specified duties with reasonable skill,care,and professionalism is referred to as which of the following?

A)Duty of action
B)Duty of performance
C)Duty of contract
D)Express duty of action
E)Duty of obedience

Question 60

Which of the following is false regarding the duties a principal owes to an agent?

A)The principal owes a duty of cooperation to the agent.
B)The principal can do nothing to interfere with the reasonable conduct of an agent.
C)The principal must assist the agent in the performance of his or her duties.
D)The duty of reimbursement applies to employees only,not to independent contractors.
E)The principal has a duty to provide safe working conditions for an agent.

Question 61

What duty does a principal have concerning safe working conditions?

A)The principal only has a duty to warn agents of known unsafe working conditions.
B)The principal has a duty to provide safe working conditions for the agent,but he does not need to warn the agency of any known unsafe working conditions.
C)The principal has a duty to provide safe working conditions for the agent,warn the agent of any known unsafe working conditions,and make necessary repairs.
D)The principal only has a duty to make necessary repairs to maintain safe working conditions.
E)The principal does not owe a duty of safe working conditions to an agent.

Question 62

In the text case Uber v.Berwick,a driver for a car service argued she was an employee and not an independent contractor,and sought overtime pay and reimbursement for on-the-job expenses.Which of the following was the result?

A)Drivers were employees because the car service was involved in every aspect of the operation.
B)Drivers were independent contractors because they could work hours of their choosing.
C)Drivers were independent contractors because they drove their own vehicles.
D)Drivers were independent contractors because they can choose which clients to serve.
E)The court declined to determine whether drivers were employees or independent contractors.

Question 63

Meryl is an avid doll collector and has been searching for the Beach Doll to complete her 200- piece collection.There were only 5 Beach Dolls created in the world.Meryl is envious of her neighbor Nancy,who has the first Beach Doll ever created.Nancy refuses to sell the doll because she thinks it will be worth a million dollars someday.While Nancy is on vacation,Meryl hires Alex to steal the doll from Nancy's home.Has an agency relationship been formed?

A)No,because the agreement has an illegal purpose.
B)No,because the agreement must be in writing.
C)No,because the amount or form of compensation was not contemplated.
D)Yes,because the agreement may be oral or in writing.
E)Yes,because Alex's objective was unambiguous.

Question 64

[Overstock] Mark owns an electronic resale store.Before Mark left for the weekend,he told Charlie,an employee,not to purchase any more compact discs CDs)from customers because they were already having a difficult time selling the ones they had in stock.While Mark is gone,Charlie forgets Mark's instructions and buys nine CDs from customers.
Which of the following statements is true regarding Charlie's liability to Mark?

A)Mark may recover the cost of the nine CDs because Charlie did not follow his instructions.
B)Charlie is not liable to Mark because he believed Mark would have bought the CDs from the customer.
C)Charlie is not liable to Mark because he thought the purchase price of the CDs were exceptionally great.
D)Charlie is not liable to Mark because he did not remember Mark's instructions.
E)Charlie is not liable to Mark because he is his employee.

Question 65

Which of the following refers to the agent's duty to act in the best interest of the principal?

A)Notification
B)Accounting
C)Obedience
D)Specific performance
E)Loyalty

Question 66

What if instead of Mark directing Charlie not to buy any CDs he said,"I don't think it is a good idea to buy CDs because we cannot sell the ones we have in stock." Charlie still purchased nine CDs from customers.Would Charlie be liable to Mark?

A)No,because Mark's statement was merely advisory and not mandatory.
B)No,because Mark cannot control every aspect of Charlie's work performance.
C)No,because Mark did not put his requirement in writing.
D)Yes,because Charlie should have known it was not in Mark's best interests to purchase more CDs when they have a massive overstock.
E)Yes,because Charlie did not follow Mark's instructions.

Question 67

What should Melanie seek if she wants possession of the lakeside lot Kumar purchased?

A)A defined trust
B)An absolute trust
C)A constructive trust
D)An actual trust
E)A resolute trust

Question 68

When determining whether a worker is an independent contract or an employee,one of the most important considerations is ,which is when the employer has the right to substantially control the worker's day-to-day operations.

A)Employer control
B)Specific performance
C)Special performance
D)Delegation
E)Oversight

Question 69

What type of agency is formed when it appears an agency relationship exists based on the conduct of the parties?

A)Agency by implied authority
B)Expressed agency
C)Agency by ratification
D)Apparent agency
E)An agency relationship cannot be formed based on the conduct of the parties alone.

Question 70

When an individual misrepresents himself or herself as another party's agent and the principal accepts the unauthorized act,which of the following has occurred?

A)Agency by implied authority
B)Agency by agreement
C)Agency by ratification
D)An expressed agency
E)Apparent agency

Question 71

Which of the following is true regarding agency contracts?

A)Agency contracts must clearly define the agent's compensation.
B)A contract is not required to create an agency but if a contract exists,it must meet all requirements prescribed by contract law.
C)A contract is required to create a valid agency
D)An agency contract only needs to be signed by the principal.
E)An agency contract cannot create an agency agreement longer than two years.

Question 72

In the text case Glenn v.Gibbs,Glenn was injured and eventually died from his injuries as a direct result of trimming Gibbs' tree limbs.Glenn's wife sued Gibbs for negligence alleging Gibbs' actions and omissions caused Glenn's death.Which of the following was the result?

A)Gibbs was liable because Glenn was an employee.
B)Gibbs was liable because Glenn was an independent contractor.
C)Gibbs settled the lawsuit out of court and admitted fault.
D)Gibbs was not liable because Glenn was an independent contractor.
E)Gibbs was not liable because Glenn was an employee.

Question 73

[Lakeside Property] Kumar agreed to act as the agent of Melanie in finding a piece of lakeside property for her at a good price,and also in obtaining a loan for her with which to purchase the property.She agreed to pay him$500 for doing so.To assist Kumar in his duties,Melanie disclosed to him confidential information about her finances and debts.Kumar decided that he needed help and paid Rick $300 to look for property for Melanie.Rick told Kumar about a great deal on a piece of lakeside property that Phil had for sale.In fact,the deal was so good that Kumar purchased the property for himself.When Melanie found out about the property Kumar bought for himself,she complained to Kumar.He defended himself on the basis that he was not actually working for Melanie when he found out about the deal.At the time,he was playing golf with Phil.He also told Melanie that he had hired Rick for $300 to assist him and that he could not be held liable because he had turned the job over to Rick.He asked Melanie for reimbursement of the amount he paid Rick.Melanie fired Kumar threatening to sue him.Kumar told Melanie that he would counterclaim for the $300 owed to Rick.After he was fired,Kumar disclosed to a number of parties information regarding Melanie's spending habits which he thought were excessive.
If Melanie sues Kumar for purchasing the property from Phil instead of offering it to her,which of the following is the most likely result?

A)Melanie will lose but only because Kumar was not involved in work duties when he heard about the property.
B)Melanie will win because as the principal,she has right of first refusal.
C)Melanie will lose because Kumar had validly assigned all duties to Rick.
D)Melanie will win only if she can establish that she expressly told Kumar that he could not assign the contractual duties under the contract.
E)Melanie will lose because Kumar had the right to act in his own best interest.

Question 74

Which of the following is the best solution for a U.S.company that is attempting to enter a foreign market but is having difficulty due to a language barrier and lack of knowledge?

A)The company should continue to conduct business the way it would in the U.S.
B)The company should focus all of its advertising in the desired market.
C)The company should hire an agent familiar with the local laws,customs,and practices to help it function smoothly.
D)The company should not do business in a foreign market if there is a language barrier.
E)The company should open a local business office to become familiar with the area.

Question 75

Robert has agreed to act as an agent for Jill.Which of the following scenarios requires the agency agreement be in writing?

A)Robert is given authority to make business calls on Jill's behalf.
B)Agency agreements are never required to be in writing.
C)Robert is given power of attorney.
D)Robert is given authority to read Jill's mail.
E)All agency agreements must be in writing.

Question 76

Which of the following is true regarding any right of reimbursement Paolo is due from Joe?

A)Paolo is entitled to reimbursement from Joe.
B)Paolo is not due any reimbursement from Joe unless Paolo can establish by a preponderance of the evidence that AAA Computers would not have agreed to take a lesser amount.
C)Paolo is not due any reimbursement from Joe unless he can establish that Joe signed a written contract authorizing him to personally pay debts incurred.
D)Paolo is only due 50% of whatever he paid because he did not get permission from Joe before paying AAA Computers.
E)Paolo is not due any reimbursement because he did not get permission from Joe before paying AAA Computers.

Question 77

If Melanie sues Kumar for revealing confidential information,which of the following is the most likely result?

A)Melanie will win.
B)Melanie will lose because Kumar was no longer her agent when he revealed the information.
C)Melanie will lose unless she can establish that revealing the information caused her to seek psychological counseling.
D)Melanie will lose because regardless of whether he was working for her or not,he had no legal duty to keep any information confidential.
E)Melanie will lose unless she can establish that revealing the information caused her to suffer economic loss.

Question 78

Which of the following refers to the principal's duty to assist the agent with his or her duties and not interfere with the agent's reasonable conduct?

A)Compensation
B)Obedience
C)Notification
D)Cooperation
E)Loyalty

Question 79

When an agent breaches an agency contract,the principal may use his or her right of _ to nullify at his or her discretion any contract the agent negotiated.

A)Rejection
B)Avoidance
C)First refusal
D)Override
E)Indemnification

Question 80

Which of the following is the most likely result if Kumar sues Melanie for the $300 paid to Rick?

A)Kumar will win only if he can establish by a preponderance of the evidence that he acted reasonably.
B)Kumar will lose.
C)Kumar will lose only if Melanie can establish that Rick is incompetent to deal in real estate.
D)Kumar will win because an agent has an implied right to obtain help.
E)Kumar will win unless Melanie can establish beyond a reasonable doubt that he acted unreasonably.