BLAW - CHAPTER 28 QUIZLET + SG QUESTIONS

In which of the following circumstances is the Agency Relationship NOT immediately terminated by operation of law? a. The Principal dies, but the Agent does not have notice of such death. b. The Agent dies. c. The subject matter of the agency agreement is destroyed. d. The Principal loses capacity.

a. The Principal dies, but the Agent does not have notice of such death.

Which of the following statements is not a basic requirement for an Agency Relationship to exist. I use the words Principal and Agent in each answer. Do not assume that the Principal or the Agent is actually a Principal or Agent. a. The Principal must hire the Agent to perform a task for the Principal. b. The Principal must intend that the Agent can act on behalf of the Principal. c. The Principal must have some control over the actions of the Agent d. Both the Principal and Agent must agree to form the Agency Relationship.

a. The Principal must hire the Agent to perform a task for the Principal

Which of the following statements is TRUE regarding an Agency Coupled With an Interest? a. two of these answers are true b. An Agent can renunciate an Agency Coupled with an Interest at any time during the Agency. c. Agencies Coupled with an Interest are usually associated with lending transactions where the borrower has pledged collateral to secure a loan. d. The Principal may revoke an Agency Coupled with an Interest at any time during the Agency. e. An Agency Coupled with an Interest may be terminated by either the Principal or Agent (without the other's consent) at any time during the Agency.

a. two of these answers are true

Which of the following situations most likely describes a relationship between a principal and agent AND an employer and employee? a. George hires Bob to pour concrete in the driveway at George's home. b. Mel owns a retail store. Elizabeth is a salesclerk for Mel in the store. c. Nancy hires an Uber driver to take her to the airport d. Charles hires Andrew, an attorney, to represent him in a lawsuit.

b. Mel owns a retail store. Elizabeth is a salesclerk for Mel in the store.

Which of the following is not a duty owed by an Agent to her Principal? a. Duty to Account b. The duties listed in every answer to this question are duties owed by an agent to her principal. c. Duty to Inform/Notify d. Duty of Obedience e. Fiduciary Duty (Duty of Loyalty)

b. The duties listed in every answer to this question are duties owed by an agent to her principal.

Which of the following will not terminate an agency? a. Lapse of time b. all of the listed answers will terminate an agency c. renunciation by the agent d. revocation of authority

b. all of the listed answers will terminate an agency

Which of the following statements is TRUE concerning the factors used to determine the difference between an employee and an independent contractor? Choose the best answer. a. If the individual works for the principal exclusively, then the individual will always be determined to be an employee. b. If the individual is paid by the principal only when the project is complete, then the individual is most likely an employee. c. The principal's right to control the conduct of the individual is the most significant factor in determining whether the individual is an employee or independent contractor. d. If the individual is paid by the hour then the individual is most likely an independent contractor.

c. The principal's right to control the conduct of the individual is the most significant factor in determining whether the individual is an employee or independent contractor.

A principal owes an agent a duty of: a. indemnification. b. reimbursement. c. compensation. d. The duties listed in every answer to this question are duties owed by a principal to her agent.

d. The duties listed in every answer to this question are duties owed by a principal to her agent.

Which of the following statements is False? a. A power of attorney is a type of written appointment of an agent. b. An agency agreement does not always have to be in writing. c. Most contracts or business transactions can be created or conducted through an agent. d. When one party to a contract exercises control over the other party, the relationship of Principal and Agent automatically exists.

d. When one party to a contract exercises control over the other party, the relationship of Principal and Agent automatically exists.

Which of the following statements are TRUE? a. all agents are employees b. Having control over the "Manner and Means" of a task means that the principal gets to control "What" the agent does and not "How" the agent performs the task. c. an independent contractor cannot be an agent d. all employees are agents

d. all employees are agents

In which of the following circumstances would the Agency Relationship be terminated by law? a. None of these answers are correct. b. The death of the Agent c. When the subject matter of the agency has been destroyed. d. When the Principal has died but the Agent does not yet have notice of the Principal's death. e. two of these things are correct

e. two of these answers are correct