Q&A Hero

Q: Which of the following is the most typical way in which to provide constructive notice of agency termination? A. By telephone B. By letter C. By posting a notice at the courthouse D. By newspaper publication E. By e-mail

Q: If a manager has business transactions in one of the European Union countries and wants to terminate an agency relationship, he or she would want to have access to knowledge about which of the following? A. Chapter IV of the Agency Relationship Law B. Chapter VII of the Employment Relationship C. Article VI of the European Union Regulations D. Article VII of the European Union Regulations E. Section X of the Agency Regulations

Q: An agency relationship be terminated through ______________________. A. fulfillment of purpose B. occurrence of a specific event C. revocation of authority D. fulfillment of purpose, occurrence of a specific event, and by revocation of authority E. fulfillment of purpose and occurrence of a specific event, but not revocation of authority

Q: Which of the following is false regarding revocation of the authority of an agent and renunciation by an agent? A. At any time, a principal can revoke an agent's authority. B. A principal's revocation of an agent's authority might be a breach of contract entitling the agent to damages. C. An agent can terminate the agency relationship by renouncing the authority given to the agent. D. An agent's renunciation of a contract might be a breach of contract entitling the principal to damages. E. If an agent has breached a fiduciary duty to the principal, the principal can revoke the agent's authority, but the agent may be entitled to damages.

Q: Which of the following is true regarding the rights of an employer who is held liable and pays a third party, not because of the employer's negligence, but under the doctrine of respondeat superior based upon negligence of an employee? A. The employer has no right to receive any reimbursement from the negligent employee. B. The employer has a right to recover only 50% of any amounts paid from a negligent employee. C. The employer has a right of indemnification from the negligent employee. D. The employer can recover 100% of any amounts paid from a negligent employee but only if it can be shown that the employee's negligence was based upon the violation of a statute. E. The employer can recover 50% of any amounts paid from a negligent employee but only if it can be shown that the employee's negligence was based upon the violation of a statute.

Q: Which of the following is false regarding the relationship between a principal and an independent contractor? A. An independent contractor is not an employee of the principal. B. The principal does not control the details of the independent contractor's performance. C. An individual who hires an independent contractor cannot be held liable for the independent contractor's tortious actions under the doctrine of respondeat superior. D. A principal is not liable for actions engaged in by the independent contractor, even extremely dangerous ones. E. If an independent contractor commits a crime without the authorization of the principal, the principal is not liable for the agent's crime.

Q: How long does an agent's apparent authority continue once an agency relationship is terminated? A. It ends immediately B. 24 hours C. 7 days D. 30 days E. Until the principal notifies third parties that the agency relationship has ended

Q: What does the Latin phrase respondeat superior mean? A. Let the superior speak B. Let the agent speak C. Let the employee speak D. Let all speak E. Let all be responsible

Q: The principal-employer may be liable for any harm caused by the agent-employee during the time that the agent-employee is working for the principal under __________. A. vicarious liability B. responsible liability C. comparative liability D. contributory liability E. applied liability

Q: Which of the following is(are) a factor(s) considered by courts in determining whether an act committed by an employee occurred within the course and scope of employment? A. Whether the employer authorized the employee's act. B. Whether the employer provided the tools by which the act occurred. C. Whether the employer knew that the act would involve the commission of a serious crime. D. Whether the employer authorized the employee's act, whether the employer provided the tools by which the act occurred, and also whether the employer knew that the act would involve the commission of a serious crime. E. Whether the employer authorized the employee's act and whether the employer provided the tools by which the act occurred, but not whether the employer knew that the act would involve the commission of a serious crime.

Q: Which of the following is true regarding an agent's liability when the agent commits a tort while acting as an agent for a principal? A. The agent is personally liable only if the agent was on a mission for an unidentified principal. B. The agent is personally liable only if the agent was on a mission for an unidentified principal or a partially disclosed principal. C. The agent is liable regardless of the classification of the principal or the liability of the principal. D. The agent is not liable if the principal is liable. E. The agent is not liable unless the principal is insolvent.

Q: The doctrine of ______ is used in the context of the principal/employer-agent/employee relationship. A. superior respondeat B. respondeat superior C. stare decisis D. res superior E. supre superior

Q: Which of the following is true if an agent has no actual or apparent authority to act on behalf of a principal, but the agent still enters into a contract with a third party? A. The principal is bound only if the principal is a disclosed principal. B. The principal is bound only if the principal is an unidentified principal. C. The principal is bound only if the principal is a partially disclosed principal. D. The principal is bound only if the principal is a disclosed principal or a partially disclosed principal. E. The principal is not bound unless the principal ratifies the contract.

Q: Which of the following is true under the UCC regarding liability of a principal to an agent if the agent enters into a contract that is a negotiable instrument? A. The principal is liable to the same extent as if no negotiable instrument were involved because the negotiable instrument has no effect on the principal's liability. B. The principal cannot be held liable unless the principal's name is on the instrument. C. The principal cannot be held liable unless the agent's signature indicates that it was made in a representative capacity. D. The principal cannot be held liable unless the principal's name is on the instrument or the agent's signature indicates that it was made in a representative capacity. E. The principal cannot be held liable unless the principal's name is on the instrument or the agent's signature indicates that it was made in a representative capacity, or the agent has been adjudicated insolvent.

Q: Which of the following is true regarding the right of a third party to reject the performance of the principal? A. The third party may reject the performance of the principal at any time. B. The third party may never reject the performance of the principal. C. The third party may reject the performance of the principal if the third party entered into a contract with the agent such that the performance of the agent is required. D. The third party may reject the performance of the principal if the third party entered into a contract with the agent such that the performance of the agent is required or the third party can establish that the third party had been involved in past litigation with the principal. E. The third party may reject the performance of the principal if the third party entered into a contract with the agent such that the performance of the agent is required; the third party can establish that the third party had been involved in past litigation with the principal; or the principal owes money to the third party.

Q: Which of the following is true in situations in which a principal was undisclosed and the third party comes to know of the undisclosed principal's identity, but proceeds to get a judgment against the agent? A. The principal is liable to the third party anyway. B. The principal is liable to the third party only if the agent does not pay. C. The principal is liable to the third party only if the agent files for bankruptcy. D. The principal is released from liability to the third party. E. The principal is released from liability unless a contract for personal service was involved.

Q: Which of the following is true regarding agent liability when a third party gets a judgment against a previously undisclosed principal? A. The agent is freed from liability to the third party. B. The agent remains liable to the third party. C. The agent is freed from liability to the third party unless the principal refuses to pay. D. The agent is freed from liability to the third party unless the principal files for bankruptcy. E. The agent is freed from liability to the third party unless a contract for personal service was involved.

Q: When a principal is classified as a(n) ______ principal, a third party is aware that an agent is making an agreement on behalf of a principal and the third party also knows the identity of the principal. A. acknowledged B. permitted C. disclosed D. revealed E. uncovered

Q: Which of the following is true regarding liability of an agent acting within his or her authority on a contract involving an undisclosed principal? A. The law will likely hold the agent liable for the agreement. B. The law will hold the agent liable for the agreement unless the contract the agent had with the principal expressly provided that the agent would not be held liable in such cases. C. The law will hold the agent liable for the agreement unless the contract the agent had with the principal impliedly or expressly provided that the agent would not be held liable in such cases. D. The law will hold the agent liable for the agreement unless a contract for under $1,000 is involved in which case only the principal would be held liable. E. The law would not hold the agent liable on the agreement.

Q: Which of the following is true regarding liability of a principal to an agent based on a contract an agent makes with a third party that expressly excludes the principal from the contract? A. The principal is liable to the agent because it is unconscionable to exclude a principal from a contract. B. The principal is liable to the agent only if the principal is an unidentified principal. C. The principal is liable to the agent only if the principal is a partially disclosed principal. D. The principal is liable to the agent unless the principal gave the agent authority in writing to make the agreement with the third party. E. The principal is not liable to the agent.

Q: In which types of agency relationships is the agency relationship inferred from the conduct of the parties? A. Express agency B. Agency by estoppel C. Implied agency D. Both agency by estoppel and implied agency E. None of these

Q: An agent's implied authority is derived from an agent's _____ authority. A. express B. apparent C. perceived D. acknowledged E. temporary

Q: Which of the following type of agency exists when a third party reasonably believes, on the basis of a principal's actions, that an agency relationship exists between the principal and another individual? A. Express B. Implied C. Acknowledged D. Perceived E. Apparent

Q: Express authority is often referred to as ______ authority. A. absolute B. inherent C. actual D. noticed E. approved

Q: The rule enforced by most states that when express authority is granted for an agent to enter into a contract legally required to be in writing, the grant of authority also must be in writing is the ______________________. A. equal dignity rule B. required writing rule C. statute of frauds rule D. matching rule E. None of these because there is no such rule

Q: The equal dignity rule is based upon the _____________. A. statute of writings B. statute of frauds C. documentation rule D. enforcement rule E. common rule

Q: In noncontractual relationships which of the following may the agent seek in order to force the principal to perform the contract? A. Specific performance B. Specific recoupment C. Adequate performance D. Reformation E. None of these

Q: In an express agency relationship, the agent has ______ authority. A. express B. implied C. apparent D. inherent E. acknowledged

Q: An agent may demand _______________, if the agent believes that he or she is not being properly compensated. A. specific performance B. accounting performance C. an accounting D. a contractual documentation E. a contractual audit

Q: When a contract exists and a principal agrees to certain conditions, but fails to perform, which of the following may the agent seek in order to force the principal to perform the contract as stipulated? A. Specific performance B. Specific recoupment C. Adequate performance D. Reformation E. None of these

Q: Which of the following is the term used to describe the duty an agent has to follow the lawful instruction and direction of the principal? A. Duty of action B. Duty of contract C. Express duty of action D. Duty of performance E. Duty of obedience

Q: A(n) ______ trust is an equitable trust imposed on one who wrongfully obtains or holds legal right to property he or she should not possess. A. resolute B. actual C. constructive D. defined E. absolute

Q: ______________ is the right of a principal to sue an agent to recover any amount assessed against the principal for a breach of contract caused by the agent's negligence. A. Reformation B. Indemnification C. Reimbursement D. Contribution E. Recoupment

Q: An agent's obligation to inform the principal of the agent's actions on the principal's behalf and of all relevant information is a __________________. A. duty of notification B. duty of information C. requirement of conveyance D. constructive notification E. constructive information

Q: Which of the following is the term used to describe the duty agent has to perform responsibilities of the principal as specified in the agency agreement? A. Duty of action B. Duty of contract C. Express duty of action D. Duty of performance E. Duty of obedience

Q: The duty of an agent to perform specified duties with reasonable skill and care is a duty of ___________________________. A. action B. contract C. notification D. performance E. obedience

Q: Which of the following is true if there is no agreement between a principal and an agent regarding the amount for which the principal will compensate the agent? A. It will be assumed that the agent agreed to work for free on a gratuitous basis. B. The agent will be allowed to set the price that will be enforced unless it is unconscionable. C. The principal will be allowed to set the price that will be enforced unless it is unconscionable. D. The court will appoint a magistrate to set the price. E. Compensation will be calculated according to the customary fee in the situation.

Q: Which of the following is true regarding the status of an agent as a fiduciary? A. Although the principal is a fiduciary, an agent is not a fiduciary. B. An agent is only a fiduciary if the principal and agent agreed by written contract that the agent would be a fiduciary. C. An agent is only a fiduciary if the principal and agent agreed by written or oral contract that the agent would be a fiduciary. D. An agent is only a fiduciary to the principal if a transaction in excess of $10,000 is involved. E. An agent is a fiduciary to the principal.

Q: In most situations, how many principals may an agent represent in any one agreement? A. One B. Two C. Three D. Four E. Any number

Q: An agent cannot represent both the principal and a third party in an agreement because there could be a(n) ______. A. consortium B. disagreement C. conflict of interest D. delineation of interest E. absolution

Q: A principal's obligation to pay an agent for his services is a duty ___________. A. to provide safe working conditions B. of reimbursement and indemnification C. of cooperation D. to compensate E. to trust

Q: Which of the following is false regarding a principal's duties to an agent? A. An agent can sue the principal if the principal does not fulfill duties owed to the agent. B. In a successful suit against a principal, an agent is entitled to contract remedies but not tort remedies. C. If the principal has failed to meet duties owed to the agent, the agent can refuse to act on behalf of the principal until the failure is remedied. D. The principal has a duty to compensate an agent for services provided unless the parties have agreed that the agent will act gratuitously. E. The principal has a duty of reimbursement and indemnification to the agent for authorized expenditures.

Q: A person in a position of trust and confidence is known as a(n) ___________. A. agent B. principal C. fiduciary D. independent contractor E. employer

Q: A worker may be classified as an employee if she _______________________. A. engages in a distinct occupation B. works under the employer's supervision C. receives regular payments according to time D. supplies her own tools E. gets paid when the job is completed

Q: The employer-independent contractor relationship is not subject to __________________. A. workers' compensation B. workplace safety C. employment discrimination D. unemployment statutes E. All of these

Q: Which of the following is true regarding the liability in tort of employers for the actions of employees and independent contractors? A. Employers are generally liable in tort for the actions of their employees, while they are generally not liable for the actions of independent contractors. B. Employers are generally liable in tort for the actions of independent contractors, while they are generally not liable for the actions of employees. C. Employers are not generally liable in tort for the actions of independent contractors or for the actions of employees. D. Employers are generally liable in tort for the actions of independent contractors and also for the actions of employees. E. Employers are generally liable in tort for the actions of independent contractors and the actions of employees, but only if the employer has agreed to be liable in a written contract with the employee or independent contractor.

Q: A person who contracts with another to do something for him but who is not controlled by the other nor subject to the other's right to control with respect to his physical conduct in the performance of the undertaking is a(n) ______________. A. employee B. independent contractor C. authorized contractor D. task-specific contractor E. partial contractor

Q: The question of whether a worker is an employee or an independent contractor has important implications in which of the following areas? A. Workers' compensation B. Workplace safety C. Unemployment statutes D. Workers' compensation, workplace safety, and unemployment statutes E. Workers' compensation and workplace safety, but not unemployment statutes

Q: The employer-employee relationship is subject to ____________________. A. workers' compensation B. workplace safety C. employment discrimination D. unemployment statutes E. All of these

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