Legal Studies Chapter 10

the individual is paid by the hour for all of her work and the employer removes all taxes prior to payment

The ABC test that state courts look to to determine independent contractor status includes all of the following factors except: _______.

peculiar risk

The ______ doctrine requires a principal to take reasonable steps to determine the fitness of an independent contractor agent to perform an inherently dangerous activity?

apparent

The appearance of legitimate authority to a third party is known as ______ authority.

suing in court for damages.

The common remedy for an agent when a principal breaches is: ____

consent and control

The creation of an agency relationship is defined in terms of: ______.

disclosure

The duty of _____ is based on the notion that the principal is bound by the agent's actions.

loyalty

The duty of _____ requires the agent to advance the principal's interest over the agent's own interests.

manifest

The first step in forming an agency relationship is for the principal to ______ an offer to form an agency.

Contracts, Torts

The law of agency often overlays and interacts with other areas of the law, especially _______ and _______.

reimburse

The most common breach by a principal is failure to: ______.

Partially disclosed agency

The principal and agent are both liable in which of the following relationships?

reimbursement

The principal owes a duty of ______ to his agent.

the actual working relationship between the principal and agent.

The substance-over-form doctrine focuses on: ______.

true

True or false: Many states have adopted the ABC test in their agency statutes as a standard for determining agency status.

Disgorgement

When a court orders a(n) _____, the agent to return any funds earned as a result of breaching conduct.

fully

When the agency relationship is ______ disclosed, the agent is not liable to the third party.

principal

Which of the following defines the tasks and objectives of the agency relationship?

Intentional torts

Which of the following normally falls outside of the doctrine of respondeat superior?

principal and agent

Who may be liable in a partially disclosed agency situation?

liable for both the physical injury and any related economic losses

As a general rule, if the employee's misconduct causes physical harm to a third party's person or property, the employer is: ______.

liable for both the physical injury and any related economic losses Need help? Review these concept resources.

As a general rule, if the employee's misconduct causes physical harm to a third party's person or property, the employer is: ______.

within the scope of employment.

Before an employer will be responsible for the negligent acts of an employee, the negligent act must have occurred: ______.

principal's liability

Classification of an agent is important for business owners because of the potential of a(n): ______.

objective

Courts used a(n)______ standard to determine if the parties have manifested an offer and acceptance of an agency relationship.

fiduciary

Duties that define an agency relationship are collectively called a(n) ______ duty.

principal

In a fully disclosed agency transaction, which of the following is liable to the third party?

substantial direction and control over the employee-agent.

In most employer-employee agent relationships, the employer exercises: ______.

Employee Agents

Individual employees authorized to transact business on behalf of the employer principal are called: _____.

Fiduciary

Loyalty, obedience, care, disclosure, and accounting are sub-duties of a(n) ______ duty.

independent contractors

Professional service providers such as attorneys, outside accountants, and architects are all examples of: __________.

loyalty

Refraining from self-dealing and acting solely for the benefit of the principal are agent requirements under the duty of: ______.

independent contractors.

Principals are generally not liable for the negligent acts of: ______.

vicarious

Respondeat superior is a form of ______ liability.

employment

Respondeat superior is limited by the scope of ______ requirement.

peculiar risk

The ______ doctrine presents an exception to the general rule that principals are not responsible for the negligent acts or omissions of independent contractors.

master-servant relationship

The nonagent employee relationship is referred to as the: _____.

agent

The party acting on behalf of another in an agency relationship is the: __________.

intermingle funds

Under the duty to account, the agent may not: ______.

IRS

Which government entity has created a three-prong test to determine an agent's status?

Contracts and torts

Which of the following areas of law most often overlap with agency law?

B) The substantive equity of the agency relationship

Which of the following is not a part of the IRS three-prong test used to determine an agent's classification? A) The working arrangement of the agency relationship B) The substantive equity of the agency relationship C) The financial details of the agency relationship D) The behavioral aspects of the agency relationship

intentional torts

Which of the following normally falls outside of the doctrine of respondeat superior?

negligent hiring doctrine

The ______ imposes an obligation on employers when hiring employees to take reasonable steps to protect third parties from potential harmful contact by employees.

principal

The _________ is in control of an agency relationship.

principal

The party whom the agent is acting on behalf of in an agency relationship is the: ____.

False

True or false: For an agency relationship to be effective, the principal must have continuous and total control.

agency

A transaction involving one party hiring another party to transact business on behalf of the hiring party is referred to as what type of relationship?

frolic

A(n) ______ falls outside the scope of employment zone covered by respondeat superior.

detour

A(n) ______ is a small-scale deviation from normal work activity and within the scope of employment covered under the doctrine of respondeat superior.

partially

A(n) _______ disclosed agency relationship is one where the third party is aware the agent is acting on behalf of a principal, but the identity of the principal is unknown.

ratification

Actual authority, apparent authority, and ______ are the primary sources of an agent's power.

damages

If the principal refuses to reimburse the agent, the agent typically can turn to a court to recover:

frolic

An employee's conduct during the normal workday, but not related to employment and performed for the employee's own benefit is a(n) ______

respondeat

A detour is a minor deviation from normal work activities that is covered under the doctrine of ______ superior

objectively reasonable

A third party's belief that an agent is acting on behalf of the principal must be __________.

law

Agency termination provided for by a statute or through a common law doctrine is said to have terminated by operation of:

principal-agents

Agents can be classified into any of the following broad categories except: ______.

express

An agency relationship is usually created by a(n) ______ agreement.

express

An agency relationship may be terminated by a(n) _____ action of the parties.

laws

An agency relationship may be terminated by operation of:

destruction

An agency terminated by _____ occurs when property essential to the agency relationship is no longer available.

obey

An agent has the duty to ______lawful instructions from the principal and cannot substitute his or her own judgment for the judgment of the principal unless specifically authorized.

idemnified

An agent has the right to be reimbursed and __________ by the principal.

care

An agent must act with due _____ when conducting business on behalf of the principal.

consent

An agent must give _________ to perform an act on behalf of a principal.

Accounting

An agent must keep appropriate written records for any money received or spent in the course of agency business under the duty to:

account

An agent must keep appropriate written records for any money received or spent in the course of agency business under the duty to:

independent contractor

An agent that does not bind the principal, is not considered an employee, and has no legal protections that an employee has is considered a(n): ______.

obedience

An agent, unless otherwise authorized, may not substitute his or her own judgment for the principal's judgment under the duty of: ______.

vicarious

For agency purposes, a principal can be liable via a contract obligation or through ________ liability (liability for another) in tort.

vicarious liability

For agency purposes, a principal's liability can arise either through a contract obligation or through _______ in tort.q

law

If a principal hires an agent to paint a building but the building is destroyed by fire before the agent begins to paint, the agency is terminated by operation of: __________.

indemnify and hold the principal harmless

If an agent's breach of duty resulted in a principal becoming liable to a third party, then the agent must: ______.

suing the agent for the breach

If an agent's breach of duty to the principal causes damages to the principal, the principal may recover those damages by: ______.

not liable because respondeat superior does not apply

If an employee's actions results in harm only to a third party's emotional state, reputation, or is a purely economic loss, then the principal is: ______.

rescind

If the duty of loyalty is breached, the principal may _____ any transaction with the agent.

to account

Keeping appropriate written records on reimbursable expenses and monies received are obligations under the duty: ______.

disclosure

Keeping the principal informed is the duty of

disclosure

Keeping the principal informed is the duty of:

actual

______ authority is normally what gives an agent the power to bind the principal.

intentional

______ torts by an agent are normally outside the scope of employment and no liability is imposed on the employer unless the agent's action has a close connection to the employer. Listen to the complete question

intentional

________ torts by an agent are normally outside the scope of employment and no liability is imposed on the employer unless the agent's action has a close connection to the employer.

consent

__________ occurs when an agent agrees to act for the principal.

implied

Actual authority may be _______ through custom or prior dealings.

apparent

Actual authority, _______ authority, and ratification are an agent's primary sources of power.

negligent hiring doctrine

Reference checks and criminal background checks are steps employers can take to shield themselves from the liability imposed by the: ______.

contracts and torts

Which of the following areas of law most often overlap with agency law?