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Related questions
Q:
Which of the following is true of a fully disclosed agency?
A) The third party does not know the identity of the principal.
B) The third party knows the name of the principal but all transactions are done with the agent.
C) The contract is between the principal, agent, and the third party.
D) The principal is liable on the contract with a third party.
Q:
The ________ is a principal's duty to cover the agent for any losses the agent suffers because of the principal's conduct.
Q:
Ashley owns a piece of vacant real estate through which a small river runs. Ashley hires Warren, a licensed real estate broker, to list the property for sale and help sell the property. While inquiring in the neighborhood, Ashley's neighbor Lenny tells Warren that a chemical plant upstream has polluted his property and that Warren should have environmental engineers test the soil on Ashley's property as well. Warren does not tell Ashley about Lenny's suggestion. Warren manages to find a buyer for Ashley's property in Martha. It is later discovered that the property Martha bought from Ashley is also polluted. What important agent's duty has Warren failed to perform?
A) duty to indemnify
B) duty to account
C) duty to reimburse
D) duty to notify
Q:
Which of the following is an instance of misuse of confidential information?
A) An agent gives the seller the principal's name and phone number in a fully disclosed transaction.
B) A principal gives the contact details of an agent to a third-party without the agent's knowledge.
C) An agent withholds critical information from the principal about the agency.
D) An agent divulges details of his past employer to the principal.
Q:
Which of the following is a course of action for a principal if an agent is found competing with him or her?
A) The principal can recover damages from the agent if the competition continues after the agency has ended.
B) The principal can recover profits made by the agent in the competing venture.
C) The principal has the option of buying the agent's competing venture.
D) The principal is not allowed to recover lost sales due to the agent's competing venture.
Q:
A power of attorney where a principal confers powers on an agent to act in specified matters on the principal's behalf is referred to as a(n) ________.
Q:
A(n) ________ is a contract a principal and agent enter into that says the principal cannot employ another agent other than the one stated.
Q:
An apparent agency is also known as an agency by estoppel.
Q:
The agent's actions–not the principal's–create an apparent agency.
Q:
A power of attorney gives an agent the power to sign legal documents on behalf of the principal.
Q:
An express agency contract cannot be orally agreed upon.
Q:
Which of the following is true of an apparent agency?
A) The authority of an apparent agent is implied from the conduct of the parties.
B) The third-party is not bound to the contract created by an apparent agent.
C) The principal is bound to the contracts entered into by an apparent agent.
D) The actions of an apparent agent create an apparent agency.
Q:
Canton has listed his house for sale but cannot be present to take care of the sale, as he needs to go out of town. He intends to give his brother Stratham the power of attorney to just make decisions regarding the selling of his house while he is gone. What kind of power of attorney should Canton execute?
A) a general power of attorney
B) a special power of attorney
C) an unlimited power of attorney
D) an implied power of attorney
Q:
Which of the following is true about a special power of attorney?
A) It is an implied form of power of attorney.
B) It limits the agent's powers to those enumerated in the agreement.
C) It allows the agent to act in any matters on the principal's behalf.
D) It only allows a licensed attorney to act as the attorney-in-fact.
Q:
Martin, who wants to sell his house, authorizes his concierge, William, to find a potential buyer and finalize a deal above a stipulated price. William contracts Chris, a real estate broker, and intends him to only find a potential buyer and send him or her over to William for the sale. Martin then contracts ReNowait Goodhouses, a home improvement company, to renovate the house. ReNowait completes its work and Martin pays the company. Chris then searches for a suitable buyer and finds one in George. George buys the house and Chris is paid for his services. Who performs the role of the agent in this land sale transaction?
A) William
B) Martin
C) Chris
D) George
Q:
The ________ is the party who employs another person to act on his or her behalf.
A) agent
B) principal
C) independent contractor
D) employee
Q:
Constructive notices are not valid against strangers who assert claims of apparent agency.
Q:
Which of the following leads to the termination of an agency by operation of law?
A) loss or destruction of the subject matter of the agency
B) death of either the principal or agent
C) loss of a required qualification
D) a change in the law
Q:
If a person employs an architect to design the layout of his or her own home, it constitutes a(n) ________ relationship.
Q:
A car salesperson is employed to sell the principal's car, and the principal tells the agent that the car was repaired after it was involved in a major accident. If the agent intentionally tells the buyer that the car was never involved in an accident, the agent has committed the tort of ________.
Q:
EDGAR is the world's largest electronic securities exchange.
Q:
Defendants cannot assert a due diligence defense against liabilities arising from the violation of Section 11 of the Securities Act of
Q:
The issuer is permitted to assert a due diligence defense against the imposition of Section 11 liability.
Q:
Civil liability under Section 11 is imposed on those who are negligent in not discovering fraud in their security offerings.
Q:
What is insider trading? How is it regulated in the United States?
Q:
________ requires that any profits made by a statutory insider on transactions involving short-swing profits belong to the corporation.
A) Section 5 of the Securities Act of 1933
B) Section 12 of the Securities Act of 1933
C) Section 16(b) of the Securities Exchange Act of 1934
D) SEC Rule 10b5-1
Q:
Of the following, who is considered a Section 16 statutory insider?
A) Sharon Muller, an editor who was tipped by her friend to buy shares of KYU Corp.
B) Robert Morgan, an employee who owns ten percent of all equity security of KYU Corp.
C) Jim Downey, a graphics engineer who quit KYU Corp. after five years of service.
D) Kate Harris, a legal consultant to KYU Corp.
Q:
A(n) ________ is a person who discloses material nonpublic information to another person.
A) issuer
B) tippee
C) grantor
D) tipper
Q:
Which of the following is an example of insider trading?
A) An employee uses material nonpublic information to make a profit by trading in the securities of the company.
B) A manager purchases all the shares of a corporation available to the public.
C) A director purchases enough shares of a public company to gain a majority stake in its management.
D) An employee sells his shares to another employee without notifying the company.
Q:
In order to be found guilty for violation of Rule 10b-5, intentional conduct (scienter) must be proven.