FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 28: Agency Law

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

Mrs.O'Leary hired Jenna to sell her house in Michigan.She executed a power of attorney in favor of Jenna authorizing her to do "anything and everything associated with the sale of real estate,acting as a prudent person." On May 30,Jenna finalized a deal with Brandon for the purchase of the house.Brandon and Jenna signed the real estate contract that day.Jenna learned the next day that Mrs.O'Leary had died May 29.

A) The contract is void since the agency terminated May 29.
B) The contract is valid since the agency's purpose was achieved before Jenna was notified of Mrs. O'Leary's death.
C) The contract is voidable at the option of Mrs. O'Leary's estate.
D) The contract is voidable at the option of Brandon.

Correct Answer

verified

Show Answer

Question 2

Multiple Choice

Review LaterAdd Note

Review Later

Circus Pizza contracted with Art to run its birthday parties.Art's responsibilities included supervising the children and organizing the games.Circus did not investigate Art's background,which included a history of assaulting children.Art assaulted a 7-year-old girl in the restaurant's kitchen during a birthday party.Circus Pizza

A) cannot be liable for the damages because Art committed an unforeseeable intentional tort.
B) cannot be held liable for the damages because Art's conduct was not in the scope of employment.
C) may be held liable on the basis of negligent hiring.
D) may be held liable only if Circus actually knew of Art's background.

Correct Answer

verified

Show Answer

Question 3

Essay

Review LaterAdd Note

Grant is a delivery person for Watkins Furniture.One day,after delivering a chair to Nadine's house,he stopped at a fast food restaurant to get a sandwich at the drive-through window.As he was leaving the parking lot,he accidentally hit the rear of Blanche's car.Discuss the possible liability of Watkins for Grant's accident.Would there be any difference in the potential liability of Watkins if Grant had the accident after driving 30 miles away to visit a friend?

If a person accepts the benefits of an unauthorized transaction,or fails to repudiate it,then he is bound by the act as if he had originally authorized it.

An agent may not engage in inappropriate behavior that reflects badly on the principal.This rule applies to conduct

Which of the following persons is NOT an agent?

Pamela hired Lena to sell her business.Lena

Which of the following is NOT required of an agency relationship?

If Denise is hired to work as a cashier,she has the implied authority to do acts reasonably necessary to carry out her job.

If apparent authority is present,the principal is liable for even the unauthorized acts of the agent.

Andrew has been hired to do some work for Rossi Enterprises.What factors would a court consider in determining if Andrew is an employee or an independent contractor? Why does the designation matter?

Erica's supervisor told her to arrange for a conference room at the Kelly Inn.Erica has express authority to contract for the room.

The bankruptcy of an agent automatically terminates an agency relationship.

Tom,the production manager at Esday,was told by his supervisor to hire Elton,a 15-year-old boy,to operate an industrial machine.Hiring the 15 year old violates the child labor laws.What should Tom do in this situation?

Cameron,editor of the local newspaper,assigned to Jim the writing of a story about pollution of a nearby stream.Although Jim used reasonable care in gathering and checking his information,unknown to Jim,the story contained a defamatory statement about Maureen.Maureen reads the story and sues Jim for libel.Cameron,who read and published the story

Kaiya is a sales representative of TriColor.Kaiya owes a fiduciary duty to TriColor.

Alex worked for years for MegaCorp.During his employment with MegaCorp,he learned a great deal of confidential information and knew that if this information got into the hands of competitors or the general public,MegaCorp could suffer great business losses.Alex claims that he was wrongfully fired by MegaCorp and accordingly he believes he has no obligation to MegaCorp to keep any information he acquired with them as confidential.MegaCorp claims that Alex is under a continuing duty to keep confidential information secret,even though he is no longer with the company.Who is right? Why?

Mohammad was an employee in the new product development department of Estay Inc.Mohammad was directly involved in the development of a new product that Estay intended to launch in 6 months.Estay took great care to keep information concerning the new product a secret.Ceries,Inc.,a competitor of Estay,persuaded Mohammad to leave Estay to direct Ceries' marketing department.Which statement is correct?

Larry decided to relocate to Germany.Larry hired Happy Homes,Inc.to find a buyer and contract for the sale of his house in the U.S.The agency relationship between Larry and Happy Homes must be evidenced with a written agreement.

A principal is bound by contracts that an agent enters into with authority.Discuss the various types of contractual authority an agent may have.