bus5 ch.35

Jill purchased fabric from various manufacturers on credit during her agency with Designer Dress Company. The agency relationship is now terminated. Which of the following notices should Designer Dress Company provide to ensure Jill is not able to exercise apparent authority for Designer Dress Company? Multiple Choice

A direct personal statement to all the manufacturers Jill has done business with.

irene purchased commodities from various supermarkets on credit during her agency with Trivia Fast Foods. The agency relationship is now terminated. Which of the following notices should Trivia provide to ensure Irene is not able to exercise apparent authority for Trivia Fast Foods?

A direct personal statement to all the supermarkets Irene has done business with

Which of the following characteristic best describes a general agent?

A general agent is employed continuously to conduct a series of transactions for the principal

Which of the following is true of apparent authority?

Apparent authority continues even after the termination of agency.

____ is an agent's ability to affect his principal's legal relations.

Authority

___ can be accomplished by advertising the agency's termination in a newspaper of general circulation in the place where the agency business regularly was carried on.

Constructive notification

Which of the following is not a duty the principal owes to the agent?

Duty of loyalty

Which of the following is true of actual notification?

It can be accomplished by a direct personal statement to the third party

Which of the following is true of nonemployee agents of a principal?

They contract with the principal to produce a result and determine for themselves how that result will be accomplished.

A principal is required to indemnify when:

an agent suffers losses that should be borne by the principal.

A gratuitous agent is:

an agent who receives no compensation for his services.

An agent can act on behalf of two principals to the same transaction, without their consent or knowledge.

false

Sending direct personal statements to the third party about the termination of an agency is called constructive notification.

false

Jeremie, an electrician, is an agent of Stanley, a builder. The agency agreement calls for Jeremie to install wiring and circuit breakers in a house. Jeremie then hires Brandon to do the wiring. Brandon is a:

subagent

A special agent is employed to conduct a single transaction or a small, simple group of transactions.

true

Express authority is actual authority that the principal has manifested to the agent in very specific or detailed language.

true

The death of the agent will terminate the agency relationship.

true

When an agent manifests his wish to discontinue the agency to the principal, it is called renunciation.

true