Business Law Ch 17
Geoff serves in a representative capacity for Huck. To accomplish the objectives of this relationship, Geoff's authority can be implied by contradiction. by custom. by lack of reason. under no circumstances.
by custom
Ronda holds herself out as possessing special accounting skills. As an agent, she must exercise the degree of skill or care expected of a person having those skills. an average, unskilled person. a reasonable person. the principal.
a person having those skills.
Jewelry & Coin Company hires Kelly Ann to buy gems and precious metals from various sources on its behalf. In this relationship, Jewelry & Coin is an employee. an independent contractor. a principal. an agent.
a principal
Watercraft, Inc., employs Vladimir as a sales agent for a trial period. At the end of the period, Watercraft and Vladimir disagree on the amount of the commissions Vladimir is due for sales that he made. Vladimir may demand a constructive trust. an accounting. nothing. specific performance.
an accounting
Vida is a purchasing agent for Wholesome Foods with the authority to buy grain up to a certain quantity. After the grain is bought, the agency relationship terminates automatically. following notice to all actual grain sellers. following notice to all potential grain sellers. following published notice in a local newspaper.
automatically
A principal does not have the right to control an agent's conduct in matters entrusted to the agent. True False
false
An agency relationship is enforceable even if it is created for an illegal purpose. True False
false
Independent contractors have no control over the details of their work performance. True False
false
Normally, employees who deal with third parties are not deemed to be agents. True False
false
Dakota Energy Company employs Evan to negotiate the purchase of mineral rights for future mining projects. Evan secretly buys some of the property and sells it to Dakota at a profit. Evan has breached no duty. the agent's duty of accounting. the agent's duty of loyalty. the principal's duty of compensation.
the agent's duty of loyalty
A power of attorney can permit an agent to transact all business for a principal. True False
true
An agency agreement can be created by an oral agreement. True False
true
An agent has the implied authority to do what is reasonably necessary to carry out express authority. True False
true
If a principal ratifies a contract without knowing all of the facts, the principal can rescind the contract. True False
true
Implied authority is authority declared in clear, direct, definite terms. True False
true
Under the law of agency, notice to the agent is notice to the principal. True False
true
Mountain States Distribution Inc. hires Norris to work on Mountain States's shipping dock, accepting deliveries, dispatching trucks, and dealing with customers and other companies' drivers. With respect to Mountain States, Norris is most likely an agent. an independent contractor. a principal. an employer.
an agent
Brenda, a salesperson at a Cabinets & Countertops store, tells D'Antoni, a customer, "Buy your cabinets here, and I'll install them for half of what the store would charge." D'Antoni buys the cabinets, which Brenda installs for half the store's price. Brenda keeps the money. Brenda has breached no duty. the agent's duty of loyalty. the principal's duty of indemnification. the agent's duty of obedience.
the agent's duty of loyalty
Baked Bread Company hires Connie to sell the company's products in a certain area. Baked Bread agrees to pay Connie a salary, plus commission, for a trial period. They also agree that Connie can sell using any methods and during any hours that seem appropriate. The key factor in whether Connie is Baked Bread's employee is the amount of Connie's salary. the control Baked Bread has over the details of the work. the length of the trial period. the size of Connie's sales area.
the amount of Connie's salary