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Exam 19: Agency Relationships

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Question 21

True/False

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Actual authority in an agency relationship arises from what a principal makes clear to a third party.

A) True
B) False

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Question 22

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Gary drives a truck as an employee for Hauling Inc. Gary would most likely be considered acting outside the scope of her employment if he

A) crashed into a car at the airport while off duty.
B) hit a pedestrian in a parking lot during a "working" lunch.
C) ran over an attendant at a gas station while refueling the truck.
D) smashed into a store-front while intoxicated on-duty.

E) All of the above
F) None of the above

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Question 23

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An agent must keep confidential any information acquired through an agency during the term of the relationship, but can disclose it after the agency ends.

Country Club officers ask Devi to contract with Ewan to maintain the club's golf course. Devi orally agrees to do so. The relationship between the club and Devi is an agency by

Clark hires Dell, a real estate broker, to sell his beach house. The house is destroyed in a storm before it can be sold. Dell is Clark's agent

Bakery LLC hires Cora to sell the company's products in a certain area. The company agrees to pay Cora a salary, plus commission, for a trial period. They also agree that she can sell using any methods and during any hours that seem appropriate. The key factor in whether Cora is an employee is

Darla serves in a representative capacity for Ellen's Botanicals. To accomplish the objectives of this relationship, Darla's authority can be implied by

It is not illegal for a licensed professional to employ an unlicensed agent to perform professional acts.

An agent can represent two principals in the same transaction, so long as neither is aware of the dual capacity.

Curly Fries Inc. grants its agent Dian an exclusive territory in which to sell its products. The company cannot compete with Dian in that territory under the duty of

Rene is a delivery driver for Sicilian Pasta Company. Rene does exactly what the company tells her. Rene is

Lucia is married to Marco. Lucia buys food for their children's lunches and charges the cost to Marco's account. This is an agency by

Romero employs Supply Procurement Service as an agent under a written agreement that describes the rights and duties of both parties. This is

When an agent, acting within the scope of his or her authority, contracts with a third party, a disclosed principal is liable to the third party.

Agency relationships come about by voluntary consent and agreement of the parties-consideration is required, and the agreement must be in writing.

An undisclosed principal is one whose identity is totally unknown by an agent and a third party at the time a contract is made.

The doctrine of respondeat superior imposes liability for an agent's tort on a principal without regard to the personal fault of the agent.

Miklos employs Nathalie to handle a list of financial transactions on Miklos's behalf. This power will terminate on

Bey indicates that he is acting as an agent on behalf of an unidentified client-Cuisine LLC-when he enters into a contract with Diners Bistro. Cuisine is

An agency relationship is based on the attributes of power, control, and financial self-interest-not the trust and confidence of a fiduciary relationship.