Question 1

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 e-agent failed to provide an onscreen confirmation of the order, so the responsibility to ensure the accuracy of the order falls on the consumer. It is the duty of the consumer to carefully review and verify their order before submitting it, especially in the absence of a confirmation.

Question 2

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 made a false statement to Nayda about the quality of the instrument with the knowledge that it was not true. This constitutes misrepresentation and Lena is liable for it. Musical Instruments may also be held responsible if they participated in, or knew about, the misrepresentation. Nayda cannot be liable as she relied on Lena's statement in making her purchase.

Question 3

Fact Pattern 10-1
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 10-1.Cuisine Catering is​

Accepted Answer

Cuisine Catering is a partially disclosed principal because Berry indicated she was acting on behalf of a client, but did not reveal the client's identity.

Question 4

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 is liable for misrepresenting her authority to Quality and entering into a contract on Precision's behalf without authorization. Precision cannot be held liable as they did not ratify the contract.

Question 5

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

Cake Bake is liable on the contract as a disclosed principal, since Beth was acting within the scope of her authority as an agent of Cake Bake.

Question 6

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 7

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 would only be liable for Orla's injury if it occurred in the course and scope of Mirena's employment. This means that Mirena's actions were related to her job responsibilities and duties, and that she was acting on behalf of Netanya at the time of the incident.

Question 8

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 9

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

A court will not consider whether Rod indicated that he was acting on behalf of Savers Bank in deciding whether he acted within the scope of his employment when he committed a tort against Tracy. The court will consider factors such as whether the act was within the scope of Rod's job duties, whether it occurred during work hours or on Savers Bank's premises, and whether it was intended to benefit Savers Bank in some way.

Question 10

Fact Pattern 10-1
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 10-1.Liability to Désean for nonperformance of the contract may be imposed on​

Accepted Answer

When an agent acts on behalf of an unidentified principal, both the agent (Berry) and the principal (Cuisine Catering) can be held liable for nonperformance of the contract.

Question 11

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 considered valid because Mindwonder Games LLC later ratified the contract, making it legally binding. Even though Lima executed the contract without authorization, the company's validation makes it valid.

Question 12

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

Under the doctrine of apparent authority, Seed Packets will be held liable for Taylor's actions because she appeared to have authority to collect cash payments from customers. Seed Packets did not take any action to warn its customers that Taylor did not have the authority to accept cash payments. As a result, when Taylor stole the cash payments, Seed Packets will be responsible for the loss.

Question 13

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

The answer of Linus hires Mieko to act as his...

Question 14

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.

Question 15

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

The answer of Clark hires Dion to act as his...

Question 16

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 Porcio believes he has the authority to act on Oona's behalf based on Oona's conduct, even though Qasim does not actually have that authority. Apparent authority arises when a third party reasonably believes that an agent has authority to act on behalf of the principal based on the principal's conduct.

Question 17

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

The answer of Without authorization, Lars contracts on behalf of...

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 facts that have already been established as true. In this case, Esteban's conduct led Floyd to believe that Glynis had authority to act on Esteban's behalf, and Floyd relied on this belief by making a payment to Glynis. As a result, Esteban may be estopped from denying that Glynis had authority, even though she did not actually have it. Therefore, Esteban cannot demand that Floyd make a repayment directly to him or obtain damages from Floyd for Glynis's misconduct. However, Esteban must repudiate Glynis's misconduct to avoid liability.

Question 19

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

Accepted Answer

Darla's authority in serving as a representative for Ellen can be implied by custom. This means that certain actions or decisions can be assumed to be within Darla's authority based on the usual practices or traditions of their relationship.

Question 20

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...

Quiz 10: Agency Liability and Termination

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​

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​

Fact Pattern 10-1 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 10-1.Cuisine Catering is​

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​

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​

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​

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​

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​

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​

Fact Pattern 10-1 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 10-1.Liability to Désean for nonperformance of the contract may be imposed on​

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​

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​

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​

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​

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​

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​

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

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

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

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

Fact Pattern 10-1 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 10-1.Cuisine Catering is

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

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

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

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

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

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

Fact Pattern 10-1 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 10-1.Liability to Désean for nonperformance of the contract may be imposed on

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

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

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

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

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

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

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

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