Q&A Hero

Q: Which of the following is a fiduciary duty owed by an agent not to act adversely to the interests of the principal? A) duty of loyalty B) duty of undertaking C) duty of discharge D) duty of resolution

Q: Marcus employs a real estate broker, Dean, to sell his house. Dean's express powers are to advertise and market the house for sale, show the house to prospective buyers, and accept offers from persons who want to purchase the house. He is not allowed to seal a deal without Marcus' consent. Marcus goes away on a month-long trip where he cannot be contacted. During this time, a short circuit in the house causes a power outage. Dean uses his authority to hire an electrician to repair the circuits and restore electricity in the house. Marcus then comes back and pays Dean for the electricity repair. What is the nature of the agency that Dean used to fix the electricity problem in the house? A) implied agency B) agency by ratification C) power of attorney D) express agency

Q: Frank Hannigan sees a grand piano that his musician friend Scott Kristoff had been looking for in an antique store. Frank enters into a contract to purchase the grand piano from the antique seller and signs the contract, "Frank Hannigan, agent for Scott Kristoff." But because Frank is not Scott's agent, Scott is not bound by the contract. If Scott decides to accept the contract, what kind of agency would be created? A) express agency B) implied agency C) agency by ratification D) power of attorney

Q: An agency by ratification occurs when the principal ________. A) accepts an unauthorized act created by an unauthorized agent B) accepts an authorized act created by an authorized agent C) creates the appearance of an agency that in actuality does not exist D) accepts an act carried out under the implied authority of an agent

Q: Canton has listed his house for sale, but cannot be present to take care of the sale as he needs to go out of town. He intends to give his brother Stratham the power of attorney to just make decisions regarding selling of his house while he is gone. What kind of power of attorney should Canton execute? A) a general power of attorney B) a special power of attorney C) a limited power of attorney D) an implied power of attorney

Q: An express agency agreement that is often used to give an agent the control to sign legal documents on behalf of the principal is known as a(n) ________. A) assignment B) accommodation C) power of attorney D) letter of credit

Q: Which of the following is true of an express agency? A) The agency involved is allowed to have multiple agents if necessary. B) The agency is implied from the conduct of the parties. C) The agency comes to effect when the principal ratifies an unauthorized act. D) The agency arises when a principal creates the appearance of an agency that does not exist.

Q: The agency of power of attorney is an example of a(n) ________ agreement. A) agency by ratification B) apparent agency C) express agency D) implied agency

Q: Which of the following is true of a general power of attorney? A) A power of attorney can be oral. B) Only lawyers can be agents of a power of attorney. C) A power of attorney cannot be claimed once the principal in incapacitated. D) It allows the agent to sign legal documents on the principal's behalf.

Q: Taylor gives a power of attorney to his twin brother Corey, permitting Corey to make all decisions on his behalf while he is abroad. As per the terms of the power of attorney, Corey is allowed make decisions to purchase or sell stocks on Taylor's behalf, sell Taylor's real estate if he deems it to be in Taylor's best interest, pursue or defend lawsuits on Taylor's behalf, and make all other relevant decisions for Taylor. What kind of power of attorney would confer such powers to Corey? A) a special power of attorney B) a limited power of attorney C) an implied power of attorney D) a general power of attorney

Q: Which of the following is true about a special power of attorney? A) It is an implied form of power of attorney. B) It limits the agents powers to those enumerated in the agreement. C) It allows the agent to act in any matters on the principal's behalf. D) It only allows certified lawyers to be agents.

Q: Which of the following is true about a durable power of attorney? A) It is only effective as long as the principal is able. B) It remains effective even though the principal is incapacitated. C) It is effective even when the agency is an oral agreement. D) It is only effective if the agent is a certified lawyer.

Q: Which of the following is true of an employer-employee relationship? A) An employee has implied power of attorney towards the principal. B) An employee has authority to act on behalf of the principal. C) An employee can enter into contracts on behalf of the employer. D) An employee is hired to perform a task or service.

Q: An agency that occurs when a principal and an agent categorically agree to enter into an agency agreement with each other is known as a(n) ________. A) agency by ratification B) implied agency C) apparent agency D) express agency

Q: A(n) ________ is a relationship formed when an employer hires an employee and gives that employee authority to act and enter into contracts on his or her behalf. A) agent-independent contractor relationship B) principal-agent relationship C) agent-agent relationship D) employer-employee relationship

Q: Which of the following types of relationship exists when a person hires another person to perform some form of physical service but does not authorize that person to enter into contracts on behalf his or her behalf? A) employer-employee relationship B) employer-agent relationship C) principal-third party relationship D) principal-agent relationship

Q: Which of the following constitutes an agency? A) principal-agent relationship B) agent-agent relationship C) principal-principal relationship D) agent-independent contractor relationship

Q: A(n) ________ is a fiduciary relationship which results from the manifestation of consent by one person to another that the other shall act in his behalf and subject to his control, and consent by the other so to act. A) assignment B) garnishment C) accommodation D) agency

Q: The outbreak of a war between the principal's country and the agent's country is grounds for terminating an agency.

Q: The bankruptcy of the principal is not a valid reason to terminate an agency.

Q: If an agency terminates by operation of law, there is no duty to notify third parties about the termination.

Q: Who is an agent? A) a party who agrees to act on behalf of another B) a party who employs another person to act on his or her behalf C) a party that directs a worker under an express or implied contract of employment D) a party who receives the services of another for remuneration

Q: The ________ is the party who employs another person to act on his or her behalf. A) agent B) principal C) independent contractor D) employee

Q: The principal is liable for all torts of independent contractors.

Q: Principals do not control the means by which independent contractors achieve results.

Q: An independent contractor cannot represent more than one principal at a time.

Q: Parties with whom the agent has dealt with directly must be given direct notices of termination of agency.

Q: Constructive notices are not valid against strangers who assert claims of apparent agency.

Q: If an agent exceeds his or her scope of authority, a principal is bound on the contract only if he or she ratifies the contract.

Q: Ratification of a contract is a situation in which a principal accepts an agent's unauthorized contract.

Q: The principal is obliged to perform the contract made with a third-party.

Q: The party that employs an independent contractor is called an agent.

Q: Undisclosed agencies are not lawful in the United States.

Q: In an undisclosed agency, the principal is solely liable on the contract with the third party.

Q: In a partially disclosed agency, the contracting third party transacts directly with the principal and does not know the identity of the agent.

Q: A partially disclosed agency can be created by mistake.

Q: The principal is liable for the innocent misrepresentation made by an agent acting within the scope of employment.

Q: The work-related test puts liability on the employee if the intentional tort is committed within work-related time and space.

Q: A fully disclosed agency results if a third party entering into a contract knows the actual identity of the principal.

Q: The agent is not liable on the contract in a fully disclosed agency.

Q: In a fully disclosed agency, an agent is not liable on the contract if he or she guarantees that the principal will perform the contract.

Q: Vicarious liability is liability with fault.

Q: Principals are liable for negligence caused by an agent during substantial frolic and detour.

Q: The coming and going rule says that a principal is generally not liable for injuries caused by its agents and employees while they are on their way to or from work.

Q: The principal is not liable for an agent's negligence while the agent is on a dual-purpose mission.

Q: The agent is compulsorily liable for any intentional or innocent misrepresentation made by the principal in a transaction.

Q: The principal is liable for the tortious conduct of an agent who is acting within the scope of his or her authority.

Q: Battery committed by an agent in the principal's premises and during the scope of employment is considered an unintentional tort.

Q: An agent is liable for the tortious conduct of the principal if he or she has knowledge of the principal's conduct.

Q: Based on the doctrine of respondeat superior, principals are liable for the negligent conduct of agents acting within the scope of their employment.

Q: An agent does not violate his or her duty of loyalty by serving two parties with the same interest.

Q: Middlemen and finders are not considered dual agents.

Q: Dual agency occurs when an agent acts for two or more different principals in the same transaction.

Q: Dual agency is permitted if all parties to a transaction agree to it.

Q: The duty of loyalty is a fiduciary duty owned by an agent not to act adversely to the interests of the principal.

Q: Undisclosed self-dealing by an agent is not regarded as violation of the duty of loyalty.

Q: If an agent competes with the principal without the principal's permission, the principal may recover profits made by the agent.

Q: If an agent reveals confidential information of a principal to a third party, the principal's course of action is to obtain an injunction against the third party.

Q: An agent does not owe a duty to notify the principal of important information he learns concerning the agency.

Q: An agent is not liable to the principal for any injuries resulting from a breach of duty to notify.

Q: The legal rule of imputed knowledge means that the principal is assumed to know what the agent knows.

Q: Any property, money, or other benefit received by the agent in the course of an agency belongs to the principal.

Q: A constructive trust helps the agent retain profits made during the completion of the agency.

Q: The principal's duty to reimburse says that the principal should pay the agent all expenses prior to start of the agency.

Q: A principal owes a duty to indemnify the agent for any losses the agent suffers because of the principal's conduct.

Q: An agent who has negligently or intentionally failed to perform his express duties is also liable to tort laws.

Q: A principal is not bound to contracts made by an apparent agency.

Q: The principal is bound legally to pay a gratuitous agent.

Q: An orally agreed upon power of attorney is acceptable in court.

Q: A durable power of attorney remains effective even if the principal is incapacitated.

Q: For an implied agency to function, implied authority cannot conflict with express authority.

Q: In an agency by ratification, the agent is relieved of any liability for misrepresentation.

Q: An agent by ratification happens when a principal ratifies an authorized act.

Q: A power of attorney gives an agent the power to sign legal documents on behalf of the principal.

Q: A general power of attorney limits the agent to those acts enumerated by the agreement.

Q: A special power of attorney empowers the agent to act in any matters on the principal's behalf without limitation.

Q: An agent given a power of attorney is known as an attorney-in-fact.

Q: Only a lawyer can become an attorney-in-fact.

Q: An employeremployee relationship occurs when an employer gives an employee authority to act and enter into contracts on his or her behalf.

Q: A principal can authorize an independent contractor to enter into contracts.