ch 36

An employer does not have control over the performance of the work done by an independent contractor.

t

The "right to control" test determines whether an individual is an agent, an employee, or an independent contractor.

t

The third person who desires to bind the principal because of the act of an alleged agent has the burden of proving that the latter person was in fact the authorized agent of the principal and possessed the authority to do the act in questionA third person who deals with a person claiming to be an agent has the right to rely on the statements made by the agent concerning the extent of the agent's authority.

t

Which of the following is not a necessary condition for ratification? a. The agent must have purported to act on behalf of or as an agent for the identified principal. b. The third party benefiting from the ratification must give consideration for the ratification. c. The principal must have been capable of authorizing the act both at the time of the act and at the time it was ratified. d. The principal must have full knowledge of all material facts.

b

A general agent is authorized by the principal to do all acts that can be delegated lawfully to a representative

f

A third person who deals with a person claiming to be an agent has the right to rely on the statements made by the agent concerning the extent of the agent's authority.

f

A universal agent is authorized by the principal to transact all affairs in connection with a particular type of business or trade or to transact all business at a certain place.

f

For a principal to ratify the actions of an agent, all that is necessary is that the principal express the intention to ratify.

f

A party working for and under the control of another and authorized to enter into contracts for that other person or entity is called an: ______. a. employee. b. agent. c. independent contractor. d. attorney.

b

A third person who deals with a person claiming to be an agent: ______. a. can rely on the statements made by the agent regarding the extent of the authority. b. cannot ignore any knowledge regarding a limitation of the agent's authority. c. is not required to take notice of any acts clearly adverse to the interest of the principal. d. is bound by the agent's secret limitations, regardless of the third person's knowledge.

b

An agent appointed by a power of attorney is referred to as an: ______. a. implied attorney. b. attorney in fact. c. implied agent. d. attorney at law.

b

An agent is under a duty to obey: ______. a. all instruction given by the third party. b. all lawful instructions given by the principal. c. all instructions given by the principal. d. agency with an interest in the subject matter

b

A durable power of attorney may be terminated by: ______. a. revocation by a competent principal. b. the death of the principal.c. revocation by a competent principal or by the death of the principal.d. none of these, since a "durable" power of attorney is designed by law to be irrevocable under all circumstances.

c

The term apparent authority is used when there is: ______. a. no interaction between the principal and third persons. b. actual authority. c. only the appearance of authority and that appearance of authority was created by the principal. d. only the appearance of authority and that appearance of authority was created by the agent.

c

A(n) _______ gives an agent an interest in the property with which she is dealing. a. special agency b. agency with an interest in the authority c. general agency d. agency with an interest in the subject matter

d

It is the duty of an agent to act with the care that: ______. a. the principal would exercise under the circumstances. b. a reasonable principal would exercise under the circumstances. c. a reasonable juror would exercise under the circumstances. d. a reasonable person would exercise under the circumstances.

d

A contractor's work can be so controlled by the hiring party that the contractor is regarded as an employee of the hiring person.

t

A person has apparent authority as an agent when the principal's words or conduct leads a third person to reasonably believe that the person has that authority and the third person relies on that appearance.

t

A written authorization of agency is called a power of attorney.

t

An agency coupled with an interest is not terminated by the death of the principal.

t

An agent has incidental authority to perform any act reasonably necessary to execute the express authority given to the agent.

t

For ratification to occur, the agent must have purported to act on behalf of, or as agent for, the identified principal.

t

If a principal terminates an agency without giving notice of the termination to third persons, the agent may retain the power to make contracts that will bind the principal and third persons.

t

In performing agency duties, the agent must exercise the care that a reasonably prudent person would exercise under the same circumstances.

t

The Uniform Durable Power of Attorney Act (UDPAA) changes the general rule that insanity of a principal terminates an agent's authority to act for the principal.

t

The intention to ratify an unauthorized act may be expressed by words or conduct.

t

The term apparent authority is used when an appearance of authority has been created by a principal, but actual authority does not exist.

t

A __________ agent is authorized by the principal to handle a definite business transaction or to do a specific act. a. special b. general c. secret d. universal

a

If a store owner places Joe as manager and gives him a special nametag, customers may assume that Joe has ______ for the owner in that respect. a. apparent authority b. ratification powers c. special agency d. universal agency

a

Initially, ratification is a question of: ______. a. intention. b. consideration. c. form. d. implication.

a

A(n) ______ is bound by a contract to produce a certain result, with performance of the work controlled by the ______. a. agent, principal. b. employee, employer. c. independent contractor, employer d. independent contractor, contractor

d

John's son was not his agent but contracted to purchase a computer in John's name. When John learned of this, John sternly rebuked his son but continued to use the computer for several weeks. After losing interest in the computer, John offered to return it, saying that the purchase was unauthorized. John: a. is not liable on the purchase. b. expressly ratified the purchase. c. is liable because all children have the apparent authority to contract for their parents. d. ratified the purchase by John's conduct.

d

The principal has a duty to perform all of the following except: ______. a. a duty to perform the contract according to its terms. b. a duty to compensate the agent for services. c. a duty to indemnify the agent for loss in some circumstances. d. a duty of loyalty to the agent.

d

Placing property in the possession of another gives that person apparent authority to sell the property.

f

When a principal dies, the agency is not terminated until the agent is notified of the principal's death

f