QUESTION BATCH 23

2. _________ authority is based on acts or conduct of the principal that lead a third person to believe that an agent, or supposed agent, has actual authority, on which belief the third person justifiably relies.

Apparent Authority

5. Which of the following statements, concerning ratification, is (are) true? Ratification is the confirmation or affirmance by one person of a prior authorized act performed by another, who is, or who purports to be, his agent. The ratification of an act or contract binds the principal and the third party as if the agent or purported agent had been acting with actual authority initially. A valid ratification is revocable by the principal. There can be no ratification by an undisclosed principal. Generally, to be effective, ratification must occur before the third person gives notice of his withdrawal to the principal or agent.

F,T,F,T,T

1. The principal is a(n) ___________ principal if, at the time of transaction conducted by the agent, the third party has notice that the agent is or may be acting for a principal but has no notice of the principal's identity.

Partially Disclosed Principle

7. Which of the following statements, regarding vicarious liability, is (are) true? A principal is liable for an unauthorized tort committed by an employee in the course of his employment. A principal is not liable for damages caused by the tortuous conduct of her independent contractor agent even if the damages resulted from a tortuous misrepresentation make by her independent contractor agent.

T,F

3. Which of the following statements, concerning delegation of agency authority, is (are) true? The agent ordinarily has no power to delegate her authority to a subagent. If an agent is authorized to delegate her authority to a subagent, the acts of the subagent are not binding on the principal. A subagent owes a fiduciary duty to both the principal and the agent. If no authority exists to delegate the agent's authority, but the agent does so nevertheless, the acts of the subagent may make the principal liable to third persons.

T,F,T,F

8. Which of the following statements, concerning the doctrine of respondeat superior, is (are) true? Under the doctrine of respondeat superior, an employer may be liable for an unauthorized tort committed by his employee, even one that is in flagrant disobedience of the employer's instructions, if the employee committed the tort within her course of employment. According to the doctrine of respondeat superior, an undisclosed principal employer is not liable for the torts his employee commits within his employee's scope of employment. Under the doctrine of respondeat superior, a principal employer who is held liable for his employee's tort, has a right of indemnification against the employee. Except for a few limited exceptions, the doctrine of respondeat superior does not apply to the torts committed by an independent contractor.

T,F,T,T,

10. Which of the following statements, concerning rights of an agent against a third person, is (are) true? An agent, who makes a contract with a third person on behalf of a disclosed principal, usually has no right of action against that third person for breach of contract. An agent, who makes a contract with a third person on behalf of an undisclosed principal or partially disclosed principal, usually has no right of action against that third person for breach of contract.

T,T

6. Which of the following statements, concerning tort liability of principals and agents, is (are) correct? A wrongdoing agent is personally liable to the injured person for the tort the agent commits. A principal is directly liable to the injured person for harm caused from the principal's directing an agent to commit a tort. A principal, who conducts activities through an employee or other agent, is liable for harm resulting from the principal's negligence or recklessness in hiring, instructing, supervising, or controlling the employee or other agent.

T,T,T,

9. Which of the following statements, concerning contract liability of an agent, is (are) true? An agent who exceeds his actual authority or apparent authority may be personally liable to the third party. An agent acting for a disclosed principal may become liable if he assumes liability on the contract. When an agent enters into a contract on behalf of a partially disclosed principal or an undisclosed principal, the agent becomes personally liable to the third party on the contract. An agent, who knowingly enters into a contract on behalf of a nonexistent or incompetent principal, is personally liable to the third party on that contract.

T,T,T,T

4. Alfred is the general agent of Pace who carries on business in Chicago. Carol knows of the agency, but has never dealt with Alfred. Daphne sells goods on credit to Alfred, as agent of Pace. Pace revokes Alfred's authority and publishes a statement to that effect in a newspaper of general circulation published in Chicago. 1)Assume Carol does not see the statement and deals with Alfred in reliance upon the former agency. Is Alfred's apparent authority terminated with respect to Carol? 2)-Assume that Daphne does not see the statement, has no knowledge of the revocation, and sells more goods to Alfred, as agent of Pace. -Is Alfred's apparent authority terminated with respect to Daphne? If not, is Pace bound to Daphne by the contract of sale Alfred made on Pace's behalf.

1) Yes because she receives constructive notice. 2)- No she didnt receive actual notice. -Yes