BLAW CHAPTER 14
(A) access to the expertise of agents - ✔✔Which of the following is an advantage to
having the ability to use agents:
(A) access to the expertise of agents
(B) reduced tax burden
(C) exemption from income tax
(D) creation of many small companies within one larger company
(E) easier organization of a company
(A) actual authority - ✔✔The authority given by the principal to an agent, conferring on
the agent the power and right to
change the principal's legal status is referred to as:
(A) actual authority
(B) authority in rem
(C) authority at law
(D) general authority
(E) special authority
100%
(A) Agency by estoppel - ✔✔____ is when an agency is created because the actions
of the principal may lead one to
reasonably believe that the presumed agent has the authority to act for the principal.
(A) Agency by estoppel
(B) Agency by permission
(C) Agency by ratification
(D) Agency by demand
(E) Agency by practicality
(A) agency with coupled with an interest - ✔✔When an agent pays for the right to
have authority for a business, a(n) ____ is created.
(A) agency with coupled with an interest
(B) agency with permission
(C) agency with rights
(D) general agency
(E) shared agency
,(A) an agent's ability to transact business for the principal - ✔✔A key element of an
agency relationship is:
(A) an agent's ability to transact business for the principal
(B) any relationship established for the sale of land be an oral contract
(C) the principal acts for the benefit of the agent
(D) a commitment for at least one year, to show intent to bind the parties to the agency
relationship
(E) none of the other choices
(A) compensation - ✔✔Which of the following is not a duty owed by the agent to the
principal:
(A) compensation
(B) reasonable care
(C) accounting
(D) notification
(E) all of the other choices are required
100%
(A) expanded business opportunities - ✔✔Which of the following is an advantage to
having the ability to use agents:
(A) expanded business opportunities
(B) reduced tax burden
(C) exemption from income tax
(D) creation of many small companies within one larger company
(E) easier organization of a company
(A) for the reasonable value of the services provided - ✔✔If a payment amount is not
specified in the agency agreement, a principal's duty to compensate
means that the principal must pay the agent:
(A) for the reasonable value of the services provided
(B) at least half the customary rate
(C) for the rational value of the services provided
(D) however much the agent demands
(E) however much the agent's attorney demands
,(A) he is not an agent - ✔✔If a contractor does not have authority to enter into
contracts for the principal then:
(A) he is not an agent
(B) he is also an agent
(C) he is also an agent if he thinks he has the authority to enter into contracts
(D) he is still considered an agent in most, but not all, states
(E) none of the other choices are correct
(A) he is violating his duty of loyalty - ✔✔If an agent competes with his principal
without the principal's consent:
(A) he is violating his duty of loyalty
(B) he is violating his duty of cooperation
(C) he is violating his duty to reimburse
(D) he is violating his duty to play fair
(E) he is violating his duty of obedience and performance
(A) implied ratification - ✔✔____ takes place when the principal behaves as if he has
the intent of ratifying an unauthorized 100%
agreement.
(A) implied ratification
(B) real ratification
(C) delayed ratification
(D) express ratification
(E) explicit ratification
(A) liable to the third party for the principal's nonperformance of the contract -
✔✔When there is an undisclosed principal, the agent is:
(A) liable to the third party for the principal's nonperformance of the contract
(B) not liable to the third party for the principal's nonperformance of the contract
(C) liable to the undisclosed principal for the third party's nonperformance of the
contract
(D) liable for only half of the damages incurred by the principal's nonperformance of the
contract
(E) none of the other choices are correct
, (A) may be liable for the torts committed by employees in the course of employment -
✔✔When an employer-employee relationship exists, employers:
(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 correct
(A) more than one year - ✔✔Many states require agencies that will exist for ____ to
be established in writing.
(A) more than one year
(B) less than one year
(C) less than five years
(D) more than six months
100%
(E) none of the other choices are correct
(A) not responsible for the agent's dealings with third parties who have no reason to
think the agent
has authority - ✔✔If an agent claims to have authority but in fact has none, the
principal is:
(A) not responsible for the agent's dealings with third parties who have no reason to
think the agent
has authority
(B) responsible for the agent's dealings with third parties who have no reason to think
the agent has
authority
(C) responsible for up to 50% of the monetary value of any contracts entered into by
third parties
and the agent
(D) responsible for up to 25% of the monetary value of any contracts entered into by
third parties
and the agent
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