Question 1

Which of the following is true if there is no agreement between a principal and an agent regarding the amount for which the principal will compensate the agent?

Accepted Answer

A)   It will be assumed that the agent agreed to work for free on a gratuitous basis.
B)   The agent will be allowed to set the price which will be enforced unless it is unconscionable.
C)   The principal will be allowed to set the price which will be enforced unless it is unconscionable.
D)   The court will appoint a magistrate to set the price.
E)   Compensation will be calculated according to the customary fee in the situation.F) A) and B)
G) A) and C)

Question 2

Which of the following is the most likely result if Sue sues Ronnie for purchasing the property from Bruce instead of offering it to her?

Accepted Answer

A)   Sue will lose because Ronnie had the right to act in his own best interest.
B)   Sue will lose but only because Ronnie was not involved in work duties when he heard about the property.
C)   Sue will lose because Ronnie had validly assigned all duties to Rick.
D)   Sue will win.
E)   Sue will win only if she can establish that she expressly told Ronnie that he could not assign the contractual duties under the contract.F) C) and E)
G) A) and E) D

Question 3

An individual who lacks contractual capacity may hire an agent to make contracts on his or her behalf.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is false regarding implied agency and apparent agency?

Accepted Answer

A)   An implied agency as well as an apparent agency may be created by conduct.
B)   Circumstances may determine the extent of implied agency.
C)   Implied agency may conflict with express authority.
D)   Apparent agency is also known as agency by estoppel.
E)   If a principal in an alleged apparent agency situation denies that an agency existed, the third party alleging agency must demonstrate that he or she reasonably believed, based on the principal's conduct, that an agency relationship existed.F) None of the above
G) A) and E)

Question 5

Discuss why agency is especially important for modern firms doing business in foreign countries.

Accepted Answer

While foreign countries offer fresh mark...

Question 6

When a contract exists and a principal agrees to certain conditions,but fails to perform,which of the following would an agent seek in order to attempt to force the principal to perform the contract as stipulated?

Accepted Answer

A)   Specific performance
B)   Specific recoupment
C)   Adequate performance
D)   Reformation
E)   RecognitionF) C) and D)
G) A) and C)

Question 7

Which of the following is false regarding the duties a principal owes to an agent?

Accepted Answer

A)   The principal owes a duty of cooperation to the agent.
B)   The principal must assist the agent in the performance of his or her duties.
C)   The principal can do nothing to interfere with the reasonable conduct of an agent.
D)   The principal has a duty to provide safe working conditions for an agent.
E)   The duty of reimbursement applies to employees only, not to independent contractors.F) A) and E)
G) B) and C)

Question 8

What should Sue seek if she wants possession of the lakeside lot Ronnie purchased?

Accepted Answer

A)   A resolute trust
B)   An actual trust
C)   A constructive trust
D)   A defined trust
E)   An absolute trustF) A) and E)
G) B) and C)

Question 9

Which of the following is a term for a person who contracts with another to do something for the other person,but is not controlled by the other nor subject to the other's right to control with respect to his physical conduct in the performance of the undertaking?

Accepted Answer

A)   An employee
B)   An independent contractor
C)   An authorized contractor
D)   A task-specific contractor
E)   A partial contractorF) A) and D)
G) A) and E)

Question 10

Which of the following refers to the right of a principal to sue an agent to recover any amount assessed against the principal for a breach of contract caused by the agent's negligence?

Accepted Answer

A)   Reformation
B)   Indemnification
C)   Reimbursement
D)   Contribution
E)   RecoupmentF) A) and B)
G) B) and D)

Question 11

Which of the following is not one of the criteria listed in the text as indicative of whether a worker is an employee or an independent contractor?

Accepted Answer

A)   Whether the worker is engaged in a distinct occupation or an independently established business.
B)   The employer supplying the tools.
C)   How the worker is paid.
D)   The amount of time the worker has been involved in the trade or area at issue.
E)   The length of time for which the worker is employed.F) A) and E)
G) C) and D) D

Question 12

Which of the following is a person who has a duty to act primarily for another person's benefit?

Accepted Answer

A)   Principal
B)   Employer
C)   Fiduciary
D)   Trustor
E)   BenefitorF) A) and D)
G) C) and D)

Question 13

Which of the following is true regarding the liability in tort of employers for the actions of employees and independent contractors?

Accepted Answer

A)   Employers are generally liable in tort for the actions of their employees, while they are generally not liable for the actions of independent contractors.
B)   Employers are generally liable in tort for the actions of independent contractors, while they are generally not liable for the actions of employees.
C)   Employers are not generally liable in tort for the actions of independent contractors or the actions of employees.
D)   Employers are generally liable in tort for the actions of independent contractors and for the actions of employees.
E)   Employers are generally liable in tort for the actions of independent contractors and for the actions of employees, but only if the employer has agreed to be liable in a written contract with the employee or independent contractor.F) All of the above
G) A) and D)

Question 14

Which of the following is true regarding the result in the Case Opener,the case involving whether FedEx illegally refused to collectively bargain with single-route drivers on the basis that they were independent contractors,not employees?

Accepted Answer

A)   To determine whether the FedEx drivers should be classified as employees or independent contractors, the court applied federal statutory law.
B)   The court found that FedEx did not exercise the degree of control necessary for the relationship to be considered employer-employee.
C)   The court found that at times the drivers acted as employees and that other times they acted as independent contractors and that they would, therefore, be classified as independent contractors.
D)   The court found that at times the drivers acted as employees and that other times they acted as independent contractors and that they would, therefore, be classified as employees.
E)   The court found that all the rights and duties of employees as agents applied to their relationship with FedEx.F) A) and D)
G) A) and C)

Question 15

Which of the following was the result in Ackerman v.Sobol Family Partnership,LLP the case in the text involving whether the plaintiffs were bound by representations of their attorney regarding settlement that they had not approved?

Accepted Answer

A)   That the agreement entered into by plaintiffs' attorney would not be enforced because the plaintiffs had not lead the opposing defense attorneys reasonably to believe that the plaintiffs' attorney had full and final authority to settle the litigation.
B)   That the agreement entered into by plaintiffs' attorney would not be enforced because the plaintiffs had not signed it.
C)   That the agreement entered into by plaintiffs' attorney would not be enforced because the plaintiffs had not given the attorney express authority to enter into the agreement.
D)   That the agreement would be enforced because the plaintiffs' attorney had express authority to enter into the agreement.
E)   That the agreement would be enforced because the plaintiffs' attorney had apparent authority to enter into the agreement.F) B) and E)
G) C) and E)

Question 16

Which of the following is the term used to describe the duty and responsibilities of the agent as specified in the agency agreement?

Accepted Answer

A)   Duty of action
B)   Duty of contract
C)   Express duty of action
D)   Duty of performance
E)   Duty of obedienceF) D) and E)
G) A) and B)

Question 17

When must agency agreements be in writing?

Accepted Answer

First,agency agreements need to be in wr...

Question 18

Agents in Australia are obligated to act personally on behalf of the principal.

Accepted Answer

A) True 
 B)False  True

Question 19

Which of the following is the term used to describe the duty an agent has to follow the lawful instruction and direction of the principal?

Accepted Answer

A)   Duty of action
B)   Duty of contract
C)   Express duty of action
D)   Duty of performance
E)   Duty of obedienceF) A) and E)
G) B) and D)

Question 20

All employees are agents of their employers,and all agents are employees.

Accepted Answer

A) True 
 B)False

Exam 33: Agency Formation and Duties

Which of the following is true if there is no agreement between a principal and an agent regarding the amount for which the principal will compensate the agent?

Correct AnswerverifiedShow Answer

Which of the following is the most likely result if Sue sues Ronnie for purchasing the property from Bruce instead of offering it to her?

Correct AnswerverifiedD

An individual who lacks contractual capacity may hire an agent to make contracts on his or her behalf.

Correct AnswerverifiedShow Answer

Which of the following is false regarding implied agency and apparent agency?

Correct AnswerverifiedShow Answer

Discuss why agency is especially important for modern firms doing business in foreign countries.

Correct AnswerverifiedWhile foreign countries offer fresh mark...View AnswerShow Answer

When a contract exists and a principal agrees to certain conditions,but fails to perform,which of the following would an agent seek in order to attempt to force the principal to perform the contract as stipulated?

Correct AnswerverifiedShow Answer

Which of the following is false regarding the duties a principal owes to an agent?

Correct AnswerverifiedShow Answer

What should Sue seek if she wants possession of the lakeside lot Ronnie purchased?

Correct AnswerverifiedShow Answer

Which of the following is a term for a person who contracts with another to do something for the other person,but is not controlled by the other nor subject to the other's right to control with respect to his physical conduct in the performance of the undertaking?

Correct AnswerverifiedShow Answer

Which of the following refers to the right of a principal to sue an agent to recover any amount assessed against the principal for a breach of contract caused by the agent's negligence?

Correct AnswerverifiedShow Answer

Which of the following is not one of the criteria listed in the text as indicative of whether a worker is an employee or an independent contractor?

Correct AnswerverifiedD

Which of the following is a person who has a duty to act primarily for another person's benefit?

Correct AnswerverifiedShow Answer

Which of the following is true regarding the liability in tort of employers for the actions of employees and independent contractors?

Correct AnswerverifiedShow Answer

Which of the following is true regarding the result in the Case Opener,the case involving whether FedEx illegally refused to collectively bargain with single-route drivers on the basis that they were independent contractors,not employees?

Correct AnswerverifiedShow Answer

Which of the following was the result in Ackerman v.Sobol Family Partnership,LLP the case in the text involving whether the plaintiffs were bound by representations of their attorney regarding settlement that they had not approved?

Correct AnswerverifiedShow Answer

Which of the following is the term used to describe the duty and responsibilities of the agent as specified in the agency agreement?

Correct AnswerverifiedShow Answer

When must agency agreements be in writing?

Correct AnswerverifiedFirst,agency agreements need to be in wr...View AnswerShow Answer

Agents in Australia are obligated to act personally on behalf of the principal.

Correct AnswerverifiedTrue

Which of the following is the term used to describe the duty an agent has to follow the lawful instruction and direction of the principal?

Correct AnswerverifiedShow Answer

All employees are agents of their employers,and all agents are employees.

Correct AnswerverifiedShow Answer

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D

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While foreign countries offer fresh mark...
View Answer

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D

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First,agency agreements need to be in wr...
View Answer

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True

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