FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 28: Relationship of Principal and Agent

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

True/False

Review LaterAdd Note

Review Later

The fiduciary duty of an agent has no bearing upon his ability to act on behalf of a competitor of his principal.

A) True
B) False

Correct Answer

verified

Show Answer

Question 2

True/False

Review LaterAdd Note

Review Later

The negligence of an agent who is an employee in conducting the business of the principal exposes the principal to tort liability for injury and loss suffered by third persons.

A) True
B) False

Correct Answer

verified

Show Answer

Question 3

True/False

Review LaterAdd Note

A power given as security creates a relationship of agency and actual authority.

A durable power of attorney differs from a power of attorney in that the durable power of attorney:

Which of the following is NOT a major duty, which the agent owes to the principal?

Because the authority given to an agent by a principal is strictly personal, an individual agent's death terminates the agent's actual authority.

Bob owns a business delivering coffee and donuts within the downtown area of the city. Smith Co. calls him to deliver a large quantity of his products to their local office. While taking a coffee urn through the Smith Co.'s office, Bob drops it on Lester, scalding him. Who is liable?

E-Sign specifically excludes:

The contractual duties owed by a principal to an agent are the duties of:

Agency relationships are governed primarily by federal statute.

The result of an agent's functioning is exactly the same as if the principal had dealt directly with the third person.

Carson, who is an agent for Peter, breaches his fiduciary duty to Peter. Carson:

In some states, the authority of an agent to sell land must be in writing and signed by the principal.

A gratuitous agent:

A gratuitous agency is not a true agency because it is not formed by contract.

Identify the following parties and relationships. a. Patricia hires Andrew, an attorney, to negotiate a contract to purchase some property. She agrees to pay him $75 an hour for his services, and he agrees to use his own office and secretarial staff to negotiate and draft the agreement. b. Mel owns a retail store. He hires Sarah to work for him as a clerk in the home furnishings department. c. Carl is the general contractor for the construction of a large office complex. Carl hires Ed's Electric Company to do all of the wiring for the building. d. Incellmed Corporation hires Bob as an outside salesman and instructs him to call on customers in a specified territory and to solicit orders for their products. e. Marlin, who is the owner of Marlin's Department Store, hires Melissa as the general manager of his new branch in the Hillridge Mall.

A principal owes to any agent the same duties under tort law that the principal owes to all parties.

If an agency is gratuitous, the principal ordinarily may revoke it without liability to the agent.

Mark (age 16) appoints Joe (age 21) as his agent to purchase a digital camcorder from Electronic World. The transaction is:

The agent may be subject to liability to her principal for breach of the duty of obedience if she: