Chapter 30 Quiz

An agent works as a salesperson for a principal who owns an automotive parts business. The​ agent's job is to sell the​ principal's automotive parts to auto repair shops and other purchasers. While doing​ so, the agent also works as a salesperson for a competing seller of automotive parts. This is a violation of the duty of loyalty known as​ __________________. A. competing with the principal B. misuse of confidential information C. dual agency D. usurping an opportunity E. ​self-dealing

A

If a real estate agent who is employed to purchase real estate for a principal secretly sells his or her own property to the​ principal, this is a violation of the duty of loyalty known as​ _________________. A. ​self-dealing B. competing with the principal C. usurping an opportunity D. dual agency E. misuse of confidential information

A

The party who employs an independent contractor is called​ a(n) _____. A. principal B. employer C. trustor D. assignee E. agent

A

Under the​ _____ rule, a principal is generally​ _____ for injuries caused by its agents and employees while they are on their way to or from work. A. coming and​ going; not liable B. coming and​ going; liable C. ​worker's compensation; liable D. frolic and​ detour; liable E. tort​ reform; liable

A

Under the​ _____ rule, a principal is generally​ _____ for injuries caused by its agents and employees while they are on their way to or from work. A. coming and​ going; not liable B. tort​ reform; liable C. coming and​ going; liable D. ​worker's compensation; liable E. frolic and​ detour; liable

A

In​ a(n) _____​ agency, a contracting third party knows that the agent is acting for a principal but does not know the identity of the principal. A. common law B. partially disclosed C. undisclosed D. fully disclosed E. statutory

B

Sometimes principals request that agents run errands or conduct other acts on their behalf while the agent or employee is on personal business. In this​ case, the agent is on a​ _____, and most jurisdictions hold​ _____ liable if the agent injures someone while on such a mission. A. unilateral​ mission; both the principal and the agent B. ​dual-purpose mission; both the principal and the agent C. ​dual-purpose mission; the​ principal, but not the​ agent, D. ​dual-purpose mission; the​ agent, but not the​ principal, E. unilateral​ mission; neither the principal nor the agent

B

The duty of​ _____ is a fiduciary duty owed by an agent not to act adversely to the interests of the principal. A. obedience B. loyalty C. reciprocity D. reservation E. indemnification

B

Which of the following is NOT a critical factor in determining independent contractor​ status? A. the length of time the agent has been employed by the principal B. whether the worker is paid by way of direct deposit or check C. whether the principal supplies the tools and equipment used in the work D. the amount of time that the agent works for the principal E. whether the worker is engaged in a distinct occupation or an independently established business

B

Which of the following is NOT a critical factor in determining independent contractor​ status? A. whether the worker is engaged in a distinct occupation or an independently established business B. whether or not the agent has a degree C. the length of time the agent has been employed by the principal D. whether the principal supplies the tools and equipment used in the work E. the amount of time that the agent works for the principal

B

Which of the following is an INCORRECT statement regarding a fully disclosed​ agency? A. In a fully disclosed​ agency, the​ agent's signature must clearly indicate that he or she is acting as an agent for a specifically identified principal. B. In a fully disclosed​ agency, the contract is between the agent and the third party. C. A fully disclosed principal is liable on a contract with the third party. D. In a fully disclosed​ agency, the third party typically relied on the​ principal's credit and reputation when the contract was made. E. In a fully disclosed​ agency, the agent is not liable on the contract with the third party.

B

Which of the following is an INCORRECT statement regarding a​ principal's liability for an independent​ contractor's torts and​ contracts? A. If an independent contractor enters into a contract with a third party on behalf of the principal without express or implied authority from the principal to do​ so, the principal is not liable on the contract. B. ​Generally, a principal is liable for the torts of its independent contractors. C. The reason a principal is not usually liable for the torts of an independent contractor is because the principal does not control the means by which the independent contractor accomplishes results. D. Principals cannot avoid liability for inherently dangerous activities that they assign to independent contractors. E. Principals are bound by the authorized contracts of their independent contractors.

B

​_____ agency occurs when an agent acts for two or more different principals in the same transaction. A. Symbiotic B. Dual C. Conditional D. Cooperative E. Unilateral

B

An agent works for a principal that is in the business of real estate development. The principal is looking for vacant land to purchase to develop. A third party who owns and wants to sell his vacant land tells an agent of the principal of the availability of the land. The​ agent, without informing the​ principal, purchases the land for personal use. This is a violation of the duty of loyalty known as​ _______________. A. dual agency B. ​self-dealing C. usurping an opportunity D. competing with the principal E. misuse of confidential information

C

In​ a(n) _____​ agency, a contracting third party does not know of either the existence of the agency or the​ principal's identity. A. symbolic B. common law C. undisclosed D. constructive E. statutory

C

Jordan is a lawyer who has her own law firm and specializes in real estate law.​ Dylan, a real estate​ developer, hires Jordan to represent him in the purchase of land. Dylan is​ the_______, and Jordan is the​ _________________. A. ​agent; employee B. ​principal; subagent C. ​principal; independent contractor D. ​agent; independent contractor E. ​principal; employee

C

Sometimes principals request that agents run errands or conduct other acts on their behalf while the agent or employee is on personal business. In this​ case, the agent is on a​ _____, and most jurisdictions hold​ _____ liable if the agent injures someone while on such a mission. A. ​dual-purpose mission; the​ agent, but not the​ principal, B. ​dual-purpose mission; the​ principal, but not the​ agent, C. ​dual-purpose mission; both the principal and the agent D. unilateral​ mission; both the principal and the agent E. unilateral​ mission; neither the principal nor the agent

C

The doctrine of​ _____ rests on the principle that if someone expects to derive certain benefits from acting through​ others, that person should also bear the liability for injuries caused to third persons by the negligent conduct of an agent who is acting within his or her scope of employment. A. absolute liability B. assumption of the risk C. negligence D. strict liability E. contributory negligence

C

Which of the following is an INCORRECT statement regarding misuse of confidential information and the​ agent's duty of​ loyalty? A. An agent is under a legal duty not to disclose or misuse confidential information during the course of the agency. B. An agent is under a legal duty not to disclose or misuse confidential information after the course of the agency. C. Agents are prohibited from using general​ information, knowledge, or experience acquired during the course of an agency in later employment. D. If the agent violates the duty not to disclose or misuse confidential​ information, the principal can recover​ damages, lost​ profits, and any remuneration the agent received from another party to obtain the information. E. If the agent violates the duty not to disclose or misuse confidential​ information, the principal can obtain an injunction ordering a third party to return the confidential information and to not use such information.

C

Intentional torts include all but which of the​ following? A. intentional infliction of emotional distress B. assault C. battery D. negligence E. false imprisonment

D

Which of the following is NOT a common type of breach of the​ agent's duty of loyalty to the​ principal? A. misuse of confidential information B. competing with the principal C. ​self-dealing D. single agency with the principal E. usurping an opportunity

D

Which of the following is an INCORRECT statement regarding agent​ self-dealing? A. ​Self-dealing is a common type of breach of the​ agent's duty of loyalty to the principal. B. An agent who engages in undisclosed​ self-dealing with the principal has violated his or her duty of loyalty to the principal. C. If there has been undisclosed dealing by an​ agent, the principal can ratify the purchase. D. Agents are generally allowed to​ self-deal with the​ principal, especially if the​ self-dealing is undisclosed. E. If there has been undisclosed dealing by an​ agent, the principal can rescind the purchase and recover the money paid to the agent.

D

Which of the following is an INCORRECT statement regarding a​ "frolic and​ detour?" A. Agents are always personally liable for their tortious conduct during a frolic and detour. B. An agent might choose to run a personal errand while on assignment for the principal. This is commonly referred to as a frolic and detour. C. A frolic and detour is a situation in which an agent does something during the course of his or her employment to further his or her own interest rather than the​ principal's. D. Principals are generally liable if an​ agent's frolic and detour is substantial. E. Negligence actions stemming from frolic and detour are examined on a​ case-by-case basis.

D

Which of the following is an INCORRECT statement regarding dual​ agency? A. An agent cannot meet a duty of loyalty to two parties with conflicting interests. B. Some​ agents, such as middlemen and​ finders, are not considered dual agents. C. If an agent acts as an undisclosed dual​ agent, he or she must forfeit all compensation received in the transaction. D. As a general​ rule, dual agency is permissible. E. Dual agency occurs when an agent acts for two or more different principals in the same transaction.

D

Under the​ _____ test, if an agent commits an intentional tort within a​ work-related time or space—for ​example, during working hours or on the​ principal's premises—the principal is liable for any injuries caused by the​ agent's intentional torts. A. tacit approval B. coming and going C. frolic and detour D. ​worker's compensation E. ​work-related

E

Under the​ _____ test, if the​ agent's motivation for committing an intentional tort is to promote the​ _____ business, the principal is liable for any injury caused by the tort. A. ​captivation; principal's B. ​motivation; third​ party's C. ​motivation; agent's D. ​captivation; agent's E. ​motivation; principal's

E

Which of the following is an INCORRECT statement regarding usurping an opportunity and the​ agent's duty of​ loyalty? A. Usurping an opportunity is a common type of breach of the​ agent's duty of loyalty to the principal. B. If the agent appropriates an opportunity that belongs to the principal for​ him- or herself without the​ principal's rejection of it after due​ consideration, the principal can recover the opportunity from the agent. C. An agent cannot appropriate an opportunity that belongs to the principal for​ him- or herself unless the principal rejects it after due consideration. D. A​ third-party offer to an agent must be conveyed to the principal. E. An agent can personally usurp an opportunity that belongs to the principal.

E