Quiz on Law of Agency - quiz PDF

Preview

Summary

quiz...

Description

Quiz on Law of Agency  Question 1

1 out of 1 points

Which of the following is not an example of an agency relationship (i.e.agentprincipal) commonly found in the business context? Selected Answer: Answers:

d.

Salesperson–consumer a.

Employee–employer b.

Partner– partnership c.

Incorporator–corporation

d.

Salesperson–consumer

 Question 2 0 out of 1 points

A principal is bound in contract with the third-party with whom the agent dealt if the agent is:

Selected Answer:

Answers:

a.

Within his or her implied authority.

a.

Within his or her implied authority.

b.

Within his or her express authority. c.

Within his or her apparent authority.

d.

Outside his or her authority but the principal ratified it. e.

all of the above

 Question 3 1 out of 1 points

An agency relationship can be created by:

Selected Answer: Answers:

e.

All of the above. a.

Apparent authority. b.

Estoppel.

c.

Ratification.

d.

Actual authority. e.

All of the above.

 Question 4 1 out of 1 points

With respect to duties owed by an agent to his or her principal, which of the following statements is false with regard to agency law? Selected Answer:

Answers:

Generally, an agent may not delegate his or her authority without the authorization of his or her principal. Failure of an agent to obey his or her principal and to act within the authority given him allows the principal to sue the agent for breach of contract. When an agent enters a contract on behalf of his principal but does so

in breach of his or her duties to the principal, the contract is void and cannot bind the principal.

C) An agent must use reasonable care, skill, and diligence in the performance of his or her duties as an agent. Generally, an agent may not delegate his or her authority without the authorization of his or her principal. Failure of an agent to perform his or her duties personally may allow his or her principal to sue the agent for breach of contract.

 Question 5 1 out of 1 points

With respect to the formation of agency by estoppel, which of the following statement is true? Selected Answer:

Answers:

e.

When a party represents, by words or conduct, that someone is its agent, that party can later deny liability on a contract made for it by that agent on the basis that no express agency agreement existed. a.

If the principal tells an agent specifically not to sell something and the agent, in disobedience of those instructions, sells it anyway, the principal may be bound by the contract because of estoppel. b.

The issue of apparent authority arises only if a person acts as an agent when he or she has express or implied authority. c.

When a party terminates an express agency agreement with an agent and notifies third parties with whom that agent normally dealt, that party will be liable on a contract made for it by that "fired" agent d.

When a third party suspects that the agent it deals with has no authority, there is no obligation on it to question the agent's alleged authority.

e.

When a party represents, by words or conduct, that someone is its

agent, that party can later deny liability on a contract made for it by that agent on the basis that no express agency agreement existed.

 Question 6 0 out of 1 points

If a third party relies on the principal's representation that the agent has the authority to act, which of the following is true? Selected Answer:

Answers:

a.

The principal can claim the agent had no authority. a.

The principal can claim the agent had no authority. b.

The principal cannot claim the agent had no authority. c.

The principal can claim estoppel.

d.

The agent is solely liable for the conduct if it results in injury to the third party. e.

The agent can sue the principal for breach of contract.

 Question 7 1 out of 1 points

A principal is not bound in contract with the third-party with whom the agent dealt if the agent is:

Selected Answer:

Answers:

Outside his or her actual and apparent authority. Outside his or her authority but the principal ratified it. Within his or her express authority.

Outside his or her actual and apparent authority.

Within his or her implied authority. Within his or her apparent authority.

 Question 8 1 out of 1 points

Which of the following is true with respect to the agency relationship? Selected Answer:

Answers:

An agent's apparent authority may be implied from the position that the agent holds in the employer's organization. An agent acting gratuitously can never bind the principal. When a principal has specifically limited the authority of the agent, that agent can never bind the principal in a contract, even if the agent acts outside his or her authority. Actual authority is the authority the principal has implied in conversations with a third party. An agent's authority is limited to whatever authority the principal specifically gives the agent. An agent's apparent authority may be implied from the position that the agent holds in the employer's organization.

 Question 9

1 out of 1 points

In the context of a legal agency relationship, who is an agent?

Selected Answer:

a.

A person who has the authority to act on behalf of another person.

Answers:

a.

A person who has the authority to act on behalf of another person. b.

A person who can act on behalf of another person without authority. c.

A person who is completely responsible for the acts of another person.

d.

A person who gives authority to another person to act on their behalf

 Question 10 1 out of 1 points

Which of the following is not a basic characteristic of a principal-agent relationship? Selected Answer:

Answers:

An agent’s representation of the principal will never be binding. An agent has actual or apparent authority to represent and bind a principal in a contract. An agent must represent a principal fairly. An agent must act in the best interest of the principal while representing them. An agent’s representation of the principal will never be binding....