chp 14 qs
D
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
B
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
D
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
C
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
A
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
C
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
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
A
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
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
D
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
C
Implied ratification usually occurs when: a. the principal refuses to accept the benefits of the agreement b. the principal accepts the benefits of the agreement c. the agent accepts the benefits of the agreement d. a court processes the power of attorney e. none of the other choices are correct
E
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
D
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
Operation of law provides agents with the authority to act beyond the authority granted by the principal when: a. an agent has a good idea b. an agent has an opportunity to make a profit for the principal through his actions c. an agent understands all the risks d. an emergency exists e. the principal fails to make the right decision
E
Operation of law provides agents with the authority to act beyond the authority granted by the principal when: a. an agent has a good idea b. an agent has an opportunity to make a profit for the principal through his actions c. an agent understands all the risks d. the principal fails to make the right decision e. none of the other choices are correct
B
Ratification of an agreement that is required by law to be in writing: a. need not be in writing b. must be in writing c. must be witnessed by a court official d. must be in writing unless both parties agree that it need not be e. must be verbal
A
The authority given by the principal to an agent, conferring on the agent the power and right to change the principal's legal status is referred to as: a. special authority b. authority in rem c. authority at law d. general authority e. none of the other choices
B
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
E
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
D
The scope of an agent's authority is determined from the: a. oral or written expressions of the principal b. principal's conduct c. standards of the Uniform Agency Act 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 standards of the Uniform Agency Act
B
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
E
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 must file an agency charter with the appropriate state agency d. all of the other specific choices e. none of the other choices
C
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
D
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
C
Which of the following can determine the scope of authority given to an agent: a. statements of the agent b. the principal's personal relationship with a third party c. statements of the principal d. all of the other specific choices are correct e. none of the other specific choices are correct
C
Which of the following can determine the scope of authority given to an agent: a. statements of the agent b. the principal's personal relationship with a third party c. the principal's conduct d. all of the other specific choices are correct e. none of the other specific choices are correct
C
Which of the following can determine the scope of authority given to an agent: a. statements of the agent b. the principal's personal relationship with the agent c. the trade customs in business d. all of the other specific choices are correct e. none of the other specific choices are correct
D
Which of the following determines the scope of authority given to an agent: a. statements of the principal b. the principal's conduct c. the trade customs in business d. all of the other specific choices are correct e. none of the other specific choices are correct
A
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
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
E
Which of the following is not a duty owed by the agent to the principal: a. loyalty b. reasonable care c. accounting d. notification e. all of the other choices are required
D
Which of the following is part of the principal's duty to cooperate: a. providing a safe working environment b. warning the agent of any unreasonable risk associated with the agency c. not furnishing goods of inferior quality to the agent d. all of the other specific choices are correct e. none of the other choices are correct
C
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