Question 1

Which of the following determines the scope of authority given to an agent:

Accepted Answer

A)  statements of the principal
B)  the principal's conduct
C)  the trade customs in business
D)  all of the other specific choices are correct
E)  none of the other specific choices are correctF) A) and C)
G) None of the above

Question 2

A ______________ relationship is one in which one person is an employee whose conduct is controlled by the employer.

Accepted Answer

A)  principal-agent
B)  agent-principal
C)  employer-employee
D)  employer-independent contractor
E)  none of the other choices are correctF) A) and E)
G) A) and D)

Question 3

Under American common law,employees are presumed to:

Accepted Answer

A)  work at a certain rate
B)  work at will
C)  work for compensation
D)  work for nothing
E)  work for agenciesF) A) and C)
G) D) and E)

Question 4

Express or actual authority may only be created by written instruction or written contract.

Accepted Answer

A) True 
 B)False

Question 5

If a person could be expected to possibly cause problems and an employer hires them anyway,the employer could be held liable for ______________ if the employee commits a tort against a customer.

Accepted Answer

A)  negligence in hiring
B)  irreverence in hiring
C)  irresponsibility in hiring
D)  lack of foresight in hiring
E)  lack of care in hiringF) C) and D)
G) All of the above

Question 6

Implied ratification of an agency occurs when the principal:

Accepted Answer

A)  fails to object to the unauthorized activities of an agent
B)  by action shows a clear intent to be bound by unauthorized acts of the agent
C)  accepts the benefits of an unauthorized agreement with a third party
D)  fails to object to the unauthorized activities of an agent and accepts the benefits of an unauthorized agreement with a third party
E)  fails to object to the unauthorized activities of an agent and accepts the benefits of an unauthorized agreement with a third party and by action shows a clear intent to be bound by unauthorized acts of the agentF) C) and E)
G) A) and D)

Question 7

The _____________ provides some immunity for a company against content posted or submitted online by third parties,if a company is merely acting as a publisher.

Accepted Answer

A)  Communications Privacy Act
B)  Communications Legitimacy Act
C)  Communications Reality Act
D)  Communications Honesty Act
E)  none of the other choices are correctF) C) and D)
G) A) and C) E

Question 8

Which of the following is a common problem with employee handbooks:

Accepted Answer

A)  making promises about discipline procedures that are not followed consistently
B)  putting a bold disclaimer at the front of the handbook that says it is not a contract
C)  requiring employees to sign a statement indicating that they have read the disclaimer that says the handbook is not a contract
D)  all of the other specific choices are correct
E)  none of the other specific choices are correctF) None of the above
G) A) and D)

Question 9

Principals are presumed at common law to have no duties to their agents.

Accepted Answer

A) True 
 B)False

Question 10

The two general classifications of authority an agent can possess are actual authority and implied authority.

Accepted Answer

A) True 
 B)False

Question 11

The agency relationship is a key part to most business operations.

Accepted Answer

A) True 
 B)False

Question 12

An independent contractor is usually not an agent of the principal who hired her,but can have that role too.

Accepted Answer

A) True 
 B)False

Question 13

Agents rarely can change a principal's legal obligations.

Accepted Answer

A) True 
 B)False  False

Question 14

___________________ is a person who contracts with another to do something for him but who is not controlled by the other nor subject to the other's right to control with respect to his physical conduct in the performance of the undertaking.

Accepted Answer

A)  a special agent
B)  an apparent agent
C)  an employee
D)  a general agent
E)  none of the other choicesF) A) and B)
G) C) and D) E

Question 15

A senior manager at a car dealership is likely both an agent and employee.

Accepted Answer

A) True 
 B)False

Question 16

The power of an agent to do whatever is reasonable and customary to carry out the agency purpose is given by:

Accepted Answer

A)  express authority
B)  verbal authority
C)  quasi authority
D)  false authority
E)  none of the other choices are correctF) B) and D)
G) A) and B)

Question 17

A subagent is an agent of an agent,not an agent of the principal,so owes no duty to the principal,only to the agent.

Accepted Answer

A) True 
 B)False

Question 18

_____________ is the authority given by the principal to the agent.

Accepted Answer

A)  artificial authority
B)  actual authority
C)  legitimate authority
D)  general authority
E)  total authorityF) All of the above
G) C) and D)

Question 19

An agency relationship normally involves the use of an agent to represent a principal in dealing with which of the following:

Accepted Answer

A)  shareholders
B)  representatives
C)  third parties
D)  attorneys
E)  ratificationsF) A) and B)
G) A) and C)

Question 20

In Armstrong v.Food Lion,where employees at a grocery store beat two customers,the court held the store liable under the rule of vicarious liability.

Accepted Answer

A) True 
 B)False

Exam 14: Agency and the Employment Relationship

Which of the following determines the scope of authority given to an agent:

Correct AnswerverifiedShow Answer

A ______________ relationship is one in which one person is an employee whose conduct is controlled by the employer.

Correct AnswerverifiedShow Answer

Under American common law,employees are presumed to:

Correct AnswerverifiedShow Answer

Express or actual authority may only be created by written instruction or written contract.

Correct AnswerverifiedShow Answer

If a person could be expected to possibly cause problems and an employer hires them anyway,the employer could be held liable for ______________ if the employee commits a tort against a customer.

Correct AnswerverifiedShow Answer

Implied ratification of an agency occurs when the principal:

Correct AnswerverifiedShow Answer

The _____________ provides some immunity for a company against content posted or submitted online by third parties,if a company is merely acting as a publisher.

Correct AnswerverifiedE

Which of the following is a common problem with employee handbooks:

Correct AnswerverifiedShow Answer

Principals are presumed at common law to have no duties to their agents.

Correct AnswerverifiedShow Answer

The two general classifications of authority an agent can possess are actual authority and implied authority.

Correct AnswerverifiedShow Answer

The agency relationship is a key part to most business operations.

Correct AnswerverifiedShow Answer

An independent contractor is usually not an agent of the principal who hired her,but can have that role too.

Correct AnswerverifiedShow Answer

Agents rarely can change a principal's legal obligations.

Correct AnswerverifiedFalse

___________________ is a person who contracts with another to do something for him but who is not controlled by the other nor subject to the other's right to control with respect to his physical conduct in the performance of the undertaking.

Correct AnswerverifiedE

A senior manager at a car dealership is likely both an agent and employee.

Correct AnswerverifiedShow Answer

The power of an agent to do whatever is reasonable and customary to carry out the agency purpose is given by:

Correct AnswerverifiedShow Answer

A subagent is an agent of an agent,not an agent of the principal,so owes no duty to the principal,only to the agent.

Correct AnswerverifiedShow Answer

_____________ is the authority given by the principal to the agent.

Correct AnswerverifiedShow Answer

An agency relationship normally involves the use of an agent to represent a principal in dealing with which of the following:

Correct AnswerverifiedShow Answer

In Armstrong v.Food Lion,where employees at a grocery store beat two customers,the court held the store liable under the rule of vicarious liability.

Correct AnswerverifiedShow Answer

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E

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