CPCU 530 - Chapter 9 - Understanding Agency Law – Quiz || Questions and 100% Accurate Answers.
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CPCU 530 - Chapter 9 - Understanding Agency Law –
Institution
CPCU 530 - Chapter 9 - Understanding Agency Law –
When Adam went to work for Stulford's Coffee Shop, he was given written instructions on how to brew its coffee including how much coffee and water to use in the coffee makers. The authority demonstrated here was
Select one:
A. Implied authority.
B. Express authority.
C. Procedural authori...
CPCU 530 - Chapter 9 - Understanding Agency Law – Quiz
|| Questions and 100% Accurate Answers.
When Adam went to work for Stulford's Coffee Shop, he was given written instructions on how
to brew its coffee including how much coffee and water to use in the coffee makers. The
authority demonstrated here was
Select one:
A. Implied authority.
B. Express authority.
C. Procedural authority.
D. Apparent authority. correct answers B. Express authority.
Beatrice's Beauty Shop had Francesca come by three times a week to do pedicures. Beatrice and
Francesca had separate businesses; however, customers think Francesca works for Beatrice.
Francesca's cuts a customer's toe severely. The customer believes that she may hold Beatrice
liable. This situation represents agency by
Select one:
A. Appointment.
B. Acts.
C. Ratification.
D. Estoppel. correct answers D. Estoppel.
One of the principal's remedies for breach of agency contract or in tort for harm done by an agent
is
Select one:
A. Transferring improperly held property.
B. Relieving the agent of an agency appointment.
C. Requesting damages from the state department of insurance.
D. Paying the value of the benefit the principal received. correct answers A. Transferring
improperly held property
Which one of the following is a duty an agent generally owes to a principal?
Select one:
, A. Privacy
B. Reasonable consideration
C. Accounting
D. Discretion correct answers C. Accounting
If an agency is at will,
Select one:
A. Both agent and principal must adhere to the contract.
B. Wrongful termination is a concern.
C. Termination for just cause must still be considered.
D. The agency relationship can be terminated without cause. correct answers D. The agency
relationship can be terminated without cause.
Whitney, a customer service representative (CSR) for Delmond Agency, was authorized to make
changes on policies that the agency writes. Whitney changed Carla's auto policy to reflect her
new auto purchased last week. Whitney's type of authority is
Select one:
A. CSR authority.
B. Apparent authority.
C. Express authority.
D. Implied authority. correct answers C. Express authority.
When undisclosed principals are involved, their rights against third parties can be limited in four
situations. Which one of the following is one of these situations?
Select one:
A. Company performance contracts
B. Greater burden on the third party
C. Fraudulent concealment of the third-party's identity
D. Judgment between the third party and the agent after the principal's identity becomes known
correct answers B. Greater burden on the third party
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