Steele CH 25

Which of the following statements is true of contracts of agency?

All people legally competent to act for themselves may act through an agent. ???

Hoffmann's Retail is a supermarket chain operated by Hoffmann Group. Hoffmann's appoints agents to manage each of its retail outlets. These agents are responsible for managing the daily operations and customer service requirements in the stores. After observing that the store was running out of stock, Jennifer Hyman, a manager at one of the retail outlets, places an order with Bagel's foods. Which of the following is true regarding the scenario?

Implied authority allows Jennifer to place the order.

Susan Fox had business cards printed that said, "Susan Fox, special agent for Ransom, Inc." Fox entered into a contract as the agent of Ransom to buy specialty windows from Welwyn Windows before Ransom was incorporated. Others promoted the incorporation of Ransom and Welwyn delivered the windows to Ransom. What is required for Ransom to now ratify the contract and be bound on it?

Ransom cannot ratify since it did not have the capability of making the contract when it was made.

Which of the following is true when a person hires an independent contractor to perform some tasks?

The contractor is responsible for the proper performance of the contract.

Why is it necessary for business owners to delegate business transactions to agents?

The magnitude and complexity of industries mean one person cannot always handle all the details.

Which of the following is true when a person wants to ratify the unauthorized acts of an assumed agent?

The one attempting to ratify must have been capable of authorizing the act at the time the act was done.

An agency by estoppel arises when:

a person by words or conduct leads another person to believe that a third party is an agent or has the authority to do particular acts.

Roth Computing contracted to provide computer software and support to the Ute Mountain Tribe. The chief financial officer (CFO) of the tribe, who was authorized to contract for it, signed the agreement which stated the contract could be enforced by a court. The parties carried out their respective responsibilities for eighteen months and then the tribe failed to make any more payments. On what basis should Roth claim the CFO had the authority to agree the tribe could be sued in court?

agency by estoppel

Stan and Silvia Waterson go on a vacation and leave their 17 year old daughter, Jessie, in charge of the house and her two younger siblings. While the elder Watersons are away, a severe storm knocks down power lines and the electricity is off for a week. Since all the food in the refrigerator and freezer spoiled, Jessie talks the owner of a small grocery store into letting her have groceries on credit. When the Waterson parents come back home, the store demands payment from them for the groceries. On what basis must the parents pay for the groceries?

agency by necessity

The law of agency permits a person to delegate to an agent:

all acts a person can do except personal or unlawful acts.

_____ authority refers to the authority that the third person believes the agent possesses because of the statements made by the principal.

apparent

The term for a general agent who has been appointed by a written authorization is:

attorney in fact.

Larry Jones, a resident of Royal Park in Potsi, wanted to sell his house in Marshall. He asked Patrick Miller, a broker, to find a buyer for the house. Miller was not authorized to decide on the specifications of the sale without the approval of Jones. Based on his role, Miller can be regarded as a(n):

special agent

A contract of an independent contractor differs from a contract of employment in that:

the other contracting party does not control an independent contractor as to the means by which the contractor performs.

When an assumed agent purports to act as an agent without actual or apparent authority:

the supposed principal may ratify the act and be bound by the assumed agent.

Which of the following tasks cannot be delegated to an agent?

voting in a public election ???

Which of the following statements best defines a power of attorney?​

​It is a written instrument indicating the appointment of an agent for the performance of certain tasks.

Which of the following statements best defines customary authority?

​It is the authority to act on behalf of another that arises when such agents ordinarily possess such powers.

A contract of agency may be in oral when:

​the agent is to be a special agent. ???

Pendleton Assurance, an insurance provider appoints agents in different locations to clarify the issues of their clients and handle the paperwork for obtaining insurance. Pendleton advises its clients to contact their agents for all their insurance queries. Emily Jones, an agent authorized by Pendleton, collects auto insurance premiums from three clients and deposits the money in her personal account. The clients, who are unaware of the authority of Jones, have been sending money to Jones for three years. Marlin Haskins, one of the clients, runs his car off the road. When he files an insurance claim, Pendleton refuses to pay. Which of the following makes Pendleton liable to provide insurance cover to Marlin, even though it did not receive any premium from him?

emily's apparent authority

Noel Cormier, a dealer of used automobiles, sells on credit. He guarantees to the owner of the car that the purchase price will be paid by the purchaser or by himself. After making a sale, he deducts the commission and remits the balance to the original owner of the car. Cormier can be regarded as a(n):

factor del credere

A(n) _____ is one authorized to carry out all of the principal's business of a particular kind.

general agent

Jessica Thompson is an agent working in a store that sells automobile spare parts. She is in charge of assisting the customers and managing the store in general. Jessica notices that the store is running low on one of the cataloged items. Therefore, she takes the liberty of placing an order for it. Jessica has the authority to do so, even though this authority is not explicitly enumerated in the agency agreement. Which of the following gives her this right?

implied authority

When an agency is created by appointment:

it must be in writing if it is to transfer title to real estate.