Chapter 19
What is the term for when circumstances make such an agency necessary? Multiple choice question. Agency by consideration Agency by ratification Agency by agreement Agency by necessity
Agency by necessity
What is the term for when the court finds the need to create an agency? Multiple choice question. Agency by operation of law Agency by ratification Agency by necessity Agency by common law
Agency by operation of law
What is the term for when a principal approves an unauthorized act performed by an agent? Multiple choice question. Agency by necessity Agency by ratification Agency by consideration Agency by agreement
Agency by ratification
What is the term for a person who represents another? Multiple choice question. Incorporator Principal Agent Guarantor
Agent
________ with the legal right to perform an act may delegate that performance to another by appointing an agent. Multiple choice question. Any competent party Any incompetent party Only employers Only individuals
Any competent party
________ with the legal right to perform an act may delegate that performance to another by appointing an agent. Multiple choice question. Only individuals Any competent party Only employers Any incompetent party
Any competent party
What is the term for the authority a third party reasonably assumes an agent possesses, despite the fact that the agent does not possess such authority? Multiple choice question. Corporate authority Express authority Implied authority Apparent authority
Apparent authority
What is the term for the authority a third party reasonably assumes an agent possesses, despite the fact that the agent does not possess such authority? Multiple choice question. Implied authority Apparent authority Corporate authority Express authority
Apparent authority
What is the term for the specifically stated authority actually given by the principal? Multiple choice question. Corporate authority Express authority Implied authority Apparent authority
Express authority
Corporations do not have the legal right to appoint agents. True false question.TrueFalse
False Reason: Any competent party, including a person or a corporation, has the legal right to delegate to an agent.
In an employer-employee relationship, the contact between the consumer and business generally gives the employee rights similar to an agent. True false question.TrueFalse
False Reason: In an employer-employee relationship, the employee does not get rights similar to an agent.
What is the term for a person who is authorized to assume complete charge of his or her principal's business? Multiple choice question. Special agent General agent Liability agent Attorney in fact
General agent
What is the term for an agent who acts on behalf of a principal without being paid? Multiple choice question. Undisclosed agent Gratuitous agent Compensatory agent Fiduciary agent
Gratuitous agent They are held to a lower level of liability than paid agents.
The principal cannot terminate which type of agency contract? Multiple choice question. At-will Irrevocable Corporate Fiduciary
Irrevocable
The principal cannot terminate which type of agency contract? Multiple choice question. Irrevocable Fiduciary Corporate At-will
Irrevocable
What is the term for the legal document that formally creates an agency? Multiple choice question. Writ of attorney Motion of attorney Power of attorney Injunction of attorney
Power of attorney
What is the term for a person delegated to act only in a particular transaction? Multiple choice question. Attorney in fact Liability agent Special agent General agent
Special agent
If the agent acted within their scope of authority, who is responsible to a third party for agreements made by the agent? Multiple choice question. The principal The agent The state The third party
The principal
Select all that apply If an agent commits torts or crimes at the direction of the principal, who could be held liable for the unlawful acts of the agent? Multiple select question. A third party The principal The agent The court
The principal The agent
If the agent makes a fraudulent statement in a contract within their scope of authority, the third party may cancel or affirm the contract and recover compensation. True false question.TrueFalse
True Reason: This is true. If the agent makes a fraudulent statement, the third party can cancel or affirm the contract and recover compensation.
A principal cannot accept the benefits of an agent's transaction and refuse to accept the obligations that are a part of it. True false question.TrueFalse
True Reason: This is true. The ratification must apply to the entire act (benefits and obligations).
A court will create an agency by operation of law to achieve _______________. Multiple choice question. greater profits shareholder satisfaction a desired social policy ratification of an agent's act
a desired social policy
Gratuitous agents are held to _______ level of liability than paid agents. Multiple choice question. the same a higher a lower
a lower
An agency that can be revoked by the principal for a specific reason or no reason is known as a(n): Multiple Choiceirrevocable agencyagency at willagency at sufferancesilent agency
agency at will
What type of agency is created when circumstances make such an agency necessary? Multiple Choiceagency by operation of lawagency by necessityagency by agreementagency by conclusion
agency by necessity
What type of agency is created when a court finds the need for an agency to achieve a desired social policy? Multiple Choiceagency by necessityagency by operation of lawagency by agreementagency by conclusion
agency by operation of law
A person who represents another is known as a(n): Multiple Choiceadministratorexecutorassistantagent
agent
A general agent is entrusted with authority to act for the principal in ___________________. Multiple choice question. a particular transaction only real estate transactions limited financial affairs all business-related matters
all business-related matters
The authority that a third party may reasonably assume an agent possesses, despite the fact that the agent does not actually possess the authority is known as: Multiple Choiceactual authorityimplied authorityapparent authorityobvious authority
apparent authority
Select all that apply The principal is not liable for contracts an agent makes with a third party if the agreement was ______________. Multiple select question. expressly or implicitly authorized by the agent expressly or implicitly authorized by the principal apparently or obviously outside the scope of the agent's authority not authorized by the principal
apparently or obviously outside the scope of the agent's authority not authorized by the principal
A special agent is under definite instructions with specific limits on their scope of ___________. Multiple choice question. remuneration authority compensation liability
authority
In dealing with third parties, an agent is subject to the ______________ of the person they represent. Multiple choice question. custody liability control autonomy
control
The main difference between the principal-agent relationship and the employer-employee relationship is the employer's power to: Multiple Choice determine the pay of the non-agent employee terminate the non-agent employee control the activities of the non-agent employeecreate the benefits package of the non-agent employee
control the activities of the non-agent employee
An agent may perform only those acts that have been authorized by the principal or a(n) _______. Multiple choice question. court attorney in fact administrative agency attorney-at-law
court
When an agent signs a contract using the principal's name, they are acting on behalf of a(n) ________ principal. Multiple choice question. undisclosed gratuitous disclosed partially disclosed
disclosed
When the agent informs the third party that they are acting on behalf of a specific individual, they are making the third party aware of the identity of the _________ principal. Multiple choice question. disclosed third-party gratuitous undisclosed
disclosed
When an agent informs a third party that he or she is acting on behalf of a principal, the identified principal is known as a(n): Multiple Choicepartially disclosed principalundisclosed principaldisclosed principalunanimous principal
disclosed principal
What type of authority allows the agent to perform the duties that are specifically stated in the contract of agency? Multiple Choicelimited authoritycomplete authorityexpress authoritypartial authority
express authority
An agency by agreement results when a principal approves an unauthorized act performed by an agent. Group startsTrue or False True, unselectedFalse, unselected
false
Common duties of a principal include the duty of obedience and the obligation to keep accurate records of transactions conducted on behalf of the agency relationship. Group startsTrue or False True, unselected
false
TF Qu. 19-19 It is not necessary for... It is not necessary for the agent to obey all of the principal's reasonable and lawful orders and instructions within the scope of the agency contract. Group startsTrue or False True, unselectedFalse
false
A person authorized to assume complete charge of his or her principal's business or who is entrusted with general authority to act for the principal in all business related matters is called a: Multiple Choicegeneral agent.hired agent.special agent.super agent.
general agent.
A __________ agent is one who acts on behalf of the principal but does not get paid. Multiple Choicebenevolentspecialgratuitousresponsible
gratuitous
In an agency relationship, the agent, the principal, and the third party ______ one another. Multiple choice question. owe cash to cannot sue have duties to must be related to
have duties to
A power of attorney is a(n) __________, which appoints one person as agent and confers authority to perform certain acts on behalf of the principal. Multiple choice question. implied agreement instrument in writing nonbinding agreement oral agreement
instrument in writing
In an irrevocable agency contract, the agent has a(n) _________ in the subject matter of the agency, in addition to the remuneration received for services. Multiple choice question. interest consideration termination revocation
interest
A(n) __________ agency is an agency that may not be revoked by the principal if the agent has an interest in the subject matter of the agency in addition to the remuneration that the agent receives for his or her services. Multiple Choicecompletecontractrevocableirrevocable
irrevocable
To serve as an agent, an individual must be _________. Multiple choice question. free of all personal debt legally competent an attorney an accountant
legally competent
The main difference between principal-agent and employer-employee relationships is an employer's power to control the activities of a(n) ___________. Multiple choice question. independent contractor non-agent employee government contractor agent employee
non-agent employee
In the disclosed principal situation, the agent is: Multiple Choicepersonally liable to the third partynot personally liable to the third partynot allowed to work on behalf of the principalallowed to commit illegal acts
not personally liable to the third party
For an agency by ratification, a principal cannot accept the benefits of a transaction and refuse to accept the: Multiple Choiceobligations.parallel benefits.apparent benefits.representation.
obligations.
The legal document formally creating an agency is called a: Multiple Choicegeneral contract.power of attorney.special delegation.collateral power.
power of attorney.
In situations of apparent authority, the ________ has not implied that the agent has such authority. Multiple choice question. agent attorney in fact guardian ad litem principal
principal
An agent may not perform any act that would betray the ________ trust. Multiple choice question. third party's other agents' agent's principal's
principal's
An agent must obey all the principal's ______ and lawful orders within the scope of the agency contract. Multiple choice question. reasonable unlawful illegal irrational
reasonable
Select all that apply When an agency is created, the parties affected are: Multiple select question. the agent. the state. the third party. the principal.
the agent. the third party. the principal.
In general, an agent may perform only those acts that have been authorized by: Multiple choice question. a third party. a federal agency. the principal. the guardian ad litem.
the principal.
The law in some states recognizes an agency by necessity when one spouse fails to support the other spouse or ___________. Multiple choice question. their adult children the spouse's siblings the spouse's parents their minor children
their minor children
If minors are capable of properly carrying out the duties of an agency relationship: Multiple Choice then they may be considered to represent other persons as agents.they may still not be eligible to enter into a contract with an agent.then may still not be considered to represent other persons as agents.then they are exempted from representing other persons as agents.
then they may be considered to represent other persons as agents.
Anyone who is legally competent _________ may serve as an agent. Multiple choice question. to act for himself or herself to represent parties in a court of law to hold public office and has an advanced degree
to act for himself or herself
A principal is liable for the torts and crimes of the agent if they are committed at the direction of the principal or while the agent is performing authorized duties during the ordinary course of the agency. Group startsTrue or False True, unselectedFalse
true
A principal must pay the agent the compensation agreed to in the contract. Group startsTrue or False True, unselectedFalse, unselected
true
Select all that apply Express authority can be given as __________ instructions. Multiple select question. written ambiguous oral apparent
written oral
