BUSN201 - M05 Quiz
A gratuitous agent can be liable to a principal for breach of contract, even in the absence of a contract, but not liable for the negligent performance of the deal.
F
Agency relationships cannot exist outside an employment, so agency law has a narrower reach than employment law.
F
Agency relationships come about by voluntary consent and agreement of the parties—consideration is required, and the agreement must be in writing.
F
An independent contractor is, by definition, an employee.
F
Any person—including individuals, but not partnerships or corporations—may be a debtor under Chapter 7.
F
In an agency relationship, one party called the principal agrees to represent or act for another called the agent.
F
Once a bankruptcy petition is properly filed, creditors can commence or continue most legal actions against the debtor to recover claims.
F
The principal is bound by the agent's unauthorized act, unless the principal negates it.
F
To qualify for a Chapter 7 bankruptcy, a debtor must complete a means test to determine whether the debtor has been living within his or her means.
F
With a joint checking account, the bank can hold any joint-account owner liable for payment of an overdraft even if that owner did not sign the check or benefit from its proceeds.
F
A check may fall under Uniform Commercial Code Article 3 as a negotiable instrument and be subject to UCC Article 4 in the course of collection.
T
Any person can be an agent, regardless of whether he or she has the capacity to contract.
T
Because checks serve as a substitute for cash, they can facilitate financial record keeping.
T
Because the speed of check-processing time is increasing, to avoid overdrafts, an account-holder needs to verify that funds are available to cover a check when it is written.
T
Improper filing of a financing statement can render a security interest unperfected.
T
The destruction of an original check after the creation of a substitute check prevents the check from being paid twice.
T
To avoid liability for negligence, a customer must examine monthly bank statements and canceled checks promptly and with reasonable care, and report any forged signatures to the bank.
T
Under the principles of agency law, any sale of goods by a salesperson in a store to a customer can be binding on the owner of the store.
T
When an agent, acting within the scope of his or her authority, contracts with a third party, a disclosed principal is liable to the third party.
T
United Contractors Inc. holds a lien on Vista Estate's real property. This property can be sold to satisfy the debt if, before the sale, notice is given to
Vista Estate.
Elmore pays Fidelity Bank $1,000 plus a service fee to draw a check on itself made payable to Go Delivery Service. This is
a cashier's check.
Brewery Company's debt to Credit Service is past due. Credit obtains a judgment against Brewery, but the firm refuses to pay. Credit asks the court to order the seizure of Brewery's property. This is a request for
a writ of execution.
Ingmar asks Jess to contract with Kay's Lawn Service to maintain Ingmar's lawn. Jess orally agrees to do so. This is an agency by
agreement.
Motor Parts Sales Inc. hires Nolly to work on its shipping dock, accepting deliveries, and dispatching trucks, and dealing with customers and drivers. With respect to Motor Parts, Nolly is most likely
an agent.
Ray is a delivery driver for Sicilian Pasta Company. Ray does exactly what the company tells him. Ray is
an employee.
Refresh Inc.'s debt to Spring Water Company is past due. Spring brings a legal action against Refresh to collect the debt. Spring asks the court to order Tempo Bank, in which Refresh has an account, to pay a portion of the funds to Spring. This is a request for
an order of garnishment.
Building Company adds a shipping dock to the property of Corporate Complex, but the owner does not pay. Building files a lien on Corporate's property. The property
can be held to guarantee payment of the debt.
Ron borrows funds from Suburban Bank secured by Ron's house. Ron defaults on the debt. The bank's options include
disposing of the collateral in any commercially reasonable manner.
Owen is given value by Payday Sales Company in the form of a commitment to sell goods on credit. In terms of creating an enforceable security interest, this is
one of the requirements.
Bread Company hires Craig to sell the company's products in a certain area. Bread agrees to pay Craig a salary, plus commission, for a trial period. They also agree that he can sell using any methods and during any hours that seem appropriate. The key factor in whether Craig is Bread's employee is
the degree of the employer's control over the details of the work.