Apply Brief Hypotheticals 19 PDF

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Napoleon owns Napoleon’s Construction and agrees to renovate Mrs. Cernan’s bathroom. She will provide him with the plans and then he will do the work in the manner he determines is most cost effective and appropriate. Napoleon is likely to be classified as: a. a partially disclosed principal.

b. a disclosed principal.

c. an employee.

d. an independent contractor.

Hide Feedback Correct Solution Correct Response d

Sam goes out shopping, and using his wife Juanita’s credit card he buys $221-worth of groceries. Under agency law, Juanita will probably be deemed: a. not liable for the purchase, based on Sam's lack of a power of attorney.

b. liable for the purchase, based on the creation of an agency by operation of law.

c. not liable for the purchase, based on Sam's duty of performance.

d. liable for the purchase because Sam is her employee.

Hide Feedback Correct Solution Correct Response

b

Jamel hires independent contractor Stevenson to create users' manuals for Jamel's small appliances. Jamel: a. automatically owns the copyright to the manuals because he paid Stevenson to create them.

b. cannot own the copyright to the manuals because Stevenson created them.

c. can create an agreement in writing that designates Stevenson's work as work for hire.

d. will violate Stevenson's rights if he requires a work for hire document.

Hide Feedback Correct Solution Correct Response c

Charlie tells Jamal that Marisol has agreed to allow him to sell her racing bicycle. Marisol is present at the time, hears the conversation, and says nothing. Jamal agrees with Charlie to buy Marisol’s bike. Marisol then refuses to sell the bicycle. Marisol claims that she is not bound by the agreement formed by Charlie and Jamal because Charlie is not her agent. Marisol likely is: a. bound by the contract, under a theory of agency by operation of law.

b. bound by the contract, under a theory of agency by estoppel.

c. not bound by the contract because she did not have an agency agreement with Charlie.

d. not bound by the contract because of a rescission.

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Correct Solution Correct Response b

Cheryl knows that Jake is looking to buy a new scooter. She sees one that would be perfect and negotiates with the seller on Jake’s behalf. She signs a contract for the scooter using her name but clearly indicating that she is working for Jake. She actually is not. When Jake sees the scooter, he loves it and agrees to pay the contract price. If agency exists in this situation, it is agency by: a. estoppel.

b. ratification.

c. agreement.

d. operation of law.

Hide Feedback Correct Solution Correct Response b

Sarah has to move from the East Coast to the West Coast for her job. Elmo agrees to act as Sarah’s agent to sell her New York condo. As her agent, Elmo owes Sarah all of the following duties except: a. performance.

b. loyalty.

c. notification.

d. payment.

Hide Feedback Correct Solution Correct Response d

Dara gives her agent, Marla, money to purchase a new commercial oven. Marla takes the money and deposits it into her personal checking account. Marla then accidentally spends some of Dara’s money. Marla has violated her duty of: a. cooperation.

b. accounting.

c. loyalty.

d. payment.

Hide Feedback Correct Solution Correct Response b

Kris represents Josh in the sale of his house as his real estate agent. Kris is entitled to: a. confidentiality.

b. compensation.

c. daily updates.

d. loyalty.

Hide Feedback Correct Solution Correct Response b

Judy’s cousin, Skip, tells Judy that he will sell her car for her when she leaves the country for a church mission for two years. Skip tells her that he will do it for no charge to her. While Judy is gone, Skip forgets about the agreement and does not attempt to sell the car. Judy: a. can sue Skip under tort law because he was negligent in not selling the car.

b. cannot recover anything from Skip because he had no duty to perform since he was a gratuitous agent.

c. can sue Skip for breach of contract for failure to perform.

d. cannot sue Skip because they are cousins.

Hide Feedback Correct Solution Correct Response b

Laura and Juan have an agreement where Laura will sell Juan’s baseball card collection while he is out of the country. Juan does not give any specific instructions on how this should be done. To fulfill her duty of obedience, Laura must:

a. seek out instructions from Juan's closest relative.

b. not perform on the contract and is excused from performance.

c. act in good faith.

d. request specific instructions in writing.

Hide Feedback Correct Solution Correct Response c

Mitchell hires Christina to go from Florida to New York and negotiate a contract for his company. He gives her specific instructions on what should be in the contract and a written letter that gives her authority to sign on his behalf. Christina books a plane ticket, flies to New York, hires a cab, and successfully negotiates the contract. If Christina is paid for the plane ticket and cab fare, as well as meals while in New York, it is most likely under the principal’s duty of: a. reimbursement.

b. compensation.

c. travel coverage.

d. cooperation.

Hide Feedback Correct Solution Correct Response

a

Kim hires Michelle to go to the art gallery and purchase a specific painting for him. The painting costs $1,500. Because this is the purchase and sale of goods for more than $500, the contract for the painting must be in writing. In order to have a legal purchase of the painting, Kim: a. may have Michelle sign on his behalf based on their verbal agency agreement.

b. must not have Michelle hired as his agent.

c. must have Michelle bring the contract to him for his original signature.

d. may have Michelle sign on his behalf if the agency agreement is in writing.

Hide Feedback Correct Solution Correct Response d

Selma, an elderly widow, gives her young neighbor, Steven, written power of attorney. This means that Steven now: a. has express authority to act as Selma's agent.

b. is a disclosed principal.

c. has implied authority, but not express authority, to act as Selma's agent.

d. is an undisclosed principal.

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Correct Solution Correct Response a

Yakov hires Melina to be his Vice President for Marketing. The job description is pretty broad but does not include the ability to hire or terminate lower-level employees in the Marketing division. If Melina has this power, it is based on her: a. express authority.

b. implied authority.

c. apparent authority.

d. obvious authority.

Hide Feedback Correct Solution Correct Response b

Dean is not Paul’s agent, but Paul tells Charlie that Dean has always been a good friend and can “handle any of my business affairs.” If Dean were to later enter into a contract with Charlie on Paul’s behalf, Dean would be acting under an: a. implied authority.

b. obvious authority.

c. apparent authority.

d. express authority.

Hide Feedback Correct Solution Correct Response c

Lizzie works for Gary in his dance supply shop and is authorized to sell inventory but not to order new merchandise. Rena, a sales representative for a new line of dance wear, comes into the store, and Lizzie places an order with her. When Gary learns the details of Lizzie’s purchase, he wants to ratify the contract. The one condition that is NOT necessary for ratification is: a. Gary must affirm Lizzie's order in its entirety.

b. Rena and Gary must have legal capacity to engage in the transaction.

c. Gary must know all the material facts about the transaction.

d. Rena must withdraw from the transaction before Gary ratifies it.

Hide Feedback Correct Solution Correct Response d

Gina buys a piece of pottery from Woodward for her principal, Kelvin. If Woodward knows that Gina is buying the pottery on behalf of someone other than herself but does not know the identity of that person, Kelvin is: a. an undisclosed principal.

b. an agent for Woodward.

c. a partially disclosed principal.

d. an independent contractor working for Gina.

Hide Feedback Correct Solution Correct Response c

Patricia hires Albert to sell Patricia’s expensive sports car. Albert agrees on a sale with Zeke, who wants to purchase the car for its powerful engine and well-kept condition. Albert does not disclose Patricia’s identity to Zeke. Albert also does not disclose the fact that Albert is an agent for someone else. Zeke tenders the purchase price to Albert, but Patricia refuses to deliver the car as agreed. In this situation: a. Patricia is bound to perform.

b. Patricia is not bound to perform because Patricia's identity was not disclosed.

c. Patricia is not bound to perform because Albert did not act within the scope of his authority.

d. Patricia is not bound to perform because the agency relationship was not disclosed.

Hide Feedback Correct Solution Correct Response a

Jason instructs his agent Miguel to obtain a piece of artwork from Martina by threatening to beat her if she refuses to sell the artwork. Miguel follows Jason’s instruction and beats Martina when she refuses to sell the item. In this situation: a. Miguel can seek an indemnification against Jason.

b. Miguel alone is liable for Martina's injuries.

c. both Jason and Miguel are liable for Martina's injuries.

d. Martina cannot recover damages for her injuries in court because Miguel was acting as an agent.

Hide Feedback Correct Solution Correct Response c

Francis drives a delivery truck for Weston Industries. In the middle of his delivery route, Francis stops to have a two-hour lunch with friends twenty miles away. While in the restaurant, Francis spills some water and another person falls on it. That person sues Weston Industries. To determine liability, a court would likely decide that Francis was acting: a. as a negligent agent.

b. outside the scope of employment.

c. in misrepresentation of Weston Industries.

d. within the scope of employment.

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Correct Solution Correct Response b

Sarah asks Sergio to mow her lawn. Sergio, who is overloaded with work, contracts with Dan to do the work for him as an independent contractor. As Dan is mowing, Sarah walks out of her house and the lawnmower throws a rock and hits Sarah, causing serious injuries. In this situation, Sergio is: a. liable for Sarah's harms because he has a responsibility to control the actions of his employees.

b. liable for Sarah's harms because Dan is an independent contractor.

c. probably not liable for Sarah's injuries.

d. not liable for Sarah’s injuries because she breached her duty of notification.

Hide Feedback Correct Solution Correct Response c

Ernest signs a listing agreement with Lisa to sell his house. Before Lisa finds a buyer, the house is destroyed by flooding. In this case, the agency agreement between Ernest and Lisa: a. terminates based on war.

b. terminates based on impossibility.

c. terminates based on changed circumstances.

d. continues in full force and effect.

Hide Feedback Correct Solution Correct Response b

Selena signs a power of attorney appointing Kim only for the purpose of signing on her behalf relating to the sale of her house. The power of attorney will normally terminate based on: a. a lapse of time.

b. mutual agreement between Selena and Kim.

c. the purpose being achieved.

d. termination by either Selena or Kim.

Hide Feedback Correct Solution Correct Response c...