Question 1

The liability of an employer under the doctrine of respondeat superior is limited to wrongdoing by the employee in the course of his employment.

Accepted Answer

A) True 
 B)False

Question 2

Paul is a truck driver who owns his own truck and delivers loads to various companies for nine months out of the year.For the hard winter months, Paul goes to Key West to "put his feet in the sand." One evening while delivering a load for Emblem Helicopter Parts Co., Paul got into a "little scuffle" with a rowdy trucker who was giving Nell, a waitress at the DewDrop Inn Cafe, a hard time.Paul knocked out five of "Rowdy's" teeth.Rowdy is suing Paul and Emblem for his injuries.Discuss whether Rowdy will win on the issue of: (a) respondeat superior and (b) unauthorized acts of agents.

Accepted Answer

The answer of Paul is a truck driver who owns...

Question 3

Identify three ways an agent may agree to become liable on a contract between a disclosed principal and the third party.

Accepted Answer

The answer of Identify three ways an agent may agree...

Question 4

MATCHING
Part VI Matching
Match each statement with the correct term below.a.The duty that requires an agent to act in the principal's affairs only as authorized by the principal and to obey all reasonable instructions.b.The requirement that an agent maintain and provide the principal with a true and complete account of money or other property that the agent receives or expends on behalf of the principal.c.A consensual relationship authorizing one party to act for and on behalf of another party.d.A person authorized to act on another's behalf.e.The requirement that an agent act with reasonable care and skill in performing the work for which she is employed.f.Written, formal appointment of an agent.g.The requirement that an agent use reasonable efforts to give the principal information that is relevant to the affairs entrusted to her.h.Person who agrees to do a particular job for another but who is not subject to the other's control.i.A form of liability without fault in which the principal is held vicariously liable for the agent's unauthorized tort.j.Authority that is either express or implied and that depends upon consent manifested by the principal to the agent.k.A principal of whom a third party has no knowledge, because he has no reason to believe the agent is acting for a principal.l.Corporation's act of confirming a contract that was made by a promoter before the corporation was formed.m.Power that is based upon acts or conduct of the principal which manifests to a third party that the agent has power and upon which the third party justifiably relies.n.A principal that a third party knows exists but does not know who it is.o.The confirmation or affirmance by one person of a prior unauthorized act performed by another who is, or purports to be, his agent.p.Power inferred from words or conduct that a principal manifests to an agent.
-agent

Accepted Answer

The answer of MATCHING
Part VI Matching
Match each statement with the...

Question 5

No apparent authority exists where the third party knows that the agent has no actual authority.

Accepted Answer

A) True 
 B)False

Question 6

The court in the Schoenberger v.Chicago Transit Authority case held that:

Accepted Answer

A) the actual authority of an agent may be founded on the acts or words of the agent. 
B) implied authority is such authority as the principal knowingly permits the agent to assume. 
C) actual authority is such authority as a reasonable, prudent person, exercising diligence and discretion, in view of the principal's conduct, would naturally suppose the agent to possess. 
D) ZuChristian had neither actual nor apparent authority to make an offer of a specific salary or to make a promise of additional compensation.

Question 7

Jack was fired by Pedro but decided to try to win back his job as agent by getting a big new contract.He approached Sharon, a new client, and made a pitch to sell Pedro's product.Sharon agreed to buy 100.Jack tells Pedro.What are the legal consequences?

Accepted Answer

A) Pedro has to hire Jack again and then make the deal. 
B) Pedro would have to ratify the deal to get the benefit of the contract. 
C) Pedro would have to negotiate the deal with Sharon himself. 
D) Jack would forfeit his commission if Pedro took the contract.

Question 8

MATCHING
Part VI Matching
Match each statement with the correct term below.a.The duty that requires an agent to act in the principal's affairs only as authorized by the principal and to obey all reasonable instructions.b.The requirement that an agent maintain and provide the principal with a true and complete account of money or other property that the agent receives or expends on behalf of the principal.c.A consensual relationship authorizing one party to act for and on behalf of another party.d.A person authorized to act on another's behalf.e.The requirement that an agent act with reasonable care and skill in performing the work for which she is employed.f.Written, formal appointment of an agent.g.The requirement that an agent use reasonable efforts to give the principal information that is relevant to the affairs entrusted to her.h.Person who agrees to do a particular job for another but who is not subject to the other's control.i.A form of liability without fault in which the principal is held vicariously liable for the agent's unauthorized tort.j.Authority that is either express or implied and that depends upon consent manifested by the principal to the agent.k.A principal of whom a third party has no knowledge, because he has no reason to believe the agent is acting for a principal.l.Corporation's act of confirming a contract that was made by a promoter before the corporation was formed.m.Power that is based upon acts or conduct of the principal which manifests to a third party that the agent has power and upon which the third party justifiably relies.n.A principal that a third party knows exists but does not know who it is.o.The confirmation or affirmance by one person of a prior unauthorized act performed by another who is, or purports to be, his agent.p.Power inferred from words or conduct that a principal manifests to an agent.
-undisclosed principal

Accepted Answer

The answer of MATCHING
Part VI Matching
Match each statement with the...

Question 9

Which of the following is not correct regarding the relationship between an independent contractor and a principal?

Accepted Answer

A) The contractor is liable under respondeat superior. 
B) The contractor generally contracts to perform services but is not controlled by the principal. 
C) The right of control is the essential and often decisive factor in determining whether someone is an independent contractor or an employee. 
D) Under some circumstances, a principal will be vicariously liable for torts committed by a carefully selected independent contractor.

Question 10

Clara is planning to incorporate a new landscaping company, "Evergreen and Growin'." She has held herself out as an agent for Evergreen and has contracted to buy a truck, tools, fertilizer, and seed and also has entered into a lease on behalf of Evergreen for an office.When she fails to get the loan from the bank, she cannot start the business, so she cancels all the contracts.What are the consequences?

Accepted Answer

A) Clara can cancel all the contracts with no personal liability if she told them she was acting as an agent and expressly warranted that she would not be responsible. 
B) Clara may be held personally liable on the contracts because she misrepresented to third parties that she had authority to make contracts on behalf of a non-existent corporation. 
C) Since the company never existed, she gave no implied warranty. 
D) Clara will be held liable for the contracts only if she ever gets the loan.

Question 11

Respondeat superior:

Accepted Answer

A) imposes vicarious liability on the principal. 
B) makes a principal liable for the acts of independent contractors. 
C) makes a principal liable for the acts of employees committed within the scope of employment. 
D) Both (a) and (c) are correct.

Question 12

Gerald, an agent, who makes a contract with Adele on behalf of Leon, an unidentified principal, may maintain in Gerald's own name a breach of contract action against Adele.

Accepted Answer

A) True 
 B)False

Question 13

When is a principal liable for her own tortious conduct involving the use of agents?

Accepted Answer

The answer of When is a principal liable for her...

Question 14

An agent has the power to contractually bind his principal whenever he has actual or apparent authority and acts within his authority.

Accepted Answer

A) True 
 B)False

Question 15

A principal is contractually bound to a third party if the agent acts without any authority but the principal ratifies the contract.

Accepted Answer

A) True 
 B)False

Question 16

Under the Second Restatement, an agent representing an undisclosed principal is discharged from liability if the third party:

Accepted Answer

A) gets a judgment against the principal. 
B) becomes aware of the principal. 
C) gets a judgment against the agent. 
D) He is never discharged from liability.

Question 17

Which of the following is true regarding an agent who is acting for an undisclosed principal?

Accepted Answer

A) The agent will bind both himself and the principal on most contracts. 
B) The third party will never be bound in a contract with the principal. 
C) An undisclosed principal will bind only himself and not the agent. 
D) Failure to disclose the name of the principal is a form of fraud.

Question 18

The contractual liability of the principal may depend upon whether the principal is disclosed, unidentified, or undisclosed.

Accepted Answer

A) True 
 B)False

Question 19

Under the Second Restatement, except in cases of death or incapacity, or where the performance of an authorized act becomes impossible, actual notice of termination of agency is required to the third party if she is one:

Accepted Answer

A) with whom the agent has dealt on credit. 
B) to whom the agent has been specially accredited. 
C) with whom the agent has begun to deal, as the principal should know. 
D) All of the above.

Question 20

Arthur is authorized under a written power of attorney to collect accounts for Peter.Peter dies, and there is no notice given to Tessa, who pays Arthur, as she has done in the past.If Arthur absconds with the money, Tessa will not have to pay again in a state which has adopted the Uniform Durable Power of Attorney Act.

Accepted Answer

A) True 
 B)False

Exam 30: Relationship With Third Parties

The liability of an employer under the doctrine of respondeat superior is limited to wrongdoing by the employee in the course of his employment.

Identify three ways an agent may agree to become liable on a contract between a disclosed principal and the third party.

No apparent authority exists where the third party knows that the agent has no actual authority.

The court in the Schoenberger v.Chicago Transit Authority case held that:

Jack was fired by Pedro but decided to try to win back his job as agent by getting a big new contract.He approached Sharon, a new client, and made a pitch to sell Pedro's product.Sharon agreed to buy 100.Jack tells Pedro.What are the legal consequences?

Which of the following is not correct regarding the relationship between an independent contractor and a principal?

Respondeat superior:

Gerald, an agent, who makes a contract with Adele on behalf of Leon, an unidentified principal, may maintain in Gerald's own name a breach of contract action against Adele.

When is a principal liable for her own tortious conduct involving the use of agents?

An agent has the power to contractually bind his principal whenever he has actual or apparent authority and acts within his authority.

A principal is contractually bound to a third party if the agent acts without any authority but the principal ratifies the contract.

Under the Second Restatement, an agent representing an undisclosed principal is discharged from liability if the third party:

Which of the following is true regarding an agent who is acting for an undisclosed principal?

The contractual liability of the principal may depend upon whether the principal is disclosed, unidentified, or undisclosed.

Under the Second Restatement, except in cases of death or incapacity, or where the performance of an authorized act becomes impossible, actual notice of termination of agency is required to the third party if she is one: