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Exam 23: Agency Relationships in Business

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Question 31

True/False

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An agency relationship created for an illegal purpose is enforceable.

A) True
B) False

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Question 32

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Bud approves on behalf of Cody-but without authorization-a contract with Dik to build a new silo. Cody does not ratify the contract. Later, Dik tries to enforce the deal. This attempt will be​

A) ​partly successful.
B) ​partly unsuccessful.
C) ​totally successful.
D) ​totally unsuccessful.

E) A) and B)
F) A) and C)

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Question 33

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Normally, employees who deal with third parties are not deemed to be agents.

An agency agreement can be created by an oral agreement.

A principal's ratification of an agent's unauthorized act must be express.

Limon, an agent for Mindwonder Games LLC, executes an unauthorized contract with NOW Marketing, Inc. The deal is highly advantageous to Mindwonder, and the company ratifies the contract. The contract is​

For an agent's implied authority to be effective, a principal must confirm it in writing.

Without authorization, Rolf contracts on behalf of Sari to have Tige paint the interior and exterior of Sari's house. Sari ratifies the contract. Later, Sari tries to rescind the part of the contract relating to the exterior. This attempt will be​

Yoshi contracts with Zach to buy a certain pub, Aficionado's, for Yoshi, who asks Zach not to reveal her identity. Zach makes a deal with Burcet, the owner of the pub, and makes a down payment. Yoshi fails to pay the rest of the price, and does not pay Zach for his services. Does Zach have any recourse against Yoshi? If so, on what basis and to what extent?​

Jim agrees to act on Kit's behalf, subject to Kit's control, and Kit trusts Jim to so act. This describes a relationship between​

Roberta introduces Steve to her friends as "my associate." Steve purports to act as Roberta's agent in several business transactions with those friends. If Roberta is liable for Steve's actions, it will be because their relationship is​

Based on Nan's conduct, Odel reasonably believes that Poppy has the authority to act on Nan's behalf even though Poppy does not have the actual authority to do so. In this circumstance, Poppy has​

An agency coupled with interest is a relationship created for the benefit of the principal.

Watercraft, Inc., employs Vladimir as a sales agent for a trial period. At the end of the period, Watercraft and Vladimir disagree on the amount of the commissions Vladimir is due for sales that he made. Vladimir may demand​

Through agents, a principal can conduct only one business operation at a time.

If a principal is undisclosed, the agent may be liable to the principal for a third party's nonperformance of a contract.

The agent has the right to be compensated, and to be reimbursed and indemnified.

An agent has the implied authority to do what is reasonably necessary to carry out express authority.

If a principal ratifies a contract without knowing all of the facts, the principal can rescind the contract.

Picabo drives a truck as an employee for Quik Delivery, Inc. Picabo would most likely be considered acting outside the scope of her employment if she​