Lesson 6 Cumulative Quiz

Under the doctrine of imputed knowledge: an agent is considered to have notice of what the principal knows a principal is considered to have notice of what the agent knows Both A and B Neither A nor B

Both A and B

Which is the most common method of compensating a buyer's agent? Buyer-paid fee Commission split Retainer Seller-paid fee

Commission split

9. A principal has not authorized an agent to act, but misleads a third party into believing that the agent has been authorized to act on the principal's behalf. This creates an agency by: estoppel express agreement implication ratification

Estoppel

Which two types of agency are recognized under California law? General agency and ostensible agency General agency and special agency General agency and universal agency Universal agency and special agency

General agency and special agency

A seller's agent begins providing advice on how to make an offer for a property to potentially interested buyers. This may potentially create an agency by: estoppel express agreement implication ratification

Implication

When is a principal prevented from unilaterally terminating an agency? Any time In the event of an agency coupled with an interest When the breach would cause damages to the agent When the breach would cause damages to third parties

In the event of an agency coupled with an interest

An agency terminates because the buyer's agent helps the buyer to successfully purchase a home. The agency terminates because of: expiration of term extinction of subject matter fulfillment of purpose mutual agreement

fulfillment of purpose

A principal leads a third party to believe that an agent has the authority to sign documents on his behalf, when he has not in fact authorized this. In regard to signing documents, the agent has been given: express actual authority general authority implied actual authority ostensible authority

ostensible authority

An agent has no express authority when she commits an act that benefits the principal, but the principal approves of the act after the fact. This creates an agency by: estoppel express agreement implication ratification

ratification

A broker delegates authority to another broker to assist in fulfilling his agency duties. The other broker would be considered a/an: customer general agent ostensible agent subagent

subagent

Which of the following statements is true? A buyer agency relationship is always created in the listing agreement; a seller agency relationship may be created through a written representation agreement A seller agency relationship is always created in the listing agreement; a buyer agency relationship may be created through a written representation agreement Both a seller agency relationship and a buyer agency relationship are created in the listing agreement Both a seller agency relationship and a buyer agency relationship are created using a written representation agreement

A seller agency relationship is always created in the listing agreement; a buyer agency relationship may be created through a written representation agreement

Which of the following characterizes an agency relationship? The agent has the ability to exercise discretion while acting on behalf of the principal The agent owes fiduciary duties to the principal The principal has the right to give the agent instructions the agent is expected to follow All of the above

All of the above

Which of the following does not automatically terminate an agency? Bankruptcy of a party Death of a party Expiration of agency term Rejection of an offer to purchase a property

Rejection of an offer to purchase a property

An agent unilaterally announces that he will terminate the agency relationship. This ends the agency through: mutual agreement operation of law renunciation revocation

Renunciation

Which of the following statements about dual agency is false? The dual agent may not disclose confidential information from one party to the other The dual agent may reveal to the seller the maximum the buyer is willing to pay The dual agent must have the written consent of both parties Each party must be informed he will not receive full representation

The dual agent may reveal to the seller the maximum the buyer is willing to pay

Which of the following is the primary test for whether or not an agency relationship exists? The agent provided some sort of service for the principal The parties showed intent, via words or actions, to form an agency relationship There was a written document referencing such a relationship There was payment of compensation

The parties showed intent, via words or actions, to form an agency relationship

An agency relationship exists between a broker and a seller. In this context, the buyer is known as a/an: agent client third party principal

Third party

An old listing agreement contains a clause stating that any selling agent who finds a buyer through a multiple listing service automatically becomes a subagent of the seller. This clause would be known as a/an: cooperation and compensation clause inadvertent dual agency clause offer of cooperation unilateral offer of subagency

unilateral offer of subagency

A listing agent makes misrepresentations when selling a house to a buyer. Even though the sellers did not engage in any wrongful acts, the buyer may still sue them under the doctrine of: contributory negligence imputed knowledge res ipsa loquitur vicarious liability

vicarious liability

A principal is responsible for the actions of a subagent only if the subagent: acted intentionally, rather than negligently acted negligently, rather than intentionally was lawfully appointed was not lawfully appointed

was lawfully appointed