Q&A Hero

Q: What type of relationship typically exists when an employer hires an employee to enter into contracts on behalf of the employer? A. Principal-agent relationship B. Employer-agent relationship C. Employer-independent contractor relationship D. Avowed relationship E. Acknowledged relationship

Q: Whenever an employer hires an employee to perform some sort of physical service, the parties have created a(n) ______ relationship. A. employer-agent B. employer-employee C. employer-independent contractor D. avowed E. acknowledged

Q: Which of the following is false regarding the employer-employee relationship? A. The employee is subject to the control of the employer. B. Generally, all employees are considered to be agents of the employer. C. Employees who are not legally authorized to enter into contracts binding their employer are considered agents. D. Employees not legally authorized to interact with third parties are considered agents. E. Independent contractors fall under the employer-employee relationship.

Q: Persons who are not employees but who are hired by employers to perform certain tasks, are known as _____________________. A. employee agents B. independent contractors C. independent agents D. principle agents E. task-specific agents

Q: Which of the following is another name for apparent agency? A. Simplified agency B. Equitable agency C. Agency by law D. Agency by estoppel E. Approved agency

Q: An agency relationship that arises when an individual misrepresents herself as an agent for another party and that party accepts the unauthorized act is a(n) A. agency by ratification. B. agency by implied authority. C. agency by estoppel. D. agency by realization. E. agency by agreement.

Q: Agency laws are relevant to _____________________ relationship. A. principal-agent B. employer-employee C. employer-independent contractor D. principal-agent, employer-employee, and employer-independent contractor E. principal-agent and employer-employee, but not employer-independent contractor

Q: Under which of the following does a principal give authority to an agent only for the specific areas or purposes listed in the agency agreement? A. A general power of attorney B. A specific power of attorney C. A localized power of attorney D. A broad power of attorney E. A recognized power or attorney

Q: A ______ is a written document, created by a principal, expressing his or her wishes for an agent's authority not to be affected by the principal's subsequent incapacity. A. general purpose power of attorney B. living power of attorney C. notarized power of attorney D. durable power of attorney E. lasting power of attorney

Q: ________________ occurs when a principal leads a third party to believe another individual serves as his or her agent; but, the principal has actually made no agreement with the so-called agent. A. Expressed agency B. Implied agency C. Apparent agency D. Ratification E. Endorsement

Q: If a principal agrees to hire no other agent for a period of time or until a particular job is done, the principal and agent have entered into a(n) ______ agency contract. A. limited B. specific C. exact D. identified E. exclusive

Q: A document that gives an agent authority to sign legal documents on behalf of the principal is known as a(n) _________________________________. A. order of authority B. power of order C. legal empowerment D. power of attorney E. respondeat superior

Q: Under which of the following does a principal give an agent broad authority to sign legal documents on behalf of the principal rather than authority for only a specific purpose? A. A general power of attorney B. A specific power of attorney C. A localized power of attorney D. A broad power of attorney E. A recognized power or attorney

Q: Which of the following is false regarding the agency relationship? A. It is a consensual relationship. B. It may be formed by formal written contracts. C. It may usually be formed by informal oral agreements. D. It exists when the principal takes action to ask another individual to act on behalf of the principal. E. People must be trained in the field involved in order to qualify as agents.

Q: Which of the following is not a form of authority upon which an agency relationship may be based? A. Expressed agency B. Implied agency C. Apparent agency D. Gratuitous agency E. Ratification

Q: When parties form an agency relationship by making a written or oral agreement, the agency is known as a(n) _______. A. expressed agency B. implied agency C. apparent agency D. ratification E. endorsement

Q: Which of the following is the most common form of agency? A. Expressed agency B. Implied agency C. Apparent agency D. Ratification E. Endorsement

Q: In a(n) _____ relationship, the agent is authorized to act for and on behalf of the principal, who hires the agent to represent him or her. A. authority B. principality C. agency D. decreed E. conferred

Q: Which of the following is a person who has a duty to act primarily for another person's benefit? A. Principal B. Employer C. Fiduciary D. Trustor E. Benefitor

Q: A(n) _______________ is s party that an agent's authority can bind or act on behalf of. A. fiduciary B. principal C. independent contractor D. agency relationship E. creditor

Q: How did the appeals court rule in Steven A. B. Hannington v Trustees of the University of Pennsylvania and Dr. Mark Bernstein, where the plaintiff, a student suing for alleged wrongful expulsion, attempted to avoid a settlement agreement entered into by an attorney acting on his behalf? A. That the settlement agreement would be set aside because the attorney had exceeded his authority. B. That the settlement agreement would be set aside both because the attorney had exceeded his authority and because the doctrine of apparent authority was inapplicable. C. That the settlement agreement would be enforced based on the doctrine of apparent authority, but only in part because the college was comparatively at fault in placing unjustified reliance on the attorney's authority. D. That the settlement agreement would be enforced based on the doctrine of apparent authority regardless of whether the attorney exceeded the scope of his actual authority. E. That a jury should determine the enforceability of the settlement agreement based upon its reasonableness.

Q: Which of the following was the result on appeal in Iglesia Cristiana La Casa Del Senor, Inc., Etc. v. L.M., the case involving the issue of whether a church was liable based on the principle of respondeat superior for a sexual assault allegedly committed by a church pastor? A. That the church was liable to the plaintiff based upon principles of respondeat superior. B. That the church was liable based on principles of respondeat superior only if it could be proven that the pastor sexually assaulted more than one person. C. That the church was liable based on respondeat superior only if it could be proven that the church had knowledge of at least one sexual assault prior to the plaintiff's but failed to remove the pastor from church assignments. D. That the church was not liable based upon principles of respondeat superior. E. That the church was not liable based upon principles of respondeat superior only because the pastor was immediately fired when his actions came to light.

Q: Which of the following is generally defined as a relationship between a principal and an agent? A. Agency B. Principality C. Combination D. Employment E. Authorization

Q: An agency coupled with an interest is created for the principal's benefit.

Q: Bankruptcy of either the principal or agent will terminates the agency relationship.

Q: Singapore outlawed the use of electronic contracts.

Q: Agents who go beyond their authority when the principal is disclosed or partially disclosed are liable for breach of contract, not breach of implied warranty.

Q: In order to properly provide notice of the termination of an agency relationship, actual notice of agency termination must be given to third parties who have had business interactions with the agent.

Q: Actual notice of agency termination may never be given orally.

Q: When a third party is aware that an agent who exceeds his or her authority does not represent the principal, the law does not hold the agent liable for an agreement in cases in which the agent exceeds his or her authority to act on behalf of the principal.

Q: An agent may use implied authority reasonably necessary to achieve the specific goals she is to achieve.

Q: The equal dignity rule requires that all agency agreements be in writing.

Q: An agent's implied authority is derived from an agent's apparent authority and consists of what is reasonably necessary for carrying out the agent's grant of express authority.

Q: Agents may have contract remedies available against principals, but not tort remedies.

Q: An agent's obligation to act in the interest of the principal is known as a duty of performance.

Q: An agent may be required to indemnify the principal if a third party sues the principal.

Q: If the worker is a regular part of the business of the employer and is paid in regular payments according to time, that worker can be classified as an independent contractor.

Q: While an agent owes duties to a principal, the principal owes no duties to an agent.

Q: A principal may be entitled to a variety of contract and tort remedies beyond those stated in their agreement if an agent breaches duties owed to that principal.

Q: Agency relationships must be created by expressed agreement.

Q: An agency relationship that arises when an individual misrepresents herself as an agent for another party and that party accepts the unauthorized act is an agency by ratification.

Q: All employees are agents of their employers, and all agents are employees.

Q: A person who is hired to perform a task for another but who is not the other's employee is called an independent contractor.

Q: A durable power of attorney is legally binding after the principal becomes incapacitated.

Q: A gratuitous agent is one who acts without consideration.

Q: A power of attorney must be for a specific purpose, not a general authority.

Q: An agency relationship can be created only for a lawful purpose.

Q: An individual who lacks contractual capacity may hire an agent to make contracts on his or her behalf.

Q: A power of attorney is a document that gives an agent authority to sign legal documents on behalf of the principal.

Q: The association between one party and an agent who acts on behalf of that party is an agency relationship.

Q: The party who has the authority to act on behalf of and bind another party is the principal.

Q: A person who has a duty to act primarily for another person's benefit is an agent.

Q: Agency law is primarily federal law.

Q: In a Chapter 7 proceeding, a bankruptcy trustee may temporarily take over a debtor's business.

Q: If a debtor fails to appear at the Chapter 7 creditors' meeting, the court may refuse to grant the bankruptcy.

Q: Chapter 11 reorganization must be voluntary.

Q: Before a debtor files for one specific type of bankruptcy relief, the clerk of courts must give the debtor written notice of the other types of relief available.

Q: Under Chapter 7, liquidation may be voluntary but not involuntary.

Q: Assets that a debtor gains after filing a Chapter 7 bankruptcy petition are generally not part of the bankruptcy estate unless they fall under an exemption.

Q: The "bankruptcy estate" consists of the debtor's debts.

Q: The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 included only minor changes to bankruptcy law.

Q: If the debtor defaults on a loan, the secured party can take possession of the collateral without any court order under the UCC.

Q: Bankruptcy remedies are available for individuals only.

Q: In a dispute between a secured perfected creditor and a secured unperfected creditor, the secured unperfected creditor would be the prevailing party.

Q: Under the UCC, a buyer in the ordinary course of business can take goods free of any security interest created by the seller of the goods even if the security interest is perfected.

Q: If a buyer purchases chattel paper in the ordinary course of business and is unaware of any applicable security interest, the buyer can obtain the good free of any security interest.

Q: A security interest may not apply to personal property that is not yet in the debtor's possession.

Q: Proceeds are something that is exchanged for a debtor's sold collateral.

Q: Under the UCC, the secured party's interest in the proceeds lasts 30 days after the debtor receives the proceeds.

Q: In general, secured parties have priority over unsecured creditors.

Q: When perfection by possession occurs, the parties do not have to create a written security agreement.

Q: A consumer good is an item used or bought primarily for personal, family, or household purposes.

Q: Perfection of a security interest in a motor vehicle generally occurs when the secured party files the interest with the state's Department of Motor Vehicles.

Q: According to the UCC, value is insufficient consideration.

Q: PMSI is purchase-money security interest, which is formed when a debtor uses borrowed money from an unsecured party to buy the collateral.

Q: Default is failure to make payments on a loan.

Q: The security agreement must be signed by the debtor and give an accurate and detailed description of the collateral.

Q: Under the UCC, a secured interest is an interest in property or fixtures that secures payment or performance of an obligation.

Q: Collateral is the property that is subject to a security interest.

Q: What are the two general goals of bankruptcy laws?