Question 1

Which of the following can determine the scope of authority given to an agent:

Accepted Answer

A)  statements of the agent
B)  the principal's personal relationship with a third party
C)  statements of the principal
D)  all of the other specific choices are correct
E)  none of the other specific choices are correctF) A) and C)
G) B) and C)

Question 2

Employers may be liable for torts of employees that can be attributed to negligent hiring or supervision under the rule of law known as:

Accepted Answer

A)  contractor liability
B)  tortious liabilitius
C)  respondeat superior
D)  principal duty
E)  there is no such rule as the employee only is responsibleF) B) and D)
G) A) and B)

Question 3

In Bearden v.Wardley Corp. ,where real estate agent Gritton cheated Bearden on a house deal,the court held that his employer,Wardley,was liable for his actions because it failed to monitor Gritton's improper actions sufficiently.

Accepted Answer

A) True 
 B)False

Question 4

An agent must perform instructions provided by the principal.If the agent fails to do so,he violates:

Accepted Answer

A)  the duty of cooperation
B)  the duty of obedience and performance
C)  the duty to reimburse
D)  the duty of loyalty
E)  the duty of accountingF) D) and E)
G) All of the above

Question 5

Suppose a car dealership hires people to sell cars to customers at the dealership.The people who are hired are most likely to be:

Accepted Answer

A)  employees only.
B)  agents only.
C)  independent contractors only.
D)  employees and agents.
E)  employees and independent contractors.F) B) and E)
G) A) and B)

Question 6

A person designated by a principal to do all acts that can be legally delegated to an agent is a:

Accepted Answer

A)  personal subagent
B)  special agent
C)  gratuitous agent
D)  general agent
E)  none of the other choicesF) B) and E)
G) C) and E)

Question 7

When an employer-employee relationship exists,employers:

Accepted Answer

A)  may be liable for the torts committed by employees in the course of employment
B)  are only liable for the torts committed by employees in the course of employment in some states
C)  are never liable for the torts committed by employees in the course of employment
D)  are liable for the torts committed by employees in the course of employment only if the employees are minors
E)  none of the other choices are correctF) B) and E)
G) A) and D)

Question 8

An agent is expected to perform responsibilities with the degree of care that is called ordinary care under the circumstances.

Accepted Answer

A) True 
 B)False

Question 9

An agent with authority to represent the principal only for a specific transaction,usually for a limited time is a(n) :

Accepted Answer

A)  a universal agent
B)  a gratuitous agent
C)  an agent who has an agency coupled with an interest
D)  a one-time agent
E)  none of the other choicesF) D) and E)
G) B) and E)

Question 10

An employment of an agent for the purpose of representation in establishing relations between a principal and third parties is known as a(n) :

Accepted Answer

A)  third party relationship
B)  principal relationship
C)  agency relationship
D)  real relationship
E)  representative relationshipF) B) and E)
G) D) and E)

Question 11

The scope of an agent's authority is determined from the:

Accepted Answer

A)  oral or written expressions of the principal
B)  principal's conduct
C)  standards of the Uniform Agency Act
D)  oral or written expressions of the principal or the principal's conduct
E)  oral or written expressions of the principal or the principal's conduct or the standards of the Uniform Agency ActF) C) and D)
G) None of the above

Question 12

In her relations with her principal,an agent must meet the "ordinary standard of conduct" imposed on people engaged in business dealings.

Accepted Answer

A) True 
 B)False

Question 13

If someone volunteers to act as a gratuitous agent,and performs a task,such as selling a car,for a principal,the legal consequences are the same as if the agent were paid.

Accepted Answer

A) True 
 B)False

Question 14

A principal may designate someone to do all acts that can be legally delegated to an agent.That agent is called a general agent.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A)  listing specific offenses for which people may be fired can create the impression those are the only offenses that matter
B)  failing to change the handbook to comply with state and federal laws as they change
C)  not giving a clear at-will employment statement
D)  all of the other specific choices are correct
E)  none of the other specific choices are correctF) A) and B)
G) A) and C)

Question 16

Subagents work for the agent and owe duties to:

Accepted Answer

A)  only the agent
B)  only the principal
C)  both the agent and the principal
D)  no one
E)  none of the other choices are correctF) B) and C)
G) A) and D)

Question 17

To establish an agency relationship:

Accepted Answer

A)  the procedure in state statutes must be followed
B)  there must be a written contract between the parties
C)  the principal and agent must agree to form an agency
D)  all of the other specific choices
E)  none of the other choicesF) C) and D)
G) B) and D)

Question 18

Power of attorney may only be held by a licensed attorney.

Accepted Answer

A) True 
 B)False

Question 19

You hire an agent to sell your house for you.Typically,such an agent receives a fee only if they actually sell the house.This person is most likely:

Accepted Answer

A)  a universal agent
B)  a gratuitous agent
C)  an agent who has an agency coupled with an interest
D)  a special agent
E)  none of the other choicesF) A) and C)
G) A) and B)

Question 20

Under the rule of _________ a principal or employer can be liable for the authorized or unauthorized intentional or negligent torts of agents and employees who were acting within the scope of employment.

Accepted Answer

A)  fiduciary duty
B)  indemnification
C)  agent respondeat
D)  third-party rights,duties,and liabilities
E)  none of the other choicesF) B) and E)
G) C) and E)

Exam 14: Agency and the Employment Relationship

If someone volunteers to act as a gratuitous agent,and performs a task,such as selling a car,for a principal,the legal consequences are the same as if the agent were paid.

Correct AnswerverifiedShow Answer

An agent must perform instructions provided by the principal.If the agent fails to do so,he violates:

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When an employer-employee relationship exists,employers:

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Which of the following can determine the scope of authority given to an agent:

Correct AnswerverifiedShow Answer

An agent is expected to perform responsibilities with the degree of care that is called ordinary care under the circumstances.

Correct AnswerverifiedShow Answer

In Bearden v.Wardley Corp. ,where real estate agent Gritton cheated Bearden on a house deal,the court held that his employer,Wardley,was liable for his actions because it failed to monitor Gritton's improper actions sufficiently.

Correct AnswerverifiedShow Answer

The scope of an agent's authority is determined from the:

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An employment of an agent for the purpose of representation in establishing relations between a principal and third parties is known as a(n) :

Correct AnswerverifiedShow Answer

A person designated by a principal to do all acts that can be legally delegated to an agent is a:

Correct AnswerverifiedShow Answer

In her relations with her principal,an agent must meet the "ordinary standard of conduct" imposed on people engaged in business dealings.

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To establish an agency relationship:

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Employers may be liable for torts of employees that can be attributed to negligent hiring or supervision under the rule of law known as:

Correct AnswerverifiedShow Answer

Under the rule of _________ a principal or employer can be liable for the authorized or unauthorized intentional or negligent torts of agents and employees who were acting within the scope of employment.

Correct AnswerverifiedShow Answer

Suppose a car dealership hires people to sell cars to customers at the dealership.The people who are hired are most likely to be:

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Subagents work for the agent and owe duties to:

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An agent with authority to represent the principal only for a specific transaction,usually for a limited time is a(n) :

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

You hire an agent to sell your house for you.Typically,such an agent receives a fee only if they actually sell the house.This person is most likely:

Correct AnswerverifiedShow Answer

A principal may designate someone to do all acts that can be legally delegated to an agent.That agent is called a general agent.

Correct AnswerverifiedShow Answer

Power of attorney may only be held by a licensed attorney.

Correct AnswerverifiedShow Answer

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