Question 1

Discuss the principal's duties to the agent.

Accepted Answer

The answer of Discuss the principal's duties to the agent....

Question 2

Under joint and several liability, all the parties responsible for a tort will be liable for damages as well.

Accepted Answer

The answer of Under joint and several liability, all the...

Question 3

The tort of negligent supervision comes about when an employee is left in a position that may be harmful to others after notice is given to an employer.

Accepted Answer

Negligent supervision is a recognized tort where an employer can be held liable for the actions of their employees if they have failed to provide adequate supervision and training, and this lack of supervision leads to harm or injury to others. This tort can arise when an employer is aware of an employee's behavior or tendencies that may pose a risk to others, yet fails to take appropriate action to prevent such harm.

Question 4

Which of the following is most important in determining whether a principal is liable to a third party for an agent's actions?

Accepted Answer

Whether the principal was disclosed to the third party is most important in determining whether a principal is liable to a third party for an agent's actions. If the third party did not know about the principal's involvement, the principal may not be held liable. Safe working conditions, indemnification, and duty of loyalty are important factors in the workplace, but they are not the determining factors in establishing principal liability.

Question 5

Matthew is a truck driver for Argosy, Inc. (Argosy). He transports the supplies from a vendor to the company and returns the company truck to Argosy. He is not authorized to make any stops while transporting goods. After collecting the goods from the vendor, Matthew stops at a pub where he makes defamatory statements about a third party. Which of the following statements is true of this scenario?

Accepted Answer

Argosy is not liable because Matthew was acting outside the scope of his employment by stopping at an unauthorized location and making defamatory statements.

Question 6

The tort of negligent supervision arises when .

Accepted Answer

Negligent supervision occurs when an employer fails to reasonably monitor or control the actions of an employee, leading to harm to others, especially after being notified of potential risks.

Question 7

Which of the following statements is true of a partially disclosed principal?

Accepted Answer

A partially disclosed principal is one whose identity is not known to the third party, but the third party is aware that the agent is acting on behalf of a principal.

Question 8

A manager is given notice of a male employee's inappropriate conduct toward a female employee. If the manager does not take timely action against the male employee, the manager is guilty of .

Accepted Answer

Negligent supervision refers to a situation where a manager fails to take action against a known problem employee, resulting in harm to another employee. In this case, if the manager does not take action against the male employee's inappropriate conduct toward the female employee, the manager would be guilty of negligent supervision. Defamation and slander refer to making false statements about someone, while negligent hiring refers to hiring an employee who is not qualified or potentially dangerous.

Question 9

Discuss the agent's duties to the principal.

Accepted Answer

The answer of Discuss the agent's duties to the principal....

Question 10

Which of the following statements is true about the liability of principals for the acts of their agents?

Accepted Answer

A principal is responsible for the torts committed within the scope of the agent's employment, which means actions the agent took while carrying out their duties on behalf of the principal. If the agent was acting outside of their employment, the principal may not be liable. However, there are exceptions and nuances to this rule, which may vary by jurisdiction and the specific circumstances of the case.

Question 11

Regina works in the procurement department of Magic Kraft, Inc. (Magic Kraft). She is accused of price fixing, and a lawsuit is filed against her. Which of the following should the plaintiff establish for Magic Kraft to be liable for the crime?

Accepted Answer

In order for Magic Kraft to be liable for Regina's crime of price fixing, the plaintiff would need to establish that her superiors were aware of her activity. This is because under the doctrine of respondeat superior, an employer can be held liable for the actions of an employee if those actions were carried out within the scope of their employment and with the knowledge or authorization of their employer. The other options listed (B, C, and D) do not necessarily establish liability on the part of Magic Kraft.

Question 12

Courts have often indicated that the agent's most important obligation is fiduciary.

Accepted Answer

Courts have consistently held that an agent's most important obligation is to act in a fiduciary capacity, meaning that the agent must always act in the best interests of their principal and avoid any conflicts of interest. This duty is considered the cornerstone of the agency relationship.

Question 13

Principals are generally not liable for criminal acts of their agents.

Accepted Answer

Under the legal principle of respondeat superior, a principal may be held liable for the tortious acts of their agents or employees, but not typically for criminal acts. However, there are some exceptions to this rule depending on the circumstances.

Question 14

Which of the following statements is true of e-agents?

Accepted Answer

The Uniform Electronic Transaction Act (UETA) allows e-agents to bind principals. This means that the actions taken by an e-agent can be legally binding for the principal they represent, as long as they have the authority to do so. This includes the ability to enter into agreements and contracts on behalf of the principal. Therefore, statement D is the only true statement. Statements A and B are false, as e-agents can be used for a variety of tasks beyond information gathering and accepting click-on agreements is not necessarily unlawful. Statement C is partially true, as the actions of an e-agent typically require approval from the principal, but this does not necessarily mean that the actions of the e-agent must be approved by the principal in order to bind them.

Question 15

If a school district fails to do background checks before employing teachers or school bus drivers when the potential employee's past offensive conduct toward a child could have been discovered, the school is guilty of .

Accepted Answer

Negligent hiring occurs when an employer fails to conduct an adequate background check on a potential employee which results in the hiring of an individual who poses a risk to others. In this scenario, the school district failed to conduct background checks on potential employees which resulted in the hiring of teachers or bus drivers who have a past history of offensive conduct towards children.

Question 16

If the principal is undisclosed, an agent is likely to be liable to the third party.

Accepted Answer

If the principal is undisclosed, the third party can hold the agent liable for any breach of contract or wrongdoing. This is because the third party assumed they were dealing directly with the agent, and the agent did not disclose the existence of a principal.

Question 17

Jones, a famous tycoon, hires Smith to go to an auction to bid on a castle. Jones does not wish to be present at the auction as he fears the other bidders will "bid up" the price if they see that he is bidding. In this case, Jones is a(n) .

Accepted Answer

Jones is an undisclosed principal because Smith is not aware that he is bidding on behalf of Jones.

Question 18

The principal must do nothing to interfere with the reasonable conduct of an agent as agreed upon in an express or implied contract.

Accepted Answer

This is a basic principle of agency law. The principal is bound by the terms of the agency agreement and must not interfere with the agent's reasonable performance of their duties unless there is just cause for doing so.

Question 19

A principal may be liable for the torts committed by an agent according to the doctrine of .

Accepted Answer

The doctrine of respondeat superior states that a principal may be held liable for the wrongful acts or torts committed by an agent while acting within the scope of their employment. This is also known as "vicarious liability." Non-delegation refers to the principle that a person cannot delegate their legal duties and responsibilities to another person. Res ipsa loquitur and negligence per se both relate to evidence in tort cases, but they do not address the issue of vicarious liability.

Question 20

Betty authorizes William to act as her agent. William is required to purchase a vehicle on Betty's behalf. Which of the following statements is true of this scenario?

Accepted Answer

The answer of Betty authorizes William to act as her...

Quiz 15: Agency Law