Business Chapter 14
If the third-party is not aware of the agency relationship, the principal
Does not need to give notice
When an agent works for two competing principles
Double representation
Fiduciary Comes from the Latin word for
Faith
Agents are held liable for all mistakes made on behalf of the principal
False
Gratuitous agents do not have to follow the fiduciary duty of a Obedience
False
When employees are acting within the scope of employment, they are usually held liable for the actions of their employers
False
An agents obligation to deal honestly with another party is known as
Good faith
The agent duty to notify the principle of all matters pertaining to the agency relationship is known as
Good faith
An agent who suffers a loss as a result of a principles instructions is entitled to
Indemnification
Repayment of money lost as a result of instruction given by the principal and carried out by agent
Indemnification
An agent who has an interest in the subject matter of the agency has
Irrevocable agency
A principal who fails to notify third parties that an agency has ended may be blank for future ask if his or her agent
Liable
When the proprietor fails to fire an independent contractor after learning that he or she is an able to do the job, it is called
Neglect retention
A blank duty is one that cannot be transferred to another party
Nondelegable
Usually given by publishing a notice in the local paper
Notice by publication
When the third-party has done only a cash business with the agent, a blank is sufficient to terminate the agency relationship
Notice by publication
Which of the following is not an obligation that principles have to their agents
Obedience
Agency relationships can be terminated by operation of law or by the acts of the blank
Party
An Agency relationship is () When the parties have fully carried out their duties
Terminated
If an agent is authorized to sell the car for a person, but the car is totaled in an accident, then
The agency relationship is terminated
The agent becomes liable for an injury to a third-party if
The principle is undisclosed in the third-party cannot identify the principal
A proprietor can be held liable for the torts of an independent contractor
True
Agents keep the principles money save in separate by using a trust account
True
An agent owes a principal the duty of obedience
True
And agency may be terminated by acts of the parties
True
Good faith means to deal honestly with another party with no intent to seek advantage or to defraud
True
Principles are usually held liable for proven injuries and contractual disputes
True
Vicarious liability is based on the principle of responded superior
True
Which of the following is not a fiduciary duty that an agent owes a principal
hope
A principal who makes his or hers agents job difficult or impossible has breached the duty
Cooperation
The duty of the principal not to interfere with the performance of tasks that the principal signs to the Agent
Cooperation
Given directly to a party, usually using certified mail with the receipt
Actual notice
Two ways agency relationships can be terminated
By law or acts of the parties. Mutual agreement, discharges, death, insanity, bankruptcy.
Notice by blank mail is a smart way to give actual notice of termination of an agency relationship
Certified
A principal does not have a duty to pay blank to a gratuitous agent
Compensation
Fair payment for the job performed
Compensation
Repayment for money to spend on someone else's behavior
Reimbursement
A legal doctrine that says the master is responsible for the torts of his or her servants
Respondeat superior
When agents make deals that benefit themselves rather than the principles
Self dealing
