Chapter 25 Law- Agency Liability Concepts

If an employee is accused of frolicking while acting as an agent of the employer, which doctrine extends to the employer's liability?

Respondeat superior

If an employer is liable for a tort committed by an employee, what is true about the employee?

The employee is liable for his/her own misconduct

Respondeat superior involves the issue of which of the following?

The employee was acting within the scope of his/her employment

Suits by employers against employees for indemnity re not common because of all but which of the following?

The employer would receive no benefit from doing so

Only one party needs to be bound to a contract; the other party need not be bound.

True

Ratification can be effective when which of the following occurs?

True

The principal that an innocent employer can be held liable for an employee's actions is which of the following?

Vicarious liability

If an employer negligently selects an employee, the tort liability rests:

With the employer only

Implied authority can be derived from the words or conduct of an agent.

false

Only one party needs to be bound to a contract; the other party need not be bound.

true

The concept respondent superior imposes vicarious liability on employees as a matter of public policy.

true

The issue of whether or not ratification has occurred is a question to be decided by the jury.

true

The vicarious liability imposed on employers is not based on logic reason, but on business and social policy.

true

The authority that a principal leads a third party to believe exists when there is no actual authority is known as ________ authority.

Apparent

The authority that a principal leads a third party person to believe exists when there is no actual authority granted by the principal to the agent is which of the following?

Apparent authority

A principal may become liable to which of the following?

Either the agent or the third party

If an accident occurs while an employee is on a frolic, and an accident occurs with a third party, who is responsible for the third party injuries?

Employee

Employers typically do not file suit against employees for indemnity because of all but which of the following reasons?

Employers rarely find fault was caused by the employees.

Patty Principal fired Al Agent because Al had been careless in his record keeping and had comingled personal and business funds. By Patty not notifying the third parties of Al's firing, the third parties will rely on which of the following doctrine?

Estoppel

Authority that is granted through the principal's written or oral instructions are which of the following?

Express

A type of authority granted by a principal to an agent by written words is ___________ authority.

Express actual

A principal does not become bound by ratifying an unauthorized contract.

False

A principal may be disclosed or partially disclosed only.

False

A third party can rely on the principal to use reasonable care and diligence to make sure that an agent is acting within the scope of his or her employment.

False

An employer can insulate itself from liability by hiring an independent contractor to perform illegal tasks.

False

An employer is not liable for the negligent hiring of an independent contractor.

False

An employer is not liable to third persons for torts committed by employees within the scope of employment.

False

An independent contract does not have the power to control the details of the works he/she performs for an employer.

False

An unauthorized act may be ratified in part and rejected in part.

False

Disclosed principals are no liable to third parties if unauthorized actions of an agent are ratified.

False

Justin's Carz provides custom detailing of fenders on sports cars. Justin has his brother, Jason, do the detailing on all the classic model vehicles. During work on a vintage car, Jason broke the fender and it was not replaceable. Is Justin responsible for the damage?

False

The concept respondeat superior imposes vicarious liability on employees as a matter of public policy.

False

The terms apparent authority and ostensible authority are synonymous to describe the authority of a principal.

False

If the third party seeks to hold the agent personally liable, the agent may insist that the disclosed principal ____________.

Hold him/her harmless

Inferences from other facts and circumstances, including prior habits, are considered which of the following authority?

Implied actual

When ratification occurs, the liability of the parties ______________.

Is the same as if the agent's acts were authorized prior to ratification

The liability of an agent or employee is which of the following?

Joint and several

When two or more persons have an obligation that binds them individually and jointly, the parties are faced with ____________.

Joint and several liability

Eric hired Brady to side his house. Since Brady has the power to control the works he performs, and is only required to side the house and no other requirements, Brady is considered a(n) ___________.

Servant

Undisclosed principals are liable to third parties when which of the following occurs?

The agent acted within the scope of actual authority.

The doctrine of respondeat superior applies to independent contractors.

The doctrine of respondeat superior applies to independent contractors.

Respondeat superior applies to an employer in which of the following situations?

The employee committing a tort is acting within the scope of employment

Who is responsible for a wrongful act when a third person is injured?

The principal and the agent are jointly and severally liable

An employment contract requiring the use of an agent does not bind an undisclosed principal to the third party.

True

An undisclosed principal who retains the benefits of a contract is liable to the third party in a quasi-contract.

True

Disclosed principals become liable to third parties who negotiate and enter into contracts with authorized agents.

True

If an employer is liable for a tort committed by an employee, what is true about the employee?

True

If the third party seeks to hold the agent personally liable, the agent may insist that the disclosed principal ____________.

True

Ratification can only be effective if both the principal and agent are capable of contract at the time the contract was executed.

True

The authority that a principal leads a third party to believe exists when there is no actual authority is known as ________ authority.

True

The concept respondeat superior imposes vicarious liability on employers as a matter of public policy.

True

The issue of whether or not ratification has occurred is a question to be decided by the jury.

True

The liability of the agent or employee is joint and several liability with the liability of the employer.

True

The vicarious liability imposed on employers is not based on logic reason, but on business and social policy.

True

Justin's Carz provides custom detailing of fenders on sports cars. Justin has his brother, Jason, do the detailing on all the classic model vehicles. During work on a vintage car, Jason broke the fender and it was not replaceable. Is Justin responsible for the damage?

Yes, Justin is liable because he is the agent of an undisclosed principal.

When determining if an undertaking is part of the employee-employer relationship, which of the following do not apply?

- Whether the actor has submitted to the directions for whom the service was performed AND - Whether the primary purpose of the act was to service another

A type of authority granted by a principal to an agent by written words is ___________ authority.

?

All but which of the following is true about ratification?

?

If a principal's identity is unknown to a third party, which of the following is true?

?

Which of the following will determine if an employee was acting within the scope of his/her employment?

A jury

The application of respondeat superior involves the issue of whether the employee was _______________.

Acting within the scope of employment

Ratification is best described as which of the following?

Affirmation of a contract already made

Upon ratification, when does the third party lose the right to withdraw?

As soon as the principal indicates ratification will occur

Daniel is employed by Bob's Boatyard as a collection agent. Daniel was to repossess a boat owned by Paul for missed payments on the rent of a dock. It turns out the bookkeeper made an error in entering payments, and Paul was not late on his boat payments. Daniel proceeded to repossess the boat. Daniel and Bob's Boatyards' are jointly and severally liable because of which of the following?

Both parties are economically responsible for the tort

Ratification can be effective when which of the following occurs?

Both the principal and agent are capable of contracting

The _________ rule allows for a determination of whether an employer actually is at fault before making the employer liable for punitive damages.

Complicity

Implied actual authority can be written or spoken words.

False

Ratification is implied by the conduct of the principal, which is consistent with the intent of to repudiate the agent's actions.

False

The concept of respondeat superior involves the issue if the employer knowingly allowed the employee to commit the tort.

False

The employer is always liable for punitive damages under the complicity rule.

False

With regards to disclosed principals, the agent's authority must have actual authority.

False

If an employee pursues personal business when he/she should be conducting for the employer, the employer is on a ______.

Frolic

Liability on the employer does not apply if which of the following is occurring?

If the employee stepped aside from employment to commit the tort

If an employee disobeys an employer, disobedience will ________.

Not insulate the employee from liability

If a third party believes authority exists from a principal to an authority, this is referred to as what type of authority.

Ostensible

The complicity rule is a view that is used today for which type of damages?

Punitive

When a third person is dealing with a known agent,

The third person cannot be held liable for negligence.

If a principal's identity is unknown to a third party, which of the following is true?

There cannot be a principal/third-party relationship

An employer is not responsible for the torts committed by an employee while the employee is on a detour.

True

Under the family-car doctrine, the owner of the car still maintains vicarious liability to persons injured by the driver.

True

Express actual authority can be written or spoken words.

true