BLAW 371 - Ch. 14
E
An agency may be established by: (A) operation of the law (B) means of the doctrine of estoppel (C) ratification (D) written agreement (E) any of the other choices
A
Compared to the US, the EU has: A) very strict data privacy rules B) not very strict data privacy rules C) no data privacy rules D) data privacy rules that apply only to employers, but not employees E) none
C
Many states require agencies for ____ to be established in writing. (A) sale of boats (B) sale of businesses (C) sale of land (D) sale of livestock (E) sale of books
B
The duty of ____ requires an agent to place the principal's interests before the agent's personal interests or those of any third party: (A) accounting (B) loyalty (C) performance (D) reasonable care (E) none of the other choices; there is no such duty
D
When a principal creates an impression of authority in an agent that leads a third party to conclude that the agent has authority to act for the principal, the agent is said to have: (A) implied authority (B) express authority (C) actual authority (D) apparent authority (E) none of the other choices
C
A senior manager at Don Reid Ford is an example of: A) agent B) employee C) employee with agency powers D) independent contractor E) a & d
A
A(n) ____ relationship is one in which an agent acts on behalf of the principal, with a degree of personal discretion A) principle-agent B) master-servant C) employer-employee D) employer-independent contractor E) none
D
An at-will employee: A) may not be dismissed for any reason B) may only be dismissed for committing a major crime C) may only be dismissed for reasons specified in the employment contract D) may be dismissed at any time without reason or cauase E) none of he above
E
An auctioneer is an example of a(n): A) agent B) employee C) employee with agency powers D) independent contractor E) a & d
B
Many companies give employees handbooks that discuss company policy and procedures. Legally, handbooks: A) have no legal status B) can create binding contractual employment obligations C) legal documents, that are under the NLRA, that are a part of employment contracts D) in common law, have always been a part of the employment contract E) none of the above
C
Persons appointed by an agent, who are delegated some authority are known as: (A) minor agents (B) pseudo-agents (C) subagents (D) delegated agents (E) none of the other choices
B
Ratification of an agreement that is required by law to be in writing: (A) need not be in writing (B) must be in writing (C) must be witnessed by a court official (D) must be in writing unless both parties agree that it need not be (E) must be verbal
A
When liability is imposed on the principal for the unauthorized torts of an agent, it is called: A) vicarious liability B) indemnification C) agent respondeat D) third-party rights, duties and liabilities E) none
C
Which of the following is not a category of agents covered in the text: (A) gratuitous agent (B) special agent (C) foreign agent (D) general agent (E) universal agent
C
A company that buys patents for the purpose of threatening others with lawsuits for patent infringement is known as a: A) patent thief B) patent controller C) patent troll D) patent dragon E) patent hoarder
E
A disclosed principal is a principal whose identity is: (A) known to the agent (B) unknown to the agent (C) unknown to third parties to contracts entered into with the agent (D) known to partners (E) known to third parties to contracts entered into with the agent
A
A key element of an agency relationship is: (A) an agent's ability to transact business for the principal (B) an relationship established for the sale of land be an oral contract (C) the principal acts for the benefit of the agent (D) a commitment for at least one year, to show intent to bind the parties to the agency relationship (E) none of the other choices
B
A legal document that establishes some agency relationships is known as: (A) articles of incorporation (B) power of attorney (C) partnership agreement (D) decree of guardianship (E) motion to represent
D
A manager who runs all aspects of a hotel is most likely what kind of agent: (A) universal agent (B) special agent (C) gratuitous agent (D) general agent (E) none of the other choices
D
A person authorized to execute all regular transactions connected with a business is called a: (A) universal agent (B) special agent (C) gratuitous agent (D) general agent (E) none of the other choices
B
A person who volunteers with no expectation of being paid for her services is a(n): (A) exceptional agent (B) gratuitous agent (C) agent who has an agency coupled with an interest (D) one-time agent (E) none of the other choices
B
A principal's ratification is: (A) an agent's acceptance of responsibility from the principal (B) the principal's acceptance of responsibility for an agent's activities (C) the principal's rejection of responsibility for an agent's activities (D) the principal's acceptance of property from an agent (E) an agent's acceptance of property from the principal
D
A(n) ____ is a principal's clear signal to be bound to the otherwise unauthorized agreement. (A) implied ratification (B) real ratification (C) delayed ratification (D) express ratification (E) explicit ratification
B
Actual authority gives the agent: (A) no real authority (B) the power and right to change the principal's legal status (C) the power and right to make all decisions for the principal, e en on matters where the agent does not have authority (D) a 50% ownership share in all the principal's assets (E) none of the other choices are correct
B
Agency by estoppel means: (A) conduct on the part of the agent that implies an agency relationship must be stopped as soon as the principal implies disagreement (B) actions by the principal lead a person to believe that the presumed agent has authority to act on the principal's behalf (C) the agent creates an appearance of authority in the principal which leads a third part to reasonably conclude that the agent has the authority to perform certain acts (D) conduct b the agent through word or actions is not sufficient to bind the principal to contracts the agent creates (E) none of the other choices
D
An agency can be ended upon reasonable notice by: (A) onl the agent (B) onl the principal (C) onl the part that initiated the agency (D) either the agent or the principal (E) none of the other choices are correct
B
An agency coupled with an interest is created: (A) when the principal provides the agent with a general power-of-attorney (B) by an agent who has paid for the right to exercise authority with regard to a business (C) when a person volunteers her services out of interest in the business (D) when the agent is authorized to delegate an authority to an interested party (E) none of the other choices
C
An agency ends without an action by the principal or the agent through: (A) termination through action (B) termination through inaction (C) termination by operation of law (D) termination by decision of law (E) termination by redefinition
B
An agency is created when an agent agrees to act for, or in place of, the: (A) third part (B) principal (C) shareholder (D) attorney (E) representative
C
An agency relationship normally involves the use of an agent to represent a principal in dealing with which of the following: (A) shareholders (B) representatives (C) third parties (D) attorneys (E) ratifications
D
An agency through operation of law is established: (A) by a written contractual agreement of the parties (B) by ratification of the agent's activities by the principal (C) by the application of the doctrine of estoppel (D) when an emergency exists and the "agent's" actions are in the public interest (E) none of the other choices
C
An agent has a ____ the funds and property of his principal that have been entrusted to him or have come into his possession. (A) duty to compensate for (B) duty to reimburse (C) duty to account for (D) duty to document (E) duty to increase
B
An agent must perform instructions provided by the principal. If the agent fails to do so, he violates: (A) the duty of cooperation (B) the duty of obedience and performance (C) the duty to reimburse (D) the duty of lo alt (E) the duty of accounting
D
An agent with authority to represent the principal only for a specific transaction, usually for a limited time is a(n): (A) universal agent (B) gratuitous agent (C) agent who has an agency coupled with an interest (D) special agent (E) none of the other choices
C
An agent's ____ is the power to change the principal's legal obligations. (A) legal right (B) official power (C) authority (D) responsibility (E) authorization
A
An alleged principal becomes a real principal by: (A) ratifying the agreement (B) refusing to ratify the agreement (C) suing the alleged agent (D) signing the power of attorney (E) signing a contract
C
An employment of an agent for the purpose of representation in establishing relations between a principal and third parties is known as a(n): (A) third party relationship (B) principal relationship (C) agency relationship (D) real relationship (E) representative relationship
A
An express contract in employment exists when: A) the employer and employee agree on employment for a certain time B) job security is not provided C) the employer and employee agree on a certain rate of compensation D) employer agrees not to fire employee without 2 weeks notice E) none of the above
C
An undisclosed principal is: (A) known to the agent (B) unknown to the agent (C) unknown to third parties to contracts entered into with the agent (D) known to partners (E) known to third parties to contracts entered into with the agent
B
Because of the duty to inform, an agent must: (A) be able to show where money or property comes from and goes to (B) keep her principal informed of all facts relevant to the agency (C) engage in acts that could lead to personal liability (D) perform responsibilities with the degree of care that a reasonable person would exercise under the circumstances (E) record all transactions related to the agency
C
Employers may be liable for torts of employees that can be attributed to negligent hiring or supervision under the rule of law known as: A) contractor liability B) tortious liability C) respondeat superior D) principal duty E) none of the above
C
Express authority consists of the agent's: (A) inability to conduct business for the principal (B) ability to mingle his funds with those of the principal (C) written or oral instructions from principal to agent (D) ability to hold power of attorney for the principal (E) ability to withhold services in the event of non payment by the principal
D
Fiduciary duties include: (A) accounting, notification, and performance (B) loyalty and reasonable care (C) ratification and indemnification (D) accounting, notification, performance, loyalty and reasonable care (E) accounting, notification, performance, lo alt , reasonable care, ratification and indemnification
C
For an agency to be valid in most states: (A) there must be written evidence of its creation (B) the agency must be registered (C) the agent must be subject to the principal's control (D) there must be written evidence of its creation and the agent must be subject to the principal's control (E) the agent must be sub ect to the principal's control and the agents must be registered
C
For an agent to be a fiduciary means to: (A) indemnify the principal for an losses incurred in a lawsuit, not including attorneys fees (B) have the right and obligation to sell goods belonging to a principal (C) occupy a position of trust, honest , and confidence with respect to the principal (D) indemnify the principal for an losses incurred in a lawsuit, not including attorneys fees and have the right and obligation to sell goods belonging to a principal (E) indemnify the principal for an losses incurred in a lawsuit, not including attorneys fees and have the right and obligation to sell goods belonging to a principal and occupy a position of trust, honest , and confidence with respect to the principal
B
If an agency agreement did not specify how much an agent would be paid for his work, the principal has a ____ the "customary " amount. (A) duty to cooperate (B) duty to compensate (C) duty of obedience to (D) duty to indemnify (E) none of the other choices would apply
A
Implied authority consists of: (A) the power to do whatever is reasonable and customary to carry out the agency purpose (B) the power to mingle the funds of the agent and principal (C) limits on an agent's actions, so that the agent may only do what the principal orders, in writing or orally (D) the power of the agent to withhold services if the principal fails to pay her (E) the power of an agent to do whatever is authorized b the Uniform genc ct
E
Implied ratification of an agency occurs when the principal: (A) fails to object to the unauthorized activities of an agent (B) by action shows a clear intent to be bound by unauthorized acts of the agent (C) accepts the benefits of an unauthorized agreement with a third party (D) A & C (E) all of the above
C
Implied ratification usually occurs when: (A) the principal refuses to accept the benefits of the agreement (B) the principal accepts the benefits of the agreement (C) the agent accepts the benefits of the agreement (D) a court processes the power of attorney (E) none of the other choices are correct
A
In an agency, the principal: (A) provides the agent with authority (B) provides the agent with legal support (C) does not provide the agent with authority (D) is given authority by the agent (E) none of the other choices are correct
A
Many states require agencies that will exist for ____ to be established in writing. (A) more than one year (B) less than one year (C) less than five years (D) more than six months (E) none of the other choices are correct
B
Someone designated to do all acts that can be legally granted to an agent is called a(n): (A) special agent (B) universal agent (C) general agent (D) subagent (E) gratuitous agent
C
Sub Agents work for the agent and owe duties to: (A) only the agent (B) only the principal (C) both the agent and the principal (D) no one (E) none of the other choices are correct
D
The _____ provides some immunity for a company against content posted or submitted online by third parties, if a company is merely acting as a publisher A) Communications Privacy Act B) Communications Legitimacy Act C) Communications Reality Act D) Communications Decency Act E) Communications Honesty Act
D
The agent's ability to transact business on behalf of and for the principal depends on whether the agent possesses: (A) actual authority (B) apparent authority (C) quasi-authority (D) actual or apparent authority (E) actual or apparent authority or quasi-authority
A
The authority given by the principal to an agent, conferring on the agent the power and right to change the principal's legal status is referred to as: (A) actual authority (B) authorit in rem (C) authorit at law (D) general authority (E) special authority
B
The duties of a principal to an agent do NOT include: (A) cooperating with the agent (B) allowing the agent "significant discretion" (C) reimbursing the agent for an reasonable expense (D) indemnifying the agent for legal liability incurred in completing the purpose of the agency (E) all of the other choices are required
D
The duty of an agent to keep his principal informed of all facts relevant to the agency's purpose is called the duty : (A) to account (B) of performance (C) of reasonable care (D) to inform (E) of lo alt
B
The duty of an agent to perform responsibilities with the degree of care that a reasonable person would exercise under the circumstances is: (A) the duty to cooperate (B) the duty of reasonable care (C) the duty of realistic care (D) the duty of obedience (E) the duty of reasonable obligation
B
The law of agency places its primary emphasis on the duties: (A) the principal owes to the agent (B) the agent owes to the principal (C) the agent owes to the subagent (D) the universal agent owes to the general agent (E) all of the other choices have equal standing
C
The legal document that authorizes a person or a company to act as an agent for a principal is called: (A) power of law (B) power of agency (C) power of attorney (D) power of plaintiff (E) power of principal
B
The principal has a ____ with her agent by performing responsibilities defined in the agreement forming the agency. (A) duty to inform (B) duty to cooperate (C) duty to compensate (D) duty to reimburse (E) duty to indemnify
D
The principal is under a ____ for damages to cover the agent's losses (such as from litigation) suffered while undertaking authorized transactions for the principal. (A) duty to cooperate (B) duty of loyalty (C) duty of obedience (D) duty to indemnify (E) none of the other choices would apply in such case
B
The principal's duty to indemnify the agent means the principal must: (A) pay reasonable wages to the agent (B) insure the agent against losses suffered during the course of authorized transactions (C) pay for expenses incurred b agent that result from negligent behavior (D) refrain from pro riding the agent with inferior goods (E) pay reasonable wages to the agent and refrain from pro riding the agent with inferior goods
E
The scope of an agent's authority is determined from the: (A) oral or written expressions of the principal (B) principal's conduct (C) customs in the business for which the agent is employed (D) oral or written expressions of the principal or the principal's conduct (E) oral or written expressions of the principal or the principal's conduct or the customs in the business for which the agent is employed
B
Through an agency relationship, the agent becomes a representative of the: (A) third party (B) principal (C) customer or supplier of the principal (D) shareholder (E) all of the other choices
B
To carry out their duties, universal agents are typically granted: (A) powers to act by estoppel (B) a general power of attorney (C) authority to cancel contracts anticipatory (D) all of the other specific choices (E) none of the other choices
C
To establish an agency relationship: (A) the procedure in state statutes must be followed (B) there must be a written contract between the parties (C) the principal and agent must agree to form an agency (D) all of the other specific choices (E) none of the other choices
B
When an agency is terminated: (A) the agent's authority to act for the principal does not end (B) the agent's authority to act for the principal ends (C) the agent's authority to act for the principal is reduced to er limited conditions (D) the agent ma ne er work with the principal again (E) the agent may not work for someone who is in competition with the principal
A
When there is an undisclosed principal, the agent is: (A) liable to the third party for the principal's nonperformance of the contract (B) not liable to the third part for the principal's nonperformance of the contract (C) liable to the undisclosed principal for the third part 's nonperformance of the contract (D) liable for onl half of the damages incurred b the principal's nonperformance of the contract (E) none of the other choices are correct
D
Which of the following determines the scope of authority given to an agent: (A) statements of the principal (B) the principal's conduct (C) the trade customs in business (D) all of the other specific choices are correct (E) none of the other specific choices are correct
A
Which of the following is an advantage to having the ability to use agents: (A) access to the expertise of agents (B) reduced tax burden (C) exemption from income tax (D) creation of man small companies within one larger company (E) easier organization of a company
A
Which of the following is not a duty owed b the agent to the principal: (A) compensation (B) reasonable care (C) accounting (D) notification (E) all of the other choices are required
D
Which of the following is part of the principal's duty to cooperate: (A) providing a safe working environment (B) warning the agent of an unreasonable risk associated with the agency (C) not furnishing goods of inferior quality to the agent (D) all of the other specific choices are correct (E) none of the other choices are correct
C
Which of the following would NOT be a factor in determining a ratification? (A) the principal can ratify only agreements about which he has knowledge of the material facts (B) the agent must have purported to act for of the principal and not on the agent's own behalf (C) the third party wishes for the principal to be a part to a contract (D) if the original agreement between the agent and third part was required by law to be in writing, ratification must also be in writing (E) all of the other choices
D
Which of the following would lead to termination by operation of law? A) principal dies B) agent dies C) subject matter of the agency is destroyed D) all of the above E) none of the above
D
Which of the four general factors which bear upon whether a master-servant relationships exists is determinative: A) selection and engagement of the servant B) payment of compensation C) power of dismissal D) power of control E) none
D
You hire an agent to sell your house for you. Typically, such an agent receives a fee only if the actual sell the house. This person is most likely : (A) a universal agent (B) a gratuitous agent (C) an agent who has an agency coupled with an interest (D) a special agent (E) none of the other choices
C
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 must accept the deal because your roommate had implied authority (B) you must accept the deal because people living together have power of attorney (C) you can accept the deal by express or implied ratification (D) you can accept the deal by express ratification only, not implied ratification (E) the deal cannot be valid because there was no consent
