Question 1

A(n)________ is a fiduciary relationship which results from the manifestation of consent by one person to another that the other shall act in his behalf and subject to his control,and consent by the other so to act.

Accepted Answer

The description specifically matches the definition of an agency relationship, which is a legal relationship in which one person (the principal) authorizes another person (the agent) to act on their behalf and under their control. Assignments involve the transfer of rights, garnishments involve collecting debt, and accommodations involve providing assistance or convenience.

Question 2

Martin,who wants to sell a house he owns,authorizes his concierge,Wilhelm,to find a potential buyer,and finalize a deal above a stipulated price.Wilhelm contracts Chris,a real estate broker,and instructs him to only find a potential buyer and send them over to Wilhelm for the sale.Martin then contracts ReNowait Goodhouses,a home improvement company to renovate the house.ReNowait completes its work and Martin pays them.Chris then searches for a suitable buyer and finds one in George.George buys the house and Chris is paid for his services.What role does Chris perform?

Accepted Answer

Chris acts as an independent contractor because he was hired by Wilhelm to perform a specific task (finding a potential buyer) without being directly controlled or having the authority to enter into contracts on Wilhelm's behalf.

Question 3

An agent is a party who ________.

Accepted Answer

An agent is a person who agrees to act on behalf of another party. This can include a variety of roles, such as representing a client in a legal matter, acting as a sales representative, or managing the affairs of a company. The key aspect is that the agent is acting on behalf of another person or organization, and has been granted the authority to do so.

Question 4

An employer-employee relationship exists when an employer gives an employee authority to act and enter into contracts on his or her behalf.

Accepted Answer

An employer-employee relationship exists when the employer hires an individual to perform work under the employer's control and direction, and the employee receives compensation in exchange for the work performed. While an employee may have authority to act on behalf of the employer within his or her assigned duties, this is not the defining characteristic of the employer-employee relationship.

Question 5

Martin,who wants to sell a house he owns,authorizes his concierge,Wilhelm,to find a potential buyer,and finalize a deal above a stipulated price.Wilhelm contracts Chris,a real estate broker,and instructs him to only find a potential buyer and send them over to Wilhelm for the sale.Martin then contracts ReNowait Goodhouses,a home improvement company to renovate the house.ReNowait completes its work and Martin pays them.Chris then searches for a suitable buyer and finds one in George.George buys the house and Chris is paid for his services.Who performs the role of the agent in this land sale transaction?

Accepted Answer

The answer of Martin,who wants to sell a house he...

Question 6

Martin,who wants to sell a house he owns,authorizes his concierge,Wilhelm,to find a potential buyer,and finalize a deal above a stipulated price.Wilhelm contracts Chris,a real estate broker,and instructs him to only find a potential buyer and send them over to Wilhelm for the sale.Martin then contracts ReNowait Goodhouses,a home improvement company to renovate the house.ReNowait completes its work and Martin pays them.Chris then searches for a suitable buyer and finds one in George.George buys the house and Chris is paid for his services.What role does ReNowait Goodhouses perform?

Accepted Answer

ReNowait Goodhouses is hired by Martin as an independent contractor to renovate the house. They are not involved in the sale of the house or in finding a potential buyer, and they are not given any agency or fiduciary responsibility.

Question 7

Agency relationships created against public policy are void and unenforceable.

Accepted Answer

This is a basic principle of agency law. An agency relationship that violates public policy is not recognized by the law and is therefore unenforceable. Examples of such relationships include an agency to commit a crime or an agency to engage in illegal or immoral activities.

Question 8

Which of the following is true of a principal-independent contractor relationship?

Accepted Answer

A principal is bound by the authorized contracts of their independent contractor because the independent contractor is acting on behalf of the principal and the principal is responsible for the actions and agreements made by the independent contractor within the scope of their work. B is incorrect because independent contractors can be authorized by principals. C is incorrect because independent contractors are not employees of the principals, they are contractors. D is incorrect because principals can directly employ independent contractors.

Question 9

A principal who signs a contract with a third-party is obligated to perform that contract.

Accepted Answer

When a principal signs a contract with a third-party, they are legally bound to perform their obligations outlined in the contract. Failure to do so can result in legal action being taken against the principal.

Question 10

Agency law is a mixture of tort and contract laws.

Accepted Answer

Agency law involves the legal relationship between a principal and an agent, based on both contract and tort law principles.

Question 11

Which of the following is true of an employer-employee relationship?

Accepted Answer

An employer-employee relationship is a contractual agreement where the employer hires the employee to perform a specific physical task or service. The employee does not have the authority to act on behalf of the employer or enter into contracts without explicit permission or delegation of authority. The implied power of attorney and authority to act on behalf of the principal are typically associated with agency relationships, not employer-employee relationships.

Question 12

A principal works on behalf of an agent.

Accepted Answer

An agent works on behalf of a principal, not the other way around. The principal is the person or entity who authorizes the agent to act on their behalf in business transactions or other matters.

Question 13

Which of the following constitutes an agency?

Accepted Answer

An agency always involves a principal and an agent. The principal hires the agent to perform certain tasks or make decisions on their behalf. This creates a legal relationship where the actions of the agent can bind the principal. An agent-agent relationship, principal-principal relationship, or agent-independent contractor relationship do not meet the definition of an agency.

Question 14

A party who employs another person to act on his or her behalf is known as a(n)________.

Accepted Answer

The correct term for a party who employs another person to act on his or her behalf is "principal." An agent is the person who is employed to act on behalf of the principal.

Question 15

A(n)________ is a relationship formed when an employer hires an employee and gives that employee authority to act and enter into contracts on his or her behalf.

Accepted Answer

The principal-agent relationship is formed when an employer (the principal) hires an employee (the agent) and gives them the authority to act on their behalf and enter into contracts. This is a common relationship in the business world, where the employer entrusts the employee with responsibilities and certain powers to represent them in dealings with third parties.

Question 16

Which of the following types of relationship exists when a person hires another person to perform some form of physical service but does not authorize that person to enter in to contracts on his or her behalf?

Accepted Answer

In an employer-employee relationship, the employer hires the employee to perform a specific job or service and exercises control over how the job is performed. In this scenario, the person hiring the physical service does not authorize the hired person to enter into contracts on their behalf, which is more indicative of an employer-employee relationship rather than an employer-agent or principal-agent relationship.

Question 17

A principal-agent relationship exists when an employer hires an employee to perform some form of physical service.

Accepted Answer

A principal-agent relationship can exist in a variety of situations beyond just physical service. It can also exist in situations where knowledge or expertise is being hired, such as a consultant or advisor.

Question 18

Greg,who wants to sell a car he owns,authorizes his concierge,Walter,to find a potential buyer,and finalize a deal above a stipulated price.Walter contracts Jacob,an independent car sales broker,and instructs him to only find a potential buyer and send them over to Walter for the sale.Greg then contracts CarWreckers,an automobile modification company to renovate his car.CarWreckers completes its work and Greg pays them.Jacob then searches for a suitable buyer and finds one in Carl.Carl buys the car and Jacob is paid for his services.Who is the principal during the car sale transaction?

Accepted Answer

Greg is the principal as he owns the car and authorized Walter to find a potential buyer and finalize a deal above a stipulated price. Walter acted as Greg's agent and Jacob acted as Walter's sub-agent. CarWreckers performed a separate contract with Greg for renovating his car and is not directly involved in the sale transaction. Carl is the buyer and not a principal.

Question 19

Minors can appoint an agent without court approval.

Accepted Answer

The answer of Minors can appoint an agent without court...

Question 20

Martin,who wants to sell a house he owns,authorizes his concierge,Wilhelm,to find a potential buyer,and finalize a deal above a stipulated price.Wilhelm contracts Chris,a real estate broker,and instructs him to only find a potential buyer and send them over to Wilhelm for the sale.Martin then contracts ReNowait Goodhouses,a home improvement company to renovate the house.ReNowait completes its work and Martin pays them.Chris then searches for a suitable buyer and finds one in George.George buys the house and Chris is paid for his services.What sort of commercial relationship exists between Martin and Wilhelm?

Accepted Answer

Martin is the principal as he is the owner of the property and has authorized Wilhelm to act as his agent to find a buyer and finalize the deal. Wilhelm is the agent as he is acting on behalf of Martin to sell the property. The fact that Martin has provided a stipulated price indicates that this is a principal-agent relationship.

Quiz 29: Agency Formation and Termination

A(n) ________ is a fiduciary relationship which results from the manifestation of consent by one person to another that the other shall act in his behalf and subject to his control,and consent by the other so to act.