Chapter 20

The question of whether a worker is an employee or an independent contractor has important implications in which of the following areas?

Workers' compensation, workplace safety, and unemployment statutes

If either the principal or the agent dies, the agency relationship is _____

automatically terminated.

Pursuant to the duty of ________, the agent must communicate to the principal offers from third parties, and he or she must also communicate any information the agent thinks could be important to the principal.

notification

A document that gives an agent the authority to sign legal documents on behalf of the principal is known as a(n) _____

power of attorney

Which of the following is true regarding the tort liability of employers for the actions of their employees and independent contractors?

Employers are generally liable in tort for the actions of their employees, while they are generally not liable for the actions of independent contractors.

Which of the following is a person who has a duty to act primarily for another person's benefit?

Fiduciary

In which type(s) of agency is the principal-agent relationship inferred from the conduct of the parties?

Implied agency

________ is the right of a principal to sue an agent to recover any amount assessed against the principal for a breach of contract caused by the agent's negligence.

Indemnification

Persons who are not employees but who are hired by employers to perform certain tasks are known as:

Independent contractors

How long does an agent's apparent authority continue once an agency relationship is terminated?

30 days

Under which of the following does a principal give an agent broad authority to sign legal documents on behalf of the principal, as opposed to authority for only a specific purpose?

A general power of attorney

In a(n) ________ relationship, the agent is authorized to act for and on behalf of the principal, who hires the agent to represent him or her.

agency

Expressed agency is also known as agency by ________.

agreement

The principal-employer holds ________ liability for any harm caused by the agent-employee during the time that the agent-employee is working for the principal.

conditional

An agent cannot represent both the principal and a third party in an agreement because there could be a(n) ________.

conflict of interest

A(n) ________ power of attorney is a written document, created by a principal, expressing his or her wishes for an agent's authority not to be affected by the principal's subsequent incapacity, or for the agent's authority to become active only after a principal becomes incapacitated in any manner.

durable

An agency relationship that arises when an individual misrepresents herself as an agent for another party and that party accepts the unauthorized act is an agency by _____

ratification