BLAW 3391 Ch. 27

Is a principal under a duty to compensate an agent who works on the principal's behalf?

Yes, if the contract requires compensation.

If harm is done by an agent, and it is discovered that this agent has been convicted of the same harm before at a previous job, what might a principal be liable for?

negligent hiring

What does the ratification of an agency relationship include?

A party affirms the contract another person made with a third party.

What does respondeat superior dictate?

A principal can be held liable for employee actions, even if the principal is not at fault.

What authority is ended with the termination of an agency relationship?

Actual authority

For what terminations does a principal NOT have a duty to notify third parties?

Agencies terminated by operation of law

Who can terminate an agency relationship?

Either the agent or the principal may terminate.

What are the two types of actual authority? Choose 2 answer choices.

Express authority Implied authority

Which of the following scenarios illustrates a business world without agency relationships?

The owner prepares the tax returns.

What is the key factor in apparent authority?

The principal's actions

How does a principal become liable to third parties on contracts?

The principal's agent has the authority to bind the principal in a contract with a third party.

Who is liable to third parties for damage caused by an agent's tortious conduct if the principal had directed the agent to take that action?

both the agent and the principal