BUSI301: Business Law (B07) Chapter 10

_____ is the legal relationship where the parties agree that one party will act on behalf of the other party.

Blank 1: Agency

An agency terminated by _____ occurs when property essential to the agency relationship is no longer available.

Blank 1: destruction

An agency relationship may be terminated by a(n) _____ action of the parties.

Blank 1: express or expressed

A(n) _____ disclosed agency relationship is where the third party is aware of the identity of the principal and knows the agent is acting on behalf of the principal.

Blank 1: fully

An agency relationship may be terminated by operation of:

Blank 1: law or laws

When an agent initiates termination, it is called a(n _____

Blank 1: renunciation

When the essential subject matter of an agency relationship is no longer available, termination occurs by: ______.

destruction

When the agency relationship is ______ disclosed, the agent is not liable to the third party.

fully

If an agent's breach of duty resulted in a principal becoming liable to a third party, then the agent must: ______.

indemnify and hold the principal harmless

Principals are generally not liable for the negligent acts of: ______.

independent contractors.

Refraining from self-dealing and acting solely for the benefit of the principal are agent requirements under the duty of Blank______.

loyalty

The nonagent employee relationship is referred to as the Blank______.

master-servant relationship.

Reference checks and criminal background checks are steps employers can take to shield themselves from the liability imposed by the: ______.

negligent hiring doctrine

If an agent's breach of duty to the principal causes damages to the principal, the principal may recover those damages by:

suing the agent for the breach.

Ending the agency relationship is referred to as: ______.

termination.

The substance-over-form doctrine focuses on: ______.

the actual working relationship between the principal and agent.

Before an employer will be responsible for the negligent acts of an employee, the negligent act must have occurred: ______.

within the scope of employment.

An agent must give _____ to perform an act on behalf of a principal.

Blank 1: consent

For agency purposes, a principal can be liable via a contract obligation or through _____ liability (liability for another) in tort.

Blank 1: vicarious

An agent may be entitled to damages if the principal's termination was: _____

Blank 1: wrongful, unlawful, illegal, or wrong

Which of the following areas of law most often overlap with agency law?

Contracts and torts

Identify the broad categories into which agents can be classified. (Check all that apply.)

Independent contractor agents Gratuitous agents Employee agents

What is the term used to describe the principal's termination of the agency relationship?

Revocation

Courts use which of the following to analyze the classification of an agent?

Substance-over-form

In which of the following instances would the principal not have an obligation to reimburse the agent?

The agent commits an illegal act.

An agency relationship is often referred to as a(n) Blank______ relationship.

fiduciary

Duties that define an agency relationship are collectively called a(n) ______ duty.

fiduciary

Agents can be classified into any of the following broad categories except: ______

principal-agents

Actual authority, apparent authority, and ______ are the primary sources of an agent's power.

ratification

Liability for principals of employee agents is derived from the doctrine of: ______.

respondeat superior.

The party acting on behalf of another in an agency relationship is the: __________.

agent

A transaction involving one party hiring another party to transact business on behalf of the hiring party is referred to as what type of relationship?

Agency

The creation of an agency relationship is defined in terms of: ______.

consent and control

Failure to properly notify third parties of a terminated relationship could result in: ______.

continued liability to the principal for the agent's acts.

Respondeat superior allows an injured party to pursue the: ______.

employer.

In addition to acting at all times in the principal's best interests, Blank______ is always an agent's duty in the agency relationship.

good faith

The most common breach by a principal is failure to: ______.

reimburse.

The principal owes a duty of ______ to his agent.

reimbursement

The law of agency often overlays and interacts with other areas of the law, especially _____ and ______.

Blank 1: Contracts or contract Blank 2: Torts or tort

Actual authority, _____ authority, and ratification are an agent's primary sources of power.

Blank 1: apparent

An agency relationship may be terminated by operation of: _____.

Blank 1: law or laws

The ______ imposes an obligation on employers when hiring employees to take reasonable steps to protect third parties from potential harmful contact by employees.

negligent hiring doctrine

For agency purposes, a principal's liability can arise either through a contract obligation or through _______ in tort.

vicarious liability

If the principal refuses to reimburse the agent, the agent typically can turn to a court to recover: . (Please use one word per blank.)

Blank 1: damages or damage

Fill in the blank question. Agency termination provided for by a statute or through a common law doctrine is said to have terminated by operation of: _____

Blank 1: law

The duty of _____ is the centerpiece of the fiduciary obligation.

Blank 1: loyalty

The duty of _____ requires the agent to advance the principal's interest over the agent's own interests.

Blank 1: loyalty

Individual employees authorized to transact business on behalf of the employer principal are called Blank______.

employee agents.

An agency relationship is usually created by a(n) ______ agreement.

express