Question 1

A principal is exposed to tort liability whenever a third person sustains a loss due to an agent's misrepresentation.

Accepted Answer

A) True 
 B)False

Question 2

An employer is charged with the knowledge of any dangerous condition discovered by an employee and pertinent to the employment situation.

Accepted Answer

A) True 
 B)False

Question 3

Oberon is a salesperson for Precision Instruments,Inc.He tells Quad,a customer,that a device has a certain ca?pability when,as Oberon knows,it does not.In reliance,Quad buys the device.Liable for this misrepresen?ta?tion is

Accepted Answer

A)  neither Oberon nor Precision.
B)  Oberon and Precision.
C)  Oberon only.
D)  Precision only.E) A) and C)
F) C) and D)

Question 4

Fact Pattern 33-1B 
Eppie hires Franz to do some remodeling work in her office.Eppie does not have the right to control the details of Franz's performance.
-Refer to Fact Pattern 33-1B.While working,Franz drops a tool on Gibby,Eppie's customer,causing an injury.Eppie is

Accepted Answer

A)  liable to Gibby because he was injured on Eppie's property.
B)  liable to Gibby unless Franz's act is intentional.
C)  not liable because Franz is an independent contractor.
D)  not liable to Gibby because Franz is Eppie's employee.E) B) and C)
F) All of the above

Question 5

On May 1,Craig retains Dora to act as his authorized agent.On June 1,Craig dies.On June 2,before Dora knows of Craig's death,she enters into a contract on Craig's be?half.The con?tract is

Accepted Answer

A)  binding on Craig's estate.
B)  binding on Dora.
C)  void.
D)  voidable.E) A) and B)
F) C) and D)

Question 6

Harbor Bay Development hires Guthrie to act as its agent to buy a 100-acre waterfront tract of land from Frankie for $1,000 per acre.Harbor Bay does not want Frankie to know that it is the principal or that Guthrie is its agent.Harbor Bay wants the land for a new marina,and believes that Frankie may not sell the land for that purpose or may demand a premium price.Guthrie makes the purchase,signing only his name on the contract as the buyer and not disclosing to Frankie the agency relationship.Harbor Bay gives Guthrie the amount to pay for the land,but Guthrie absconds with the funds.Frankie soon learns of Harbor Bay's identity.Can Frankie enforce the contract against Harbor Bay? against Guthrie?

Accepted Answer

As a general rule,an undisclosed princip...

Question 7

A principal can ratify an agent's unauthorized act in its entirety or merely in part.

Accepted Answer

A) True 
 B)False

Question 8

A partially disclosed principal is only partially liable to a third party for a contract made by an agent.

Accepted Answer

A) True 
 B)False

Question 9

Without authorization,Rolf contracts on behalf of Sari to have Tige paint the interior and exterior of Sari's house.Sari ratifies the contract.Later,Sari tries to rescind the part of the contract re?lat?ing to the exterior.This attempt will be

Accepted Answer

A)  partly successful.
B)  partly unsuccessful.
C)  totally successful.
D)  totally unsuccessful.E) A) and C)
F) B) and C)

Question 10

A principal whose identity is not known by a third party with whom an agent contracts on the principal's behalf is an apparent principal.

Accepted Answer

A) True 
 B)False

Question 11

Marky holds a power of attorney for Nuncio.Marky is

Accepted Answer

A)  an attorney-in-fact.
B)  an attorney-in-law.
C)  a durable attorney.
D)  a notary public.E) All of the above
F) A) and B)

Question 12

Brad is an employee of Custodial Service,Inc.In deciding whether Brad acts within the scope of his employment when he commits a tort against Didi,a court will not con?sider whether

Accepted Answer

A)  Brad indicated that he was acting on behalf of Custodial.
B)  Custodial authorized the act.
C)  Custodial furnished the means by which the injury was inflicted.
D)  the act is one commonly performed by employees for their employers.E) C) and D)
F) A) and B)

Question 13

Under the doctrine of respondeat superior,a principal is liable for any harm caused to an agent by a third party.

Accepted Answer

A) True 
 B)False

Question 14

Kady,an agent for Lebron,enters into a contract on Lebron's behalf with Madge that must be in writing to be enforceable under the Statute of Frauds.Kady's authority to enter into this contract is not in writing.Under the equal dignity rule,this contract is

Accepted Answer

A)  enforceable.
B)  void.
C)  voidable at Lebron's option.
D)  voidable at Madge's option.E) B) and C)
F) A) and D)

Question 15

If an agent contracts outside the scope of his or her authority,the principal cannot become liable.

Accepted Answer

A) True 
 B)False

Question 16

A disclosed principal is liable to a third party for a contract made by the agent acting within the scope of his or her authority.

Accepted Answer

A) True 
 B)False

Question 17

When an agency relationship is terminated,the principal has a duty to personally notify third parties who knew of its existence.

Accepted Answer

A) True 
 B)False

Question 18

Based on Bluto's conduct,Cass reasonably believes that Dee has the authority to act on Bluto's behalf even though Dee does not have the actual authority to do so.Cass makes a payment to Dee for Bluto.Dee keeps the money and disappears.Bluto

Accepted Answer

A)  can demand that Cass make a repayment directly to Bluto.
B)  can obtain damages from Cass for Dee's misconduct.
C)  may be estopped from denying that Dee had authority.
D)  must repudiate Dee's misconduct to avoid liability.E) C) and D)
F) B) and D)

Question 19

Treadwell Tire Manufacturing Company employs Suri as an agent.To terminate Suri's authority,Treadwell must notify

Accepted Answer

A)  only third parties who are aware of the agency relationship.
B)  the public generally.
C)  Suri and any third parties who are aware of the agency relationship.
D)  Suri only.E) B) and C)
F) A) and C)

Question 20

Apparent authority usually comes into existence through a principal's pattern of conduct over time.

Accepted Answer

A) True 
 B)False

Exam 33: A: Agency Liability and Termination

A principal can ratify an agent's unauthorized act in its entirety or merely in part.

Correct Answer
verified

An employer is charged with the knowledge of any dangerous condition discovered by an employee and pertinent to the employment situation.

Correct Answer
verified

A principal whose identity is not known by a third party with whom an agent contracts on the principal's behalf is an apparent principal.

Correct Answer
verified

Treadwell Tire Manufacturing Company employs Suri as an agent.To terminate Suri's authority,Treadwell must notify

Correct Answer
verified

Brad is an employee of Custodial Service,Inc.In deciding whether Brad acts within the scope of his employment when he commits a tort against Didi,a court will not con?sider whether

Correct Answer
verified

A principal is exposed to tort liability whenever a third person sustains a loss due to an agent's misrepresentation.

Correct Answer
verified

Fact Pattern 33-1B Eppie hires Franz to do some remodeling work in her office.Eppie does not have the right to control the details of Franz's performance. -Refer to Fact Pattern 33-1B.While working,Franz drops a tool on Gibby,Eppie's customer,causing an injury.Eppie is

Correct Answer
verified

Based on Bluto's conduct,Cass reasonably believes that Dee has the authority to act on Bluto's behalf even though Dee does not have the actual authority to do so.Cass makes a payment to Dee for Bluto.Dee keeps the money and disappears.Bluto

Correct Answer
verified

Apparent authority usually comes into existence through a principal's pattern of conduct over time.

Correct Answer
verified

A partially disclosed principal is only partially liable to a third party for a contract made by an agent.

Correct Answer
verified

On May 1,Craig retains Dora to act as his authorized agent.On June 1,Craig dies.On June 2,before Dora knows of Craig's death,she enters into a contract on Craig's be?half.The con?tract is

Correct Answer
verified

Correct Answer
verified
As a general rule,an undisclosed princip...
View Answer

Under the doctrine of respondeat superior,a principal is liable for any harm caused to an agent by a third party.

Correct Answer
verified

Oberon is a salesperson for Precision Instruments,Inc.He tells Quad,a customer,that a device has a certain ca?pability when,as Oberon knows,it does not.In reliance,Quad buys the device.Liable for this misrepresen?ta?tion is

Correct Answer
verified

Marky holds a power of attorney for Nuncio.Marky is

Correct Answer
verified

Without authorization,Rolf contracts on behalf of Sari to have Tige paint the interior and exterior of Sari's house.Sari ratifies the contract.Later,Sari tries to rescind the part of the contract re?lat?ing to the exterior.This attempt will be

Correct Answer
verified

Kady,an agent for Lebron,enters into a contract on Lebron's behalf with Madge that must be in writing to be enforceable under the Statute of Frauds.Kady's authority to enter into this contract is not in writing.Under the equal dignity rule,this contract is

Correct Answer
verified

If an agent contracts outside the scope of his or her authority,the principal cannot become liable.

Correct Answer
verified

A disclosed principal is liable to a third party for a contract made by the agent acting within the scope of his or her authority.

Correct Answer
verified

When an agency relationship is terminated,the principal has a duty to personally notify third parties who knew of its existence.

Correct Answer
verified

Exam 33: A: Agency Liability and Termination

A principal can ratify an agent's unauthorized act in its entirety or merely in part.

Correct AnswerverifiedShow Answer

An employer is charged with the knowledge of any dangerous condition discovered by an employee and pertinent to the employment situation.

Correct AnswerverifiedShow Answer

A principal whose identity is not known by a third party with whom an agent contracts on the principal's behalf is an apparent principal.

Correct AnswerverifiedShow Answer

Treadwell Tire Manufacturing Company employs Suri as an agent.To terminate Suri's authority,Treadwell must notify

Correct AnswerverifiedShow Answer

Brad is an employee of Custodial Service,Inc.In deciding whether Brad acts within the scope of his employment when he commits a tort against Didi,a court will not con?sider whether

Correct AnswerverifiedShow Answer

A principal is exposed to tort liability whenever a third person sustains a loss due to an agent's misrepresentation.

Correct AnswerverifiedShow Answer

Fact Pattern 33-1B Eppie hires Franz to do some remodeling work in her office.Eppie does not have the right to control the details of Franz's performance. -Refer to Fact Pattern 33-1B.While working,Franz drops a tool on Gibby,Eppie's customer,causing an injury.Eppie is

Correct AnswerverifiedShow Answer

Based on Bluto's conduct,Cass reasonably believes that Dee has the authority to act on Bluto's behalf even though Dee does not have the actual authority to do so.Cass makes a payment to Dee for Bluto.Dee keeps the money and disappears.Bluto

Correct AnswerverifiedShow Answer

Apparent authority usually comes into existence through a principal's pattern of conduct over time.

Correct AnswerverifiedShow Answer

A partially disclosed principal is only partially liable to a third party for a contract made by an agent.

Correct AnswerverifiedShow Answer

On May 1,Craig retains Dora to act as his authorized agent.On June 1,Craig dies.On June 2,before Dora knows of Craig's death,she enters into a contract on Craig's be?half.The con?tract is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedAs a general rule,an undisclosed princip...View AnswerShow Answer

Under the doctrine of respondeat superior,a principal is liable for any harm caused to an agent by a third party.

Correct AnswerverifiedShow Answer

Oberon is a salesperson for Precision Instruments,Inc.He tells Quad,a customer,that a device has a certain ca?pability when,as Oberon knows,it does not.In reliance,Quad buys the device.Liable for this misrepresen?ta?tion is

Correct AnswerverifiedShow Answer

Marky holds a power of attorney for Nuncio.Marky is

Correct AnswerverifiedShow Answer

Without authorization,Rolf contracts on behalf of Sari to have Tige paint the interior and exterior of Sari's house.Sari ratifies the contract.Later,Sari tries to rescind the part of the contract re?lat?ing to the exterior.This attempt will be

Correct AnswerverifiedShow Answer

Kady,an agent for Lebron,enters into a contract on Lebron's behalf with Madge that must be in writing to be enforceable under the Statute of Frauds.Kady's authority to enter into this contract is not in writing.Under the equal dignity rule,this contract is

Correct AnswerverifiedShow Answer

If an agent contracts outside the scope of his or her authority,the principal cannot become liable.

Correct AnswerverifiedShow Answer

A disclosed principal is liable to a third party for a contract made by the agent acting within the scope of his or her authority.

Correct AnswerverifiedShow Answer

When an agency relationship is terminated,the principal has a duty to personally notify third parties who knew of its existence.

Correct AnswerverifiedShow Answer

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As a general rule,an undisclosed princip...
View Answer

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verified

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