Question 1

The duty of loyalty:

Accepted Answer

A)   requires a principal to place the agent's interests before the principal's personal interests or those of any third party
B)   refers to the medieval roots of agency law
C)   requires the agent to work for only one principal at a time
D)   requires the agent to work without compensation if necessary
E)   none of the other choices are correct

Question 2

An independent contractor is an agent and an employee of the person who hired her.

Accepted Answer

A) True 
 B)False

Question 3

The independent contractor is distinguished by:

Accepted Answer

A)   the extent of the compensation
B)   the extent of control the employee retains over work performance
C)   the extent of control the employer retains over work performance
D)   all of the other specific choices are correct
E)   none of the other specific choices are correct

Question 4

When a principal's conduct appears consistent with the existence of an agency relationship, an agency by estoppel may be created.

Accepted Answer

A) True 
 B)False

Question 5

Fact Pattern 14-1
Emile owns Emile's Used Car Emporium. Several people work for him at the Emporium. When Emile is gone, he leaves one of his best salespersons, Meg, in charge. Over the years, Emile has given Meg the authority to contract with vendors, negotiate sales, and conclude car sales contracts in his name.
One August, Emile takes a long vacation, leaving Meg in charge. While he is gone a hurricane hits Florida where the Emporium is located, causing severe damage. Because Emile is floating down the Amazon, Meg cannot reach him for instructions. She decides that rather than leave the place in shambles, she will hire people to repair the Emporium.
Meg hires a carpenter to rebuild a wall that was blown down by the storm. Phil, the carpenter, is busy at work on his scaffold when Meg's Scottish terrier Adam, who she keeps with her at work, plows into the scaffolding while chasing a cat. Phil is knocked off the scaffold and falls ten feet to the ground, suffering a broken leg.
-Refer to Fact Pattern 14-1. Meg is Emile's agent. They appear to have created their agency relationship by:

Accepted Answer

A)   a consensual agreement
B)   application to the state government
C)   executing a power of attorney
D)   application of federal laws
E)   transgressing the common law

Question 6

If an agent competes with his principal without the principal's consent:

Accepted Answer

A)   he is violating his duty of loyalty
B)   he is violating his duty of cooperation
C)   he is violating his duty to reimburse
D)   he is violating his duty to play fair
E)   he is violating his duty of obedience and performance

Question 7

Which of the following can determine the scope of authority given to an agent:

Accepted Answer

A)   statements of the agent
B)   the principal's personal relationship with the agent
C)   the trade customs in business
D)   all of the other specific choices are correct
E)   none of the other specific choices are correct

Question 8

A principal may designate someone to do all acts that can be legally delegated to an agent. That agent is called a general agent.

Accepted Answer

A) True 
 B)False

Question 9

Federal law states that employers are not liable for actions of employees based on their use of social media in the workplace.

Accepted Answer

A) True 
 B)False

Question 10

Andrea has been working very hard for her employer, Bill. Two weeks before Andrea is due for a bonus payment, Bill fires her for no reason. Andrea could make a case that:

Accepted Answer

A)   her at-will employment rights have been violated
B)   the implied covenant of good faith and fair dealing has been violated
C)   the express covenant of good faith and fair dealing has been violated
D)   Andrea cannot make any kind of case against Bill
E)   none of the other choices are correct

Question 11

The legal document that authorizes a person or a company to act as an agent for a principal is called:

Accepted Answer

A)   power of law
B)   power of agency
C)   power of attorney
D)   power of plaintiff
E)   power of principal

Question 12

A(n)  ____ is one whose identity is unknown by the third party at the time when a contract is entered into with an agent.

Accepted Answer

A)   undisclosed principal
B)   disclosed principal
C)   specific principal
D)   legitimate principal
E)   clear principal

Question 13

Which of the following is not a duty owed by the agent to the principal:

Accepted Answer

A)   loyalty
B)   reasonable care
C)   accounting
D)   notification
E)   all of the other choices are required

Question 14

A manager who runs all aspects of a hotel is most likely what kind of agent:

Accepted Answer

A)   universal agent
B)   special agent
C)   gratuitous agent
D)   subagent
E)   none of the other choices

Question 15

An employer should be cautious about hiring persons with criminal backgrounds that mean they could pose a threat to others as the employer could be liable for unauthorized torts that occurred on the job.

Accepted Answer

A) True 
 B)False

Question 16

____ takes place when the principal behaves as if he has the intent of ratifying an unauthorized agreement.

Accepted Answer

A)   implied ratification
B)   real ratification
C)   delayed ratification
D)   express ratification
E)   explicit ratification

Question 17

Ratification of an agreement that is required by law to be in writing:

Accepted Answer

A)   need not be in writing
B)   must be verbal
C)   must be witnessed by a court official
D)   must be in writing unless both parties agree that it need not be
E)   none of the other choices are correct

Question 18

Employment-at-will:

Accepted Answer

A)   allows employees to quit their jobs for any reason at any time
B)   allows employers to discharge employees for any reason at any time subject to contract obligations
C)   has been restricted by the courts or legislatures in some states that recognize some public policy limitations on the employer's right to fire an employee
D)   a and b
E)   a, b and c

Question 19

____ is the authority given by the principal to the agent.

Accepted Answer

A)   artificial authority
B)   actual authority
C)   legitimate authority
D)   general authority
E)   total authority

Question 20

A principal is contractually liable to a third party if that party enters into a contract presented by an agent with apparent authority to act for the principal.

Accepted Answer

A) True 
 B)False

Exam 14: Agency and the Employment Relationship

An independent contractor is an agent and an employee of the person who hired her.

Correct Answer
verified

Federal law states that employers are not liable for actions of employees based on their use of social media in the workplace.

Correct Answer
verified

A(n) ____ is one whose identity is unknown by the third party at the time when a contract is entered into with an agent.

Correct Answer
verified

When a principal's conduct appears consistent with the existence of an agency relationship, an agency by estoppel may be created.

Correct Answer
verified

The legal document that authorizes a person or a company to act as an agent for a principal is called:

Correct Answer
verified

Ratification of an agreement that is required by law to be in writing:

Correct Answer
verified

Andrea has been working very hard for her employer, Bill. Two weeks before Andrea is due for a bonus payment, Bill fires her for no reason. Andrea could make a case that:

Correct Answer
verified

If an agent competes with his principal without the principal's consent:

Correct Answer
verified

A principal may designate someone to do all acts that can be legally delegated to an agent. That agent is called a general agent.

Correct Answer
verified

A manager who runs all aspects of a hotel is most likely what kind of agent:

Correct Answer
verified

____ takes place when the principal behaves as if he has the intent of ratifying an unauthorized agreement.

Correct Answer
verified

The independent contractor is distinguished by:

Correct Answer
verified

Which of the following is not a duty owed by the agent to the principal:

Correct Answer
verified

Employment-at-will:

Correct Answer
verified

Which of the following can determine the scope of authority given to an agent:

Correct Answer
verified

An employer should be cautious about hiring persons with criminal backgrounds that mean they could pose a threat to others as the employer could be liable for unauthorized torts that occurred on the job.

Correct Answer
verified

____ is the authority given by the principal to the agent.

Correct Answer
verified

Correct Answer
verified

The duty of loyalty:

Correct Answer
verified

A principal is contractually liable to a third party if that party enters into a contract presented by an agent with apparent authority to act for the principal.

Correct Answer
verified

Exam 14: Agency and the Employment Relationship

An independent contractor is an agent and an employee of the person who hired her.

Correct AnswerverifiedShow Answer

Federal law states that employers are not liable for actions of employees based on their use of social media in the workplace.

Correct AnswerverifiedShow Answer

A(n) ____ is one whose identity is unknown by the third party at the time when a contract is entered into with an agent.

Correct AnswerverifiedShow Answer

When a principal's conduct appears consistent with the existence of an agency relationship, an agency by estoppel may be created.

Correct AnswerverifiedShow Answer

The legal document that authorizes a person or a company to act as an agent for a principal is called:

Correct AnswerverifiedShow Answer

Ratification of an agreement that is required by law to be in writing:

Correct AnswerverifiedShow Answer

Andrea has been working very hard for her employer, Bill. Two weeks before Andrea is due for a bonus payment, Bill fires her for no reason. Andrea could make a case that:

Correct AnswerverifiedShow Answer

If an agent competes with his principal without the principal's consent:

Correct AnswerverifiedShow Answer

A principal may designate someone to do all acts that can be legally delegated to an agent. That agent is called a general agent.

Correct AnswerverifiedShow Answer

A manager who runs all aspects of a hotel is most likely what kind of agent:

Correct AnswerverifiedShow Answer

____ takes place when the principal behaves as if he has the intent of ratifying an unauthorized agreement.

Correct AnswerverifiedShow Answer

The independent contractor is distinguished by:

Correct AnswerverifiedShow Answer

Which of the following is not a duty owed by the agent to the principal:

Correct AnswerverifiedShow Answer

Employment-at-will:

Correct AnswerverifiedShow Answer

Which of the following can determine the scope of authority given to an agent:

Correct AnswerverifiedShow Answer

An employer should be cautious about hiring persons with criminal backgrounds that mean they could pose a threat to others as the employer could be liable for unauthorized torts that occurred on the job.

Correct AnswerverifiedShow Answer

____ is the authority given by the principal to the agent.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The duty of loyalty:

Correct AnswerverifiedShow Answer

A principal is contractually liable to a third party if that party enters into a contract presented by an agent with apparent authority to act for the principal.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified