Bus 5 Ch 35

General agents

Serve for longer periods and deal with more parties

Identify TWO true statements about subagents under the agency law: ___________ and __________. (Choose two correct statements)

the legal relations between an agent and a subagent closely parallel the legal relations between a principal and an agent. when an agent appoints a subagent, the agent becomes a principal with respect to the subagent.

Termination of an agency by operation of law is applicable if _____________.

a principal or an agent dies

An agency can be terminated by the act of a principal or an agent when _____________.

a specified result for which the agency was created has been accomplished

A gratuitous agency is terminable _______________.

by either party without liability

Identify TWO exceptions to the duty of an agent to obey instructions offered by a principal: _____________ and _____________. (Choose two correct answers)

gratuitous agents need not obey their principal's order to continue to act as agents. agents need not follow directions by a principal to misrepresent the quality of the principal's goods or services.

ONE of the following is true about the duties of an agent under the law of agency, agents _____________.

have the duty of confidentiality of information to their principal.

ONE true statement about gratuitous agents is that they: ___________.

have the power to bind their principals with their actions.

Agency law implies a promise by a principal to indemnify an agent for ____________.

payments made on the principal's behalf

Identify the TWO parties directly involved in an agency contract: the ___________ and the ____________. (Check all that apply.)

principal agent

Unlike special agents, general agents ____________.

are continuously employed

An agent has a(n) ____________ duty to act loyally for the principal's benefit in all matters connected with the agency relationship.

fiduciary

Identify all the cases in which a principal is not required to compensate an agent: for ____________, for ____________, and for ____________. (Choose three correct answers.)

services that involve the unauthorized hiring of subagents unauthorized tasks that are undertaken without pay services to which the principal does not consent

ONE general duty of agents that is included in the Restatement (Third) is to: ______________.

act reasonably and refrain from conduct that is likely to damage a principal's enterprise

A two-party relationship in which one party has the power to act on behalf of, and under the control of, the other party is termed a(n)_______________.

agency

ONE duty of an agent under the agency law is that a(n) ___________.

agent must avoid conflicts of interest with a principal.

Identify ONE true statement about the formation of an agency: _______________.

an agency is formed through an oral or written consent between two parties.

One feature of an agency coupled with an interest is that: ____________.

an agent has an interest in the subject matter of an agency that is distinct from the principal's interest.

Former agents can use their ____________ authority to bind their principals even after the agency has been terminated.

apparent

Identify the TWO main forms of authority under the law of agency: __________ and _________.

apparent authority actual authority

An agent's ability to affect her principal's legal relations is referred to as ______________.

authority

A power given as a security or agency coupled with an interest is important because it ____________.

cannot be terminated by the principal's revocation

An agent who is compensated must act with which THREE of the following duties? (Choose three correct answers)

care competence diligence

In a situation where a principal's instructions are ambiguous, an agent is expected to ____________.

communicate with the principal to clarify the instructions

Agents can accept certain ___________ from their clients with the _________ of the principal. (Choose two correct answers)

consent material benefits

A person appointed by an agent to perform tasks that the agent has undertaken to perform for his or her principal is called a(n) _____________.

subagent

When an agent breaches her fiduciary duty, the principal has the legal right to ____________.

terminate the agency and recover damages from the agent

Identify ONE situation in which an agent must use reasonable efforts to provide a principal with facts the agent knows, or has reason to know, when: ______________.

the facts are material to the agency

When compensation is due to an agent by the principal but its amount is not expressly stated, the amount is _____________.

the market price or customary price of the agent's service

Apparent authority of an agent ends when ______________.

the third party dealing with the principal receives an appropriate notice of the termination

A principal is not required to indemnify her agent for _______________.

unauthorized acts

In the context of creation of an agency, identify ONE true statement about capacity: _______________.

corporations have the capacity to appoint agents.

Paid ________ who represent that they possess a higher than _________ level of skill may be held to a correspondingly higher standard of performance. (Choose TWO correct answers)

customary agents

What RULE (law) did the court apply in the CBS Corp v FCC case? (Choose TWO correct answers)

Application of respondeat superior requires selecting applicable legal standards for differentiating "employees" from an "independent contractors" The respondeat superior doctrine provides employer liability for torts committed by employees acting within the scope of their employment.

___________ is the fiduciary relationship that arises when a principal manifests assent to another person who will act on the principal's behalf and be subject to the principal's control.

Agency

The following TWO answers are true about termination of an agency by operation of law an _____________ and an _______________. (Choose two correct answers.)

An agency can be terminated by the suspension of power of an agent or a principal that is not an individual. An agency can be terminated by the principal's loss of capacity.

What was the court's CONCLUSION (holding, decision) in the CBS Corp v FCC case?

Reversed for CBS. Jackson and Timberlake were independent contractors rather than employees and respondeat superior does not apply on these facts.

Special agents

Serve for shorter periods and deal with fewer parties

Identify ONE true statement about the nondelegable obligations under the agency law: ______________.

delegation of authority is not possible in contracts that demand the personal performance of a principal.

An agency power ____________ for a duty owed by the principal is an exception to the termination of an agency by act of its parties or operation by the law.

given as security

An agent who receives no compensation for her service to a principal is called a(n) ____________ agent.

gratuitous

A principal's most important duties to her agent include all of the following: _____. (Choose THREE correct answers)

indemnification reimbursement compensation

Identify the TWO improper material benefits listed under the agency law: _________ and __________. (Choose two correct answers.)

kick backs gifts from parties with whom the agent deals on the principal's behalf

Identify the TWO true statements about an agent's duty of holding the principal's property: an agent ______________ and an agent _____________ (Check all that apply.)

must disclose all records and accounts to the principal when demanded. must keep accurate records and accounts of all transactions of the principal.

An agent's duty requires that she ______________.

not deal with the principal's property so that it appears to be the agent's

It is not a duty of an agent to notify a principal when the agent ______________.

owes a superior duty to another person

In an agency contract, a person has the capacity to be a(n) __________ if that person has capacity to do the acts for which an agent has been retained.

principal

Certain duties or acts must be performed personally by a(n) __________ and cannot be delegated to a(n) __________. (Choose ONE correct answer)

principal, agent

Which ONE of the following is a general duty of agents as stated in the Restatement (Third) they should _____________.

refrain from making offensive statements to customers.