Chapter 14

1. Subagents work for the agent and owe duties to:

(A) both the agent and the principal

1. An agency coupled with an interest is created:

(A) by an agent who has paid for the right to exercise authority with regard to a business

1. Implied ratification of an agency occurs when the principal:

(A) fails to object to the unauthorized activities of an agent and accepts the benefits of an unauthorized agreement with a third party

1. An agency may be established by:

(A) operation of law or by oral agreement of the parties or by written agreement of the parties

1. Clark, a movie producer, was allowed to work at a movie production company's offices (ITC) out of courtesy. His business card listed the ITC address and his phone calls were handled by ITC staff. In the office, he made a deal to produce a movie for another company. When problems developed and the company, presuming Clark worked for ITC, sued ITC. The court would be likely to hold that ITC:

(A) ratified Clark's actions and so became liable for his actions

1. For an agency to be valid in most states:

(A) the agent must be subject to the principal's control

1. A principal's ratification is:

(A) the principal's acceptance of responsibility for an agent's activities

1. In which of the following situations can an agency relationship be created?

(A) X hires Y to buy some property on X's behalf and X makes an oral agreement that Y will work for X's company as the company's general manager and X and Y enter into a written agreement that Y will work for X as the general manager of X's company

Which of the following is an advantage to having the ability to use agents:

1. access to the expertise of agents

1. An agent's is the power to change the principal's legal obligations.

Authority

1. You post a notice at school that you will sell your laptop computer for $600. A buyer comes by your room to look at it while you are gone and your roommate sells it for $500, thinking you would be happy with that price, which you did not authorize.

) you can accept the deal by express or implied ratification

1. An employment of an agent for the purpose of representation in establishing relations between a principal and third parties is known as a(n):

Agency relationship

1. Which of the following is not a category of agents covered in the text:

Foreign agents

1. A manager who runs all aspects of a hotel is most likely what kind of agent:

General

1. A person authorized to execute all regular transactions connected with a business is called a:

General agent

1. A legal document that establishes some agency relationships is known as:

Power of attorney

1. Many states require agencies for to be established in writing.

Sale of land

1. To carry out their duties, universal agents are typically granted:

a general power of attorney

1. A person who volunteers with no expectation of being paid for her services is a(n):

gratuitous agent

1. Many states require agencies that will exist for to be established in writing.

more than one year

1. In an agency the principal:

provides the agent with authority

1. Persons appointed by an agent delegated some authority are known as:

subagents

1. To ratify an agreement a principal must know:

the important facts of the agreement

1. An agency relationship normally involves the use of an agent to represent a principal in dealing with which of the following:

third parties

1. Someone designated to do all acts that can be legally granted to an agent is called a(n):

universal