Chapter 9

Berry indicates that she is acting as an agent on behalf of an unidentified client—Cuisine Catering, LLC—when she enters into a contract with Désean. Refer to Fact Pattern 9-1A. Liability to Désean for nonperformance of the contract may be imposed on a. Berry and Cuisine Catering. b. Berry only. c. none of the choices. d. Cuisine Catering only. Hide Feedback

a. Berry and Cuisine Catering.

Metro Hospital, Inc., employs New Collection Company as an agent for the collection of Metro's unpaid accounts. While garnishing O'Shea's wages, New Collection misstates the amount and collects too much. O'Shea can recover from a. Metro or New Collection. b. New Collection only. c. Metro only. d. none of the choices. Hide Feedback

a. Metro or New Collection.

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

a. apparent authority.

Romero employs Supplies Procurement Service as an agent under a written agreement that describes the rights and duties of both parties. This is a. express authority. b. apparent authority. c. implied authority. d. none of the choices. Hide Feedback Correct

a. express authority.

Rachel is an agent for Sports Logo Merchandise, Inc. Rachel makes an innocent misrepresentation when entering into a contract on behalf of Sports Logo with Team Marketing & Sales Corporation. Sports Logo a. is directly responsible for Rachel's misrepresentation. b. is estopped from performing the contract. c. must ratify the contract. d. may rescind the contract. Hide Feedback

a. is directly responsible for Rachel's misrepresentation.

Olga hires Parnell, a real estate broker, to act as her agent to sell her house. The house burns down before being sold. The agency agreement is likely a. terminated by operation of law. b. continued while the house is rebuilt and again placed on the market. c. terminated by act of the parties. d. continued until Parnell tells prospective buyers of the fire.

a. terminated by operation of law.

OnlineSales.com uses an electronic agent, or e-agent, to take a purchase order from a consumer over the Internet. The e-agent fails to provide an onscreen confirmation of the order. The effect of any error in the order can be avoided by a. the consumer. b. both parties. c. OnlineSales.com. d. none of the choices.

a. the consumer.

Limon, an agent for Mindwonder Games LLC, executes an unauthorized contract with NOW Marketiog, Inc. The deal is highly advantageous to Mindwonder, and the company ratifies the contract. The contract is a. valid. b. undisclosed. c. vicarious. d. void. Hide Feedback

a. valid.

Olivia, an agent for Precision Paving Corporation, enters into an unauthorized contract with Quality Asphalt, Inc., purportedly on Precision Paving's behalf. Precision Paving does not ratify the contract. In this situation, a court can impose liability on a. Precision Paving to Quality Asphalt for not ratifying the contract. b. Olivia to Quality Asphalt for misrepresenting her authority. c. Precision Paving to Olivia for not ratifying the contract. d. Quality Asphalt to Precision Paving for entering into an unauthorized contract. Hide Feedback

b. Olivia to Quality Asphalt for misrepresenting her authority.

Private Security Service employs Olsen as an agent. Without Private Security's knowledge but otherwise acting within the scope of employment, Olsen commits a crime. The state can successfully prosecute a. Private Security. b. Olsen. c. Private Security or Olsen. d. none of the choices.

b. Olsen.

Vida is a purchasing agent for Wholesome Foods with the authority to buy grain up to a certain quantity. After the grain is bought, the agency relationship terminates a. following notice to all actual grain sellers. b. automatically. c. following notice to all potential grain sellers. d. following published notice in a local newspaper. Hide Feedback Correct

b. automatically.

Norton grants a general power of attorney to Olena to locate potential real estate investment opportunities on Norton's behalf. This power will terminate on Norton's a. hiring an actual attorney to exercise the power granted to Olena. b. death or incapacity. c. sixty-fifth birthday. d. taking advantage of one of the investment opportunities. Hide Feedback

b. death or incapacity.

Alexandra manages a Beans Bistro for Coffee Shops, Inc. To manage the business, Alexandra's authority can be inferred a. under no circumstances. b. from the position Alexandra occupies. c. by a corporate officer or supplier. d. to contradict Alexandra's express authority. Hide Feedback

b. from the position Alexandra occupies.

Cali, acting within the scope of her authority for the Dessert Bake Shop, contracts with Eden Valley Orchards to buy an assortment of fruit. Dessert Bake is liable on the contract, and Cali is not, if Dessert Bake is a. an apparent agent. b. a partially disclosed principal. c. a disclosed principal. d. an undisclosed principal. Hide Feedback

c. a disclosed principal.

Churchy hires Danielle, a real estate broker, to act as his agent to sell his land for $150,000. Oil is discovered beneath the land, causing its market value to increase considerably. The agency agreement is likely a. terminated by act of the parties. b. continued with a proportionate increase in Danielle's sales commission. c. terminated by operation of law. d. continued until Danielle tells prospective buyers of the discovery.

c. terminated by operation of law.

Chemical Refining Corporation hires Disposal & Recovery Company to work as an independent contractor. Whether Chemical Refining will be liable for torts committed at the site by Disposal & Recovery depends on a. who is paying Disposal & Recovery. b. what Disposal & Recovery bid for the job. c. whether unusually hazardous activities are involved. d. which party obtained insurance to cover tort liability. Hide Feedback

c. whether unusually hazardous activities are involved.

Floris, an agent for Grover, enters into a contract on Grover's behalf with Hong that must be in writing to be enforceable under the Statute of Frauds. Failure to comply with the equal dignity rule, with respect to this contract, can make the contract voidable at the option of a. none of the choices. b. Floris. c. Hong. d. Grover. Hide Feedback

d. Grover.

Berry indicates that she is acting as an agent on behalf of an unidentified client—Cuisine Catering, LLC—when she enters into a contract with Désean. Refer to Fact Pattern 9-1A. Cuisine Catering is a. an undisclosed principal. b. a disclosed principal. c. an apparent agent. d. a partially disclosed principal.

d. a partially disclosed principal.

Avis is an officer of Budget Building Materials Corporation. With respect to binding Budget to contracts, Avis's authority a. cannot be actual or apparent. b. must be actual and apparent. c. must be actual and not apparent. d. may be actual or apparent.

d. may be actual or apparent.

Seed Packets, Inc., a city and suburban garden seed company, requires its customers to pay by check. Taylor, a Seed Packets driver, tells customers that they can pay her with cash. When Seed Packets learns of Taylor's collections, it takes no action to stop it. Taylor steals some of the cash. Under the doctrine of apparent authority, Seed Packets will most likely a. increase its prices to cover the amount of the stolen cash. b. hold its accountant liable for apparently authorizing the cash collections. c. recover the amount of the cash payments from its customers. d. suffer the loss.

d. suffer the loss.