Deck 14: Relationships Between Principal and Agent

Question 1

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

Answer 1

False

Question 2

An agent will not be liable for damages even if the principal repudiates what the agent has done,as long as he/she has acted reasonably under circumstances.

Answer 2

Answer: True

Question 3

A person who is hired to accomplish a result but is not subject to specific control by the one hiring is known as an)_____.

A)servant
B)general agent
C)independent contractor
D)subagent
E)agent with an interest

Answer 3

C

Question 4

The principal is allowed to compete with an agent unless the agreement specifically prohibits it.

Question 5

Garry hired Draco,who is a realtor,to help him buy a house.Draco has rights to speak to Ron,the realtor of a house that Garry wants to buy,on Garry's behalf.He may discuss prices that Garry is willing to pay for the house,but does not have the right to close the sale by himself.It can be said that Draco is an)_____.

A)servant
B)term agent
C)subagent
D)special agent
E)independent contractor

Question 6

Workers' compensation is a no-fault system.

Question 7

Oral agencies are not legally binding unless reduced to writing.

Question 8

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.

Question 9

Most agencies are created by contracts.

Question 10

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.

Question 11

Which of the following is true of general agents?

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.

Question 12

In the legal relationship known as "agency":

A)the agent cannot have any personal property interest in the principal's business.
B)the principal must authorize all subagents appointed by an agent.
C)a general agent has the authority to act in any way required by the principal's business.
D)the principal is primarily liable for all actions undertaken by agents and subagents.
E)a general agent must be appointed for business purposes,while a special agent can be appointed for personal purposes.

Question 13

A general agent has the authority to act in any way required by the principal's business.

Question 14

In case where,Michelle,in anticipation of her death,gives Adam,her son,power of attorney,Adam will be acting as a general agent on behalf of Michelle.

Question 15

The fiduciary responsibility of an agent is imposed by law.

Question 16

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

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.

Question 18

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

Question 19

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.

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

Question 20

Agency law imposes both fiduciary as well as nonfiduciary duties on an agent.

Question 21

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

Question 22

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.

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

Question 23

Who is an agent? List the various types of agents.

Question 24

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

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

Question 25

An agent who accepts a bribe to purchase goods for a principal only from a seller who is a personal friend breaches his _____ duty by taking the money,since it is the agent's duty to work only for the best interests of the principal.

A)statutory
B)gratuitous
C)fiduciary
D)expressed
E)apparent

Question 26

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

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

Question 27

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

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

Question 28

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

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 29

_____ is a form of agency where the agent receives no compensation.

A)Agency coupled with an interest
B)Special agency
C)Exclusive agency
D)Executive agency
E)Gratuitous agency

Question 30

The penalty for breach of the fiduciary duty of an agent is:

A)loss of compensation and profit.
B)imprisonment for a period of 5 years.
C)$1000 for each instance of the act.
D)permanent reduction in the rate of commission.
E)loss of possession and title to the property.

Question 31

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

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

Question 32

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:

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.