Deck 33: A: Agency Liability and Termination

Question 1

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

Answer 1

False

Question 2

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

Answer 2

False

Question 3

An agent does not have the power to act without communicating with the principal even if an unforeseen emergency demands action.

Answer 3

False

Question 4

Vicarious liability is liability without regard to personal fault.

Question 5

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

Question 6

An undisclosed principal is not liable to a third party for a contract made by an agent.

Question 7

An agent's authority to act on behalf of a principal must be apparent to be real.

Question 8

If a contract being executed by an agent is or must be in writing,then the agent's authority must also be in writing.

Question 9

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

Question 10

The equal dignity rule requires the parties to a transaction to treat each other with equal dignity.

Question 11

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.

Question 12

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

Question 13

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

Question 14

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

Question 15

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.

Question 16

A party to an agency may have the right to terminate the relationship but not the power.

Question 17

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

Question 18

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

Question 19

A power of attorney can be given only to a notary public.

Question 20

An agent's implied authority can be inferred by the position the agent occupies.

Question 21

Geoff serves in a representative capacity for Huck.To accomplish the objectives of this relationship,Geoff's authority can be implied

A)by contradiction.
B)by custom.
C)by lack of reason.
D)under no circumstances.

Question 22

Jock hires Kym to act as his agent to purchase Lifetime Gym & Fitness,Inc.Jock tells Kym to reveal that she is buying the firm on behalf of a third party and to tell the seller who that third party is.Jock is

A)a disclosed principal.
B)an apparent principal.
C)an undisclosed principal.
D)a partially disclosed principal.

Question 23

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

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

Question 24

Neighborly Insurance Company and Ollie put their agency agreement into a written document that describes the rights and duties of both parties.Ollie,as the agent,has

A)apparent authority.
B)equal authority.
C)express authority.
D)implied authority.

Question 25

Picabo drives a truck as an employee for Quik Delivery,Inc.Picabo would most likely be considered acting outside the scope of her employment if she

A)crashed into a car at the airport while off duty.
B)hit a pedestrian in a parking lot during a "working" lunch.
C)ran over an attendant at a gas station while refueling the truck.
D)smashed into a store-front while intoxicated on-duty.

Question 26

Myrna serves in a representative capacity for Locke.With respect to binding Locke to contracts,Myrna's authority

A)may be implied or apparent.
B)must be implied and apparent.
C)must be implied and not apparent.
D)cannot be implied or apparent.

Question 27

Chelsea,an agent for Bountiful Seafood,Inc. ,has often done business with Alvin's Dockside Diner on Bountiful's behalf.When Chelsea and Bountiful terminate their agency,to avoid liability for later deals,Alvin's must be no?tified by

A)Chelsea and Bountiful.
B)Chelsea only.
C)Bountiful only.
D)no one.

Question 28

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

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.

Question 29

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

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.

Question 30

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

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.

Question 31

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

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.

Question 32

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.The relationship be?tween Eppie and Franz is

A)client and independent contractor.
B)employer and employee.
C)master and servant.
D)principal and agent.

Question 33

Iggy hires Joy to act as his agent to purchase Kup-a-Koffee Kompany.Iggy tells Joy to reveal only that she is buying the firm on behalf of a third party,without telling Kup-a-Koffee's seller who that third party is.Iggy is

A)a disclosed principal.
B)an implied principal.
C)an undisclosed principal.
D)a partially disclosed principal.

Question 34

Marky holds a power of attorney for Nuncio.Marky is

A)an attorney-in-fact.
B)an attorney-in-law.
C)a durable attorney.
D)a notary public.

Question 35

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

A)partly successful.
B)partly unsuccessful.
C)totally successful.
D)totally unsuccessful.

Question 36

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

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

Question 37

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

A)partly successful.
B)partly unsuccessful.
C)totally successful.
D)totally unsuccessful.

Question 38

Maia hires Nero,a real estate broker,to sell her warehouse.The ware?house burns down be?fore being sold.Nero is

A)Maia's agent until Maia's insurer pays Nero's commission.
B)Maia's agent until the burnt warehouse is sold.
C)Maia's agent until the warehouse is rebuilt and sold.
D)no longer Maia's agent.

Question 39

Clu serves in a representative capacity for Digger.Elmo is injured through Clu's negligence.Digger may be liable to Elmo if Clu's conduct occurred

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

Question 40

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

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

Question 41

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?

Question 42

Pete's Pizza employs Quincy as a delivery driver.Pete's guarantees that an order will be delivered within thirty minutes or there is no charge,and insists that its drivers meet the limit.One night,while making a de?livery,Quincy is caught in a traffic jam.To deliver the pizza within the thirty-minute time limit,Quincy drives onto a sidewalk and hits Ruth,a pedes?trian.Is Pete's li?able to Ruth for her injuries? Is Quincy liable to Ruth? Why or why not?