Question 1

In a fully disclosed agency relationship, only the principal is contractually obligated to the third party for authorized acts of the agent.

Accepted Answer

A) True 
 B)False

Question 2

Actual authority requires the principal to create the impression authority exists.

Accepted Answer

A) True 
 B)False

Question 3

Agents who report to other agents are called worker agents.

Accepted Answer

A) True 
 B)False

Question 4

Brian hired Craig to negotiate a deal with Rudy. Brian instructs Craig that while he is in Rudy's office, he should be able to steal the important file. If Craig has the opportunity to steal the file but fails to do so, what is a true statement concerning this incident and Craig?

Accepted Answer

A)   he is in violation of his duty of obedience
B)   he failed to follow his principal's instructions
C)   he is in violation of his fiduciary duty
D)   None of the choices are correct.E) A) and D)
F) All of the above

Question 5

In a partially undisclosed agency relationship, the law imposes liability on the agent in the event that the principal does not perform her contractual obligations.

Accepted Answer

A) True 
 B)False

Question 6

An __________ agent who enters into a contract with a third party binds the principal because the third party may legally enforce the contract against the principal.

Accepted Answer

A)   offeree
B)   offeror
C)   agreed
D)   authorizedE) None of the above
F) All of the above

Question 7

Liability for agents who are classified as independent contractors is derived from the doctrine of respondeat superior.

Accepted Answer

A) True 
 B)False

Question 8

Clyde has been hired to deliver a truckload of hogs to a cross-state slaughterhouse. On the way there he stops to visit his girlfriend Samantha, who lives five minutes off his prescribed route. He spends five minutes with her. During those five minutes he is considered to be on a/an __________.

Accepted Answer

A)   escapade
B)   detour
C)   outing
D)   None of the choices are correct.E) All of the above
F) C) and D)

Question 9

Many courts have adopted the __________ rule whereby employers are generally not liable for tortious acts committed by employees while on their way to and from work.

Accepted Answer

A)   here and there
B)   traffic
C)   frolic and detour
D)   going-and-comingE) None of the above
F) B) and C)

Question 10

Novation occurs when the principal affirms a previously unauthorized act.

Accepted Answer

A) True 
 B)False

Exam 38: Duties and Liabilities of Principals and Agents

In a fully disclosed agency relationship, only the principal is contractually obligated to the third party for authorized acts of the agent.

Correct Answer
verified

Clyde has been hired to deliver a truckload of hogs to a cross-state slaughterhouse. On the way there he stops to visit his girlfriend Samantha, who lives five minutes off his prescribed route. He spends five minutes with her. During those five minutes he is considered to be on a/an __________.

Correct Answer
verified

Agents who report to other agents are called worker agents.

Correct Answer
verified

Novation occurs when the principal affirms a previously unauthorized act.

Correct Answer
verified

Many courts have adopted the __________ rule whereby employers are generally not liable for tortious acts committed by employees while on their way to and from work.

Correct Answer
verified

Brian hired Craig to negotiate a deal with Rudy. Brian instructs Craig that while he is in Rudy's office, he should be able to steal the important file. If Craig has the opportunity to steal the file but fails to do so, what is a true statement concerning this incident and Craig?

Correct Answer
verified

Liability for agents who are classified as independent contractors is derived from the doctrine of respondeat superior.

Correct Answer
verified

In a partially undisclosed agency relationship, the law imposes liability on the agent in the event that the principal does not perform her contractual obligations.

Correct Answer
verified

An __________ agent who enters into a contract with a third party binds the principal because the third party may legally enforce the contract against the principal.

Correct Answer
verified

Actual authority requires the principal to create the impression authority exists.

Correct Answer
verified

Exam 38: Duties and Liabilities of Principals and Agents

In a fully disclosed agency relationship, only the principal is contractually obligated to the third party for authorized acts of the agent.

Correct AnswerverifiedShow Answer

Clyde has been hired to deliver a truckload of hogs to a cross-state slaughterhouse. On the way there he stops to visit his girlfriend Samantha, who lives five minutes off his prescribed route. He spends five minutes with her. During those five minutes he is considered to be on a/an __________.

Correct AnswerverifiedShow Answer

Agents who report to other agents are called worker agents.

Correct AnswerverifiedShow Answer

Novation occurs when the principal affirms a previously unauthorized act.

Correct AnswerverifiedShow Answer

Many courts have adopted the __________ rule whereby employers are generally not liable for tortious acts committed by employees while on their way to and from work.

Correct AnswerverifiedShow Answer

Brian hired Craig to negotiate a deal with Rudy. Brian instructs Craig that while he is in Rudy's office, he should be able to steal the important file. If Craig has the opportunity to steal the file but fails to do so, what is a true statement concerning this incident and Craig?

Correct AnswerverifiedShow Answer

Liability for agents who are classified as independent contractors is derived from the doctrine of respondeat superior.

Correct AnswerverifiedShow Answer

In a partially undisclosed agency relationship, the law imposes liability on the agent in the event that the principal does not perform her contractual obligations.

Correct AnswerverifiedShow Answer

An __________ agent who enters into a contract with a third party binds the principal because the third party may legally enforce the contract against the principal.

Correct AnswerverifiedShow Answer

Actual authority requires the principal to create the impression authority exists.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified