Question 1

Which of the following is a term for persons who are not employees but who are hired by employers to perform certain tasks?

Accepted Answer

A)   Employee agents
B)   Independent contractors
C)   Independent agents
D)   Principle agents
E)   Task-specific agentsF) C) and D)
G) A) and B)

Question 2

Reference - High Maintenance. Paul, who runs a retail jewelry store, went with Jane, to whom he was engaged to be married, to a wholesale jewelry store. Paul had no express, written agreement with Jane by which she was his agent. In fact, Paul had told Jane not to buy anything at the store. The wholesale jeweler, Pam, asked Paul if Jane was buying for him. Paul did not want to embarrass Jane so he nodded in agreement. A few minutes later Paul reminded Jane, outside the hearing of the wholesaler, that she should not make any purchases. Paul and Jane had a big disagreement over money that evening, and Jane broke off their engagement. The next day Jane went back to the wholesale jeweler and purchased a string of pearls for $2,000. Jane also purchased a fur jacket for $3,000 from a store owned by Harry that was next door to the jewelry store. She told Harry that Paul wanted a fur jacket for a model in his store and that Paul would be glad to pay Harry for the jacket. Which of the following is the most likely result if Pam, the wholesaler jeweler, sues Paul for the price of the pearls?

Accepted Answer

A)   Pam will win assuming that she can prove that she reasonably believed, based on Paul's conduct, that Jane was acting as his agent.
B)   Pam will lose because it was her responsibility to ask Paul for written documentation that Jane was his agent.
C)   Pam will lose unless it can be established that Jane at some time in the past had actual authority to act as Paul's agent.
D)   Pam will win only if she can show that through reasonable investigative efforts on her part Jane cannot be located.
E)   Pam will win only if she can show that Jane has no assets with which to pay for the necklace.F) B) and C)
G) D) and E)

Question 3

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.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following are factors considered by courts in determining whether an act committed by an employee occurred within the course and scope of employment?

Accepted Answer

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.F) A) and B)
G) A) and C)

Question 5

In which types of agency relationships is the agency relationship inferred from the conduct of the parties?

Accepted Answer

A)   Express agency
B)   Agency by estoppel
C)   Implied agency
D)   Both agency by estoppel and implied agency
E)   None of theseF) B) and D)
G) A) and E)

Question 6

Reference - Cheap Principal. Jason, who is very knowledgeable regarding computers, agrees to purchase computers for Nick's business. Jason is retained for that purpose only, he is paid a set rate for the job, and Nick exercised no control over the manner in which Jason did his work. Jason purchased computers on credit from ABC Computers without any mention of Nick. The computers worked well and were not defective in any way. Unfortunately, Nick did not pay ABC Computers on a timely basis. Jason, therefore, paid ABC Computers out of his own pocket because he wanted to be able to do business with ABC in the future and also because his name was on the invoice. Jason asked Nick for reimbursement, but Nick refused. Nick claimed that if Jason had only waited, ABC Computers might have agreed to take less. Which of the following is true regarding any right of reimbursement Jason is due from Nick?

Accepted Answer

A)   Jason is not due any reimbursement because he did not get permission from Jason before paying ABC Computers.
B)   Jason is only due 50% of whatever he paid because he did not get permission from Jason before paying ABC Computers.
C)   Jason is not due any reimbursement from Nick unless he can establish that Nick signed a written contract authorizing him to personally pay debts incurred.
D)   Jason is not due any reimbursement from Nick unless Jason can establish by a preponderance of the evidence that ABC Computers would not have agreed to take a lesser amount.
E)   Jason is entitled to reimbursement from Nick.F) B) and E)
G) All of the above

Question 7

Agency law is primarily federal law.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following are types of business relationships to which agency laws are relevant?

Accepted Answer

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 contractorF) D) and E)
G) C) and E)

Question 9

Set forth the two key exceptions to the equal dignity rule.

Accepted Answer

The first exception to the equal dignity...

Question 10

Which of the following is a term used to describe the duty of an agent to communicate any information to the principal that the agent thinks could be important to the principal?

Accepted Answer

A)   Duty of notification
B)   Duty of information
C)   Requirement of conveyance
D)   Constructive notification
E)   Constructive informationF) B) and C)
G) A) and C)

Question 11

Which of the following results in termination of agency by operation of law?

Accepted Answer

A)   Death of either the principal or the agent.
B)   Adjudicated insanity of the principal or agent.
C)   Insolvency.
D)   Death of either the principal or the agent, adjudicated insanity of the principal or agent, and insolvency.
E)   Death or adjudicated insanity of either the principal or agent, but not insolvency.F) D) and E)
G) C) and D)

Question 12

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?

Accepted Answer

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.F) C) and E)
G) C) and D)

Question 13

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.

Accepted Answer

A) True 
 B)False

Question 14

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.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is true regarding the status of an agent as a fiduciary?

Accepted Answer

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.F) A) and E)
G) B) and E)

Question 16

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?

Accepted Answer

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.F) D) and E)
G) C) and D)

Question 17

Which of the following is another name for apparent agency?

Accepted Answer

A)   Simplified agency
B)   Equitable agency
C)   Agency by law
D)   Agency by estoppel
E)   Approved agencyF) C) and E)
G) A) and B)

Question 18

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.

Accepted Answer

A)   Authority
B)   Principality
C)   Agency
D)   Decreed
E)   ConferredF) A) and E)
G) B) and C)

Question 19

When parties form an agency relationship by making a written or oral agreement, the agency is known as a[n] _______________.

Accepted Answer

A)   Expressed agency
B)   Implied agency
C)   Apparent agency
D)   Ratification
E)   EndorsementF) B) and C)
G) A) and B)

Question 20

In most situations how many principals may an agent represent in any one agreement?

Accepted Answer

A)   One
B)   Two
C)   Three
D)   Four
E)   Any numberF) B) and C)
G) A) and B)

Exam 19: Secured Transactions and Bankruptcy

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.

Correct Answer
verified

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.

Correct Answer
verified

Which of the following is a term for persons who are not employees but who are hired by employers to perform certain tasks?

Correct Answer
verified

Correct Answer
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Agency law is primarily federal law.

Correct Answer
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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?

Correct Answer
verified

Which of the following is true regarding the status of an agent as a fiduciary?

Correct Answer
verified

Which of the following is another name for apparent agency?

Correct Answer
verified

In which types of agency relationships is the agency relationship inferred from the conduct of the parties?

Correct Answer
verified

Correct Answer
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Which of the following are factors considered by courts in determining whether an act committed by an employee occurred within the course and scope of employment?

Correct Answer
verified

Which of the following is a term used to describe the duty of an agent to communicate any information to the principal that the agent thinks could be important to the principal?

Correct Answer
verified

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.

Correct Answer
verified

Which of the following results in termination of agency by operation of law?

Correct Answer
verified

In most situations how many principals may an agent represent in any one agreement?

Correct Answer
verified

When parties form an agency relationship by making a written or oral agreement, the agency is known as a[n] _______________.

Correct Answer
verified

Set forth the two key exceptions to the equal dignity rule.

Correct Answer
verified
The first exception to the equal dignity...
View Answer

Which of the following are types of business relationships to which agency laws are relevant?

Correct Answer
verified

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?

Correct Answer
verified

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.

Correct Answer
verified

Exam 19: Secured Transactions and Bankruptcy

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.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Which of the following is a term for persons who are not employees but who are hired by employers to perform certain tasks?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Agency law is primarily federal law.

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Which of the following is true regarding the status of an agent as a fiduciary?

Correct AnswerverifiedShow Answer

Which of the following is another name for apparent agency?

Correct AnswerverifiedShow Answer

In which types of agency relationships is the agency relationship inferred from the conduct of the parties?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following are factors considered by courts in determining whether an act committed by an employee occurred within the course and scope of employment?

Correct AnswerverifiedShow Answer

Which of the following is a term used to describe the duty of an agent to communicate any information to the principal that the agent thinks could be important to the principal?

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Which of the following results in termination of agency by operation of law?

Correct AnswerverifiedShow Answer

In most situations how many principals may an agent represent in any one agreement?

Correct AnswerverifiedShow Answer

When parties form an agency relationship by making a written or oral agreement, the agency is known as a[n] _______________.

Correct AnswerverifiedShow Answer

Set forth the two key exceptions to the equal dignity rule.

Correct AnswerverifiedThe first exception to the equal dignity...View AnswerShow Answer

Which of the following are types of business relationships to which agency laws are relevant?

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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The first exception to the equal dignity...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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