Chapter 19

What is the term for when circumstances make such an agency necessary? Multiple choice question. Agency by consideration Agency by ratification Agency by agreement Agency by necessity

Agency by necessity

What is the term for when the court finds the need to create an agency? Multiple choice question. Agency by operation of law Agency by ratification Agency by necessity Agency by common law

Agency by operation of law

What is the term for when a principal approves an unauthorized act performed by an agent? Multiple choice question. Agency by necessity Agency by ratification Agency by consideration Agency by agreement

Agency by ratification

What is the term for a person who represents another? Multiple choice question. Incorporator Principal Agent Guarantor

Agent

________ with the legal right to perform an act may delegate that performance to another by appointing an agent. Multiple choice question. Any competent party Any incompetent party Only employers Only individuals

Any competent party

________ with the legal right to perform an act may delegate that performance to another by appointing an agent. Multiple choice question. Only individuals Any competent party Only employers Any incompetent party

Any competent party

What is the term for the authority a third party reasonably assumes an agent possesses, despite the fact that the agent does not possess such authority? Multiple choice question. Corporate authority Express authority Implied authority Apparent authority

Apparent authority

What is the term for the authority a third party reasonably assumes an agent possesses, despite the fact that the agent does not possess such authority? Multiple choice question. Implied authority Apparent authority Corporate authority Express authority

Apparent authority

What is the term for the specifically stated authority actually given by the principal? Multiple choice question. Corporate authority Express authority Implied authority Apparent authority

Express authority

Corporations do not have the legal right to appoint agents. True false question.TrueFalse

False Reason: Any competent party, including a person or a corporation, has the legal right to delegate to an agent.

In an employer-employee relationship, the contact between the consumer and business generally gives the employee rights similar to an agent. True false question.TrueFalse

False Reason: In an employer-employee relationship, the employee does not get rights similar to an agent.

What is the term for a person who is authorized to assume complete charge of his or her principal's business? Multiple choice question. Special agent General agent Liability agent Attorney in fact

General agent

What is the term for an agent who acts on behalf of a principal without being paid? Multiple choice question. Undisclosed agent Gratuitous agent Compensatory agent Fiduciary agent

Gratuitous agent They are held to a lower level of liability than paid agents.

The principal cannot terminate which type of agency contract? Multiple choice question. At-will Irrevocable Corporate Fiduciary

Irrevocable

The principal cannot terminate which type of agency contract? Multiple choice question. Irrevocable Fiduciary Corporate At-will

Irrevocable

What is the term for the legal document that formally creates an agency? Multiple choice question. Writ of attorney Motion of attorney Power of attorney Injunction of attorney

Power of attorney

What is the term for a person delegated to act only in a particular transaction? Multiple choice question. Attorney in fact Liability agent Special agent General agent

Special agent

If the agent acted within their scope of authority, who is responsible to a third party for agreements made by the agent? Multiple choice question. The principal The agent The state The third party

The principal

Select all that apply If an agent commits torts or crimes at the direction of the principal, who could be held liable for the unlawful acts of the agent? Multiple select question. A third party The principal The agent The court

The principal The agent

If the agent makes a fraudulent statement in a contract within their scope of authority, the third party may cancel or affirm the contract and recover compensation. True false question.TrueFalse

True Reason: This is true. If the agent makes a fraudulent statement, the third party can cancel or affirm the contract and recover compensation.

A principal cannot accept the benefits of an agent's transaction and refuse to accept the obligations that are a part of it. True false question.TrueFalse

True Reason: This is true. The ratification must apply to the entire act (benefits and obligations).

A court will create an agency by operation of law to achieve _______________. Multiple choice question. greater profits shareholder satisfaction a desired social policy ratification of an agent's act

a desired social policy

Gratuitous agents are held to _______ level of liability than paid agents. Multiple choice question. the same a higher a lower

a lower

An agency that can be revoked by the principal for a specific reason or no reason is known as a(n): Multiple Choiceirrevocable agencyagency at willagency at sufferancesilent agency

agency at will

What type of agency is created when circumstances make such an agency necessary? Multiple Choiceagency by operation of lawagency by necessityagency by agreementagency by conclusion

agency by necessity

What type of agency is created when a court finds the need for an agency to achieve a desired social policy? Multiple Choiceagency by necessityagency by operation of lawagency by agreementagency by conclusion

agency by operation of law

A person who represents another is known as a(n): Multiple Choiceadministratorexecutorassistantagent

agent

A general agent is entrusted with authority to act for the principal in ___________________. Multiple choice question. a particular transaction only real estate transactions limited financial affairs all business-related matters

all business-related matters

The authority that a third party may reasonably assume an agent possesses, despite the fact that the agent does not actually possess the authority is known as: Multiple Choiceactual authorityimplied authorityapparent authorityobvious authority

apparent authority

Select all that apply The principal is not liable for contracts an agent makes with a third party if the agreement was ______________. Multiple select question. expressly or implicitly authorized by the agent expressly or implicitly authorized by the principal apparently or obviously outside the scope of the agent's authority not authorized by the principal

apparently or obviously outside the scope of the agent's authority not authorized by the principal

A special agent is under definite instructions with specific limits on their scope of ___________. Multiple choice question. remuneration authority compensation liability

authority

In dealing with third parties, an agent is subject to the ______________ of the person they represent. Multiple choice question. custody liability control autonomy

control

The main difference between the principal-agent relationship and the employer-employee relationship is the employer's power to: Multiple Choice determine the pay of the non-agent employee terminate the non-agent employee control the activities of the non-agent employeecreate the benefits package of the non-agent employee

control the activities of the non-agent employee

An agent may perform only those acts that have been authorized by the principal or a(n) _______. Multiple choice question. court attorney in fact administrative agency attorney-at-law

court

When an agent signs a contract using the principal's name, they are acting on behalf of a(n) ________ principal. Multiple choice question. undisclosed gratuitous disclosed partially disclosed

disclosed

When the agent informs the third party that they are acting on behalf of a specific individual, they are making the third party aware of the identity of the _________ principal. Multiple choice question. disclosed third-party gratuitous undisclosed

disclosed

When an agent informs a third party that he or she is acting on behalf of a principal, the identified principal is known as a(n): Multiple Choicepartially disclosed principalundisclosed principaldisclosed principalunanimous principal

disclosed principal

What type of authority allows the agent to perform the duties that are specifically stated in the contract of agency? Multiple Choicelimited authoritycomplete authorityexpress authoritypartial authority

express authority

An agency by agreement results when a principal approves an unauthorized act performed by an agent. Group startsTrue or False True, unselectedFalse, unselected

false

Common duties of a principal include the duty of obedience and the obligation to keep accurate records of transactions conducted on behalf of the agency relationship. Group startsTrue or False True, unselected

false

TF Qu. 19-19 It is not necessary for... It is not necessary for the agent to obey all of the principal's reasonable and lawful orders and instructions within the scope of the agency contract. Group startsTrue or False True, unselectedFalse

false

A person authorized to assume complete charge of his or her principal's business or who is entrusted with general authority to act for the principal in all business related matters is called a: Multiple Choicegeneral agent.hired agent.special agent.super agent.

general agent.

A __________ agent is one who acts on behalf of the principal but does not get paid. Multiple Choicebenevolentspecialgratuitousresponsible

gratuitous

In an agency relationship, the agent, the principal, and the third party ______ one another. Multiple choice question. owe cash to cannot sue have duties to must be related to

have duties to

A power of attorney is a(n) __________, which appoints one person as agent and confers authority to perform certain acts on behalf of the principal. Multiple choice question. implied agreement instrument in writing nonbinding agreement oral agreement

instrument in writing

In an irrevocable agency contract, the agent has a(n) _________ in the subject matter of the agency, in addition to the remuneration received for services. Multiple choice question. interest consideration termination revocation

interest

A(n) __________ agency is an agency that may not be revoked by the principal if the agent has an interest in the subject matter of the agency in addition to the remuneration that the agent receives for his or her services. Multiple Choicecompletecontractrevocableirrevocable

irrevocable

To serve as an agent, an individual must be _________. Multiple choice question. free of all personal debt legally competent an attorney an accountant

legally competent

The main difference between principal-agent and employer-employee relationships is an employer's power to control the activities of a(n) ___________. Multiple choice question. independent contractor non-agent employee government contractor agent employee

non-agent employee

In the disclosed principal situation, the agent is: Multiple Choicepersonally liable to the third partynot personally liable to the third partynot allowed to work on behalf of the principalallowed to commit illegal acts

not personally liable to the third party

For an agency by ratification, a principal cannot accept the benefits of a transaction and refuse to accept the: Multiple Choiceobligations.parallel benefits.apparent benefits.representation.

obligations.

The legal document formally creating an agency is called a: Multiple Choicegeneral contract.power of attorney.special delegation.collateral power.

power of attorney.

In situations of apparent authority, the ________ has not implied that the agent has such authority. Multiple choice question. agent attorney in fact guardian ad litem principal

principal

An agent may not perform any act that would betray the ________ trust. Multiple choice question. third party's other agents' agent's principal's

principal's

An agent must obey all the principal's ______ and lawful orders within the scope of the agency contract. Multiple choice question. reasonable unlawful illegal irrational

reasonable

Select all that apply When an agency is created, the parties affected are: Multiple select question. the agent. the state. the third party. the principal.

the agent. the third party. the principal.

In general, an agent may perform only those acts that have been authorized by: Multiple choice question. a third party. a federal agency. the principal. the guardian ad litem.

the principal.

The law in some states recognizes an agency by necessity when one spouse fails to support the other spouse or ___________. Multiple choice question. their adult children the spouse's siblings the spouse's parents their minor children

their minor children

If minors are capable of properly carrying out the duties of an agency relationship: Multiple Choice then they may be considered to represent other persons as agents.they may still not be eligible to enter into a contract with an agent.then may still not be considered to represent other persons as agents.then they are exempted from representing other persons as agents.

then they may be considered to represent other persons as agents.

Anyone who is legally competent _________ may serve as an agent. Multiple choice question. to act for himself or herself to represent parties in a court of law to hold public office and has an advanced degree

to act for himself or herself

A principal is liable for the torts and crimes of the agent if they are committed at the direction of the principal or while the agent is performing authorized duties during the ordinary course of the agency. Group startsTrue or False True, unselectedFalse

true

A principal must pay the agent the compensation agreed to in the contract. Group startsTrue or False True, unselectedFalse, unselected

true

Select all that apply Express authority can be given as __________ instructions. Multiple select question. written ambiguous oral apparent

written oral