Question 1

Fact Pattern 33-1
Berry indicates that she is acting as an agent on behalf of an unidentified client-Cuisine Catering, LLC-when she enters into a contract with Désean.
-Refer to Fact Pattern 33-1. Cuisine Catering is​

Accepted Answer

A)  ​a disclosed principal. 
B)  ​an apparent agent. 
C)  ​an undisclosed principal. 
D)  ​a partially disclosed principal.

Question 2

Rachel is an agent for Sports Logo Merchandise, Inc. Rachel makes an innocent misrepresentation when entering into a contract on behalf of Sports Logo with Team Marketing & Sales Corporation. Sports Logo​

Accepted Answer

A)  ​is directly responsible for Rachel's misrepresentation. 
B)  ​is estopped from performing the contract. 
C)  ​may rescind the contract. 
D)  ​must ratify the contract.

Question 3

The equal dignity rule requires that if a contract entered into by an agent is or must be in writing, the agent's authority must also be in writing.

Accepted Answer

A) True 
 B)False

Question 4

Avis is an officer of Budget Building Corporation. With respect to binding Budget to contracts, Avis's authority​

Accepted Answer

A)  ​may be actual or apparent. 
B)  ​must be actual and apparent. 
C)  ​must be actual and not apparent. 
D)  ​cannot be actual or apparent.

Question 5

Apparent authority arises from what the principal makes clear to the agent.

Accepted Answer

A) True 
 B)False

Question 6

Beth, acting within the scope of her authority for the Cake Bake Shop, contracts with Eden Valley Orchards to buy an assortment of fruit. Cake Bake is liable on the contract, and Beth is not, if Cake Bake is​

Accepted Answer

A)  ​a disclosed principal. 
B)  ​a partially disclosed principal. 
C)  ​an undisclosed principal. 
D)  ​not a principal.

Question 7

Rod is an employee of Savers Bank. In deciding whether Rod acts within the scope of his employment when he commits a tort against Tracy, a court will not consider whether​

Accepted Answer

A)  ​Rod indicated that he was acting on behalf of Savers Bank. 
B)  ​Savers Bank authorized the act. 
C)  ​Savers Bank furnished the means by which the injury was inflicted. 
D)  ​the act is one commonly performed by employees for their employers.

Question 8

Lena is a salesperson for Musical Instruments, Inc. She tells Nayda, a customer, that an instrument has a certain quality when, as Lena knows, it does not. In reliance, Nayda buys the instrument. Liable for this misrepresentation is​

Accepted Answer

A)  ​no one. 
B)  ​Lena. 
C)  ​Musical Instruments. 
D)  ​Nayda.

Question 9

Flo, an agent for Grover, enters into a contract on Grover's behalf with Hong that must be in writing to be enforceable under the Statute of Frauds. Failure to comply with the equal dignity rule, with respect to this contract, can make the contract voidable at the option of​

Accepted Answer

A)  ​Flo. 
B)  ​Grover. 
C)  ​Hong. 
D)  ​none of the choices.

Question 10

Mikayla, an agent for Nahir, enters into a contract on Nahir's behalf with Onora that must be in writing to be enforceable under the Statute of Frauds. Mikayla's authority to enter into this contract is not in writing. Under the equal dignity rule, this contract is​

Accepted Answer

A)  ​enforceable. 
B)  ​void. 
C)  ​voidable at Nahir's option. 
D)  ​voidable at Onora's option.

Question 11

Apparent authority usually comes into existence through a principal's pattern of conduct over time.

Accepted Answer

A) True 
 B)False

Question 12

Bayou Development Corporation hires Coastal Brokerage Associates to sell the condominiums in a building at Bayou Development's resort. The agency will terminate​

Accepted Answer

A)  ​after the condos have been sold. 
B)  ​if the prices of the condos must be reduced to sell them. 
C)  ​once Bayou Development obtains insurance to cover the property. 
D)  ​when Bayou Development pays Coastal Brokerage its first commission.

Question 13

Darla serves in a representative capacity for Ellen. To accomplish the objectives of this relationship, Darla's authority can be implied​

Accepted Answer

A)  ​by contradiction. 
B)  ​by custom. 
C)  ​by any subjective measure. 
D)  ​under no circumstances.

Question 14

A principal is not normally liable for the crime of an agent committed within the scope of the agency or employment.

Accepted Answer

A) True 
 B)False

Question 15

If a principal is disclosed, the agent may be liable to a third party for the principal's nonperformance of a contract.

Accepted Answer

A) True 
 B)False

Question 16

An undisclosed principal is not liable to a third party for a contract made by an agent.

Accepted Answer

A) True 
 B)False

Question 17

Garry drives a truck as an employee for Heavy Hauling, Inc. Garry would most likely be considered acting outside the scope of her employment if he​

Accepted Answer

A)  ​crashed into a car at the airport while off duty. 
B)  ​hit a pedestrian in a parking lot during a "working" lunch. 
C)  ​ran over an attendant at Quik's gas station while refueling the truck. 
D)  ​smashed into a store-front while intoxicated on-duty.

Question 18

An agency relationship terminates only when both parties consent to end it.

Accepted Answer

A) True 
 B)False

Question 19

A power of attorney does not permit an agent to transact business for a principal.

Accepted Answer

A) True 
 B)False

Question 20

An agent has the implied authority to do what is reasonably necessary to carry out express authority.

Accepted Answer

A) True 
 B)False

Exam 33: Agency Liability and Termination

Fact Pattern 33-1 Berry indicates that she is acting as an agent on behalf of an unidentified client-Cuisine Catering, LLC-when she enters into a contract with Désean. -Refer to Fact Pattern 33-1. Cuisine Catering is​

Rachel is an agent for Sports Logo Merchandise, Inc. Rachel makes an innocent misrepresentation when entering into a contract on behalf of Sports Logo with Team Marketing & Sales Corporation. Sports Logo​

The equal dignity rule requires that if a contract entered into by an agent is or must be in writing, the agent's authority must also be in writing.

Avis is an officer of Budget Building Corporation. With respect to binding Budget to contracts, Avis's authority​

Apparent authority arises from what the principal makes clear to the agent.

Beth, acting within the scope of her authority for the Cake Bake Shop, contracts with Eden Valley Orchards to buy an assortment of fruit. Cake Bake is liable on the contract, and Beth is not, if Cake Bake is​

Rod is an employee of Savers Bank. In deciding whether Rod acts within the scope of his employment when he commits a tort against Tracy, a court will not consider whether​

Lena is a salesperson for Musical Instruments, Inc. She tells Nayda, a customer, that an instrument has a certain quality when, as Lena knows, it does not. In reliance, Nayda buys the instrument. Liable for this misrepresentation is​

Flo, an agent for Grover, enters into a contract on Grover's behalf with Hong that must be in writing to be enforceable under the Statute of Frauds. Failure to comply with the equal dignity rule, with respect to this contract, can make the contract voidable at the option of​

Mikayla, an agent for Nahir, enters into a contract on Nahir's behalf with Onora that must be in writing to be enforceable under the Statute of Frauds. Mikayla's authority to enter into this contract is not in writing. Under the equal dignity rule, this contract is​

Apparent authority usually comes into existence through a principal's pattern of conduct over time.

Bayou Development Corporation hires Coastal Brokerage Associates to sell the condominiums in a building at Bayou Development's resort. The agency will terminate​

Darla serves in a representative capacity for Ellen. To accomplish the objectives of this relationship, Darla's authority can be implied​

A principal is not normally liable for the crime of an agent committed within the scope of the agency or employment.

If a principal is disclosed, the agent may be liable to a third party for the principal's nonperformance of a contract.

An undisclosed principal is not liable to a third party for a contract made by an agent.

Garry drives a truck as an employee for Heavy Hauling, Inc. Garry would most likely be considered acting outside the scope of her employment if he​

An agency relationship terminates only when both parties consent to end it.

A power of attorney does not permit an agent to transact business for a principal.

An agent has the implied authority to do what is reasonably necessary to carry out express authority.

Fact Pattern 33-1 Berry indicates that she is acting as an agent on behalf of an unidentified client-Cuisine Catering, LLC-when she enters into a contract with Désean. -Refer to Fact Pattern 33-1. Cuisine Catering is

Rachel is an agent for Sports Logo Merchandise, Inc. Rachel makes an innocent misrepresentation when entering into a contract on behalf of Sports Logo with Team Marketing & Sales Corporation. Sports Logo

Avis is an officer of Budget Building Corporation. With respect to binding Budget to contracts, Avis's authority

Beth, acting within the scope of her authority for the Cake Bake Shop, contracts with Eden Valley Orchards to buy an assortment of fruit. Cake Bake is liable on the contract, and Beth is not, if Cake Bake is

Rod is an employee of Savers Bank. In deciding whether Rod acts within the scope of his employment when he commits a tort against Tracy, a court will not consider whether

Lena is a salesperson for Musical Instruments, Inc. She tells Nayda, a customer, that an instrument has a certain quality when, as Lena knows, it does not. In reliance, Nayda buys the instrument. Liable for this misrepresentation is

Flo, an agent for Grover, enters into a contract on Grover's behalf with Hong that must be in writing to be enforceable under the Statute of Frauds. Failure to comply with the equal dignity rule, with respect to this contract, can make the contract voidable at the option of

Mikayla, an agent for Nahir, enters into a contract on Nahir's behalf with Onora that must be in writing to be enforceable under the Statute of Frauds. Mikayla's authority to enter into this contract is not in writing. Under the equal dignity rule, this contract is

Bayou Development Corporation hires Coastal Brokerage Associates to sell the condominiums in a building at Bayou Development's resort. The agency will terminate

Darla serves in a representative capacity for Ellen. To accomplish the objectives of this relationship, Darla's authority can be implied

Garry drives a truck as an employee for Heavy Hauling, Inc. Garry would most likely be considered acting outside the scope of her employment if he