chapter 19 quiz hypo

Selena signs a power of attorney appointing Kim, for the sole purpose of signing paperwork on her behalf that relates to the sale of her house. The power of attorney will automatically terminate based on:

An agency agreement automatically ends when the objective of the agreement is accomplished.

Yakov hires Melina to be his Vice President for Marketing. The job description is pretty broad but does not include the ability to hire or terminate lower level employees in the Marketing division. If Melina has this power, it is based on her:

An agent may have implied authority based on custom or inference from the agent's job title or position.

Dean is not Paul's agent, but Paul tells Charlie that Dean has always been a good friend and can "handle any of my business affairs." If Dean were to later enter into a contract with Charlie on Paul's behalf, Dean would be acting under an:

Apparent authority arises when the principal causes a third party to believe an individual has authority to act.

Jason instructs his agent Miguel to obtain a piece of artwork from Martina by threatening to beat her if she refuses to sell the artwork. Miguel follows Jason's instruction and beats Martina when she refuses to sell the item. In this situation:

Because Jason authorized the tortious act and Miguel carried it out, both men are liable for Martina's injuries.

Sam goes out shopping and, using his wife Juanita's credit card, buys $221 worth of groceries. Under agency law, Juanita will probably be deemed:

Because Sam and Juanita are married and because Sam purchased necessities, an agency relationship was created by operation of law.

Whitney works at home making unique children's clothes. Liam buys Whitney's clothes to sell in his store. With respect to Whitney's legal relationship to Liam, she is probably:

Because she works at home and Liam has no control over her work, Whitney is an independent contractor, not an employee.

a. an agent

Jewelry and coin company hires drew to work on california produce's shipping dock, checking outgoing loads and dispatching the company's drivers. with respect to california produce drew is most likely a. an agent b. an independent contractor c. a principal d. a work for hire

Gina buys a piece of pottery from Woodward for her principal, Kelvin. If Woodward knows that Gina is buying the pottery on behalf of someone other than herself but does not know the identity of that person, Kelvin is:

Kelvin is a partially disclosed principal because, although his identity is unknown to Woodward, Woodward knows Gina is acting on behalf of someone else in this transaction.

Sarah has to move from the East Coast to the West Coast for her job. Elmo agrees to act as Sarah's agent to sell her New York condo. As her agent, Elmo owes Sarah all of the following duties exce

Principals, not agents, have the duty to compensate.

Lizzie works for Gary in his dance supply shop and is authorized to sell inventory but not to order new merchandise. Rena, a sales representative for a new line of dancewear, comes into the store and Lizzie places an order with her. When Gary learns the details of Lizzie's purchase, he wants to ratify the contract. The one condition that is NOT necessary for ratification is:

Rena must withdraw from the transaction before Gary ratifies it

Kris represents Josh in the sale of his house as his real estate agent. Kris is entitled to

The duty of compensation requires principals to pay the agent for the work performed.

Dara gives her agent, Marla, money to purchase a new commercial oven. Marla takes the money and deposits it into her personal checking account. Marla then accidentally spends some of Dara's money. Marla has violated her duty of:

Under the duty of accounting, the agent is required to keep the principal's funds in a separate account and not to intermingle those funds.

true

a principal or employer normally is not liable for an agent's crime even if the crime was committed within the scope of authority or employment

false

agency relationships do not permeate the business world

true

an agent has the implied authority to do what is reasonably necessary to accomplish the objectives of the agency

Napoleon owns Napoleon's Construction and agrees to renovate Mrs. Cernan's bathroom. She will provide him with the plans, and then he will do the work in the manner that he determines is most cost effective and appropriate. Napoleon is likely to be classified as:

an independent contractor

a. after the condos have been sold

bayou development corporation hires coastal brokerage associates to sell the condominiums in a building at bayou development's resort the agency will terminate a. after the condos have been sold b. if the prices of the condos must be reduced to sell them c. once bayou development obtains insurance to cover the property d. when bayou development pays coastal brokerage its first commission

a. the duty of performance

bernard is an expert on exotic flowers. custom floral arrangements inc hires bernard to order exotic flowers for its arrangements. bernard does not examine the quality of the flowers he orders on behalf of custom floral. bernard has breached a. the duty of performance b. the duty of loyalty c. the duty of notification d. no duty

Charlie tells Jamal that Marisol has agreed to allow him to sell her racing bicycle. Marisol is present at the time, hears the conversation and says nothing. Jamal agrees with Charlie to buy Marisol's bike. Marisol then refuses to sell the bicycle. Marisol claims that she is not bound by the agreement formed by Charlie and Jamal, because Charlie is not her agent. Marisol likely is

bound by the contract under a theory of agency by estoppel

a. crashed into a car at the airport while off duty

gary drives a truck as an employee for heavy hauling inc garry would most likely be considered acting outside the scope of her employment if he a. crashed into a car at the airpot while off duty b. hit a pedestrian in a parking lot during a working lunch c. ran over an attendant at a gas station while refueling the truck d. smashed into a store front while intoxicated on duty

c. the duty of loyalty

home enterprises employs Itzak to buy property for a possible residential development. Itzal secretly buys some of the property and sells it to home enterprises at a profit. itzak has breached a. no duty b. the duty of accounting c. the duty of loyalty d. the duty of notification

a. an agency by agreement

ingmar asks jessie to contract with jessie's highschool classmates to babysit ingmar's new baby. Jessie orally agrees to do so this is a. an agency by agreement b. an agency by estoppel c. an agency by ratification d. not an agency relationship

c. a principal

jewelry and coin company hires kelly ann to buy gems and precious metals from various sources on its behalf. in this relationship jewelry and coin is a. an employee b. an independent contractor c. a principal d. an agent

a. an agency by operation of law

lucille is married to marcus. lucille buys food for their children's lunches and charges the cost to marcus' account. this is a. an agency by operation of law b. an agency by estoppel c. an agency by ratification d. not an agency relationship

Robert attempts to avoid paying Andrew a commission on the sale of his house to a buyer procured by Andrew. He does so by waiting until after the listing agreement has expired. Andrew finds out about this after Robert sells his house. Andrew can

sue Robert for breach of contrac

a. an agent

sybil agrees with tyrone and other professional athletes to sign contracts with promoters and others on the athletes behalf sybil is a. an agent b. an employee c. an employer d. a prinicpal

true

the agent has the right to be compensated, to be reimbursed and indemnified, and to have a safe working environment

b. express authority

trucking dispatch company and ucello put their agency agreement into a written document that describes the rights and duties of both parties. ucello as the agent has a. apparent authority b. express authority c. implied authority d. none of the choices

true

under the doctrine of respondeat superior a principal may be liable for any harm that his or her agent causes to a third party