Question 1

Donald approves on behalf of Evelyn-but without authorization-a contract with Farouk to build a new silo. Evelyn does not ratify the contract. The deal with Farouk is​

Accepted Answer

The answer of Donald approves on behalf of Evelyn-but without...

Question 2

Lima, an agent for Mindwonder Games LLC, executes an unauthorized contract with NOW Marketing Inc. The deal is highly advantageous to Mindwonder, and the company ratifies the contract. The contract is​

Accepted Answer

The contract is valid because even though it was initially unauthorized, it was later ratified by Mindwonder Games LLC. Ratification of a contract refers to the act of approving or agreeing to a previously unauthorized agreement. Once it has been ratified, the contract becomes legally binding and enforceable, just like any other valid contract.

Question 3

Seed Packets, Inc., a garden seed company, requires its customers to pay by check. Taylor, a Seed Packets driver, tells customers that they can pay her with cash. When Seed Packets learns of Taylor's collections, it does not act to stop them. Taylor steals some of the cash. Under the doctrine of apparent authority, Seed Packets will most likely​

Accepted Answer

The doctrine of apparent authority holds a principal liable for the actions of an agent that the principal has allowed to appear to have authority, even if the agent did not have actual authority. In this case, Seed Packets did not take any action to stop Taylor from collecting cash payments, which appeared to give her apparent authority to do so. Therefore, Seed Packets will likely be held liable for the loss caused by Taylor's theft.

Question 4

Darla serves in a representative capacity for Ellen. To accomplish the objectives of this relationship, Darla's authority can be implied​

Accepted Answer

Implied authority in a representative capacity can exist through custom, which refers to the usual and accepted way of doing things in a particular situation or industry. Custom can be used to show that Darla has the implied authority to act on behalf of Ellen in certain situations. Therefore, choice B is the best answer. Choices A, C, and D are not accurate explanations for implied authority.

Question 5

Mirena serves in a representative capacity for Netanya. Orla is injured through Mirena's negligence. Netanya may be liable to Orla if Mirena's conduct occurred​

Accepted Answer

Netanya may be liable for Mirena's negligence if it occurred in the course and scope of Mirena's employment. As Mirena serves in a representative capacity for Netanya, her actions can be attributed to Netanya within the scope of her employment responsibilities.

Question 6

Fact Pattern 33-1
Berry indicates that she is acting as an agent on behalf of an unidentified client-Cuisine Catering, LLC-when she enters into a contract with Désean.
-Refer to Fact Pattern 33-1. Cuisine Catering is​

Accepted Answer

A partially disclosed principal is one whose existence is known to the third party, but whose identity is not revealed. In this case, Berry indicates she is acting on behalf of a client, but the client's identity (Cuisine Catering, LLC) is not disclosed to Désean.

Question 7

Fact Pattern 33-1
Berry indicates that she is acting as an agent on behalf of an unidentified client-Cuisine Catering, LLC-when she enters into a contract with Désean.
-Refer to Fact Pattern 33-1. Liability to Désean for nonperformance of the contract may be imposed on​

Accepted Answer

Berry indicated that she was acting as an agent of Cuisine Catering, so both Berry and Cuisine Catering could be held liable for nonperformance of the contract with Désean.

Question 8

Ben manages a warehouse and its inventory for Coffee Shops, Inc. To operate this part of the business, Ben's authority can be inferred​

Accepted Answer

The answer of Ben manages a warehouse and its inventory...

Question 9

Based on Oona's conduct, Porcio reasonably believes that Qasim has the authority to act on Oona's behalf even though Qasim does not have the actual authority to do so. In this circumstance, Qasim has​

Accepted Answer

Qasim has apparent authority because his conduct, as perceived by Porcio, led him to reasonably believe that he had the authority to act on Oona's behalf. Although Qasim does not have actual authority, his actions created the appearance of such authority to a third party.

Question 10

Without authorization, Lars contracts on behalf of Mina to have Nemo paint the interior and exterior of Mina's house. If Mina decides to ratify the contract, she must affirm​

Accepted Answer

If Mina decides to ratify the contract, she must affirm all of the contract. Ratification requires acceptance of the entire contract as it was made, not just parts of it.

Question 11

Olive, an agent for Precision Paving Corporation, enters into an unauthorized contract with Quality Asphalt, Inc., purportedly on Precision's behalf. Precision does not ratify the contract. Liability may be imposed on​

Accepted Answer

Olive misrepresented her authority to enter into the contract, and therefore is liable to Quality. Precision cannot be held liable as they did not authorize or ratify the contract. Quality cannot be held liable as they had no reason to believe Olive did not have the authority to enter into the contract on Precision's behalf.

Question 12

Linus hires Mieko to act as his agent to purchase Ngoc's Southeast Asian Buffet. Linus tells Mieko to reveal only that she is buying the restaurant on behalf of a third party, without telling Ngoc's seller who that third party is. Linus is​

Accepted Answer

Linus is a partially disclosed principal because Mieko reveals that she is acting on behalf of a third party, but does not disclose Linus's identity.

Question 13

OnlineSales.com uses an e-agent to take a purchase order from a consumer over the Internet. The e-agent fails to provide an onscreen confirmation of the order. The effect of any error in the order can be avoided by​

Accepted Answer

The answer of OnlineSales.com uses an e-agent to take a...

Question 14

Bud approves on behalf of Cody-but without authorization-a contract with Dik to build a new silo. Cody does not ratify the contract. Later, Dik tries to enforce the deal. This attempt will be​

Accepted Answer

Since Bud did not have the authority to approve the contract on Cody's behalf and Cody did not ratify the contract, the contract is considered void and unenforceable. Therefore, Dik's attempt to enforce the deal will be totally unsuccessful.

Question 15

Lena is a salesperson for Musical Instruments, Inc. She tells Nayda, a customer, that an instrument has a certain quality when, as Lena knows, it does not. In reliance, Nayda buys the instrument. Liable for this misrepresentation is​

Accepted Answer

Lena is liable for the misrepresentation because she knowingly gave false information to Nayda in order to make a sale. Musical Instruments may also be liable if they knew about Lena's misrepresentation and failed to take corrective action. Nayda is not liable as she relied on the information provided by Lena.

Question 16

Rod is an employee of Savers Bank. In deciding whether Rod acts within the scope of his employment when he commits a tort against Tracy, a court will not consider whether​

Accepted Answer

The fact that Rod indicated he was acting on behalf of Savers Bank is not the determining factor in whether he acted within the scope of his employment. The court will consider factors such as whether the act was authorized by Savers Bank, whether it was done during work hours or using company equipment, and whether it was a task commonly performed by employees for their employer.

Question 17

Beth, acting within the scope of her authority for the Cake Bake Shop, contracts with Eden Valley Orchards to buy an assortment of fruit. Cake Bake is liable on the contract, and Beth is not, if Cake Bake is​

Accepted Answer

If Cake Bake is a disclosed principal, then Eden Valley Orchards is aware that they are entering into a contract with a specific business entity and not with Beth as an individual. As a result, Cake Bake would be liable for fulfilling the terms of the contract, not Beth.

Question 18

Based on Esteban's conduct, Floyd reasonably believes that Glynis has the authority to act on Esteban's behalf even though Glynis does not have the actual authority to do so. Floyd makes a payment to Glynis for Esteban. Glynis keeps the money and disappears. Esteban​

Accepted Answer

Estoppel is a legal principle that prevents a person from denying or contradicting a previous statement or commitment. Based on Esteban's conduct, Floyd reasonably believed that Glynis had the authority to act on Esteban's behalf. Therefore, Esteban may be estopped from denying that Glynis had authority, even though she did not have actual authority. However, Esteban can still demand repayment directly from Glynis or obtain damages for her misconduct. Repudiation of Glynis's misconduct may also help to avoid liability.

Question 19

Clark hires Dion to act as his agent to purchase Expo Sports Arena, Inc. Clark tells Dion to reveal that he is buying the firm and its assets on behalf of a third party and to tell the seller who that third party is. Clark is​

Accepted Answer

Clark is a disclosed principal because Dion, as his agent, is instructed to reveal both the existence of a principal and the identity of that principal to the seller.

Question 20

Garry drives a truck as an employee for Heavy Hauling, Inc. Garry would most likely be considered acting outside the scope of her employment if he​

Accepted Answer

Garry would be considered acting outside the scope of his employment if he was off duty, as in scenario A, where he crashed into a car at the airport while off duty. The other scenarios involve actions taken during work hours or as part of his job duties, even if they involve negligence or misconduct.

Quiz 33: Agency Liability and Termination

Donald approves on behalf of Evelyn-but without authorization-a contract with Farouk to build a new silo. Evelyn does not ratify the contract. The deal with Farouk is​

Lima, an agent for Mindwonder Games LLC, executes an unauthorized contract with NOW Marketing Inc. The deal is highly advantageous to Mindwonder, and the company ratifies the contract. The contract is​

Darla serves in a representative capacity for Ellen. To accomplish the objectives of this relationship, Darla's authority can be implied​

Mirena serves in a representative capacity for Netanya. Orla is injured through Mirena's negligence. Netanya may be liable to Orla if Mirena's conduct occurred​

Fact Pattern 33-1 Berry indicates that she is acting as an agent on behalf of an unidentified client-Cuisine Catering, LLC-when she enters into a contract with Désean. -Refer to Fact Pattern 33-1. Cuisine Catering is​

Fact Pattern 33-1 Berry indicates that she is acting as an agent on behalf of an unidentified client-Cuisine Catering, LLC-when she enters into a contract with Désean. -Refer to Fact Pattern 33-1. Liability to Désean for nonperformance of the contract may be imposed on​

Ben manages a warehouse and its inventory for Coffee Shops, Inc. To operate this part of the business, Ben's authority can be inferred​

Based on Oona's conduct, Porcio reasonably believes that Qasim has the authority to act on Oona's behalf even though Qasim does not have the actual authority to do so. In this circumstance, Qasim has​

Without authorization, Lars contracts on behalf of Mina to have Nemo paint the interior and exterior of Mina's house. If Mina decides to ratify the contract, she must affirm​

Olive, an agent for Precision Paving Corporation, enters into an unauthorized contract with Quality Asphalt, Inc., purportedly on Precision's behalf. Precision does not ratify the contract. Liability may be imposed on​

Linus hires Mieko to act as his agent to purchase Ngoc's Southeast Asian Buffet. Linus tells Mieko to reveal only that she is buying the restaurant on behalf of a third party, without telling Ngoc's seller who that third party is. Linus is​

OnlineSales.com uses an e-agent to take a purchase order from a consumer over the Internet. The e-agent fails to provide an onscreen confirmation of the order. The effect of any error in the order can be avoided by​

Bud approves on behalf of Cody-but without authorization-a contract with Dik to build a new silo. Cody does not ratify the contract. Later, Dik tries to enforce the deal. This attempt will be​

Lena is a salesperson for Musical Instruments, Inc. She tells Nayda, a customer, that an instrument has a certain quality when, as Lena knows, it does not. In reliance, Nayda buys the instrument. Liable for this misrepresentation is​

Rod is an employee of Savers Bank. In deciding whether Rod acts within the scope of his employment when he commits a tort against Tracy, a court will not consider whether​

Beth, acting within the scope of her authority for the Cake Bake Shop, contracts with Eden Valley Orchards to buy an assortment of fruit. Cake Bake is liable on the contract, and Beth is not, if Cake Bake is​

Based on Esteban's conduct, Floyd reasonably believes that Glynis has the authority to act on Esteban's behalf even though Glynis does not have the actual authority to do so. Floyd makes a payment to Glynis for Esteban. Glynis keeps the money and disappears. Esteban​

Clark hires Dion to act as his agent to purchase Expo Sports Arena, Inc. Clark tells Dion to reveal that he is buying the firm and its assets on behalf of a third party and to tell the seller who that third party is. Clark is​

Garry drives a truck as an employee for Heavy Hauling, Inc. Garry would most likely be considered acting outside the scope of her employment if he​

Donald approves on behalf of Evelyn-but without authorization-a contract with Farouk to build a new silo. Evelyn does not ratify the contract. The deal with Farouk is

Lima, an agent for Mindwonder Games LLC, executes an unauthorized contract with NOW Marketing Inc. The deal is highly advantageous to Mindwonder, and the company ratifies the contract. The contract is

Darla serves in a representative capacity for Ellen. To accomplish the objectives of this relationship, Darla's authority can be implied

Mirena serves in a representative capacity for Netanya. Orla is injured through Mirena's negligence. Netanya may be liable to Orla if Mirena's conduct occurred

Fact Pattern 33-1 Berry indicates that she is acting as an agent on behalf of an unidentified client-Cuisine Catering, LLC-when she enters into a contract with Désean. -Refer to Fact Pattern 33-1. Cuisine Catering is

Fact Pattern 33-1 Berry indicates that she is acting as an agent on behalf of an unidentified client-Cuisine Catering, LLC-when she enters into a contract with Désean. -Refer to Fact Pattern 33-1. Liability to Désean for nonperformance of the contract may be imposed on

Ben manages a warehouse and its inventory for Coffee Shops, Inc. To operate this part of the business, Ben's authority can be inferred

Based on Oona's conduct, Porcio reasonably believes that Qasim has the authority to act on Oona's behalf even though Qasim does not have the actual authority to do so. In this circumstance, Qasim has

Without authorization, Lars contracts on behalf of Mina to have Nemo paint the interior and exterior of Mina's house. If Mina decides to ratify the contract, she must affirm

Olive, an agent for Precision Paving Corporation, enters into an unauthorized contract with Quality Asphalt, Inc., purportedly on Precision's behalf. Precision does not ratify the contract. Liability may be imposed on

Linus hires Mieko to act as his agent to purchase Ngoc's Southeast Asian Buffet. Linus tells Mieko to reveal only that she is buying the restaurant on behalf of a third party, without telling Ngoc's seller who that third party is. Linus is

OnlineSales.com uses an e-agent to take a purchase order from a consumer over the Internet. The e-agent fails to provide an onscreen confirmation of the order. The effect of any error in the order can be avoided by

Bud approves on behalf of Cody-but without authorization-a contract with Dik to build a new silo. Cody does not ratify the contract. Later, Dik tries to enforce the deal. This attempt will be

Lena is a salesperson for Musical Instruments, Inc. She tells Nayda, a customer, that an instrument has a certain quality when, as Lena knows, it does not. In reliance, Nayda buys the instrument. Liable for this misrepresentation is

Rod is an employee of Savers Bank. In deciding whether Rod acts within the scope of his employment when he commits a tort against Tracy, a court will not consider whether

Beth, acting within the scope of her authority for the Cake Bake Shop, contracts with Eden Valley Orchards to buy an assortment of fruit. Cake Bake is liable on the contract, and Beth is not, if Cake Bake is

Based on Esteban's conduct, Floyd reasonably believes that Glynis has the authority to act on Esteban's behalf even though Glynis does not have the actual authority to do so. Floyd makes a payment to Glynis for Esteban. Glynis keeps the money and disappears. Esteban

Clark hires Dion to act as his agent to purchase Expo Sports Arena, Inc. Clark tells Dion to reveal that he is buying the firm and its assets on behalf of a third party and to tell the seller who that third party is. Clark is

Garry drives a truck as an employee for Heavy Hauling, Inc. Garry would most likely be considered acting outside the scope of her employment if he