BUL3310 Chapter 24 & 25 quiz
Jim was called to active duty in the military. Knowing that he would be out of the country for a year or more, he gave his sister Peg authority to pay bills in his name, access his bank accounts, buy and sell stock in his brokerage accounts, and incur expenses to maintain his house and car and boat. Because Peg is not compensated for the activities she is performing on her brother's behalf, she owes him Only the duty of loyalty. Only the duties of loyalty and information. Only the duties of loyalty, information and the duty to account Peg owes Jim all the duties of an agent to a principal.
Peg owes Jim all the duties of an agent to a principal.
When a principal decides to adopt and be bound on a contract that his agent did not have the authority to form, the principal _______________ the contract. Indemnifies Reforms Ratifies Restores
Ratifies
Jim was called to active duty in the military. Knowing that he would be out of the country for a year or more, he gave his sister Peg authority to pay bills in his name, access his bank accounts, buy and sell stock in his brokerage accounts, and incur expenses to maintain his house and car and boat. Jim will be out of the country when a piece of land he sold goes to settlement. He wants to give Peg the authority to convey the deed and sign any necessary settlement papers in his name. To do this he should give Peg _______________. Special power of attorney General power of attorney Factors letters of appointment Broker Authority
Special power of attorney
Which of the following events would not terminate an agency by operation of law? The principal breaches his or her duty to reimburse the agent. The agent dies. The principal dies. The purpose of the agency becomes illegal.
The principal breaches his or her duty to reimburse the agent.
Agents of undisclosed principals are entitled to be indemnified if held personally liable on contracts that were within the scope of their authority. True False
True
An agent is a fiduciary of the principal. True False
True
Respondeat superior is a firm of vicarious liability. True False
True
A person who is given power of attorney is called an______________. Attorney at law Attorney in fact Factor General Agent
Attorney in fact
Athlete Superstar hired Angie Agent to negotiate a contract for him with a major cereal company. Photos of Athlete Superstar, in various action poses, are to be prominently displayed on every box of GoodForYou cereal for one year. In these circumstances, Athlete Superstar is a (n) ____________principal. Disclosed Partially undisclosed Undisclosed Special
Disclosed
In order to ratify an agent's contract, the principal must have been __________at the time the contract was formed. Disclosed Partially disclosed Either disclosed or partially disclosed Undisclosed
Disclosed
A person who breaches a duty that is neither a contractual duty nor a crime commits a ____________. Tort Misdemeanor Malum in se Malum prohibitum
Tort
A plaintiff who sues the employer and the employee in joint and several liability is limited to only one recovery. True False
True
An agent has a duty to obey the principal's instructions unless which of the following is true? The instructions require the agent to perform duties that are not in the agency agreement. The instructions are to perform an illegal act. The instructions are not in the principal's best interest. Both A and B
Both -The instructions require the agent to perform duties that are not in the agency agreement. & The instructions are to perform an illegal act.
Employers have greater liability for employee torts in states that have adopted the complicity rule than in those states that follow vicarious liability. True False
False
Officers of corporations have unlimited actual authority to sell the real property and intangible assets of the corporation. True False
False
