Chapter 14 review

1. Andrea has been working very hard for her employer, Bill. Two weeks before Andrea is due for a bonus payment, Bill fires her for no reason. Andrea could make a case that: (A) her at-will employment rights have been violated (B) the implied covenant of good faith and fair dealing has been violated (C) the express covenant of good faith and fair dealing has been violated (D) Andrea cannot make any kind of case against Bill (E) none of the other choices are correct

b

1. An agent must perform instructions provided by the principal. If the agent fails to do so, he violates: (A) the duty of cooperation (B) the duty of obedience and performance (C) the duty to reimburse (D) the duty of loyalty (E) the duty of accounting

b

1. Attorneys, auctioneers, and other such persons who conduct business on behalf of the principal are examples of: (A) agents who are also employees (B) independent contractors who are also agents (C) independent contractors who are also employers (D) agents who are also employers (E) none of the other choices are correct

b

1. An agency relationship normally involves the use of an agent to represent a principal in dealing with which of the following: (A) shareholders (B) representatives (C) third parties (D) attorneys (E) ratifications

c

1. An agent has a the funds and property of his principal that have been entrusted to him or have come into his possession. (A) duty to compensate for (B) duty to reimburse (C) duty to account for (D) duty to document (E) duty to increase

c

1. An agent's is the power to change the principal's legal obligations. (A) legal right (B) official power (C) authority (D) responsibility (E) authorization

c

1. An employment of an agent for the purpose of representation in establishing relations between a principal and third parties is known as a(n): (A) third party relationship (B) principal relationship (C) agency relationship (D) real relationship (E) representative relationship

c

1. Barbara, a purchasing agent for UTA, was fired for good reason. Being angry about her dismissal, she calls one of UTA's suppliers and orders 1,000 purple widgets UTA does not need. If UTA, the principal, is held liable for this transaction, it is because Barbara had: (A) express authority (B) implied authority (C) apparent authority (D) actual authority noneoftheotherchoicesapply

c

1. For an agency to be valid in most states: (A) there must be written evidence of its creation (B) the agency must be registered (C) the agent must be subject to the principal's control (D) there must be written evidence of its creation and the agent must be subject to the principal's control (E) the agent must be subject to the principal's control and the agency must be registered

c

1. An agency may not be ended by: (A) unilateral notice by the agent (B) unilateral notice by the principal (C) mutual consent by agent and principal (D) lapse of agreed-upon time (E) all of the other choices may end an agency

e

1. An auctioneer is an example of a(n): (A) agent (B) employee (C) employee with agency powers (D) independent contractor (E) agent and independent contractor

e

1. Employment-at-will: (A) allows employees to quit their jobs for any reason at any time (B) allows employers to discharge employees for any reason at any time subject to contract obligations (C) has been restricted by the courts or legislatures in some states that recognize some public policy limitations on the employer's right to fire an employee (D) a and b (E) a, b and c

e

1. A key element of an agency relationship is: (A) an agent's ability to transact business for the principal (B) any relationship established for the sale of land be an oral contract (C) the principal acts for the benefit of the agent (D) a commitment for at least one year, to show intent to bind the parties to the agency relationship (E) none of the other choices

a

1. A person designated by a principal to do all acts that can be legally delegated to an agent is a: (A) universal agent (B) special agent (C) gratuitous agent (D) general agent (E) none of the other choices

a

1. A real estate agent is an example of a(n): (A) agent (B) employee (C) employee with agency powers (D) independent contractor (E) agent and independent contractor

a

1. A(n) relationship is one in which an agent acts on behalf of or for the principal, with a degree of personal discretion. (A) principal-agent (B) master-servant (C) employer-employee (D) employer-independent contractor (E) none of the other choices are correct

a

1. Adam enters into an oral agreement with Tushar that Tushar will sell Adam's house for him. A week later, the house burns down. Adam and Tushar's agency is now: (A) terminated by operation of law (B) still in place (C) illegal in some states (D) fraudulent in all states (E) temporarily suspended

a

1. An agent must be able to show where money or property comes from and goes to because of his duty: (A) to account (B) to notify (C) of loyalty (D) of responsibility (E) to profit

a

1. An employee of a company, who has good technical knowledge, is concerned that some televisions made by the company may have electrical shorts that could cause fires. Since no one in the company would address the problem, the employee provides evidence of the problem to the media and state attorney general, so consumers can be aware of the problem. If the employee is fired he is unlikely to have: (A) a case against the company (B) a case against the company unless he was an independent contractor (C) a case against the company unless he was a general agent (D) a case against the company unless he was a servant (E) a case against the company unless an injury does occur to a consumer, in which case the firing will be illegal

a

1. Apparent authority arises when: (A) the principal creates an appearance of authority in an agent that leads a third party to conclude reasonably that the agent has authority to act for the principal (B) the agent creates an appearance of authority in a principal that leads a third party to conclude reasonably that the agent has authority to act for the principal (C) the agent forges documents conferring authority on himself (D) the principal gives the agent implied authority (E) none of the other choices are correct

a

1. Clark, a movie producer, was allowed to work at a movie production company's offices (ITC) out of courtesy. His business card listed the ITC address and his phone calls were handled by ITC staff. In the office, he made a deal to produce a movie for another company. When problems developed and the company, presuming Clark worked for ITC, sued ITC. The court would be likely to hold that ITC: (A) ratified Clark's actions and so became liable for his actions (B) expressly accepted contracts negotiated by Clark, so was liable for the failure to perform (C) had no liability because Clark merely was allowed to use office space at ITC (D) had no liability because Clark had no authority to represent ITC in movie decisions (E) none of the other choices

a

1. Compared to the United State, the European Union has: (A) very strict data privacy rules (B) not very strict data privacy rules (C) no data privacy rules (D) data privacy rules that apply only to employers, but not employees (E) none of the other choices are correct

a

1. If an agent claims to have authority but in fact has none, the principal is: (A) not responsible for the agent's dealings with third parties who have no reason to think the agent has authority (B) responsible for the agent's dealings with third parties who have no reason to think the agent has authority (C) responsible for up to 50% of the monetary value of any contracts entered into by third parties and the agent (D) responsible for up to 25% of the monetary value of any contracts entered into by third parties and the agent (E) none of the other choices are correct

a

1. Implied authority consists of: (A) the power to do whatever is reasonable and customary to carry out the agency purpose (B) the power to mingle the funds of the agent and principal (C) limits on an agent's actions, so that the agent may only do what the principal orders, in writing or orally (D) the power of the agent to withhold services if the principal fails to pay her (E) the power of an agent to do whatever is authorized by the Uniform Agency Act

a

1. In an agency the principal: (A) provides the agent with authority (B) provides the agent with legal support (C) does not provide the agent with authority (D) is given authority by the agent (E) none of the other choices are correct

a

1. Many states require agencies that will exist for to be established in writing. (A) more than one year (B) less than one year (C) less than five years (D) more than six months (E) none of the other choices are correct

a

1. To ratify an agreement a principal must know: (A) the important facts of the agreement (B) a general outline of the agreement (C) the name of the agent (D) the agent for at least two years (E) none of the other choices are correct

a

1. Traditionally, the chief difference between an agent and a servant (employee) was that the: (A) servant was generally not employed to represent a principal in business dealings (B) servant was usually allowed more personal discretion in deciding how to accomplish a certain objective (C) agent was not controlled by the principal (D) servant acted on behalf of the master in contractual matters involving third parties (E) none of the other choices

a

1. When liability is imposed on the principal for the unauthorized torts of an agent, it is called: (A) vicarious liability (B) indemnification (C) agent respondeat (D) third-party rights, duties, and liabilities (E) none of the other choices

a

1. When there is an undisclosed principal, the agent is: (A) liable to the third party for the principal's nonperformance of the contract (B) not liable to the third party for the principal's nonperformance of the contract (C) liable to the undisclosed principal for the third party's nonperformance of the contract (D) liable for only half of the damages incurred by the principal's nonperformance of the contract (E) none of the other choices are correct

a

1. Which of the following is a common problem with employee handbooks: (A) using boilerplate forms that include material not relevant to the employer (B) putting a bold disclaimer at the front of the handbook that says it is not a contract (C) requiring employees to sign a statement indicating that they have read the disclaimer that says the handbook is not a contract (D) all of the other specific choices are correct (E) none of the other specific choices are correct

a

1. Which of the following is an advantage to having the ability to use agents: (A) access to the expertise of agents (B) reduced tax burden (C) exemption from income tax (D) creation of many small companies within one larger company (E) easier organization of a company

a

1. Which of the following is not a duty owed by the agent to the principal: (A) compensation (B) reasonable care (C) accounting (D) notification (E) all of the other choices are required

a

1. A UPS package sorter is an example of a(n): (A) agent (B) employee (C) employee with agency powers (D) independent contractor (E) agent and independent contractor

b

1. A legal document that establishes some agency relationships is known as: (A) articles of incorporation (B) power of attorney (C) partnership agreement (D) decree of guardianship (E) motion to represent

b

1. A person who volunteers with no expectation of being paid for her services is a(n): (A) exceptional agent (B) gratuitous agent (C) agent who has an agency coupled with an interest (D) one-time agent (E) none of the other choices

b

1. A principal's ratification is: (A) an agent's acceptance of responsibility from the principal (B) the principal's acceptance of responsibility for an agent's activities (C) the principal's rejection of responsibility for an agent's activities (D) the principal's acceptance of property from an agent (E) an agent's acceptance of property from the principal

b

1. Agency by estoppel means: (A) conduct on the part of the agent that implies an agency relationship must be stopped as soon as the principal implies disagreement (B) actions by the principal lead a person to believe that the presumed agent has authority to act on the principal's behalf (C) the agent creates an appearance of authority in the principal which leads a third party to reasonably conclude that the agent has the authority to perform certain acts (D) conduct by the agent through word or actions is not sufficient to bind the principal to contracts the agent creates (E) none of the other choices

b

1. An agency coupled with an interest is created: (A) when the principal provides the agent with a general power-of-attorney (B) by an agent who has paid for the right to exercise authority with regard to a business (C) when a person volunteers her services out of interest in the business (D) when the agent is authorized to delegate any authority to an interested party (E) none of the other choices

b

1. Bill is an attorney in Ohio. Marla hires Bill to create a trust for her children. Bill has not been keeping up with developments in trust law, and so creates an inefficient trust. Under recent Ohio law, he could have created a much more beneficial trust. In this case, Bill: (A) has violated a duty of loyalty (B) has violated a duty of reasonable care (C) has violated a duty of obedience (D) has violated a duty to account (E) may be out-of-date but has violated no duties

b

1. Cook instructs Chan, her agent, to buy a van for her business. Chan contracts for a van with a third party, who knows that Chan is an agent. If Cook does not like the van and refuses to pay for it, the seller may sue: (A) Chan because she did not have authority to enter into a final contract without permission (B) Cook because Chan has actual authority to make a contract on behalf of her principal (C) Cook if Chan signed the contract expressly on behalf of Cook; that is, the principal was revealed before the contract was made (D) Cook but only if Chan has apparent authority to enter into the contract (E) no one; there was no valid contract

b

1. If an agency agreement did not specify how much an agent would be paid for his work, the principal has a the "customary" amount. (A) duty to cooperate (B) duty to compensate (C) duty of obedience to (D) duty to indemnify (E) none of the other choices would apply

b

1. In the European Union the regulation governing which country's laws apply to an employment law contract involving multiple nationalities is known as: (A) Greece 1 (B) Rome 1 (C) European Union 1 (D) European Employment Law Regulation (E) none of the other choices are correct

b

1. Juan and Marie enter into an oral agreement that Marie will sell Juan's crusty herb garlic bread to gourmet food stores in the area. This works until Juan gets sick and no longer makes his bread. Marie is furious that Juan is unable to supply her with the popular bread and sues him for lost profits. A court is likely to rule: (A) Juan cannot abandon the agency relationship he established with Marie (B) Marie's authority to act as agent for Juan lapsed and the agency relationship is terminated (C) Juan should pay Marie damages for reducing her income (D) Marie may not be fired because she and Juan had a contract of employment (E) Juan cannot abandon the agency relationship he established with Marie and Juan should pay Marie damages for reducing her income

b

1. Many companies give employees handbooks that discuss company policy and procedures. Legally, handbooks: (A) have no legal status; they are merely advisory (B) can create binding contractual employment obligations (C) are legal documents that, under the NLRA, are a part of the employment contract (D) are documents that, at common law, have always been a part of the employment contract (E) none of the other choices

b

1. Someone designated to do all acts that can be legally granted to an agent is called a(n): (A) special agent (B) universal agent (C) general agent (D) subagent (E) gratuitous agent

b

1. The duties of a principal to an agent do not include: (A) cooperating with the agent (B) allowing the agent "significant discretion" (C) reimbursing the agent for any reasonable expense (D) indemnifying the agent for legal liability incurred in completing the purpose of the agency (E) all of the other choices are required

b

1. The law of agency places its primary emphasis on the duties: (A) the principal owes to the agent (B) the agent owes to the principal (C) the agent owes to the subagent (D) the universal agent owes to the general agent (E) all of the other choices have equal standing

b

1. The principal has a with her agent by performing responsibilities defined in the agreement forming the agency. (A) duty to inform (B) duty to cooperate (C) duty to compensate (D) duty to reimburse (E) duty to indemnify

b

1. Through an agency relationship, the agent becomes a representative of the: (A) third party (B) principal (C) customer or supplier of the principal (D) shareholder (E) all of the other choices

b

1. To carry out their duties, universal agents are typically granted: (A) powers to act by estoppel (B) a general power of attorney (C) authority to cancel contracts anticipatorily (D) all of the other specific choices (E) none of the other choices

b

1. Under American common law, employees are presumed to: (A) work at a certain rate (B) work at will (C) work for compensation (D) work for nothing (E) work for agencies

b

1. When an agency is terminated: (A) the agent's authority to act for the principal does not end (B) the agent's authority to act for the principal ends (C) the agent's authority to act for the principal is reduced to very limited conditions (D) the agent may never work with the principal again (E) the agent may not work for someone who is in competition with the principal

b

1. An agency ends without any action by the principal or the agent through: (A) termination through action (B) termination through inaction (C) termination by operation of law (D) termination by decision of law (E) termination by redefinition

c

1. A company that buys patents for the purpose of threatening others with lawsuits for patent infringement is known as a: (A) patent thief (B) patent controller (C) patent troll (D) patent dragon (E) patent hoarder

c

1. A senior manager at Don Reid Ford is an example of a(n): (A) agent (B) employee (C) employee with agency powers (D) independent contractor (E) agent and independent contractor

c

1. A(n) relationship is one in which one person is an employee whose conduct is controlled by the employer. (A) principal-agent (B) agent-principal (C) employer-employee (D) employer-independent contractor (E) none of the other choices are correct

c

1. For an agent to be a fiduciary means to: (A) indemnify the principal for any losses incurred in a lawsuit, not including attorney's fees (B) have the right and obligation to sell goods belonging to a principal (C) occupy a position of trust, honesty, and confidence with respect to the principal (D) indemnify the principal for any losses incurred in a lawsuit, not including attorney's fees and have the right and obligation to sell goods belonging to a principal (E) indemnify the principal for any losses incurred in a lawsuit, not including attorney's fees and have the right and obligation to sell goods belonging to a principal and occupy a position of trust, honesty, and confidence with respect to the principal

c

1. Insuring an agent against losses suffered during the course of authorized transactions is part of the principal's: (A) duty of cooperation (B) duty of facilitation (C) duty to indemnify (D) duty to protect (E) duty to reimburse

c

1. Many states require agencies for to be established in writing. (A) sale of boats (B) sale of businesses (C) sale of land (D) sale of livestock (E) sale of books

c

1. Persons appointed by an agent delegated some authority are known as: (A) minor agents (B) pseudo-agents (C) subagents (D) delegated agents noneoftheotherchoices

c

1. Subagents work for the agent and owe duties to: (A) only the agent (B) only the principal (C) both the agent and the principal (D) no one (E) none of the other choices are correct

c

1. The independent contractor is distinguished by: (A) the extent of the compensation (B) the extent of control the employee retains over work performance (C) the extent of control the employer retains over work performance (D) all of the other specific choices are correct (E) none of the other specific choices are correct

c

1. To establish an agency relationship: (A) the procedure in state statutes must be followed (B) there must be a written contract between the parties (C) the principal and agent must agree to form an agency (D) all of the other specific choices (E) none of the other choices

c

1. When liability is imposed on an employer for a tort committed by an employee, the liability is based on the rule of law known as: (A) contractor liability (B) tortious liabilitius (C) respondeat superior (D) principal duty (E) there is no such rule as the employee only is responsible

c

1. Which of the following is least likely to be an issue in determining if an employer has hired an employee or an independent contractor: (A) the specialization or skill of the occupation (B) the length of the employment (C) the level of compensation (D) the nature of the worker's tasks (E) where the work is performed

c

1. Which of the following is not a category of agents covered in the text: (A) gratuitous agent (B) special agent (C) foreign agent (D) general agent (E) universal agent

c

1. Which of the following would not be a factor in determining a ratification: (A) the principal can ratify only agreements about which he has knowledge of the material facts (B) the agent must have purported to act for of the principal and not on the agent's own behalf (C) the third party wishes for the principal to be a party to a contract (D) if the original agreement between the agent and third party was required by law to be in writing, ratification must also be in writing (E) all of the other choices

c

1. You post a notice at school that you will sell your laptop computer for $600. A buyer comes by your room to look at it while you are gone and your roommate sells it for $500, thinking you would be happy with that price, which you did not authorize. (A) you must accept the deal because your roommate had implied authority (B) you must accept the deal because people living together have power of attorney (C) you can accept the deal by express or implied ratification (D) you can accept the deal by express ratification only, not implied ratification (E) the deal cannot be valid because there was no consent

c

1. A manager who runs all aspects of a hotel is most likely what kind of agent: (A) universal agent (B) special agent (C) gratuitous agent (D) general agent (E) none of the other choices

d

1. A person authorized to execute all regular transactions connected with a business is called a: (A) universal agent (B) special agent (C) gratuitous agent (D) general agent (E) none of the other choices

d

1. An agency can be ended upon reasonable notice by: (A) only the agent (B) only the principal (C) only the party that initiated the agency (D) either the agent or the principal (E) none of the other choices are correct

d

1. An agency through operation of law is established: (A) by a written contractual agreement of the parties (B) by ratification of the agent's activities by the principal (C) by the application of the doctrine of estoppel (D) when an emergency exists and the "agent's" actions are in the public interest (E) none of the other choices

d

1. An agent with authority to represent the principal only for a specific transaction, usually for a limited time is a(n): (A) universal agent (B) gratuitous agent (C) agent who has an agency coupled with an interest (D) special agent (E) none of the other choices

d

1. Fiduciary duties include: (A) accounting, notification, and performance (B) loyalty and reasonable care (C) ratification and indemnification (D) accounting, notification, performance, loyalty and reasonable care (E) accounting, notification, performance, loyalty, reasonable care, ratification and indemnification

d

1. Implied ratification of an agency occurs when the principal: (A) fails to object to the unauthorized activities of an agent (B) by action shows a clear intent to be bound by unauthorized acts of the agent (C) accepts the benefits of an unauthorized agreement with a third party (D) fails to object to the unauthorized activities of an agent and accepts the benefits of an unauthorized agreement with a third party (E) fails to object to the unauthorized activities of an agent and accepts the benefits of an unauthorized agreement with a third party and by action shows a clear intent to be bound by unauthorized acts of the agent

d

1. Lisa works for Sally. Lisa's jobs include selling the folk-art Santa Claus statutes that Sally hand- makes, as well as purchasing the wood for the statutes. In this case Lisa is: (A) a servant only (B) an agent only (C) an independent operator (D) a servant and an agent (E) a master

d

1. Lyle is Thelma's agent. Thelma has made it clear to Lyle that she does not want him to sign the contracts that he negotiates; she retains that power. If, despite Thelma's instructions, Lyle negotiates and signs a contract with Tom committing Thelma to spend thousands of dollars, what will the consequences of Lyle's actions be? (A) Lyle must pay Tom out of his own pocket (B) Tom may sue Lyle but not Thelma to enforce the contract (C) Tom can be justified in presuming Lyle had authority to sign the contract only if Tom asked Thelma (D) if Tom was justified in presuming Lyle had authority to sign the contract, Thelma will be responsible (E) neither Lyle nor Thelma will be responsible for paying because Lyle exceeded his duty of accounting to Thelma

d

1. Suppose a hurricane is going to hit South Florida; there are two days to prepare for it and the owner of a house is on a raft trip in Brazil and cannot be reached. The next door neighbors spend $800 on plywood and other materials to protect the house from the hurricane. Legally, this expenditure is likely to be: (A) is a gift from the neighbors, nothing more (B) is the responsibility of the homeowner; there is an agency by estoppel (C) is the responsibility of the homeowner; there is implied ratification of the agency (D) is the responsibility of the homeowner; there is agency by operation of law (E) none of the other choices

d

1. The agent's ability to transact business on behalf of and for the principal depends on whether the agent possesses: (A) actual authority (B) apparent authority (C) quasi-authority (D) actual or apparent authority (E) actual or apparent authority or quasi-authority

d

1. The principal is possibly liable for the torts of the agent if the agent's tort was: (A) authorized by the principal (B) an unauthorized intentional tort outside the scope of the agent's employment (C) an unauthorized intentional tort within the scope of the agent's employment (D) authorized by the principal or an unauthorized intentional tort within the scope of the agent's employment (E) authorized by the principal or an unauthorized intentional tort within the scope of the agent's employment or an unauthorized intentional tort outside the scope of the agent's employment

d

1. The principal is under a for damages to cover the agent's losses (such as from litigation) suffered while undertaking authorized transactions for the principal. (A) duty to cooperate (B) duty of loyalty (C) duty of obedience (D) duty to indemnify (E) none of the other choices would apply in such case

d

1. The provides some immunity for a company against content posted or submitted online by third parties, if a company is merely acting as a publisher. (A) Communications Privacy Act (B) Communications Legitimacy Act (C) Communications Reality Act (D) Communications Decency Act (E) Communications Honesty Act

d

1. Under which of the following conditions would a principal or employer be liable for the tort of an agent or employee: (A) the tort was authorized by the principal (B) the tort occurred within the scope of employment (C) the tort was not authorized by the principal (D) both a and b are correct (E) none of the other choices are correct

d

1. When a principal creates an impression of authority in an agent that leads a third party to conclude that the agent has authority to act for the principal, the agent is said to have: (A) implied authority (B) express authority (C) actual authority (D) apparent authority (E) none of the other choices

d

1. Which of the following would lead to termination by operation of law for an agency: (A) the principal dies (B) the agent dies (C) the subject matter of the agency is destroyed (D) all of the other specific choices are correct (E) none of the other specific choices are correct

d

1. Which of the four general factors which bear upon whether a master-servant relationship exists is determinative: (A) selection and engagement of the servant (B) payment of compensation (C) power of dismissal (D) power of control (E) all of the other specific choices are determinative

d

1. You hire an agent to sell your house for you. Typically, such an agent receives a fee only if they actually sell the house. This person is most likely: (A) a universal agent (B) a gratuitous agent (C) an agent who has an agency coupled with an interest (D) a special agent (E) none of the other choices

d

1. A disclosed principal is a principal whose identity is: (A) known to the agent (B) unknown to the agent (C) unknown to third parties to contracts entered into with the agent (D) known to partners (E) known to third parties to contracts entered into with the agent

e

1. A factor courts may consider in determining whether an act was within the course and scope of employment under vicarious liability is, was the: (A) act of the same general nature of those authorized by the principal (B) agent authorized to be in the location at the time the act occurred (C) agent serving or attempting to serve the principal's interests at the time of the tort (D) act of the same general nature of those authorized by the principal and agent authorized to be in the location at the time the act occurred (E) act of the same general nature of those authorized by the principal and agent authorized to be in the location at the time the act occurred and agent serving or attempting to serve the principal's interests at the time of the tort

e

1. An agency may be established by: (A) operation of law (B) oral agreement of the parties (C) written agreement of the parties (D) operation of law or by oral agreement of the parties (E) operation of law or by oral agreement of the parties or by written agreement of the parties

e

1. In which of the following situations can an agency relationship be created? (A) X hires Y to buy some property on X's behalf (B) X makes an oral agreement that Y will work for X's company as the company's general manager (C) X and Y enter into a written agreement that Y will work for X as the general manager of X's company (D) X hires Y to buy some property on X's behalf and X makes an oral agreement that Y will work for X's company as the company's general manager (E) X hires Y to buy some property on X's behalf and X makes an oral agreement that Y will work for X's company as the company's general manager and X and Y enter into a written agreement that Y will work for X as the general manager of X's company

e

1. Lois was the agent of Lester, who owned a store in Walton, Iowa. While Lester was away on vacation, the Mississippi River reached record flood. As an agent, Lois only had permission to engage in sales at the store and purchase certain items. Faced with the prospect of losing all goods, Lois shipped Lester's inventory to a storage facility 200 miles away, out of the path of the flood waters. This incurred costs, but saved the inventory. Lois acted in: (A) violation of her duty of loyalty (B) violation of her duty of obedience (C) violation of her duty of accounting (D) accordance with her duty of accounting (E) accordance with her duty of reasonable care

e

1. The principal may hold the third party to a contract, in an undisclosed principal situation, except when the: (A) undisclosed principal is expressly excluded as a party to the contract between the agent and the third party (B) agent's performance is personal to the contract (C) contract, when a negotiable instrument, does not include the identity of the principal or existence of the agency relationship (D) undisclosed principal is expressly excluded as a party to the contract between the agent and the third party or the agent's performance is personal to the contract (E) undisclosed principal is expressly excluded as a party to the contract between the agent and the third party or the agent's performance is personal to the contract or the undisclosed principal is expressly excluded as a party to the contract between the agent and the third party or the agent's performance is personal to the contract

e

1. The scope of an agent's authority is determined from the: (A) oral or written expressions of the principal (B) principal's conduct (C) customs in the business for which the agent is employed (D) oral or written expressions of the principal or the principal's conduct (E) oral or written expressions of the principal or the principal's conduct or the customs in the business for which the agent is employed

e