Chapter 23
False
A person hired to manage a business is an example of a special agent
agency
A relationship that exists when one person is authorized to act under the control of another person.
apparent autority
A relationship that occurs when someone performs an act on behalf of another without authority to do so but the other person later approves of the act.
respondeat superior
A rule of law that makes principals and employers responsible for the torts of their agents and servants committed within the scope of their authority or employment
True
Agents may be appointed expressly either orally or in writing
consignor
An agent to whom a consignment is made
True
An agent who contracts on behalf of an undisclosed principal can be held liable on the contract.
attorney in fact
An agent who is authorized to act under a power of attorney.
special agent
An agent who is authorized to carry out a single transaction or to perform a specified act.
independent contractor
An agent who is authorized to conduct all of a principal's activity in connection with a particular business.
False
Apparent authority comes about when an agent makes it appear that the agent has authority when non exists.
implied authority
Authority of an agent to perform incidental functions that are reasonably and customarily necessary to enable the agent to accomplish overall purpose of the agency.
apparent authority/agency by estoppel
Authority that comes about when a principal through some act makes it appear than an agent has authority when none actually exist.
express authority
Authority that is given explicitly.
True
Employees may also be agents if they have been authorized to enter into contracts with third parties on behalf of their employers.
third party
In agency law one who deals with an agent in making a contract with the agent's principal.
vicarious liability
Liability that is imputed to principals and employers because of wrongdoings of their agents and employees
employer/master
One employs the services of others in exchange for wages or salaries.
principal
One who authorizes another to act on his or her behalf.
agent
One who is authorized to act for another.
undisclosed principal
One who is not known by a third party to be a principal for an agent.
employee
One who makes a consignment.
power of attorney
One who performs services for another but who is not under the other's control.
employee/servant
One who performs services under the direction and control of another.
False
People who have independent contractors perform work for them must withhold taxes from their pay.
True
Someone injured by the wrongful conduct of an employee may sue the employee and also his or her employer.
malfeasance
The doing of an act that ought not to be done at all.
nonfeasance
The failure to do an act that ought to be done.
misfesance
The improper doing of an act.
consignment
The process of delivering goods to a bailee called a factor who attempts to sell them and who may return those that are unsold.
scope of employment
The zone in which employees operate.
impute
To charge; to lay the responsibility or blame
False
When a principal authorizes an agent to enter into a contract on the principals's behalf the resulting contract is between the agent and the third party.
True
When agents are given express authority to perform certain acts they have no implied authority.
True
When goods are sold on consignment title to the goods does not pass between the consignor and the consignee
factor
A bailee to whom goods are consigned for sale.
del credere agent
A factor who sells consigned goods on credit and who guarantees to the consignor that they buyer will pay for the goods.
power of authority
A formal writing that authorizes an agent to act for a principal.
dummy corporation
A lawful corporation created to take title to assets while safeguarding the corporation owner's identity and liability.
