Question 1

Carolina is leaving the country to visit her ailing mother in Spain. Her worker Carlotta will be responsible for Carolina's company's bills while she is gone. Carolina can sign a(n)  ________ giving Carlotta authority to act for her while she is gone.

Accepted Answer

A)   order of authority
B)   power of order
C)   legal empowerment
D)   power of attorney
E)   allowable authority orderF) B) and E)
G) A) and B)

Question 2

Which of the following is not a type of independent contractor?

Accepted Answer

A)   Building contractor
B)   Stockbroker
C)   Elementary school teacher
D)   Lawyer
E)   DoctorF) B) and C)
G) None of the above

Question 3

[Cheap Principal] Paolo, who is very knowledgeable regarding computers, agrees to purchase computers for Joe's business. Paolo is retained for that purpose only, he is paid a set rate for the job, and Joe exercised no control over the manner in which Paolo did his work. Paolo purchased computers from AAA Computers without any mention of Joe. The computers worked well and were not defective in any way. Unfortunately, Joe did not pay AAA Computers on a timely basis. Paolo, therefore, paid AAA Computers out of his own pocket because he wanted to be able to do business with AAA Computers in the future and also because his name was on the invoice. Paolo asked Joe for reimbursement, but Joe refused. Joe claimed that if Paolo had only waited, AAA Computers might have agreed to take less.
-Which of the following is true regarding any right of reimbursement Paolo is due from Joe?

Accepted Answer

A)   Paolo is not due any reimbursement because he did not get permission from Joe before paying AAA Computers.
B)   Paolo is only due 50% of whatever he paid because he did not get permission from Joe before paying AAA Computers.
C)   Paolo is not due any reimbursement from Joe unless he can establish that Joe signed a written contract authorizing him to personally pay debts incurred.
D)   Paolo is not due any reimbursement from Joe unless Paolo can establish by a preponderance of the evidence that AAA Computers would not have agreed to take a lesser amount.
E)   Paolo is entitled to reimbursement from Joe.F) C) and D)
G) B) and D) E

Question 4

Meryl is an avid doll collector and has been searching for the Beach Doll to complete her 200-piece collection. There were only 5 Beach Dolls created in the world. Meryl is envious of her neighbor Nancy, who has the first Beach Doll ever created. Nancy refuses to sell the doll because she thinks it will be worth a million dollars someday. While Nancy is on vacation, Meryl hires Alex to steal the doll from Nancy's home. Has an agency relationship been formed?

Accepted Answer

A)   No, because the agreement must be in writing.
B)   No, because the agreement has an illegal purpose.
C)   No, because the amount or form of compensation was not contemplated.
D)   Yes, because the agreement may be oral or in writing.
E)   Yes, because Alex's objective was unambiguous.F) All of the above
G) D) and E)

Question 5

A ________ is a written document, created by a principal, expressing his or her wishes for an agent's authority not to be affected by the principal's subsequent incapacity.

Accepted Answer

A)   General purpose order of authority
B)   Living legal empowerment
C)   Notarized order
D)   Durable power of attorney
E)   Lasting power of authorityF) None of the above
G) B) and C)

Question 6

In City of Binghamton v. Whalen, the text case that discussed whether or not the plaintiff should have lost his compensation under the faithless servant doctrine, when he stole money from his job as Director of Parks and Recreation, the court held that:

Accepted Answer

A)   The court that if an employee has an otherwise unblemished record, benefits acquired in previous working years could still be granted to the employee even after they are fired.
B)   The court ruled that workers forfeit only their salary and not their benefits under the faithless servant doctrine.
C)   The court declined to relax the faithless servant doctrine so as to limit plaintiff's forfeiture of all compensation earned by defendant during the period in which he was disloyal.
D)   The court ruled that the Appeal's court overstepped its bounds in reviewing evidence and sent the case back for further review.
E)   The court determined that the City of Binghamton owed plaintiff damages for defamation but that no tangible benefits needed to be returned to the plaintiff.F) D) and E)
G) None of the above

Question 7

What type of relationship has formed when the parties have agreed that one person will have power to bind the other person in contract?

Accepted Answer

A)   Principal-agent
B)   Employer-employee
C)   Employer-independent contractor
D)   Employer-agent
E)   Principal-independent contractorF) A) and D)
G) None of the above A

Question 8

Which of the following is the term used to describe the duty an agent has to follow the lawful instruction and direction of the principal?

Accepted Answer

A)   Duty of action
B)   Duty of contract
C)   Express duty of action
D)   Duty of performance
E)   Duty of obedienceF) A) and B)
G) B) and C)

Question 9

What duty does a principal have concerning safe working conditions?

Accepted Answer

A)   The principal has a duty to provide safe working conditions for the agent, but he does not need to warn the agency of any known unsafe working conditions.
B)   The principal only has a duty to warn agents of known unsafe working conditions.
C)   The principal only has a duty to make necessary repairs to maintain safe working conditions.
D)   The principal has a duty to provide safe working conditions for the agent, warn the agent of any known unsafe working conditions, and make necessary repairs.
E)   The principal does not owe a duty of safe working conditions to an agent.F) A) and E)
G) A) and D)

Question 10

An agency relationship may be created only for a lawful purpose.

Accepted Answer

A) True 
 B)False

Question 11

Under the Copyright Act of 1976, if an employee completes work at the employer's request, this is known as ________ and the employer owns the copyright.

Accepted Answer

A)   an "employee marked copyright"
B)   a "work for hire"
C)   an "employee copyright"
D)   "hired-out copyright"
E)   "employee protected work"F) A) and E)
G) None of the above B

Question 12

Which of the following is not one of the duties that a principal would owe an agent?

Accepted Answer

A)   The principal owes a duty of cooperation to the agent.
B)   The principal owes a duty of safe working conditions to the agent.
C)   The principal owes a duty of reimbursement and indemnification to the agent.
D)   The principal owes a duty of compensation to the agent.
E)   The principal owes a duty of loyalty not to hire another agent.F) B) and E)
G) D) and E)

Question 13

What type of agency is formed when it appears an agency relationship exists based on the conduct of the parties?

Accepted Answer

A)   Expressed agency
B)   Agency by implied authority
C)   Apparent agency
D)   Agency by ratification
E)   An agency relationship cannot be formed based on the conduct of the parties alone.F) B) and E)
G) None of the above

Question 14

The principal can sue the agent, and may be entitled to a variety of contract and tort remedies beyond those stated in the contract, if an agent breaches his or her duties.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is true regarding the form of authority upon which an agency relationship may be created?

Accepted Answer

A)   Agency relationships can be created through expressed agency, but not through implied authority, apparent agency, or through ratification.
B)   Agency relationships can be created through expressed agency or through implied authority, but not through apparent agency or through ratification.
C)   Agency relationships can be created through ratification, but not through implied authority, apparent agency, or expressed authority.
D)   Agency relationships can be created through ratification or expressed agency, but not through implied authority or apparent agency.
E)   Agency relationships can be created through expressed agency, implied authority, apparent agency, or ratification.F) B) and D)
G) All of the above

Question 16

The duty of an agent to perform specified duties with reasonable skill, care, and professionalism is referred to as which of the following?

Accepted Answer

A)   Duty of action
B)   Duty of contract
C)   Express duty of action
D)   Duty of performance
E)   Duty of obedienceF) B) and D)
G) C) and D)

Question 17

Agents in Australia are obligated to act personally on behalf of the principal.

Accepted Answer

A) True 
 B)False

Question 18

When must agency agreements be in writing?

Accepted Answer

First, agency agreements need to be in w...

Question 19

An individual who lacks contractual capacity may hire an agent to make contracts on his or her behalf.

Accepted Answer

A) True 
 B)False

Question 20

What should Melanie seek if she wants possession of the lakeside lot Kumar purchased?

Accepted Answer

A)   A resolute trust
B)   An actual trust
C)   A constructive trust
D)   A defined trust
E)   An absolute trustF) C) and D)
G) B) and C)

Exam 33: Agency Formation and Duties

Carolina is leaving the country to visit her ailing mother in Spain. Her worker Carlotta will be responsible for Carolina's company's bills while she is gone. Carolina can sign a(n) ________ giving Carlotta authority to act for her while she is gone.

Correct Answer
verified

Which of the following is not a type of independent contractor?

Correct Answer
verified

Correct Answer
verified
E

Correct Answer
verified

A ________ is a written document, created by a principal, expressing his or her wishes for an agent's authority not to be affected by the principal's subsequent incapacity.

Correct Answer
verified

In City of Binghamton v. Whalen, the text case that discussed whether or not the plaintiff should have lost his compensation under the faithless servant doctrine, when he stole money from his job as Director of Parks and Recreation, the court held that:

Correct Answer
verified

What type of relationship has formed when the parties have agreed that one person will have power to bind the other person in contract?

Correct Answer
verified
A

Which of the following is the term used to describe the duty an agent has to follow the lawful instruction and direction of the principal?

Correct Answer
verified

What duty does a principal have concerning safe working conditions?

Correct Answer
verified

An agency relationship may be created only for a lawful purpose.

Correct Answer
verified

Under the Copyright Act of 1976, if an employee completes work at the employer's request, this is known as ________ and the employer owns the copyright.

Correct Answer
verified
B

Which of the following is not one of the duties that a principal would owe an agent?

Correct Answer
verified

What type of agency is formed when it appears an agency relationship exists based on the conduct of the parties?

Correct Answer
verified

The principal can sue the agent, and may be entitled to a variety of contract and tort remedies beyond those stated in the contract, if an agent breaches his or her duties.

Correct Answer
verified

Which of the following is true regarding the form of authority upon which an agency relationship may be created?

Correct Answer
verified

The duty of an agent to perform specified duties with reasonable skill, care, and professionalism is referred to as which of the following?

Correct Answer
verified

Agents in Australia are obligated to act personally on behalf of the principal.

Correct Answer
verified

When must agency agreements be in writing?

Correct Answer
verified
First, agency agreements need to be in w...
View Answer

An individual who lacks contractual capacity may hire an agent to make contracts on his or her behalf.

Correct Answer
verified

What should Melanie seek if she wants possession of the lakeside lot Kumar purchased?

Correct Answer
verified

Exam 33: Agency Formation and Duties

Carolina is leaving the country to visit her ailing mother in Spain. Her worker Carlotta will be responsible for Carolina's company's bills while she is gone. Carolina can sign a(n) ________ giving Carlotta authority to act for her while she is gone.

Correct AnswerverifiedShow Answer

Which of the following is not a type of independent contractor?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedE

Correct AnswerverifiedShow Answer

A ________ is a written document, created by a principal, expressing his or her wishes for an agent's authority not to be affected by the principal's subsequent incapacity.

Correct AnswerverifiedShow Answer

In City of Binghamton v. Whalen, the text case that discussed whether or not the plaintiff should have lost his compensation under the faithless servant doctrine, when he stole money from his job as Director of Parks and Recreation, the court held that:

Correct AnswerverifiedShow Answer

What type of relationship has formed when the parties have agreed that one person will have power to bind the other person in contract?

Correct AnswerverifiedA

Which of the following is the term used to describe the duty an agent has to follow the lawful instruction and direction of the principal?

Correct AnswerverifiedShow Answer

What duty does a principal have concerning safe working conditions?

Correct AnswerverifiedShow Answer

An agency relationship may be created only for a lawful purpose.

Correct AnswerverifiedShow Answer

Under the Copyright Act of 1976, if an employee completes work at the employer's request, this is known as ________ and the employer owns the copyright.

Correct AnswerverifiedB

Which of the following is not one of the duties that a principal would owe an agent?

Correct AnswerverifiedShow Answer

What type of agency is formed when it appears an agency relationship exists based on the conduct of the parties?

Correct AnswerverifiedShow Answer

The principal can sue the agent, and may be entitled to a variety of contract and tort remedies beyond those stated in the contract, if an agent breaches his or her duties.

Correct AnswerverifiedShow Answer

Which of the following is true regarding the form of authority upon which an agency relationship may be created?

Correct AnswerverifiedShow Answer

The duty of an agent to perform specified duties with reasonable skill, care, and professionalism is referred to as which of the following?

Correct AnswerverifiedShow Answer

Agents in Australia are obligated to act personally on behalf of the principal.

Correct AnswerverifiedShow Answer

When must agency agreements be in writing?

Correct AnswerverifiedFirst, agency agreements need to be in w...View AnswerShow Answer

An individual who lacks contractual capacity may hire an agent to make contracts on his or her behalf.

Correct AnswerverifiedShow Answer

What should Melanie seek if she wants possession of the lakeside lot Kumar purchased?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
E

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
B

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
First, agency agreements need to be in w...
View Answer

Correct Answer
verified

Correct Answer
verified