Question 1

Cook instructs Chan,her agent,to buy a van for her business.Chan contracts for a van with a third party,who knows that Chan is an agent.If Cook does not like the van and refuses to pay for it,the seller may sue:

Accepted Answer

Chan had actual authority to buy the van on behalf of Cook, so the seller can sue Cook for breach of contract if she refuses to pay for it. The fact that the third party knew that Chan was an agent does not affect Cook's liability as long as Chan had actual authority to make the contract.

Question 2

An agency ends without any action by the principal or the agent through:

Accepted Answer

The answer of An agency ends without any action by...

Question 3

A(n)_______________ is one whose identity is unknown by the third party at the time when a contract is entered into with an agent.

Accepted Answer

An undisclosed principal is one whose identity is not known by the third party at the time the contract is entered into with the agent. The agent acts on behalf of the undisclosed principal without revealing their identity to the third party.

Question 4

When an agency is terminated:

Accepted Answer

When an agency is terminated, the agent's authority to act for the principal ends. This means that the agent can no longer act on behalf of the principal or make decisions for them. However, any actions taken by the agent while they had authority may still be binding on the principal.

Question 5

An agency ends without any action by the principal or the agent through:

Accepted Answer

Termination by operation of law refers to when an agency relationship is automatically terminated due to a specific event or circumstance, such as the death or bankruptcy of the principal or agent, expiration of the agency period, or completion of the agency's purpose. This type of termination does not require any action or decision by either the principal or the agent.

Question 6

A(n)_______________ is one whose identity is unknown by the third party at the time when a contract is entered into with an agent.

Accepted Answer

The correct term for a principal whose identity is unknown by the third party at the time a contract is entered into with an agent is "undisclosed principal," which is not listed among the provided options. Therefore, none of the given choices are correct.

Question 7

In Yim v.J's Fashion Accessories,Inc. ,where J's Fashion sued Yim for failing to pay for goods he bought under the name Ho Tae and Yim denied liability on the grounds that he had been acting as an agent for Hosung Enterprise,Inc which also did business under the name Ho Tae,the courts held that:

Accepted Answer

Yim was not liable for the debt if he acted as an agent for Hosung Enterprise, Inc. However, Yim did not disclose the existence of his principal, Hosung Enterprise, Inc., to J's Fashion Accessories, Inc. Therefore, Yim was liable for the debt he incurred under the name Ho Tae.

Question 8

In Yim v.J's Fashion Accessories,Inc. ,where J's Fashion sued Yim for failing to pay for goods he bought under the name Ho Tae and Yim denied liability on the grounds that he had been acting as an agent for Hosung Enterprise,Inc which also did business under the name Ho Tae,the courts held that:

Accepted Answer

The question presents a hypothetical legal scenario that does not reference a real case or established legal principle directly. Therefore, without specific details about the jurisdiction's laws or the court's reasoning in this fictional case, it's not possible to accurately determine the outcome based on the provided choices. The correct answer would depend on various factors, including the nature of the agency relationship, the disclosures made by Yim regarding his role as an agent, and the laws governing agency in the relevant jurisdiction.

Question 9

When there is an undisclosed principal,the agent is:

Accepted Answer

When there is an undisclosed principal, the agent is liable to the third party for the principal's nonperformance of the contract. This is because the third party entered into the contract believing they were dealing with the agent alone, and thus the agent is responsible for ensuring the principal performs as outlined in the contract. If the principal does not perform, the agent is still liable to the third party as they did not disclose the principal's identity and thus assumed responsibility for their actions.

Question 10

An undisclosed principle is:

Accepted Answer

The answer of An undisclosed principle is:
...

Question 11

Barbara,a purchasing agent for UTA,was fired for good reason.Being angry about her dismissal,she calls one of UTA's suppliers and orders 1,000 purple widgets UTA does not need.If UTA,the principal,is held liable for this transaction,it is because Barbara had:

Accepted Answer

Apparent authority occurs when a principal creates the appearance of authority for an agent through words, actions, or a lack of action. In this case, Barbara's previous role as a purchasing agent for UTA may have led the supplier to believe that she had the authority to make this purchase. Therefore, UTA may be held liable for the transaction based on apparent authority.

Question 12

In Yim v.J's Fashion Accessories,Inc. ,where J's Fashion sued Yim for failing to pay for goods he bought under the name Ho Tae and Yim denied liability on the grounds that he had been acting as an agent for Hosung Enterprise,Inc which also did business under the name Ho Tae,the courts held that Yim was liable because:

Accepted Answer

The answer of In Yim v.J's Fashion Accessories,Inc. ,where J's...

Question 13

An agency may not be ended by:

Accepted Answer

A third party with opposing decision can terminate the agency.

Question 14

An undisclosed principal is:

Accepted Answer

The answer of An undisclosed principal is:
...

Question 15

An agency can be ended upon reasonable notice by:

Accepted Answer

Either the agent or the principal may end an agency relationship upon reasonable notice. Reasonable notice is typically determined by the specific terms of the agency agreement or industry standards.

Question 16

An agency may not be ended by:

Accepted Answer

All of the other choices, including unilateral notice by the agent, unilateral notice by the principal, mutual consent by agent and principal, and lapse of agreed-upon time, may end an agency.

Question 17

When an agency is terminated:

Accepted Answer

When an agency is terminated, the agent's authority to act for the principal ends, contrary to what options A, B, C, and D suggest. The agent can work for someone in competition with the principal unless specifically restricted by a non-compete agreement, and there is no rule that an agent can never work with the principal again. Therefore, none of the other choices are correct.

Question 18

Juan and Marie enter into an oral agreement that Marie will sell Juan's crusty herb garlic bread to gourmet food stores in the area.This works until Juan gets sick and no longer makes his bread.Marie is furious that Juan is unable to supply her with the popular bread and sues him for lost profits.A court is likely to rule:

Accepted Answer

As per the given scenario, Juan and Marie had an oral agreement for Marie to sell Juan's bread to gourmet food stores. However, the authority given to Marie to act as an agent for Juan was limited to the bread that Juan would make. Since Juan has fallen sick and is unable to provide the bread anymore, Marie's authority as an agent for Juan has lapsed and the agency relationship is terminated. Therefore, Marie cannot sue Juan for lost profits as she no longer has the authority to act as his agent. Hence, option B is the correct answer.

Question 19

In Yim v.J's Fashion Accessories,Inc. ,where J's Fashion sued Yim for failing to pay for goods he bought under the name Ho Tae and Yim denied liability on the grounds that he had been acting as an agent for Hosung Enterprise,Inc which also did business under the name Ho Tae,the courts held that Yim was liable because:

Accepted Answer

According to the principle of agency law, an agent must always disclose the identity of the principal while making a contract. In this case, Yim did not disclose Hosung Enterprise, Inc. as the principal while buying goods from J's Fashion which makes him liable for the contract. Therefore, option A is the correct choice.

Question 20

The principal may hold the third party to a contract,in an undisclosed principal situation,except when the:

Accepted Answer

The answer of The principal may hold the third party...

Quiz 14: Agency and the Employment Relationship

Cook instructs Chan,her agent,to buy a van for her business.Chan contracts for a van with a third party,who knows that Chan is an agent.If Cook does not like the van and refuses to pay for it,the seller may sue:

An agency ends without any action by the principal or the agent through:

A(n) _______________ is one whose identity is unknown by the third party at the time when a contract is entered into with an agent.

When an agency is terminated:

An agency ends without any action by the principal or the agent through:

A(n) _______________ is one whose identity is unknown by the third party at the time when a contract is entered into with an agent.

In Yim v.J's Fashion Accessories,Inc. ,where J's Fashion sued Yim for failing to pay for goods he bought under the name Ho Tae and Yim denied liability on the grounds that he had been acting as an agent for Hosung Enterprise,Inc which also did business under the name Ho Tae,the courts held that:

In Yim v.J's Fashion Accessories,Inc. ,where J's Fashion sued Yim for failing to pay for goods he bought under the name Ho Tae and Yim denied liability on the grounds that he had been acting as an agent for Hosung Enterprise,Inc which also did business under the name Ho Tae,the courts held that:

When there is an undisclosed principal,the agent is:

An undisclosed principle is:

Barbara,a purchasing agent for UTA,was fired for good reason.Being angry about her dismissal,she calls one of UTA's suppliers and orders 1,000 purple widgets UTA does not need.If UTA,the principal,is held liable for this transaction,it is because Barbara had:

An agency may not be ended by:

An undisclosed principal is:

An agency can be ended upon reasonable notice by:

An agency may not be ended by:

When an agency is terminated:

The principal may hold the third party to a contract,in an undisclosed principal situation,except when the: