Question 1

Which of the following best represents an agent's duty of segregation?

Accepted Answer

A)   The agent not dealing with the principal's property so that it appears to be the agent's.
B)   The agent should not profit or receive any other benefit from acting on behalf of the principal.
C)   The agent has a duty to act within her actual authority and to obey the principal's reasonable instructions.
D)   The agent may not use or communicate confidential information of the principal for the agent's own purpose.E) A) and B)
F) A) and C)

Question 2

Authority is an agent's ability to handle the legal issue of a principal.

Accepted Answer

A) True 
 B)False

Question 3

In agency law the term 'independent contractor' is referred to as what?

Accepted Answer

A)   Nonemployee agent
B)   Employee
C)   Incorporator
D)   OrganizerE) A) and B)
F) A) and C)

Question 4

An agency coupled with an interest is terminated if:

Accepted Answer

A)   the principal revokes agency.
B)   the principal tenders his obligation.
C)   the principal loses capacity.
D)   the agent dies.E) None of the above
F) A) and B)

Question 5

Which of the following is true of an agent who has the authority to appoint a subagent?

Accepted Answer

A)   An agent becomes a principal with respect to the subagent.
B)   An agent is able to appoint a subagent without the principal's knowledge.
C)   An agent has the authority to appoint a subagent when the situation involves a nondelegable duty.
D)   An agent has the authority to appoint a subagent when the co-agent demands such an appointment.E) B) and C)
F) A) and D)

Question 6

Because they serve for free,gratuitous agents have no authority to bind their principals.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is most likely to be classed as an independent contractor rather than an employee?

Accepted Answer

A)   An assembly line worker
B)   A lawyer who works as in-house counsel for a corporation
C)   A franchisee of a fast-food chain
D)   The president of a corporationE) A) and D)
F) A) and C)

Question 8

An agency coupled with an interest cannot be terminated by the principal's revocation of the agency.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following factors is most likely to distinguish employees from independent contractors?

Accepted Answer

A)   Whether or not consideration is given by the principal for the agent's performance
B)   The principal's right to control the manner and means of the agent's performance
C)   Whether the agent has authority to bind the principal by his actions
D)   The agent's personal liability for illegal actions taken on behalf of the principalE) All of the above
F) None of the above

Question 10

Which of the following agreements will result in the formation of an agency coupled with an interest?

Accepted Answer

A)   Borrower shall pledge securities to a lender,authorizing the lender to sell the securities and apply the proceeds to the loan in the event of default.
B)   Employee is hired for a period of two years at $40,000 per annum plus 2% of net sales.
C)   Broker is to receive a 5% sales commission out of the proceeds of the sale of a parcel of land.
D)   Attorney is to receive 25% of the plaintiff's recovery for personal injuries.E) None of the above
F) B) and D)

Question 11

Which of the following is true of termination of agency by operation of law?

Accepted Answer

A)   The principal's permanent loss of capacity ends the agency only if the agent is given notice.
B)   The bankruptcy of the agent automatically terminates the agency relationship.
C)   Termination by the death of the principal is effective only when the agent has notice of the principal's death.
D)   The death of an individual agent does not terminate the agency relationship if the principal is not an individual.E) B) and C)
F) C) and D)

Question 12

In a situation in which there is a conflict of interest between an agent who is authorized to make a certain transaction for a principal and the principal,the agent is allowed to:

Accepted Answer

A)   engage in self-dealing transactions if the principal and the third party are unaware of the transactions.
B)   compete with the principal regarding the agency business.
C)   act as agent for both parties to a transaction without disclosing the double role to both principals.
D)   act as a middleman and serve both parties to a transaction without notifying either principal.E) None of the above
F) C) and D)

Question 13

Which of the following tasks can an agent perform on behalf of a principal?

Accepted Answer

A)   Signing a will
B)   Making statements under oath
C)   Voting in public elections
D)   Making a contractE) A) and B)
F) A) and C)

Question 14

Which of the following is true of subagents?

Accepted Answer

A)   They must be appointed by the principal,though they report to the agent.
B)   They are considered to be agents of the agent,but not of the principal himself.
C)   Subagents do not have the authority to bind a principal,but can bind the agent.
D)   For a subagency to exist,an agent must have the authority to make the subagent his agent.E) C) and D)
F) All of the above

Question 15

A subagent is an agent of an agent.

Accepted Answer

A) True 
 B)False

Question 16

The agent's duty not to use or disclose confidential information about the principal's business continues after the agency ends.

Accepted Answer

A) True 
 B)False

Question 17

A principal need not compensate his agent if:

Accepted Answer

A)   there was no agreement on the amount of compensation the agent was to receive.
B)   the agent has committed a breach of a fiduciary duty.
C)   there is no market price for the agent's services.
D)   the agent is a special agent.E) All of the above
F) B) and D)

Question 18

An agent who receives no compensation for his services is known as:

Accepted Answer

A)   an independent contractor.
B)   a special agent.
C)   a gratuitous agent.
D)   a servant.E) A) and B)
F) B) and D)

Question 19

Larry works for Shannon as a salesperson.Shannon gave Larry a credit card with Larry's name on it so that Larry could charge necessary business expenses to Shannon's business account.Larry charged $1,000 in personal expenses,wholly unrelated to Larry's employment.Does apparent authority exist? Discuss.

Accepted Answer

Yes.It is likely that apparent authority...

Question 20

The apparent authority of a general agent for a disclosed principal will terminate without notice to third parties when:

Accepted Answer

A)   the principal dismisses the agent.
B)   the third party has notice of the principal's death.
C)   the purpose of the agency relationship has been fulfilled.
D)   the time period set forth in the agency agreement has expired.E) A) and B)
F) B) and C)

Exam 35: The Agency Relationship

A subagent is an agent of an agent.

Correct Answer
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Which of the following is most likely to be classed as an independent contractor rather than an employee?

Correct Answer
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Which of the following is true of an agent who has the authority to appoint a subagent?

Correct Answer
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Which of the following is true of subagents?

Correct Answer
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The agent's duty not to use or disclose confidential information about the principal's business continues after the agency ends.

Correct Answer
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An agent who receives no compensation for his services is known as:

Correct Answer
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In a situation in which there is a conflict of interest between an agent who is authorized to make a certain transaction for a principal and the principal,the agent is allowed to:

Correct Answer
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Correct Answer
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Yes.It is likely that apparent authority...
View Answer

Which of the following best represents an agent's duty of segregation?

Correct Answer
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An agency coupled with an interest is terminated if:

Correct Answer
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In agency law the term 'independent contractor' is referred to as what?

Correct Answer
verified

Which of the following is true of termination of agency by operation of law?

Correct Answer
verified

Which of the following factors is most likely to distinguish employees from independent contractors?

Correct Answer
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Authority is an agent's ability to handle the legal issue of a principal.

Correct Answer
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A principal need not compensate his agent if:

Correct Answer
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An agency coupled with an interest cannot be terminated by the principal's revocation of the agency.

Correct Answer
verified

The apparent authority of a general agent for a disclosed principal will terminate without notice to third parties when:

Correct Answer
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Which of the following agreements will result in the formation of an agency coupled with an interest?

Correct Answer
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Because they serve for free,gratuitous agents have no authority to bind their principals.

Correct Answer
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Which of the following tasks can an agent perform on behalf of a principal?

Correct Answer
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Exam 35: The Agency Relationship

A subagent is an agent of an agent.

Correct AnswerverifiedShow Answer

Which of the following is most likely to be classed as an independent contractor rather than an employee?

Correct AnswerverifiedShow Answer

Which of the following is true of an agent who has the authority to appoint a subagent?

Correct AnswerverifiedShow Answer

Which of the following is true of subagents?

Correct AnswerverifiedShow Answer

The agent's duty not to use or disclose confidential information about the principal's business continues after the agency ends.

Correct AnswerverifiedShow Answer

An agent who receives no compensation for his services is known as:

Correct AnswerverifiedShow Answer

In a situation in which there is a conflict of interest between an agent who is authorized to make a certain transaction for a principal and the principal,the agent is allowed to:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedYes.It is likely that apparent authority...View AnswerShow Answer

Which of the following best represents an agent's duty of segregation?

Correct AnswerverifiedShow Answer

An agency coupled with an interest is terminated if:

Correct AnswerverifiedShow Answer

In agency law the term 'independent contractor' is referred to as what?

Correct AnswerverifiedShow Answer

Which of the following is true of termination of agency by operation of law?

Correct AnswerverifiedShow Answer

Which of the following factors is most likely to distinguish employees from independent contractors?

Correct AnswerverifiedShow Answer

Authority is an agent's ability to handle the legal issue of a principal.

Correct AnswerverifiedShow Answer

A principal need not compensate his agent if:

Correct AnswerverifiedShow Answer

An agency coupled with an interest cannot be terminated by the principal's revocation of the agency.

Correct AnswerverifiedShow Answer

The apparent authority of a general agent for a disclosed principal will terminate without notice to third parties when:

Correct AnswerverifiedShow Answer

Which of the following agreements will result in the formation of an agency coupled with an interest?

Correct AnswerverifiedShow Answer

Because they serve for free,gratuitous agents have no authority to bind their principals.

Correct AnswerverifiedShow Answer

Which of the following tasks can an agent perform on behalf of a principal?

Correct AnswerverifiedShow Answer

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Correct Answer
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Correct Answer
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Yes.It is likely that apparent authority...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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