ch 33 acct law

In an agency relationship, the person who hires the agent is known as the: ______

principal

most basic type of agency relationship

principal-agent

An agent who makes an unauthorized agreement may have violated his or her duty of

ratification

regarding an apparent agency, if the principal attempts to deny that an agency relationship existed, the third party must demonstrate that he or she

reasonably believed, on the basis of the principal's conduct, that the agency relationship existed

If there is no agency agreement or the contract is for personal services and the principal fails to perform as agreed, the agent may:

recover for services rendered and future damages

a ____ power of attorney gives authority only for the designated areas or purposes listed in the agreement

specific

agency law is primarily ___ law

state

agency law is primarily ____ law

state

A third party who believes that an agent is acting with actual or apparent authority may do which of the following

sue the principal for any breach of contract

the principal owes specific duties to

the agent

if an employer has some control over the operations of a contractor

the contract does not always mean that the contract is an employee

Principals are the legal owners of anything an agent may come to possess through:

the employment or agency relationship

Agency relationships are for the benefit of:

the principal

In an agency relationship, the agent is authorized to act for and on behalf of:

the principal

Which of the following is a recognized source for the definition of agency?

the restatement of agency

When an agent breaches an agency contract or his fiduciary duties, which of the following remedies may the principal may use to nullify at her discretion any contract the agent negotiated

the right of avoidance

When an agent breaches an agency contract or his fiduciary duties, which of the following remedies may the principal may use to nullify at her discretion any contract the agent negotiated?

the right of avoidance

generally, an employer is liable for

the torts of its employees

agency by ratification

third party reasonably believes that the agent is acting on behalf of the principal and that the principal accepts the acts of the agent - the principal must know all the material facts regarding the contacts and the principal must ratify the entirety of the agent's acts

Suppose an agent negotiates a contract on behalf of a principal. The contract is breached through the agent's negligence, and the principal is then sued by the third party. The principal can sue the agent: Blank

to recover the amount assessed to the third party

The law typically assumes that a principal is aware of all of the information that

was revealed to the agent

The law typically assumes that a principal is aware of all of the information that:

was revealed to the agent

hen may a principal use the right of avoidance to nullify, at his or her discretion, any contract the agent negotiated?

when the agent breaches his or her fiduciary duties

the principal has the duty to indemnify or reimburse the agent for any losses the agent incurs

while working within the scope of authority on the principals behalf

agency agreements usually do not need to be in writing unless the agent

will enter into a contract that the statute of frauds requires to be in writing

agency by ratification

"Harold had never authorized Bill to represent him in anything, but he was happy with the deal bill expressed that he accepted the contract for the car"

Identify the main remedies a principal has for an agent's breach of fiduciary duties in a principal-agent agency relationship

- indemnification - avoidance - constructive trust

which of the following are correct statements regarding a durable power of attorney?

- it becomes active only after a principal becomes incapacitated in any matter - it can be enacted preemptively by the principal

types of business agency relationships

- principal-agent - employer-employee - employer-independent contractor

agency relationships

can be formed by formal written contracts

agency

defined as the fiduciary relationship that results from the manifestation of consent by one person to another that the other shall act in his behalf and subject to his control, and consent by the other so to act

A principal's obligation to pay an agent for his or her services is called the

duty to compensate

agency by implied authority cannot conflict with agency by

express authority

an agency by agreement is also known as an

expressed agency

two people enter into an agency agreement using a written agreement. this kind of agency relationship is known as an ____

expressed agency

A(n) ______ is a person who has a duty to act primarily for another person's benefit

fiduciary

an agency relationship is a ____ relationship

fiduciary

A principal always has the right of ______, so agents may not use the agency relationship to obtain goods or property for themselves if the principal desired to obtain the same goods or property

first refusal

when an agent is given broad authority to sign legal documents for the principal - known as

general power of attorney

a ____ agent is one who acts without consideration

gratuitous

a ____ agent is one who is not paid for his or her services

gratuitous

powers of attorney are given for

healthcare and business purposes

To conduct business more effectively around the world, businesses will hire agents from the host country to: _______

help guide the business with respect to local laws and customs

an agency relationship that is formed through the conduct of the parties is known as an agency by ____ authority

implied

agency through ___ authority cannot conflict with any ____ authority that has been given

implied express

employers are generally liable

in tort for the actions of their employees, while they are generally not liable for the actions of independent contractors.

a principal has the duty of reimbursement and

indemnification of the agent

The Restatement of Agency defines a person who contracts with another to do something for him, but is not controlled by him nor subject to the other's right to control with respect to his physical conduct in the performance of the undertaking, as a

independent contractor

agency agreement

must be in writing

when an agent is given the power of attorney, the agreement

must be in writing

an agent who makes an unauthorized agreement may have violated his or her duty of

obedience

principals duty to provide safe working conditions for the agent

occupational safety and health act

agency law is especially important for

United States firms doing business globally

if thee IRS determines that an independent contractor is really an employee, the employer will be liable for

all applicable taxes such as social security and unemployment taxes

powers of ____ can be given for business and health care purposes

attorney

federal agency is interested in determining whether workers are employees or independent contractors

IRS

under the duty of obedience, the agent must follow the lawful instruction and direction of the principal

If the principal gives unlawful or unethical instructions, the agent is not required to behave in accordance with them

agency law

It is primarily state law and can vary from state to state

an agency relationship, like a contract, can only be made for

a lawful purpose

which of the following is required for agency by estoppel?

a reasonable belief by the third party that an agency relationship existed

According to the Copyright Act of 1976, an employer can order an employee to complete work at the request of the employer. This product is known as

a work for hire

which of the following is a recognized form of agency authority?

agency by agreement

which of the following is not a recognized form of agency authority?

agency by revocation

employees are _____ of the employer

agents

If the agent breaches his or her duties to the principal, the principal:

can terminate his or her relationship with the agent and seek remedies

a principal must authorize the power of attorney while they are

competent

an agency relationship can be formed through the implied ___ of the parties

conduct

Because of their fiduciary relationship, the agent has a responsibility to act in the interest of the principal including avoiding

conflicts of interest and protecting the principals confidentiality

agency relationships are

consensual

If the agent illegally benefits from the agency relationship, the principal may enact a(n) ______ trust on the goods, profits, or property in question

constructive

Agency relationships are contractual relationships and the kind of remedies that are available are Blank______ remedies

contract

Agency relationships are contractual relationships and the kind of remedies that are available are ______ remedies.

contract

in an agency by estoppel, the important factor is whether the principal acts to

create the impression that the agent has the authority to act on behalf of the principal