FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 31: Agency Formation and Duties

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

Multiple Choice

Review LaterAdd Note

Review Later

Sela agrees to act on Thom's behalf, subject to Thom's control, and Thom trusts Sela to so act. They set out the terms in a written document, which they both sign. This is

A) an agency by agreement.
B) an agency by estoppel.
C) an agency by ratification.
D) not the creation of an agency relationship.

Correct Answer

verified

Show Answer

Question 22

True/False

Review LaterAdd Note

Review Later

A minor can be an agent.

Correct Answer

verified

Show Answer

Question 23

Multiple Choice

Review LaterAdd Note

Rita is appointed as an agent for Superior Sales, Inc. The agency agree?ment is silent as to the level of sales that Rita is expected to achieve. She must

Macro Corporation and National Purchasing Company may create an agency agreement

There does not need to be a written agreement between two parties to cre?ate an agency relationship.

Home Development Company employs llya to buy property for a future residential development. Ilya secretly buys some of the property and sells it to Home Development at a profit. Ilya has breached

A minor cannot be appointed as an agent.

KupaJava hires Lola to manage one of KupaJava's seven drive-through coffee stands. KupaJava agrees to pay Lola a salary, plus commission. KupaJava stipulates the standards that should be observed, the goals that should be attained, and the methods that should be used. Lola is most likely KupaJava's

Fact Pattern 31-1B Liz and Molly work as clerks in Nia's Dress Shop. Nia withholds federal taxes from their pay, and controls the methods and details of the performance of their work. Liz and Molly are not au?thorized to modify the prices or other terms of a sale at the shop. -Refer to Fact Pattern 31-1B. Nia hires O'Reilly's Carpet Company to clean the carpets of her shop. Nia gives O'Reilly's instructions as to what needs to be cleaned and when. O'Reilly's is

Ella agrees to act as Fab's agent in settlement negotiations with Global In?surance Company. Ella works out a profitable compromise for Fab, but deposits the company's payment in her own account and refuses to give it to Fab. Fab files a suit against Ella. What remedies might the court impose?

An agent is authorized to act on behalf of a principal in doing business with third parties.

Fact Pattern 31-1B Liz and Molly work as clerks in Nia's Dress Shop. Nia withholds federal taxes from their pay, and controls the methods and details of the performance of their work. Liz and Molly are not au?thorized to modify the prices or other terms of a sale at the shop. -Refer to Fact Pattern 31-1B. Nia authorizes Liz to sell clothes at remote lo?cations at prices that Liz negotiates in those locations. With respect to sales at those locations, Liz is

A principal owes an agent a duty of accounting.

Lenore is the sole proprietor of Mall Kiosks. With respect to contracting for her own business interests, Lenore is

Jill introduces Kelly to her friends as "my associate." Kelly purports to act as Jill's agent in several business transactions with those friends. If Jill is liable for Kelly's actions, it will be under

Irma retains Jerry as her authorized agent, unaware that Jerry is a mi?nor. Jerry enters into a contract with Ken on Irma's be?half. The contract is

Bob, a salesperson at a Carpets Galore store, tells Dita, a customer, "Buy your carpet here, and I'll install it for half of what the store would charge." Dita buys the carpet, which Bob in?stalls for half the store's price. Bob keeps the money. Bob has breached

Dan, an agent for Eve, signs an agreement with Fred on Eve's behalf but ne?glects to tell Eve that the agreement requires the payment of a certain tax. The government prosecutes Eve for failing to pay the tax. Eve is

Jay holds himself out as possessing special accounting skills. As an agent, he must exercise the degree of skill or care expected of

A fiduciary relationship allows the parties to avoid obligations without liability.