REG Business Law Exam Questions & Answers 2024/2025
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Course
REG Business Law
Institution
REG Business Law
REG Business Law Exam Questions & Answers 2024/2025
What is an agent? - ANSWERSanyone authorized to act on behalf of another person, and who has the power to legally bind the principal to contracts, or in some cases, torts.
what does an agency require? - ANSWERSan agreement
-not in writing...
REG Business Law Exam Questions &
Answers 2024/2025
What is an agent? - ANSWERSanyone authorized to act on behalf of another person, and who has the
power to legally bind the principal to contracts, or in some cases, torts.
what does an agency require? - ANSWERSan agreement
-not in writing unless MY LEGS, aka land/not accomplish in one year
who is required to have capacity in a principal/agent relationship? - ANSWERSthe principal
what is capacity? - ANSWERSthe competency to enter into a legal contract
-sound mind: sane/rational
-competent
what is the Power of Attorney? - ANSWERSa written authorization of agency to perform certain
SPECIFIED tasks
-not a real attorney/attorney at law
-limiting to specific tasks, not permanent
who is required to sign the power of attorney agreement? - ANSWERSonly the principal
what is termination at will of an agency? - ANSWERSMOST, have the power but not the right, may be a
breach if before contract ends -> liability
what is termination by law of an agency? - ANSWERSagency is terminated IMMEDIATELY, no need to give
notice to 3rd parties bc it is an operation of law.
-death or insanity of either party
,-bankruptcy of principal
-failure of agent to have required license aka acting illegally
-destruction of the agency's subject matter
what type of authority is terminated when a agent resigns or is fired by the principal? -
ANSWERSACTUAL, apparent still remains
how does a principal terminate apparent authority of an agent? - ANSWERSBY GIVING NOTICE to
persons the agents dealt with previously and CONSTRUCTIVE NOTICE to all others
what is constructive notice? - ANSWERSnot actual notice/knowledge, but rather notice imputed by law.
-didn't need to actually receive BUT should have known due to announcement
ex. advertisement in the newspaper
what type of agency is NOT terminable by the principal? - ANSWERSagency coupled with an interest
-not even death or insanity of the principal ends this agency
what is agency coupled with an interest? - ANSWERSagency power is given as a SECURITY
-paid for the right to become the agent, usually through giving credit
-an agent and a creditor
-vote in stock
how is actual authority given? - ANSWERSit can be express or implied
PRINCIPAL AND AGENT
, what is express authority of power? - ANSWERSthe principal specifically tells the agent that the agent
has authority
what is implied authority of power? - ANSWERSthe power that the agent reasonably believes the agent
has based on communications/past dealings between the principal and agent
-reasonably necessary to do tasks
-authority to do what they were allowed to do in the past again
what is apparent authority? - ANSWERSPRINCIPAL AND 3RD PARTY
-communications/actions, which make it appear as though an agent is authorized
-reasonable 3rd party believe agent authorized?
-title/position is given to agent
-fails to give notice of termination to 3rd party so 3rd party still believes they have authority
SECRET instructions have no impact on apparent authority
what duty does the principal owe the agent? - ANSWERSto reimburse the agent for expenses while
acting on the P's behalf
-duty to compensate
-duty to indemnify the agent for losses incurred while acting on the principal's behalf
indemnify definition - ANSWERSthe duty of a business entity to reimburse those properly acting on
behalf of the entity for losses incurred
-compensate for harm/loss
what duty does the agent owe the principal? - ANSWERSFIDUCIARY DUTIES:
Due care
Inform: all relevant facts
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