Question 1

A principal is not normally liable for the tort of an agent committed within the scope of the agency or employment.

Accepted Answer

A) True 
 B)False

Question 2

An agent's implied authority cannot be implied by custom.

Accepted Answer

A) True 
 B)False

Question 3

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 4

Lima, an agent for Mindwonder Games LLC, executes an unauthorized contract with NOW Marketing Inc. The deal is highly advantageous to Mindwonder, and the company ratifies the contract. The contract is​

Accepted Answer

A)   ​valid.
B)   ​vicarious.
C)   ​void.
D)   ​voidable.E) All of the above
F) B) and C) A

Question 5

If a principal is undisclosed, the agent may be liable to the principal for a third party's nonperformance of a contract.

Accepted Answer

A) True 
 B)False

Question 6

A disclosed principal is a principal whose identity is known by a third party with whom an agent contracts on the principal's behalf.

Accepted Answer

A) True 
 B)False

Question 7

Ratification occurs when a principal affirms, or accepts responsibility for, an agent's unauthorized act.

Accepted Answer

A) True 
 B)False

Question 8

Bud approves on behalf of Cody-but without authorization-a contract with Dik to build a new silo. Cody does not ratify the contract. Later, Dik tries to enforce the deal. This attempt will be​

Accepted Answer

A)   ​partly successful.
B)   ​partly unsuccessful.
C)   ​totally successful.
D)   ​totally unsuccessful.E) C) and D)
F) All of the above

Question 9

Olive, an agent for Precision Paving Corporation, enters into an unauthorized contract with Quality Asphalt, Inc., purportedly on Precision's behalf. Precision does not ratify the contract. Liability may be imposed on​

Accepted Answer

A)   ​Olive to Quality for misrepresenting her authority.
B)   ​Precision to Quality for not ratifying the contract.
C)   ​Quality to Precision for entering into an unauthorized contract.
D)   ​Precision to Olive for not ratifying the contract.E) B) and C)
F) A) and D) A

Question 10

Seed Packets, Inc., a garden seed company, requires its customers to pay by check. Taylor, a Seed Packets driver, tells customers that they can pay her with cash. When Seed Packets learns of Taylor's collections, it does not act to stop them. Taylor steals some of the cash. Under the doctrine of apparent authority, Seed Packets will most likely​

Accepted Answer

A)   ​suffer the loss.
B)   ​recover the amount of the cash payments from its customers.
C)   ​increase its prices to cover the amount of the stolen cash.
D)   ​hold its accountant liable for apparently authorizing the cash collections.E) B) and C)
F) C) and D)

Question 11

A special power of attorney permits an agent to transact all business for a principal.

Accepted Answer

A) True 
 B)False

Question 12

Even if a principal ratifies a contract without knowing all of the facts, the principal cannot later rescind the contract.

Accepted Answer

A) True 
 B)False

Question 13

Private Security Service employs Olsen as an agent. Without Private Security's knowledge but otherwise acting within the scope of employment, Olsen commits a crime. The state can successfully prosecute​

Accepted Answer

A)   ​none of the choices.
B)   ​Private Security.
C)   ​Private Security or Olsen.
D)   ​Olsen.E) A) and B)
F) A) and C)

Question 14

Giving an agent a power of attorney confers express authority.

Accepted Answer

A) True 
 B)False  True

Question 15

Donald approves on behalf of Evelyn-but without authorization-a contract with Farouk to build a new silo. Evelyn does not ratify the contract. The deal with Farouk is​

Accepted Answer

A)   an enforceable contract with Donald.​
B)   ​a voidable contract.
C)   ​an enforceable contract with Evelyn.
D)   ​an unaccepted offer.E) C) and D)
F) A) and D)

Question 16

For an agent's implied authority to be effective, a principal must confirm it in writing.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

An agency can terminate once its purpose is achieved.

Accepted Answer

A) True 
 B)False

Question 19

A principal cannot be estopped from denying that an agent has authority.

Accepted Answer

A) True 
 B)False

Question 20

Mirena serves in a representative capacity for Netanya. Orla is injured through Mirena's negligence. Netanya may be liable to Orla if Mirena's conduct occurred​

Accepted Answer

A)   ​due to a propensity Netanya was not and could not have been aware of.
B)   ​during normal working hours.
C)   ​in the course and scope of Mirena's employment.
D)   ​outside the parties' employment relationship.E) C) and D)
F) A) and B)

Exam 33: Agency Liability and Termination

A principal is not normally liable for the tort of an agent committed within the scope of the agency or employment.

Correct Answer
verified

An agent's implied authority cannot be implied by custom.

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

Lima, an agent for Mindwonder Games LLC, executes an unauthorized contract with NOW Marketing Inc. The deal is highly advantageous to Mindwonder, and the company ratifies the contract. The contract is

Correct Answer
verified
A

If a principal is undisclosed, the agent may be liable to the principal for a third party's nonperformance of a contract.

Correct Answer
verified

A disclosed principal is a principal whose identity is known by a third party with whom an agent contracts on the principal's behalf.

Correct Answer
verified

Ratification occurs when a principal affirms, or accepts responsibility for, an agent's unauthorized act.

Correct Answer
verified

Bud approves on behalf of Cody-but without authorization-a contract with Dik to build a new silo. Cody does not ratify the contract. Later, Dik tries to enforce the deal. This attempt will be

Correct Answer
verified

Olive, an agent for Precision Paving Corporation, enters into an unauthorized contract with Quality Asphalt, Inc., purportedly on Precision's behalf. Precision does not ratify the contract. Liability may be imposed on

Correct Answer
verified
A

Correct Answer
verified

A special power of attorney permits an agent to transact all business for a principal.

Correct Answer
verified

Even if a principal ratifies a contract without knowing all of the facts, the principal cannot later rescind the contract.

Correct Answer
verified

Private Security Service employs Olsen as an agent. Without Private Security's knowledge but otherwise acting within the scope of employment, Olsen commits a crime. The state can successfully prosecute

Correct Answer
verified

Giving an agent a power of attorney confers express authority.

Correct Answer
verified
True

Donald approves on behalf of Evelyn-but without authorization-a contract with Farouk to build a new silo. Evelyn does not ratify the contract. The deal with Farouk is

Correct Answer
verified

For an agent's implied authority to be effective, a principal must confirm it in writing.

Correct Answer
verified

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

Correct Answer
verified

An agency can terminate once its purpose is achieved.

Correct Answer
verified

A principal cannot be estopped from denying that an agent has authority.

Correct Answer
verified

Mirena serves in a representative capacity for Netanya. Orla is injured through Mirena's negligence. Netanya may be liable to Orla if Mirena's conduct occurred

Correct Answer
verified

Exam 33: Agency Liability and Termination

A principal is not normally liable for the tort of an agent committed within the scope of the agency or employment.

Correct AnswerverifiedShow Answer

An agent's implied authority cannot be implied by custom.

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

Lima, an agent for Mindwonder Games LLC, executes an unauthorized contract with NOW Marketing Inc. The deal is highly advantageous to Mindwonder, and the company ratifies the contract. The contract is​

Correct AnswerverifiedA

If a principal is undisclosed, the agent may be liable to the principal for a third party's nonperformance of a contract.

Correct AnswerverifiedShow Answer

A disclosed principal is a principal whose identity is known by a third party with whom an agent contracts on the principal's behalf.

Correct AnswerverifiedShow Answer

Ratification occurs when a principal affirms, or accepts responsibility for, an agent's unauthorized act.

Correct AnswerverifiedShow Answer

Bud approves on behalf of Cody-but without authorization-a contract with Dik to build a new silo. Cody does not ratify the contract. Later, Dik tries to enforce the deal. This attempt will be​

Correct AnswerverifiedShow Answer

Olive, an agent for Precision Paving Corporation, enters into an unauthorized contract with Quality Asphalt, Inc., purportedly on Precision's behalf. Precision does not ratify the contract. Liability may be imposed on​

Correct AnswerverifiedA

Correct AnswerverifiedShow Answer

A special power of attorney permits an agent to transact all business for a principal.

Correct AnswerverifiedShow Answer

Even if a principal ratifies a contract without knowing all of the facts, the principal cannot later rescind the contract.

Correct AnswerverifiedShow Answer

Private Security Service employs Olsen as an agent. Without Private Security's knowledge but otherwise acting within the scope of employment, Olsen commits a crime. The state can successfully prosecute​

Correct AnswerverifiedShow Answer

Giving an agent a power of attorney confers express authority.

Correct AnswerverifiedTrue

Donald approves on behalf of Evelyn-but without authorization-a contract with Farouk to build a new silo. Evelyn does not ratify the contract. The deal with Farouk is​

Correct AnswerverifiedShow Answer

For an agent's implied authority to be effective, a principal must confirm it in writing.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An agency can terminate once its purpose is achieved.

Correct AnswerverifiedShow Answer

A principal cannot be estopped from denying that an agent has authority.

Correct AnswerverifiedShow Answer

Mirena serves in a representative capacity for Netanya. Orla is injured through Mirena's negligence. Netanya may be liable to Orla if Mirena's conduct occurred​

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Lima, an agent for Mindwonder Games LLC, executes an unauthorized contract with NOW Marketing Inc. The deal is highly advantageous to Mindwonder, and the company ratifies the contract. The contract is

Correct Answer
verified
A

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Bud approves on behalf of Cody-but without authorization-a contract with Dik to build a new silo. Cody does not ratify the contract. Later, Dik tries to enforce the deal. This attempt will be

Correct Answer
verified

Olive, an agent for Precision Paving Corporation, enters into an unauthorized contract with Quality Asphalt, Inc., purportedly on Precision's behalf. Precision does not ratify the contract. Liability may be imposed on

Correct Answer
verified
A

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Private Security Service employs Olsen as an agent. Without Private Security's knowledge but otherwise acting within the scope of employment, Olsen commits a crime. The state can successfully prosecute

Correct Answer
verified

Correct Answer
verified
True

Donald approves on behalf of Evelyn-but without authorization-a contract with Farouk to build a new silo. Evelyn does not ratify the contract. The deal with Farouk is

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Mirena serves in a representative capacity for Netanya. Orla is injured through Mirena's negligence. Netanya may be liable to Orla if Mirena's conduct occurred

Correct Answer
verified