Question 1

Carla agrees to try to sell Frank's prize dog Spike for him.Carla does this as a favor to Frank because she knows many professional dog breeders.Carla may be best described as:

Accepted Answer

A)  a universal agent
B)  a subagent
C)  an agent who has an agency coupled with an interest
D)  a special agent
E)  none of the other choicesF) A) and D)
G) A) and C)

Question 2

The duty of an agent not to mix personal funds with the funds of the principal is the duty:

Accepted Answer

A)  of reasonable care
B)  of obedience
C)  to notify
D)  to perform
E)  none of the other choices,unless instructed not to do thisF) C) and D)
G) B) and D)

Question 3

Which of the following would lead to termination by operation of law for an agency:

Accepted Answer

A)  the principal dies
B)  the agent dies
C)  the subject matter of the agency is destroyed
D)  all of the other specific choices are correct
E)  none of the other specific choices are correctF) None of the above
G) A) and B)

Question 4

If money is commingled (funds of agent mixed with funds of the principal),a violation of duty to account occurs only if the principal can show actual harm.

Accepted Answer

A) True 
 B)False

Question 5

If a payment amount is not specified in the agency agreement,a principal's duty to compensate means that the principal must pay the agent:

Accepted Answer

A)  however much the agent's attorney demands
B)  at least half the customary rate
C)  for the rational value of the services provided
D)  however much the agent demands
E)  none of the other choices are correctF) D) and E)
G) A) and E)

Question 6

When liability is imposed on the principal for the unauthorized torts of an agent,it is called:

Accepted Answer

A)  fiduciary duty
B)  indemnification
C)  agent respondeat
D)  third-party rights,duties,and liabilities
E)  none of the other choicesF) A) and C)
G) B) and E)

Question 7

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.When Meg acts to repair the Emporium after the hurricane,she is acting as an agent:

Accepted Answer

A)  through operation of law
B)  through estoppel
C)  through ratification
D)  pursuant to federal law
E)  none of the other choicesF) B) and C)
G) A) and B)

Question 8

The duty of an agent to keep his principal informed of all facts relevant to the agency purpose is called the duty:

Accepted Answer

A)  to account
B)  of obedience
C)  to indemnify
D)  of loyalty
E)  none of the other choicesF) C) and D)
G) A) and C)

Question 9

An agent's _________ is the power to change the principal's legal obligations.

Accepted Answer

A)  legal right
B)  official power
C)  authorization
D)  responsibility
E)  none of the other choices are correctF) A) and C)
G) A) and E)

Question 10

In Bearden v.Wardley Corp. ,where real estate agent Gritton cheated Bearden on a house deal,the court held that his employer,Wardley,was not liable because it had no way to know of his actions.

Accepted Answer

A) True 
 B)False

Question 11

Under which of the following conditions would a principal or employer be liable for the tort of an agent or employee:

Accepted Answer

A)  the tort was authorized by the principal
B)  the tort occurred within the scope of employment
C)  the tort was not authorized by the principal
D)  both a and b are correct
E)  none of the other choices are correctF) B) and C)
G) A) and E)

Question 12

A person who volunteers with no expectation of being paid for her services is a(n) :

Accepted Answer

A)  exceptional agent
B)  a universal agent
C)  an agent who has an agency coupled with an interest
D)  a special agent
E)  none of the other choicesF) C) and D)
G) B) and D)

Question 13

An agency relationship may terminate by lapse of time.

Accepted Answer

A) True 
 B)False

Question 14

Because of the duty to inform,an agent must:

Accepted Answer

A)  be able to show where money or property comes from and goes to
B)  record all transactions related to the agency
C)  engage in acts that could lead to personal liability
D)  perform responsibilities with the degree of care that a reasonable person would exercise under the circumstances
E)  none of the other choices are correctF) B) and E)
G) A) and B)

Question 15

A UPS package sorter is an example of a(n) :

Accepted Answer

A)  agent
B)  employee
C)  employee with agency powers
D)  independent contractor
E)  agent and independent contractorF) B) and C)
G) D) and E)

Question 16

In which of the following situations can an agency relationship be created?

Accepted Answer

A)  X hires Y to buy some property on X's behalf
B)  X makes an oral agreement that Y will work for X's company as the company's general manager
C)  X and Y enter into a written agreement that Y will work for X as the general manager of X's company
D)  X hires Y to buy some property on X's behalf and X makes an oral agreement that Y will work for X's company as the company's general manager
E)  X hires Y to buy some property on X's behalf and X makes an oral agreement that Y will work for X's company as the company's general manager and X and Y enter into a written agreement that Y will work for X as the general manager of X's companyF) C) and D)
G) A) and D)

Question 17

Lisa works for Sally.Lisa's jobs include selling the folk-art Santa Claus statutes that Sally hand-makes,as well as purchasing the wood for the statutes.In this case Lisa is:

Accepted Answer

A)  a servant only
B)  an agent only
C)  an independent operator
D)  a servant and an agent
E)  a masterF) B) and C)
G) A) and B)

Question 18

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 correctF) A) and D)
G) None of the above

Question 19

An auctioneer who sells goods is likely an agent and independent contractor.

Accepted Answer

A) True 
 B)False

Question 20

Agency relationships must be evidenced by a written contract.

Accepted Answer

A) True 
 B)False

Exam 14: Agency and the Employment Relationship

In which of the following situations can an agency relationship be created?

Correct Answer
verified

Agency relationships must be evidenced by a written contract.

Correct Answer
verified

The duty of an agent to keep his principal informed of all facts relevant to the agency purpose is called the duty:

Correct Answer
verified

Lisa works for Sally.Lisa's jobs include selling the folk-art Santa Claus statutes that Sally hand-makes,as well as purchasing the wood for the statutes.In this case Lisa is:

Correct Answer
verified

The duty of an agent not to mix personal funds with the funds of the principal is the duty:

Correct Answer
verified

The duty of loyalty:

Correct Answer
verified

If a payment amount is not specified in the agency agreement,a principal's duty to compensate means that the principal must pay the agent:

Correct Answer
verified

A UPS package sorter is an example of a(n) :

Correct Answer
verified

When liability is imposed on the principal for the unauthorized torts of an agent,it is called:

Correct Answer
verified

Carla agrees to try to sell Frank's prize dog Spike for him.Carla does this as a favor to Frank because she knows many professional dog breeders.Carla may be best described as:

Correct Answer
verified

An agency relationship may terminate by lapse of time.

Correct Answer
verified

An agent's _________ is the power to change the principal's legal obligations.

Correct Answer
verified

Because of the duty to inform,an agent must:

Correct Answer
verified

In Bearden v.Wardley Corp. ,where real estate agent Gritton cheated Bearden on a house deal,the court held that his employer,Wardley,was not liable because it had no way to know of his actions.

Correct Answer
verified

A person who volunteers with no expectation of being paid for her services is a(n) :

Correct Answer
verified

Correct Answer
verified

Which of the following would lead to termination by operation of law for an agency:

Correct Answer
verified

If money is commingled (funds of agent mixed with funds of the principal),a violation of duty to account occurs only if the principal can show actual harm.

Correct Answer
verified

An auctioneer who sells goods is likely an agent and independent contractor.

Correct Answer
verified

Under which of the following conditions would a principal or employer be liable for the tort of an agent or employee:

Correct Answer
verified

Exam 14: Agency and the Employment Relationship

In which of the following situations can an agency relationship be created?

Correct AnswerverifiedShow Answer

Agency relationships must be evidenced by a written contract.

Correct AnswerverifiedShow Answer

The duty of an agent to keep his principal informed of all facts relevant to the agency purpose is called the duty:

Correct AnswerverifiedShow Answer

Lisa works for Sally.Lisa's jobs include selling the folk-art Santa Claus statutes that Sally hand-makes,as well as purchasing the wood for the statutes.In this case Lisa is:

Correct AnswerverifiedShow Answer

The duty of an agent not to mix personal funds with the funds of the principal is the duty:

Correct AnswerverifiedShow Answer

The duty of loyalty:

Correct AnswerverifiedShow Answer

If a payment amount is not specified in the agency agreement,a principal's duty to compensate means that the principal must pay the agent:

Correct AnswerverifiedShow Answer

A UPS package sorter is an example of a(n) :

Correct AnswerverifiedShow Answer

When liability is imposed on the principal for the unauthorized torts of an agent,it is called:

Correct AnswerverifiedShow Answer

Carla agrees to try to sell Frank's prize dog Spike for him.Carla does this as a favor to Frank because she knows many professional dog breeders.Carla may be best described as:

Correct AnswerverifiedShow Answer

An agency relationship may terminate by lapse of time.

Correct AnswerverifiedShow Answer

An agent's _________ is the power to change the principal's legal obligations.

Correct AnswerverifiedShow Answer

Because of the duty to inform,an agent must:

Correct AnswerverifiedShow Answer

In Bearden v.Wardley Corp. ,where real estate agent Gritton cheated Bearden on a house deal,the court held that his employer,Wardley,was not liable because it had no way to know of his actions.

Correct AnswerverifiedShow Answer

A person who volunteers with no expectation of being paid for her services is a(n) :

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following would lead to termination by operation of law for an agency:

Correct AnswerverifiedShow Answer

If money is commingled (funds of agent mixed with funds of the principal),a violation of duty to account occurs only if the principal can show actual harm.

Correct AnswerverifiedShow Answer

An auctioneer who sells goods is likely an agent and independent contractor.

Correct AnswerverifiedShow Answer

Under which of the following conditions would a principal or employer be liable for the tort of an agent or employee:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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