BLAW Ch. 14

Energy Company employs Fred to negotiate the purchase of mineral rights for future mining projects. Fred secretly buys some of the property and sells it to Energy at a profit. Fred has breached a. the duty of performance. b. the duty of loyalty. c. no duty. d. the duty of notification.

the duty of loyalty.

Erin indicates that she is acting as an agent on behalf of an unidentified client—Flight Services Inc.—when she enters into a contract with Go Airlines. Liability to Go for nonperformance of the contract may be imposed on a. none of the choices. b. Erin and Flight Services. c. Erin only. d. Flight Services only.

Erin and Flight Services.

Luis hires Mieko to act as his agent to buy Ngoc's Southeast Asian Café. Luis tells Mieko to reveal only that she is buying the restaurant on behalf of a third party, without telling Ngoc's seller who that third party is. Luis is a. a disclosed principal. b. not a principal. c. an undisclosed principal. d. a partially disclosed principal.

a partially disclosed principal

Kit hires Lanie to manage Kit's Cattle Ranch. Lanie agrees to act on Kit's behalf, subject to Kit's control, and Kit trusts Lanie to so act. Their relationship is a. an employee and an agent. b. none of the choices. c. an employer and an independent contractor. d. a principal and an agent.

a principal and an agent.

Ingmar asks Jess to contract with Kay's Lawn Service to maintain Ingmar's lawn. Jess orally agrees to do so. This is an agency by a. agreement. b. estoppel. c. operation of law. d. none of the choices.

agreement.

Rosario is a chef and caterer who hires out on a per-project basis to companies with on-location work sites, as well as to the hosts of banquets and other events. In this capacity, Rosario is a. an agent. b. an employee. c. an independent contractor. d. a principal.

an independent contractor

66. Gary drives a truck as an employee for Hauling Inc. Gary would most likely be considered acting outside the scope of her employment if he a. crashed into a car at the airport while off duty. b. hit a pedestrian in a parking lot during a "working" lunch. c. ran over an attendant at a gas station while refueling the truck. d. smashed into a store-front while intoxicated on-duty.

crashed into a car at the airport while off duty.

Jon contracts with Kino to buy a certain number of sheep for Kino's Animal Farm. Jon makes a deal with Lila for the sheep, but neither Jon nor Kino pays the price. Lila sues Jon for breach. Jon's right to hold Kino liable for any damages is the right to a. none of the choices. b. compensation. c. indemnification. d. reimbursement.

indemnification.

Miklos employs Nathalie to handle a list of financial transactions on Miklos's behalf. This power will terminate on a. any transaction causing a loss to Miklos. b. Miklos's death or incapacity. c. Miklos's sixty-fifth birthday. d. Nathalie's handling of one of each stipulated transaction.

Miklos's death or incapacity.

Bey indicates that he is acting as an agent on behalf of an unidentified client—Cuisine LLC—when he enters into a contract with Diners Bistro. Cuisine is a. a disclosed principal. b. an apparent agent. c. an undisclosed principal. d. a partially disclosed principal

a partially disclosed principal

Motor Parts Sales Inc. hires Nolly to work on its shipping dock, accepting deliveries, and dispatching trucks, and dealing with customers and drivers. With respect to Motor Parts, Nolly is most likely a. an agent b. an agent and a principal. c. a principal. d. none of the choices.

agent

Without authorization, Lars contracts on behalf of Mina to have Nemo paint Mina's Boutique. If Mina decides to ratify the contract, she must affirm a. all of the contract. b. any part of the contract, with Lars liable to Nemo for the difference. c. any part of the contract before performance begins. d. any part of the contract at any time.

all of the contract.

Watercraft Inc. employs Vern as a sales agent for a trial period. At the end of the period, Watercraft and Vern disagree on the amount of the commissions Vern is due for sales that he made. Vern may demanda. a constructive trust. b. an accounting. c. nothing. d. specific performance.

an accounting

Rosa introduces Sal to her friend Trey as "my associate." Sal purports to act as Rosa's agent in a business transaction with Trey. If Rosa is liable for Sal's actions, it will be because their relationship is a. an agency by agreement. b. an agency by estoppel. c. an agency by operation of law. d. not an agency relationship.

an agency by estoppel.

Nora works at Oil & Gas Inc. She is a sales representative who works with Oil & Gas customers. The company closely supervises its sales reps, and dictates their schedules. With respect to third parties, Nora is a. an independent contractor. b. an employee only. c. an employee and agent. d. a principal.

an employee and agent.

Orin works at Pumps Inc. He works in the company's engineering department, interacting with third parties only to discuss technical issues. With respect to third parties, Orin is a. an independent contractor. b. an employee only. c. an employee and agent. d. a principal.

an employee only.

Ray is a delivery driver for Sicilian Pasta Company. Ray does exactly what the company tells him. Ray is a. an employee. b. an employer. c. an independent contractor. d. a principal.

an employee.

Darla serves in a representative capacity for Ellen's Botanicals. To accomplish the objectives of this relationship, Darla's authority can be implied by a. by contradiction. b. by custom. c. by any subjective measure. d. none of the choices.

by custom.

Curly Fries Inc. grants its agent Dian an exclusive territory in which to sell its products. The company cannot compete with Dian in that territory under the duty of a. none of the choices. b. cooperation. c. indemnification. d. reimbursement.

cooperation.

Romero employs Supply Procurement Service as an agent under a written agreement that describes the rights and duties of both parties. This is a. apparent authority. b. equal authority. c. express authority. d. implied authority.

express authority

Ben manages a warehouse and its inventory for Coffee Roaster Inc. To operate this part of the business, Ben's authority can be inferred a. from the position Ben occupies b. by a reasonable party with whom Coffee Roaster does business. c. to contradict Ben's express authority. d. under no circumstances.

from the position Ben occupies.

Ira serves in a representative capacity for Jett. Key is injured through Ira's negligence. Jett may be liable to Key if Ira's conduct occurred a. due to a propensity Jett was not and could not have been aware of. b. during normal working hours. c. in the course and scope of Ira's employment. d. outside the parties' employment relationship.

in the course and scope of Ira's employment.

Clark hires Dell, a real estate broker, to sell his beach house. The house is destroyed in a storm before it can be sold. Dell is Clark's agent a. until Clark's insurer pays Dell's commission. b. until the destroyed house is sold. c. until the destroyed house is rebuilt and sold. d. no more.

no more.

Lucy is married to Marco. Lucy buys food for their children's lunches and charges the cost to Marco's account. This is an agency by a. agreement. b. estoppel. c. operation of law. d. none of the choices.

operation of law

Fara hires Gil, a real estate broker, to act as her agent to sell her land for $150,000. Before the land is sold at the stated price, oil is discovered beneath it, causing its market value to increase considerably. The agreement between Fara and Gil is likely a. continued with a proportionate increase in Gil's sales commission. b. continued until Gil tells prospective buyers of the discovery. c. terminated by act of the parties. d. terminated by operation of law.

terminated by operation of law.

Bern, a salesperson at a Carpet & Tile store, tells Dan, a customer, "Buy your flooring here, and I'll install it for less than the store would charge." Dan buys carpeting, which Bern installs for half the store's price. Bern keeps the money. With respect to the store, Bern has breached a. no duty. b. the duty of loyalty. c. the duty of performance. d. the duty of obedience.

the duty of loyalty.

Larry is an agent for Mary. She gives him clear instructions to enter into contracts on her behalf only on Mondays, Wednesdays, or Fridays. He enters into a contract on her behalf on Tuesday. Larry has breached a. no duty. b. the duty of loyalty. c. the duty of performance. d. the duty of obedience.

the duty of obedience.

Lev, an agent for Mill Grains LLC, executes an unauthorized contract with National Grocers Inc. The deal is highly advantageous to Mill Grains, and the company ratifies the contract. The contract is a. valid. b. vicarious. c. void. d. voidable.

valid

Diamonds & Gold LLC hires Elle to buy gems and precious metals from various sources on its behalf. In this relationship, Diamonds is a. an employee. b. an independent contractor. c. a principal. d. an agent.

a principal.

Denny, a certified public accountant and an investor, and Ethel, an insurance salesperson and a realtor, may create an agency relationship for a. a business purpose only. b. any legal purpose. c. any purpose. d. no purpose.

any legal purpose.

Based on Nan's conduct, Odel reasonably believes that Poppy has the authority to act on Nan's behalf even though Poppy does not have the actual authority to do so. In this circumstance, Poppy has a. apparent authority. b. express authority. c. implied authority. d. no authority.

apparent authority.

Vera is a purchasing agent for Wild-Caught Fish Inc., with the authority to buy a sea fisher's catch up to a certain quantity. After the fish is bought, the agency relationship terminates a. automatically. b. following notice to all fishers within a reasonable geographic area. c. following notice to all fishers with whom Vera did business. d. following published notice.

automatically.

Emmett, an agent for Fridley, signs an agreement with Glover on Fridley's behalf but neglects to tell him that the agreement requires the payment of a certain tax. The government prosecutes Fridley for failing to pay the tax. He is a. liable, because notice to Emmett is notice to Fridley. b. liable, because notice to Glover is notice to Fridley. c. not liable, because Emmett did not notify Fridley of the tax. d. not liable, because Glover did not tell Fridley about the tax.

liable, because notice to Emmett is notice to Fridley.

Suva is an agent for Tax Accountants, Inc. On the firm's behalf and at its request, Suva pays Uzo for specially coded software. Suva's right to obtain the amount of the payment from Tax Accountants arises under the duty of a. none of the choices. b. compensation. c. indemnification. d. reimbursement.

reimbursement.

Bread Company hires Craig to sell the company's products in a certain area. Bread agrees to pay Craig a salary, plus commission, for a trial period. They also agree that he can sell using any methods and during any hours that seem appropriate. The key factor in whether Craig is Bread's employee is a. the amount of the salary. b. the degree of the employer's control over the details of the work. c. the length of the trial period d. the size of the sales area.

the degree of the employer's control over the details of the work.