Question 1

A client hires a lawyer as an independent contractor to represent her in a civil lawsuit against a defendant to recover monetary damages.If the client authorizes the lawyer to settle a case within a certain dollar amount and the lawyer does so, which of the following would be true?

Accepted Answer

The settlement agreement is binding for the client. When the client authorizes the lawyer to settle the case within a certain dollar amount, it creates a valid agreement, and the lawyer is authorized to settle the case on behalf of the client within the authorized limit. Once the settlement is made, it becomes binding for the client, and she cannot revoke it unless the settlement agreement is invalidated by a court.

Question 2

Which of the following is true of an independent contractor's liability?

Accepted Answer

An independent contractor is not an agent of the principal, and therefore the principal is typically not liable for the contractor's torts. Additionally, the independent contractor is typically considered a separate legal entity and is personally liable for their own torts.

Question 3

Describe the operation of a fully disclosed agency.

Accepted Answer

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Question 4

An employee motivated by jealousy injures a colleague who dated her boyfriend, on work premises and during work hours.Based on the ________ test, the principal is liable.

Accepted Answer

The incident occurred on work premises and during work hours, making it work-related. As the principal is responsible for ensuring the safety of all employees during work hours, they are liable for any harm caused on the work premises.

Question 5

Jamie is a lawyer who runs her own law firm specializing in real estate law.Raymond, a real estate developer, hires Jamie to represent him in the purchase of land.Jamie is the ________.

Accepted Answer

The answer of Jamie is a lawyer who runs her...

Question 6

Does an agent competing with the principal breach his or her duty of loyalty? What is the course of action for the principal in such a case?

Accepted Answer

The answer of Does an agent competing with the principal...

Question 7

Why can an agent not take an opportunity meant for the principal? When is an agent permitted to take such an opportunity? Give an illustration depicting an agent's violation of his or her duty of loyalty.

Accepted Answer

The answer of Why can an agent not take an...

Question 8

Explain in brief the liability for an independent contractor's torts.

Accepted Answer

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Question 9

In a fully-disclosed agency, the contract is between ________.

Accepted Answer

The answer of In a fully-disclosed agency, the contract is...

Question 10

Which of the following is true of misrepresentation?

Accepted Answer

The principal is liable for an agent's innocent misrepresentation. While intentional misrepresentation by an agent is considered fraud or deceit, the principal can still be held liable for the actions of their agent. Additionally, a third party can recover damages from the principal due to an agent's intentional misrepresentation.

Question 11

A ________ is a deceit in which an agent makes an untrue statement that he or she knows is not true.

Accepted Answer

Misrepresentation is a deliberate deceit in which an agent knowingly makes an untrue statement. Partially disclosed agency refers to an agent who discloses that he is representing a principal but does not reveal the principal's identity. Respondeat superior is a legal doctrine that holds the employer liable for the employee's actions. Dual-purpose mission is not related to deceit or agency.

Question 12

A car salesperson is employed to sell the principal's car, and the principal tells the agent that the car was repaired after it was involved in a major accident.If the agent intentionally tells the buyer that the car was never involved in an accident, the agent has committed the tort of ________.

Accepted Answer

Intentional misrepresentation, also known as fraud, occurs when an individual intentionally makes a false statement of fact that another person relies on to their detriment. In this case, the car salesperson intentionally told the buyer that the car was never involved in an accident, which is a false statement of fact. As a result, the buyer relied on this statement and may suffer harm or loss in the future.

Question 13

Which of the following torts committed by an agent is the liability of the principal?

Accepted Answer

The principal is liable for any negligence committed by the agent during the course of their employment. Choices A, B, and C are typically not the liability of the principal because they occur outside or before/after the scope of employment.

Question 14

Which of the following is true of a fully disclosed agency?

Accepted Answer

The answer of Which of the following is true of...

Question 15

Which of the following best describes a partially disclosed agency?

Accepted Answer

The answer of Which of the following best describes a...

Question 16

Explain in brief the occurrence of an undisclosed agency.What are the liabilities involved in such an agency?

Accepted Answer

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Question 17

Which of the following is true of an undisclosed agency?

Accepted Answer

In an undisclosed agency, the third party has no knowledge of the agency between the principal and the agent. The agent appears to be acting on their own behalf, and the third party does not realize that they are actually representing someone else. This can present potential legal issues if the third party finds out about the agency after the fact.

Question 18

On the advice of her colleague, Stacey hires Harold, a lawyer and an independent contractor, to represent her in a court case.While driving to the courthouse to represent Stacey at trial, Harold negligently causes an automobile accident in which a bystander, Mildred, is severely injured.Who is liable to Mildred?

Accepted Answer

Harold is the one who was negligent in causing the accident and therefore he would be liable to Mildred. As an independent contractor, he would be personally liable for his actions and not the responsibility of Stacey, her colleague, or the firm that represents him.

Question 19

If an independent contractor enters into a contract with a third party on behalf of the principal without express or implied authority from the principal to do so, who among the following is liable on the contract?

Accepted Answer

The independent contractor is liable on the contract because they acted without the principal's express or implied authority, making them personally responsible for the contract they entered into with the third party.

Question 20

Gerard wants to get some land cleared in Texas.With the help of a consulting agency, he hires Carlos, an independent contractor.Carlos procures dynamite from a legitimate dealer, to be used in clearing the land.However, the explosion of dynamite causes cracks to appear in the outer walls of a nearby house.Who is liable to the owner of the damaged house?

Accepted Answer

The answer of Gerard wants to get some land cleared...

Quiz 30: Liability of Principals, Agents, and Independent Contractors