Question 1

In Doe v. Uber Technologies, Inc. the case in the text in which two victims sued Uber Technologies alleging separate sexual assaults on rides they received from Uber drivers and whether or not those drivers were employees or independent contractors. The court held that:
A) That Uber drivers are independent contractors who do not hold the same status as an employee for purposes of vicarious liability.
B) That the assault occurred outside the scope of employment so that Uber was allowed to dismiss the case.
C) That although the assault did not occur within the scope of the driver's employment, Uber was vicariously liable for the act because the assault was criminal nature.
D) That even though the Uber drivers are considered independent contractors, Uber can still be vicariously liable because Uber knew of the criminal act but did nothing.
E) For the purpose of surviving a motion to dismiss, plaintiffs had plausibly alleged that the Uber drivers were acting within the scope of employment when they assaulted plaintiffs.

Accepted Answer

The court held that for the purpose of surviving a motion to dismiss, the plaintiffs had plausibly alleged that the Uber drivers were acting within the scope of employment when they assaulted the plaintiffs.

Question 2

________ usually consists of publication in a generally circulated newspaper in the area where the agency agreement actually existed.
A) Special notice
B) Analytical notice
C) Postdated notice
D) Constructive notice
E) Personal notice

Accepted Answer

Constructive notice usually consists of publication in a generally circulated newspaper in the area where the agency agreement actually existed. This type of notice is intended to inform the public or interested parties of certain legal actions or statuses indirectly, assuming that the publication in a widely read medium suffices for legal purposes.

Question 3

If a manager has business transactions in one of the European Union countries and wants to terminate an agency relationship, he or she would want to have access to knowledge about which of the following?
A) Chapter IV of the Agency Relationship Law
B) Chapter VII of the Employment Relationship
C) Article VI of the European Union Regulations
D) Article VII of the European Union Regulations

Accepted Answer

The answer of If a manager has business transactions in...

Question 4

Which of the following is true regarding notice of termination of an agency relationship?
A) Notice of termination of an agency relationship must be given by actual notice.
B) Depending on the circumstances, notice of termination can be actual or constructive.
C) Notice of termination of an agency must be given in writing.
D) Actual notice of termination of an agency relationship is not needed once 30 days have passed since the termination because at that point notice is presumed.
E) Actual notice of termination of an agency relationship is not needed once 60 days have passed since the termination because at that point notice is presumed.

Accepted Answer

Notice of termination of an agency relationship can be either actual or constructive, depending on the circumstances. Actual notice involves directly informing the concerned parties, while constructive notice involves circumstances or actions that imply the termination has occurred, without direct communication.

Question 5

If an agency relationship is made specifically with the agent, not the principal in mind, this is known as an ________.
A) agency for an agent
B) agency coupled with an interest
C) agency benefitting the agent
D) agency compensation principle
E) agency entitlement principle

Accepted Answer

An agency coupled with an interest is a type of agency relationship where the agent has some interest in the subject of the agency, beyond just earning a commission or fee. This interest could be a financial stake in the property or business being dealt with, making the agency relationship more secure and not easily revocable by the principal.

Question 6

If a principal notifies a third party that an agency relationship has ended, at what point does that authority end?
A) It ends immediately
B) 24 hours
C) 48 hours
D) 7 days
E) 10 days

Accepted Answer

The authority of the agent ends immediately upon notification to the third party that the agency relationship has ended. This is because the third party's knowledge of the termination is what effectively ends the agent's ability to act on behalf of the principal in dealings with that third party.

Question 7

________ holds the principal-employer liable for any harm caused by the agent-employee during the time that the agent-employee is working for the principal.
A) Negligence
B) Absolute liability
C) Vicarious liability
D) Contributory liability
E) Strict liability

Accepted Answer

Vicarious liability is the legal doctrine under which a principal (employer) is held liable for the negligent actions or omissions of their agent (employee) committed within the scope of employment. This means that if an employee causes harm while performing their duties, the employer can be held responsible even if the employer themselves did not commit any wrongdoing.

Question 8

According to the text, which of the following is not a factor considered by courts in determining whether an act committed by an employee occurred within the course and scope of employment?
A) Whether the employer authorized the employee's act.
B) Whether the employer provided the tools by which the act occurred.
C) Whether the employer knew that the act would involve the commission of a serious crime.
D) Whether the employee had worked for the employer for a substantial amount of time.
E) Whether the employee used force not expected by the employer.

Accepted Answer

Courts typically do not consider the duration of the employee's tenure with the employer (how long the employee had worked for the employer) as a factor in determining whether an act was committed within the course and scope of employment. Factors more directly related to the specific act and its circumstances, such as authorization by the employer, provision of tools, knowledge of potential criminal activity, and the nature of the force used, are more relevant to this determination.

Question 9

Which of the following is true regarding the rights of an employer who is held liable and pays a third party, not because of the employer's negligence, but under the doctrine of respondeat superior based upon negligence of an employee?
A) The employer has no right to receive any reimbursement from the negligent employee.
B) The employer has a right to recover only 50% of any amounts paid from a negligent employee.
C) The employer has a right to recover all amounts paid from the negligent employee.
D) The employer can recover all amounts paid from a negligent employee but only if it can be shown that the employee's negligence was based upon the violation of a statute.
E) The employer can recover 50% of any amounts paid from a negligent employee but only if it can be shown that the employee's negligence was based upon the violation of a statute.

Accepted Answer

The employer has a right to seek full reimbursement from the negligent employee for any amounts paid due to the employee's negligence under the doctrine of respondeat superior. This principle allows employers to recoup losses when they are held vicariously liable for the actions of their employees.

Question 10

Daphne was working for Barrett at his jewelry store. She was asked to deliver a piece of jewelry to a homebound client for Barrett. When she was leaving the store, she backed into a customer who was pulling into he parking lot. Barrett had to pay $3,000 to the customer due to Daphne's negligence. Barrett could seek ________ from Daphne for the injuries she caused.
A) reimbursement
B) indemnification
C) indemnitee
D) retainers
E) proceeds

Accepted Answer

Barrett could seek indemnification from Daphne for the injuries she caused because indemnification involves compensating someone for harm or loss, which in this case, is the $3,000 Barrett had to pay due to Daphne's negligence.

Question 11

While making a delivery, Elliott, a delivery driver for Sira's Sandwiches, went through the drive through at a local restaurant to get a cup of coffee and bumped into the car in front of him resulting in some damage to the car's bumper. Which of the following is true regarding the liability of Sira's Sandwiches for the damage to the car?
A) As a matter of law, Sira's Sandwiches is not liable because Elliott was acting on his own behalf.
B) As a matter of law, Sira's Sandwiches is not liable because only property damage is involved.
C) As a matter of law, Sira's Sandwiches is liable because a company is liable for any torts committed by an employee during working hours.
D) Whether or not Sira's Sandwiches is liable depends on whether Elliott's acts are seen as substantial departure from his work.
E) Whether or not Sira's Sandwiches is liable depends on how long Elliott has worked for the company.

Accepted Answer

The liability of Sira's Sandwiches hinges on the principle of vicarious liability, which depends on whether the employee's actions were within the scope of employment. Getting coffee could be seen as a minor detour (not a substantial departure) during work, so the company's liability depends on the specifics of the situation, such as whether Elliott's coffee run was considered a part of his work duties or a significant deviation from them.

Question 12

If an independent contractor is engaged in ________ for the principal, the principal will be responsible for any damages by the independent contractor
A) extremely hazardous activities
B) normal activities
C) reasonable activities
D) purposeful activities
E) negligent activities

Accepted Answer

When an independent contractor is engaged in extremely hazardous activities for the principal, the principal may be held responsible for any damages caused by the contractor's actions. This is because the law recognizes that certain activities carry inherent risks that cannot be entirely mitigated by care or skill.

Question 13

[Textbook Confusion] Jason needs a business law book. He hears that Gwen has one for sale. Jason asks his girlfriend Sakura to buy it for him from Gwen if Sakura can get it for under $40. Sakura sees Gwen in the hall and asks if she will sell the book for $30, and Gwen agrees. They are between classes, and Sakura does not mention that the book is for Jason, although all the parties were on good terms, and the identity of the buyer should not have affected Sakura's agreement. Later, however, Rima agrees to give Jason her used business law book. Jason tells Sakura that he no longer wants the book. Sakura tells Gwen about the situation with Jason. Gwen replies that she does not care if Jason wants the book or not. Gwen says that she passed up a couple of opportunities to sell the book because she thought she already had it sold and that she wants her money from either Gwen or Jason - she doesn't care who pays.
-Which of the following is true regarding whether Jason is liable to Sakura for the cost of the book if Sakura pays Gwen the purchase price?
A) Jason is liable to Sakura for the cost of the book.
B) Jason is liable to Sakura for the cost of the book only if Sakura had Jason sign a document affirming his liability before Sakura paid Gwen.
C) Jason is liable to Sakura only if she resells the book and is unable to recover as much as she paid for it.
D) Jason is not liable to Sakura for the cost of the book.
E) Jason can avoid liability to Sakura only if he can establish that his actions constituted "justifiable expectations" under the law absolving him from liability.

Accepted Answer

Jason is liable to Sakura for the cost of the book because he authorized Sakura to purchase the book on his behalf, and Sakura completed the purchase based on his request.

Question 14

An agency relationship may be terminated in several ways for a variety of reasons. Which of the following is not one of these reasons?
A) Insolvency of the principal
B) Occurrence of a specific event
C) Revocation of authority
D) Fulfillment of purpose
E) Renunciation by the agent

Accepted Answer

Insolvency of the principal does not automatically terminate an agency relationship. The other options (B, C, D, E) are valid reasons for termination.

Question 15

[The Big Sale] Simone, the owner of ABC department store, needed to hire a number of employees in a hurry because of a big summer sale she was planning. Jamal was hired by Simone to run a cash register and to assist customers with taking large purchases to their cars. Jamal encountered a particularly annoying customer, Ryan. Ryan started complaining the minute he saw Jamal. Ryan complained about having to wait for Jamal to assist him with carrying his television purchase to his car, about the merchandise in the store, and about the quality of the store's employees. Jamal tried to control himself while he carted Ryan's television to the car; however, when Ryan began verbally attacking Jamal's appearance and professional manner, Jamal threw the television to the ground and punched Ryan in the nose. Ryan chose to investigate Jamal's employment history and discovered that Jamal had been fired from his previous three jobs for taking violent action against customers. Two of his former employers were willing to testify that if Simone had called them, they would have disclosed Jamal's tendencies to her. Jamal listed the former employers on his application, but because she was in a hurry to hire employees, Simone did not take the time to check with the former employers. Another problem confronting Simone during the big sale is that Lea, a long-time employee of Simone who had never caused any problems before, accidentally, but negligently, dropped a box on the foot of a customer, Greg. Greg had to have an X-ray and is threatening to sue both Simone and Lea.
-Which of the following is true regarding Simone's liability, if any, for her own conduct in regards to Ryan's injury?
A) Simone would likely be held liable for negligent hiring.
B) Regardless of whether she did anything to directly cause injury to Ryan, Simone would likely be held liable on a strict liability theory because her customer was injured.
C) Simone would likely be held liable for breach of customer warranty.
D) Simone would likely be required to split the damages with Jamal because Jamal was her employee.
E) There is no theory on which Simone could be held liable for her own conduct in this situation.

Accepted Answer

Simone could be held liable for negligent hiring because she failed to check Jamal's references, which would have revealed his history of violent behavior towards customers.

Question 16

[Textbook Confusion] Jason needs a business law book. He hears that Gwen has one for sale. Jason asks his girlfriend Sakura to buy it for him from Gwen if Sakura can get it for under $40. Sakura sees Gwen in the hall and asks if she will sell the book for $30, and Gwen agrees. They are between classes, and Sakura does not mention that the book is for Jason, although all the parties were on good terms, and the identity of the buyer should not have affected Sakura's agreement. Later, however, Rima agrees to give Jason her used business law book. Jason tells Sakura that he no longer wants the book. Sakura tells Gwen about the situation with Jason. Gwen replies that she does not care if Jason wants the book or not. Gwen says that she passed up a couple of opportunities to sell the book because she thought she already had it sold and that she wants her money from either Gwen or Jason - she doesn't care who pays.
-Which of the following is true regarding whether Sakura is personally bound on the contract with Gwen?
A) Sakura is not personally bound because she was acting on behalf of Jason.
B) Sakura is personally bound unless she can establish that Gwen would not have sold her the book if she had known that Jason was involved.
C) Sakura is personally bound unless she can establish that Jason has the funds with which to pay Gwen.
D) Sakura is not personally bound unless Jason is legally insolvent.
E) Sakura is personally bound.

Accepted Answer

Sakura is personally bound because she made the agreement with Gwen without disclosing that she was acting on behalf of Jason. In the absence of Gwen knowing that Sakura was acting as an agent for Jason, Sakura is the party to the contract and thus personally bound by it.

Question 17

Which of the following is false regarding revocation of the authority of an agent and renunciation by an agent?
A) At any time a principal can revoke an agent's authority.
B) A principal's revocation of an agent's authority may result in a breach of contract entitling the agent to damages.
C) An agent can terminate the agency relationship by renouncing the authority given to the agent.
D) An agent's wrongful ending of the agency relationship may be a breach of contract entitling the principal to damages.
E) If an agent has breached a fiduciary duty to the principal, the principal can revoke the agent's authority; but the agent may be entitled to damages.

Accepted Answer

If an agent has breached a fiduciary duty to the principal, the principal can revoke the agent's authority, but the agent would not be entitled to damages.

Question 18

Which statement is false regarding termination of agency based on operation of law?
A) Impossibility of performance terminates the agency relationship.
B) An agency agreement is terminated whenever the agent, unknown to the principal, acquires an interest against the principal's interest.
C) The agency agreement is terminated if the agent breaches the duty of loyalty he or she has to the principal.
D) A change in law passed subsequent to the formation of an agency agreement may not result in termination of the agency agreement.
E) If there is an unusual change in circumstances that leads the agent to believe that the principal's instructions do not apply, the agency relationship terminates.

Accepted Answer

A change in law that affects the ability to perform the agency agreement or makes the agreement illegal can indeed result in the termination of the agency agreement.

Question 19

[Textbook Confusion] Jason needs a business law book. He hears that Gwen has one for sale. Jason asks his girlfriend Sakura to buy it for him from Gwen if Sakura can get it for under $40. Sakura sees Gwen in the hall and asks if she will sell the book for $30, and Gwen agrees. They are between classes, and Sakura does not mention that the book is for Jason, although all the parties were on good terms, and the identity of the buyer should not have affected Sakura's agreement. Later, however, Rima agrees to give Jason her used business law book. Jason tells Sakura that he no longer wants the book. Sakura tells Gwen about the situation with Jason. Gwen replies that she does not care if Jason wants the book or not. Gwen says that she passed up a couple of opportunities to sell the book because she thought she already had it sold and that she wants her money from either Gwen or Jason - she doesn't care who pays.
-When Sakura and Gwen enter their agreement, what type of principal is Jason?
A) Disclosed
B) Undisclosed
C) Partially disclosed
D) Unidentified
E) Legally nonexistent

Accepted Answer

Jason is an undisclosed principal because Sakura did not reveal to Gwen that she was buying the book on behalf of Jason.

Question 20

Which of the following is false regarding termination of agency in the Netherlands?
A) The agent is entitled to compensation if his or her duties are concluded within a reasonable time after termination.
B) Compensation is due if the agent received the orders for a certain action before the termination of the contract.
C) The agent is entitled to goodwill compensation in certain situations.
D) An agent is not entitled to additional compensation based on bringing the principal new customers or because agreements with clients obtained by the agent remain profitable.
E) There are requirements on the agent in regard to time limits in filing for certain compensation.

Accepted Answer

In the Netherlands, an agent may be entitled to additional compensation for bringing new customers or if the agreements with clients obtained by the agent remain profitable, contrary to what option D suggests.

Quiz 34: Liability to Third Parties and Termination

In Doe v. Uber Technologies, Inc. the case in the text in which two victims sued Uber Technologies alleging separate sexual assaults on rides they received from Uber drivers and whether or not those drivers were employees or independent contractors. The court held that:

________ usually consists of publication in a generally circulated newspaper in the area where the agency agreement actually existed.

If a manager has business transactions in one of the European Union countries and wants to terminate an agency relationship, he or she would want to have access to knowledge about which of the following?

Which of the following is true regarding notice of termination of an agency relationship?

If an agency relationship is made specifically with the agent, not the principal in mind, this is known as an ________.

If a principal notifies a third party that an agency relationship has ended, at what point does that authority end?

________ holds the principal-employer liable for any harm caused by the agent-employee during the time that the agent-employee is working for the principal.

According to the text, which of the following is not a factor considered by courts in determining whether an act committed by an employee occurred within the course and scope of employment?

Which of the following is true regarding the rights of an employer who is held liable and pays a third party, not because of the employer's negligence, but under the doctrine of respondeat superior based upon negligence of an employee?

If an independent contractor is engaged in ________ for the principal, the principal will be responsible for any damages by the independent contractor

An agency relationship may be terminated in several ways for a variety of reasons. Which of the following is not one of these reasons?

Which of the following is false regarding revocation of the authority of an agent and renunciation by an agent?

Which statement is false regarding termination of agency based on operation of law?

Which of the following is false regarding termination of agency in the Netherlands?