Question 1

A principal's liability for the tort of an agent depends on the degree of disclosure of the agency relationship.

Accepted Answer

A principal's liability for the tort of an agent typically depends on whether the agent was acting within the scope of their authority or employment, not on the degree of disclosure of the agency relationship.

Question 2

Synergistic agency occurs when an agent acts for two or more different principals in the same transaction.

Accepted Answer

Synergistic agency refers to the collaboration between agents to achieve a common goal, not acting for multiple principals in the same transaction.

Question 3

The principal will be held liable for any negligence of her agent committed during the time period the agent has agreed to act as agent.

Accepted Answer

The answer of The principal will be held liable for...

Question 4

The principal and the agent are each personally liable for their own tortious conduct.

Accepted Answer

Both the principal and the agent could be held personally liable for their own tortious conduct. The principal could be held liable for their own negligence in hiring, supervising or directing the agent, while the agent could be held liable for their own conduct that caused harm to others.

Question 5

Agency by estoppels arises when a principal creates the appearance of an agency that in actuality does not exist.

Accepted Answer

Agency by estoppel, also known as apparent agency, occurs when a principal leads a third party to believe that an agency relationship exists between the principal and another person, even though no actual agency agreement exists. As a result, the principal may be bound by the actions of the person who appeared to be an agent, even if the principal did not intend for them to act on their behalf.

Question 6

Unless otherwise agreed,the principal owes a duty to cooperate with and assist the agent in the performance of the agent's duties and the accomplishment of the agency.

Accepted Answer

This statement is true. Unless there is a specific agreement otherwise, the principal is expected to cooperate with and help the agent in carrying out their responsibilities as part of the agency relationship.

Question 7

Agents are generally permitted to engage in undisclosed self-dealing with the principal.

Accepted Answer

Agents have a fiduciary duty to act in the best interest of the principal and are not allowed to engage in undisclosed self-dealing, which would create a conflict of interest.

Question 8

The legal rule of imputed knowledge means that the principal is assumed to know what the agent knows.

Accepted Answer

This is the general principle of imputed knowledge in agency law.

Question 9

Where an apparent agency is established,the principal is estopped from denying the agency relationship and is bound to contracts entered into by the apparent agent while acting within the scope of the apparent agency.

Accepted Answer

When an apparent agency is established, the principal is estopped (prevented) from denying the agency relationship and will be bound to contracts entered into by the apparent agent within the scope of that apparent agency. This is based on the legal doctrine of apparent authority, which holds that if a principal holds out an individual as an agent or allows others to believe that the individual has authority to act on behalf of the principal, the principal cannot later deny that authority if a third party relies on it to their detriment.

Question 10

A principal is liable for the innocent,but not the intentional,misrepresentations made by an agent acting within the scope of employment.

Accepted Answer

A principal can be liable for both innocent and intentional misrepresentations made by an agent acting within the scope of their employment, as the principal is responsible for the agent's actions within that scope.

Question 11

An agent who enters into a contract with a principal has two (2)distinct obligations: (1)to perform the lawful duties expressed in the contract; and (2)to meet the standards of reasonable care,skill,and diligence implicit in all contracts.

Accepted Answer

This statement accurately reflects the obligations of an agent in a contract with a principal. The agent must not only perform the duties outlined in the contract but also uphold a standard of reasonable care, skill, and diligence expected in all contracts.

Question 12

The basic rule for whether the principal is liable for the negligence of an agent is whether the principal knew about the agent's commission of the tort.

Accepted Answer

The basic rule for whether the principal is liable for the negligence of an agent is not whether the principal knew about the agent's commission of the tort, but rather if the agent committed the tort within the scope of their employment. This is known as vicarious liability.

Question 13

A principal owes a duty to indemnify the agent for any losses the agent suffers because of the principal's conduct.

Accepted Answer

According to common law principles of agency, a principal has a duty to indemnify the agent for any losses the agent incurs as a direct result of the principal's actions or instructions given to the agent.

Question 14

Apparent agency is also known as agency by estoppel.

Accepted Answer

Apparent agency and agency by estoppel are two terms used interchangeably to refer to the legal concept where one person (usually an employee) appears to have authority to act on behalf of another person (usually an employer) even if they do not actually have that authority. This can create liability for the employer if the third party reasonably relies on the appearance of authority and is harmed as a result.

Question 15

The agent's actions,not the principal's,create an apparent agency.

Accepted Answer

The answer of The agent's actions,not the principal's,create an apparent...

Question 16

Jon hired Sarah to manage his store.Sarah negligently hit Aimee with a shopping cart,injuring her as a result.Jon is liable to the customer.

Accepted Answer

Jon hired Sarah as an employee to manage his store, making him responsible for her actions as her employer. Therefore, Jon is liable for the injury caused to Aimee as a result of Sarah's negligence.

Question 17

Agents are prohibited from competing with the principal during the course of an agency unless the principal agrees.

Accepted Answer

This is a general rule of agency law known as the duty of loyalty, which requires an agent to act in the best interests of the principal and avoid any actions that could harm the principal's business or interests. Therefore, agents cannot engage in conduct that would compete with the principal's business or otherwise interfere with the principal's ability to conduct business. However, there may be exceptions to this rule if the principal consents or if the agent's competing activity is unrelated to the principal's business or within an area where the principal does not operate.

Question 18

If there is no agreement as to the amount of compensation to be paid the agent,the law implies a promise that the principal will pay the agent the customary fee paid in the industry.

Accepted Answer

This statement is true. When there is no agreement regarding the amount of compensation to be paid to the agent, the law implies a promise that the principal will pay the agent the customary fee that is paid in the industry. This is known as the implied promise of usual and customary compensation.

Question 19

The doctrine of respondeat superior makes a principal liable for any tortious or criminal acts committed by the agent,in furtherance of the agency,that result in harm to others.

Accepted Answer

Respondeat superior is a legal principle that holds a principal responsible for the actions of their agent when those actions are within the scope of the agency and result in harm to others. This is based on the idea that the principal has control over the agent and should bear the responsibility for any harm caused by the agent's actions.

Question 20

An agent cannot usurp an opportunity that belongs to the principal.

Accepted Answer

As an agent, it is their duty to act in the best interest of the principal and not take advantage of opportunities that are rightfully meant for the principal.

Quiz 25: Agency Law