BUS LAW 01 Agency Relationships

When is an agent liable on a contract that the agent entered into in the business of the agent's principal? Choose 3 answers. when the principal is undisclosed when the agent is acting without authority if the agent entered into the contract in a personal capacity when the principal is not satisfied with the terms of the contract

when the principal is undisclosed when the agent is acting without authority if the agent entered into the contract in a personal capacity

What is required to form an agency relationship? The principal must pay the agent. The agent and principal must agree to enter the relationship. The agent must have contractual capacity. The agency agreement must be in writing.

The agent and principal must agree to enter the relationship.

Is a principal under a duty to compensate an agent who works on the principal's behalf? Yes, if the contract requires compensation. No, an agent is never paid. Yes, if the agent does a really good job above and beyond what is expected. No, if a salary has not been agreed on.

Yes, if the contract requires compensation.

Who is liable to third parties for damage caused by an agent's tortious conduct if the principal had directed the agent to take that action? only the agent neither the agent nor the principal if the principal has insurance coverage both the agent and the principal only the principal

both the agent and the principal

Is a principal liable for the tortious actions of the principal's agent? No, unless the principal authorized the tortious conduct. Yes, but only if the principal authorized the tortious conduct. Yes, but the agent must reimburse the principal. No, only the agent is liable for the agent's torts.

Yes, but the agent must reimburse the principal.

If harm is done by an agent, and it is discovered that this agent has been convicted of the same harm before at a previous job, what might a principal be liable for? negligent hiring breach of fiduciary duty gratuitous hiring negligent retention

negligent hiring

What are the fiduciary duties of an agent to her principal? Choose 3 answers. obedience accounting indemnification loyalty

obedience accounting loyalty

Who can terminate an agency relationship? Neither may terminate the agency until the terms of the agreement have transpired. Only the principal may terminate. Only the agent may terminate. Either the agent or the principal may terminate.

Either the agent or the principal may terminate.

How does a principal become liable to third parties on contracts? The principal directly signs a contract with a third party. The principal's agent has the authority to bind the principal in a contract with a third party. The agent ratifies the contract. A principal is not liable to third parties on contracts.

The principal's agent has the authority to bind the principal in a contract with a third party.

How may an agency relationship be formed? Choose 3 answers. by express oral agreement between agent and principal by express written agreement between agent and principal implied by the conduct of the principal implied by the conduct of the agent

by express oral agreement between agent and principal by express written agreement between agent and principal implied by the conduct of the principal