Question 1

Brad is an employee of Custodial Service,Inc.In deciding whether Brad acts within the scope of his employment when he commits a tort against Didi,a court will not consider whether

Accepted Answer

The court will not consider Brad's indication that he was acting on behalf of Custodial because it is not a determining factor in whether he acted within the scope of his employment. Instead, the court will consider factors such as whether the act was authorized by Custodial, whether Custodial furnished the means by which the injury was inflicted, and whether the act is one commonly performed by employees for their employers.

Question 2

Principal Resources Corporation contracts with Quality Construction to build an addition to Principal's corporate office building.Quality contracts with Rite Supply Company for materials for the addition but refuses to pick up the materials.Meanwhile,Principal hires Skye,a certified public accountant,to work in its cost-accounting division as an employee,with no authority to hire or supervise others.Skye asks Theo,an outside experienced accountant,to advise her on certain accounting procedures but fails to pay Theo for the service.Principal also contracts with Uma,a salesperson,to solicit orders for its products in a designated territory.Uma obtains an order from Verity Industries,Inc.,which is assured the order will be filled soon.But Uma does not follow through with the paperwork and fails to submit the order to Principal.Verity suffers a loss.Rite Supply,Theo,and Verity Industries claim Principal is liable under agency law.Discuss fully whether an agency relationship was created by Principal with Quality Construction,Skye,or Uma.

Accepted Answer

The answer of Principal Resources Corporation contracts with Quality Construction...

Question 3

Clu serves in a representative capacity for Digger.Elmo is injured through Clu's negligence.Digger may be liable to Elmo if Clu's conduct occurred

Accepted Answer

Clu was serving in a representative capacity for Digger, which means Clu was acting within the course and scope of their employment relationship with Digger. Therefore, Digger may be liable for Clu's negligence. Option A is incorrect because it implies that Digger had no knowledge of Clu's propensity towards negligence, but this does not affect their liability. Option B is also incorrect because the time of day is not relevant in determining liability. Option D is incorrect because it suggests that the parties had no employment relationship, which contradicts the fact that Clu was serving in a representative capacity for Digger.

Question 4

Tire Manufacturing Company employs Uri as an agent.To terminate Uri's authority,Tire Manufacturing must notify

Accepted Answer

Tire Manufacturing Company must notify Uri and any third parties who are aware of the agency relationship to terminate Uri's authority. This ensures that everyone involved is aware that Uri is no longer authorized to act on behalf of the company.

Question 5

Jock hires Kym to act as his agent to purchase Lifetime Gym & Fitness,Inc.Jock tells Kym to reveal that she is buying the firm on behalf of a third party and to tell Lifetime's seller who that third party is.Jock is

Accepted Answer

The answer of Jock hires Kym to act as his...

Question 6

Commercial Development Corporation (CDC)hires Delta Construction Company to work at a site as an independent contractor.Whether CDC will be liable for torts committed at the site by Delta depends on

Accepted Answer

The liability of CDC for torts committed at the site by Delta depends on whether exceptionally hazardous activities are involved. If the activities involve a high degree of risk of harm to persons, then CDC may be held liable for Delta's torts. This is because there is a duty of care owed by a landowner to those who come onto the property, and that duty can extend to contractors and their employees who work at the site.

Question 7

Trey,an agent for Uno Music Corporation,executes an unauthorized contract with Variety Recording,Inc.,that is highly advantageous to Uno.Variety withdraws from the deal before Uno ratifies the contract.The contract is

Accepted Answer

The answer of Trey,an agent for Uno Music Corporation,executes an...

Question 8

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 enter into a contract on behalf of Cody without their ratification, the contract with Dik is not valid. Therefore, Dik's attempt to enforce the deal will be totally unsuccessful.

Question 9

Without authorization,Rolf contracts on behalf of Sari to have Tige paint the interior and exterior of Sari's house.Sari ratifies the contract.Later,Sari tries to rescind the part of the contract relating to the exterior.This attempt will be

Accepted Answer

Sari ratified the entire contract, including the part relating to the exterior, so she cannot later attempt to rescind only that part. Therefore, the attempt to rescind the part relating to the exterior will be totally unsuccessful.

Question 10

Frida hires Gert,a real estate broker,to act as her agent to sell her house.The house burns down before being sold.The agency agreement is likely

Accepted Answer

The agency agreement is terminated by operation of law because the subject matter of the agreement (the house) no longer exists.

Question 11

Picabo drives a truck as an employee for Quik Delivery,Inc.Picabo would most likely be considered acting outside the scope of her employment if she

Accepted Answer

The answer of Picabo drives a truck as an employee...

Question 12

Brenda is a purchasing agent for Commodities Exchange Corporation.Dennis,a Commodities corporate officer,gives Brenda written authority to buy for the firm as many computers and peripheral devices as necessary.The next day,Dennis calls Brenda and tells her to buy only fifty notebook computers and nothing else.Brenda shows the written authority to E-Products,Inc.,and enters into a contract with E-Products to buy sixty notebook computers and a selection of printers,scanners,and extra storage media.E-Products ships the order to Commodities.Is Commodities liable to E-Products under the contract Is Brenda liable In each case,if so,why? If not,why not?

Accepted Answer

The answer of Brenda is a purchasing agent for Commodities...

Quiz 23: Agency Relationships in Business