Question 1

The nonagent employee relationship is sometimes referred to as the

Accepted Answer

A) The term master-servant relationship is used to distinguish the nonagent
employee relationship from the employer-employee agent relationship.
A) The term master-servant relationship is used to distinguish the nonagent employee relationship from the employer-employee agent relationship.
B) The term master-servant relationship is used to distinguish the nonagent employee relationship from the employer-employee agent relationship.
C) The term master-servant relationship is used to distinguish the nonagent employee relationship from the employer-employee agent relationship.

Question 2

Karl is a driver for Arnold's Appliance Store and delivers appliances to customers.One day,Karl negligently secures a washer and dryer in the back of his truck,and while he is driving,the washer falls out of the truck.Jan,driving behind the truck,sees the appliance flying at her and swerves into a telephone pole.Which of the following is correct?

Accepted Answer

A) Karl was negligent and responsible. Arnold's is responsible for Karl's acts based
on respondeat superior.
A) Karl was negligent and responsible. Arnold's is responsible for Karl's acts based on respondeat superior.
B) Karl was negligent and responsible. Arnold's is responsible for Karl's acts based on respondeat superior.
C) Karl was negligent and responsible. Arnold's is responsible for Karl's acts based on respondeat superior.

Question 3

The Happy Days Day Care is hiring a child care worker.On the employment application,Happy Days specifically asks if the applicant has ever been arrested.Tina applies for a job at Happy Days and answers no to that question.She also answers no to the question that asks if there is any reason that she would not be qualified to work with children.Soon after Tina is hired,she severely shakes a baby to stop it from crying,causing the baby injuries.It is discovered at trial that Tina has been fired from numerous day cares for baby shaking and various other offenses.If the baby's parents sue Happy Days:

Accepted Answer

A) When hiring someone to deal with the public, the employer must make a
reasonable investigation into the person's background. Simply asking the applicant is insufficient.
P) When hiring someone to deal with the public, the employer must make a reasonable investigation into the person's background. Simply asking the applicant is insufficient.
Q) When hiring someone to deal with the public, the employer must make a reasonable investigation into the person's background. Simply asking the applicant is insufficient.
R) When hiring someone to deal with the public, the employer must make a reasonable investigation into the person's background. Simply asking the applicant is insufficient.

Question 4

Joyce contracted with Mega Drug Corporation to buy vitamins on behalf of Howard,a personal trainer.Howard told Joyce to use her own name and not to disclose that she was working for Howard.If Joyce signs the contract in her name only and Howard will not honor it,

Accepted Answer

A) An agent in an undisclosed agency is liable on the contract but may seek
indemnification from the principal if the agent suffers a loss due to the principal's wrong acts.
J) An agent in an undisclosed agency is liable on the contract but may seek indemnification from the principal if the agent suffers a loss due to the principal's wrong acts.
K) An agent in an undisclosed agency is liable on the contract but may seek indemnification from the principal if the agent suffers a loss due to the principal's wrong acts.
L) An agent in an undisclosed agency is liable on the contract but may seek indemnification from the principal if the agent suffers a loss due to the principal's wrong acts.

Question 5

Robert is a wealthy businessman who wishes to purchase a particular property.Realizing that the price might become inflated if his name is made known,he asks Faye to negotiate the purchase of the property on his behalf.Faye is the general manager of Robert's east coast operations.Faye reports directly to Robert and is supervised in all respects.Faye is told to tell Philip,the property owner,that she represents someone,but she is told not to specify who she works for.The agency would be described as

Accepted Answer

A) A partially disclosed agency exists when the third party knows of the agency but not the specific identity of the principal.
A) A partially disclosed agency exists when the third party knows of the agency but not the specific identity of the principal.
B) A partially disclosed agency exists when the third party knows of the agency but not the specific identity of the principal.
C) A partially disclosed agency exists when the third party knows of the agency but not the specific identity of the principal.

Question 6

Mike worked for Frank's Pizza as a driver and was an agent.His duties consisted of making deliveries along a designated route.One day Mike decided to see his girlfriend,Jackie,who lived 50 miles off his pizza route.While driving to his girlfriend's,Mike injured a pedestrian,Chuck.The accident was caused by Mike's negligent driving.Chuck is now suing both Mike and Frank's for personal injuries.Under the circumstances

Accepted Answer

A) Frank's deviation to see his girlfriend is a frolic, which will free the principal from
liability as it is well outside the scope of employment.
G) Frank's deviation to see his girlfriend is a frolic, which will free the principal from liability as it is well outside the scope of employment.
H) Frank's deviation to see his girlfriend is a frolic, which will free the principal from liability as it is well outside the scope of employment.
I) Frank's deviation to see his girlfriend is a frolic, which will free the principal from liability as it is well outside the scope of employment.

Question 7

Agency law primarily exists on the

Accepted Answer

A) Agency law is primarily state statutory law.
A) Agency law is primarily state statutory law.
B) Agency law is primarily state statutory law.
C) Agency law is primarily state statutory law.

Question 8

In California,courts determine independent contractor status by considering each of the following except

Accepted Answer

A) Although the parties themselves may agree to a certain classification, the status of
an agent is not based on what the parties agreed to but is instead determined by the actual working relationship between the principal and agent.
A) Although the parties themselves may agree to a certain classification, the status of an agent is not based on what the parties agreed to but is instead determined by the actual working relationship between the principal and agent.
B) Although the parties themselves may agree to a certain classification, the status of an agent is not based on what the parties agreed to but is instead determined by the actual working relationship between the principal and agent.
C) Although the parties themselves may agree to a certain classification, the status of an agent is not based on what the parties agreed to but is instead determined by the actual working relationship between the principal and agent.

Question 9

Which of the following is a true statement?

Accepted Answer

A) Ratification is the principal's acceptance of a previously unauthorized act by an
agent.
D) Ratification is the principal's acceptance of a previously unauthorized act by an agent.
E) Ratification is the principal's acceptance of a previously unauthorized act by an agent.
F) Ratification is the principal's acceptance of a previously unauthorized act by an agent.

Question 10

Which of the following is a form of vicarious liability?

Accepted Answer

A) Respondeat superior makes a principal liable for negligent acts of an agent performed in furtherance of the agency. Being liable for another's actions is the essence of vicarious liability.
A) Respondeat superior makes a principal liable for negligent acts of an agent performed in furtherance of the agency. Being liable for another's actions is the essence of vicarious liability.
B) Respondeat superior makes a principal liable for negligent acts of an agent performed in furtherance of the agency. Being liable for another's actions is the essence of vicarious liability.
C) Respondeat superior makes a principal liable for negligent acts of an agent performed in furtherance of the agency. Being liable for another's actions is the essence of vicarious liability.

Question 11

Sanchez borrowed money from Fifth National Bank to buy a car.She defaulted on the loan.Fifth National hired Rex's Recovery Service to repossess the car for a set fee.Rex's was simply told to locate and seize the car.Rex's would be classified as

Accepted Answer

A) Rex's is hired on a per-job basis and is minimally controlled, making it an
independent contractor.
A) Rex's is hired on a per-job basis and is minimally controlled, making it an independent contractor.
B) Rex's is hired on a per-job basis and is minimally controlled, making it an independent contractor.
C) Rex's is hired on a per-job basis and is minimally controlled, making it an independent contractor.

Question 12

A gratuitous agent

Accepted Answer

A) Gratuitous agents are held to a lower duty of care and breach that duty when acting in a grossly negligent manner.
S) Gratuitous agents are held to a lower duty of care and breach that duty when acting in a grossly negligent manner.
T) Gratuitous agents are held to a lower duty of care and breach that duty when acting in a grossly negligent manner.
U) Gratuitous agents are held to a lower duty of care and breach that duty when acting in a grossly negligent manner.

Question 13

Angelina hires Brad to drive a truck to a depot 200 miles away.She specifies the route that he is to take and tells him to be sure to arrive by 5 p.m.On the way,Brad finds himself feeling light-headed due to hunger.He checks the time and finds that he has plenty of time to make the 5 p.m.deadline,so he decides to stop at a diner that he is familiar with.The diner is three-quarters of a mile off the route that Angelina had specified.Brad does not call Angelina to ask for permission.On the way to the diner,Brad has a collision with Billy Bob.Billy Bob sues Angelina.

Accepted Answer

A) Since Brad is required to act prudently, stopping for food when hungry is
appropriate. A three-quarter of a mile deviation from the route is not far enough to make this detour a frolic.
A) Since Brad is required to act prudently, stopping for food when hungry is appropriate. A three-quarter of a mile deviation from the route is not far enough to make this detour a frolic.
B) Since Brad is required to act prudently, stopping for food when hungry is appropriate. A three-quarter of a mile deviation from the route is not far enough to make this detour a frolic.
C) Since Brad is required to act prudently, stopping for food when hungry is appropriate. A three-quarter of a mile deviation from the route is not far enough to make this detour a frolic.

Question 14

In which of the following situations is the agent not liable should the principal breach a contract with a third party?

Accepted Answer

A) Agents in a fully disclosed agency have no liability because it is clear that they are
acting for a principal who will be liable.
\) Agents in a fully disclosed agency have no liability because it is clear that they are acting for a principal who will be liable.
]) Agents in a fully disclosed agency have no liability because it is clear that they are acting for a principal who will be liable.
^) Agents in a fully disclosed agency have no liability because it is clear that they are acting for a principal who will be liable.

Question 15

If an agent acts in a disloyal manner and realizes a personal profit from his or her acts,a court may order a return of the funds,which is called

Accepted Answer

A) Disgorgement is a remedy available to punish an agent for disloyalty by stripping
the agent of any profits derived from his or her improper acts.
B) Disgorgement is a remedy available to punish an agent for disloyalty by stripping the agent of any profits derived from his or her improper acts.
C) Disgorgement is a remedy available to punish an agent for disloyalty by stripping the agent of any profits derived from his or her improper acts.
D) Disgorgement is a remedy available to punish an agent for disloyalty by stripping the agent of any profits derived from his or her improper acts.

Question 16

Respondeat superior makes a principal liable for

Accepted Answer

A) Principals are liable for damages caused by agents acting under their authority.
Y) Principals are liable for damages caused by agents acting under their authority.
Z) Principals are liable for damages caused by agents acting under their authority.
[) Principals are liable for damages caused by agents acting under their authority.

Question 17

Jack is a truck driver employee of Ace Trucking.While delivering his cargo,he notices that the truck assigned to him is low on gas.Jack pulls into a convenient station and fills $50 worth of gas into the truck,which will allow him to complete his assignment and return to the depot.If Jack requests reimbursement for the gas,will Ace be required to reimburse him?

Accepted Answer

A) Jack had the obligation to act with care to complete the job, and purchasing necessary gas is implied from the actual authority stated. Jack will be reimbursed.
V) Jack had the obligation to act with care to complete the job, and purchasing necessary gas is implied from the actual authority stated. Jack will be reimbursed.
W) Jack had the obligation to act with care to complete the job, and purchasing necessary gas is implied from the actual authority stated. Jack will be reimbursed.
X) Jack had the obligation to act with care to complete the job, and purchasing necessary gas is implied from the actual authority stated. Jack will be reimbursed.

Question 18

Young has just fired Kathy,who was her agent.Young places an ad in the classified section of the local newspapers that states,"Kathy no longer works for or represents Young in any way." Young placed this ad to eliminate any possible liability resulting from

Accepted Answer

A) Young is trying to eliminate liability stemming from apparent authority should a
third party believe Kathy is still Young's agent.
A) Young is trying to eliminate liability stemming from apparent authority should a third party believe Kathy is still Young's agent.
B) Young is trying to eliminate liability stemming from apparent authority should a third party believe Kathy is still Young's agent.
C) Young is trying to eliminate liability stemming from apparent authority should a third party believe Kathy is still Young's agent.

Question 19

In Hannington v.University of Pennsylvania,the court had to determine whether an attorney acted under apparent authority regarding the negotiation and signing of a settlement agreement.The court determined that

Accepted Answer

A) The court considered that six months of representation created a reasonable belief
that apparent authority existed for the attorney to bind his client.
M) The court considered that six months of representation created a reasonable belief that apparent authority existed for the attorney to bind his client.
N) The court considered that six months of representation created a reasonable belief that apparent authority existed for the attorney to bind his client.
O) The court considered that six months of representation created a reasonable belief that apparent authority existed for the attorney to bind his client.

Question 20

Agency law generally exists on the state statutory level and is based on

Accepted Answer

A) Agency law is generally based on the Restatement (Third) of Agency.
A) Agency law is generally based on the Restatement (Third) of Agency.
B) Agency law is generally based on the Restatement (Third) of Agency.
C) Agency law is generally based on the Restatement (Third) of Agency.

Quiz 10: Agency