Question 1

Miklos grants an ordinary power of attorney to Nathalie to handle a list of financial transactions on Miklos's behalf. This power will terminate on

Accepted Answer

A)   any transaction causing a loss to Miklos.
B)   Miklos's death or incapacity.
C)   Miklos's sixty-fifth birthday.
D)   Nathalie's handling of one of each stipulated transaction.E) A) and B)
F) B) and C)

Question 2

Maia hires Nero, a real estate broker, to sell her warehouse. The ware?house burns down be?fore being sold. Nero is

Accepted Answer

A)   Maia's agent until Maia's insurer pays Nero's commission.
B)   Maia's agent until the burnt warehouse is sold.
C)   Maia's agent until the warehouse is rebuilt and sold.
D)   no longer Maia's agent.E) A) and D)
F) A) and B)

Question 3

Fab Auto Sales, Inc., employs GR8 Collection Company as a collection agent. While repossessing a car from Hadji, one of Fab's customers, GR8 causes an accident in which Hadji is injured. Hadji can recover from

Accepted Answer

A)   Fab only.
B)   Fab or GR8.
C)   GR8 only.
D)   Hadji's insurance company only.E) All of the above
F) B) and C)

Question 4

An agency is terminated if the principal demands an accounting.

Accepted Answer

A) True 
 B)False

Question 5

Cory employs Daily Delivery Agency as an agent under a writ?ten agreement that describes the rights and duties of both parties. This is

Accepted Answer

A)   apparent authority.
B)   equal authority.
C)   express authority.
D)   implied authority.E) A) and D)
F) A) and C)

Question 6

Commercial Development Corporation (CDC)  hires Delta Construction Company to work at a site as an independent contractor. Whether CDC will be liable for torts committed at the site by Delta depends on

Accepted Answer

A)   what Delta bid for the job.
B)   whether exceptionally hazardous activities are involved.
C)   which party obtained insurance to cover tort liability.
D)   who is paying Delta.E) A) and C)
F) A) and B)

Question 7

An agent's authority to act on behalf of a principal derives exclusively from the agent's express au?thor?ity.

Accepted Answer

A) True 
 B)False

Question 8

Sonia manages a Tasty Pastry store for United Food Company. To manage the business, Sonia's authority can be implied by

Accepted Answer

A)   an inference from the position Sonia occupies.
B)   any inference a reasonable customer or supplier would make.
C)   any inference Sonia chooses to make.
D)   no inference.E) A) and B)
F) A) and C)

Question 9

Trey, an agent for Uno Music Corporation, executes an unau?thor?ized contract with Variety Recording, Inc., that is highly ad?vanta?geous to Uno. Variety withdraws from the deal before Uno ratifies the con?tract. The contract is

Accepted Answer

A)   valid.
B)   variable.
C)   void.
D)   voidable.E) A) and B)
F) B) and C)

Question 10

State Bank employs Troy as an information clerk. Troy has author?ity only to an?swer customers' questions. During a renovation, State Bank temporarily moves Troy from the information desk to a teller's window. Ubi, a customer, believes that Troy is a teller and leaves a deposit with him. Troy keeps the money. Is State Bank liable?

Accepted Answer

Yes. When a principal causes a third par...

Question 11

Before a principal can ratify a contract, the agent must withdraw from the deal.

Accepted Answer

A) True 
 B)False

Question 12

A power of attorney may be created orally.

Accepted Answer

A) True 
 B)False

Question 13

An disclosed principal is liable to a third party for contracts made by the agent acting outside the scope of his or her authority.

Accepted Answer

A) True 
 B)False

Question 14

Malachi hires Nadine to sell Malachi's land. Before the land is sold, Nadine discov?ers that there is a rich vein of gold in a hill on the property. Can Nadine con?sider the agency terminated?

Accepted Answer

Yes. Nadine could reasonably infer that ...

Question 15

Brad is an employee of Custodial Service, Inc. In deciding whether Brad acts within the scope of his employment when he commits a tort against Didi, a court will not con?sider whether

Accepted Answer

A)   Brad indicated that he was acting on behalf of Custodial.
B)   Custodial authorized the act.
C)   Custodial furnished the means by which the injury was inflicted.
D)   the act is one commonly performed by employees for their employers.E) A) and D)
F) B) and C)

Question 16

An agent's authority to act on behalf of a principal derives exclusively from the agent's express or implied au?thor?ity.

Accepted Answer

A) True 
 B)False

Question 17

Under the doctrine of respondeat superior, a principal has a superior duty of caring for the agent.

Accepted Answer

A) True 
 B)False

Question 18

Ezra is an agent for Fresh Food Corporation. Ezra makes an innocent mis?representation when entering into a contract on be?half of Fresh with Gala Grocery Stores, Inc. Gala

Accepted Answer

A)   is estopped from performing the contract.
B)   may rescind the contract.
C)   must perform the contract.
D)   must ratify the contract.E) All of the above
F) C) and D)

Question 19

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

Accepted Answer

A)   apparent authority.
B)   express authority.
C)   implied authority.
D)   no authority.E) A) and B)
F) B) and D)

Question 20

Under the doctrine of respondeat superior, an agent is liable for the principal's negligence.

Accepted Answer

A) True 
 B)False

Exam 32: Liability to Third Parties and Termination

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

Correct Answer
verified

Ezra is an agent for Fresh Food Corporation. Ezra makes an innocent mis?representation when entering into a contract on be?half of Fresh with Gala Grocery Stores, Inc. Gala

Correct Answer
verified

Commercial Development Corporation (CDC) hires Delta Construction Company to work at a site as an independent contractor. Whether CDC will be liable for torts committed at the site by Delta depends on

Correct Answer
verified

An agency is terminated if the principal demands an accounting.

Correct Answer
verified

Fab Auto Sales, Inc., employs GR8 Collection Company as a collection agent. While repossessing a car from Hadji, one of Fab's customers, GR8 causes an accident in which Hadji is injured. Hadji can recover from

Correct Answer
verified

Miklos grants an ordinary power of attorney to Nathalie to handle a list of financial transactions on Miklos's behalf. This power will terminate on

Correct Answer
verified

A power of attorney may be created orally.

Correct Answer
verified

Malachi hires Nadine to sell Malachi's land. Before the land is sold, Nadine discov?ers that there is a rich vein of gold in a hill on the property. Can Nadine con?sider the agency terminated?

Correct Answer
verified
Yes. Nadine could reasonably infer that ...
View Answer

Sonia manages a Tasty Pastry store for United Food Company. To manage the business, Sonia's authority can be implied by

Correct Answer
verified

An agent's authority to act on behalf of a principal derives exclusively from the agent's express au?thor?ity.

Correct Answer
verified

Trey, an agent for Uno Music Corporation, executes an unau?thor?ized contract with Variety Recording, Inc., that is highly ad?vanta?geous to Uno. Variety withdraws from the deal before Uno ratifies the con?tract. The contract is

Correct Answer
verified

Brad is an employee of Custodial Service, Inc. In deciding whether Brad acts within the scope of his employment when he commits a tort against Didi, a court will not con?sider whether

Correct Answer
verified

Before a principal can ratify a contract, the agent must withdraw from the deal.

Correct Answer
verified

Correct Answer
verified
Yes. When a principal causes a third par...
View Answer

Maia hires Nero, a real estate broker, to sell her warehouse. The ware?house burns down be?fore being sold. Nero is

Correct Answer
verified

An disclosed principal is liable to a third party for contracts made by the agent acting outside the scope of his or her authority.

Correct Answer
verified

An agent's authority to act on behalf of a principal derives exclusively from the agent's express or implied au?thor?ity.

Correct Answer
verified

Under the doctrine of respondeat superior, an agent is liable for the principal's negligence.

Correct Answer
verified

Under the doctrine of respondeat superior, a principal has a superior duty of caring for the agent.

Correct Answer
verified

Cory employs Daily Delivery Agency as an agent under a writ?ten agreement that describes the rights and duties of both parties. This is

Correct Answer
verified

Exam 32: Liability to Third Parties and Termination

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

Correct AnswerverifiedShow Answer

Ezra is an agent for Fresh Food Corporation. Ezra makes an innocent mis?representation when entering into a contract on be?half of Fresh with Gala Grocery Stores, Inc. Gala

Correct AnswerverifiedShow Answer

Commercial Development Corporation (CDC) hires Delta Construction Company to work at a site as an independent contractor. Whether CDC will be liable for torts committed at the site by Delta depends on

Correct AnswerverifiedShow Answer

An agency is terminated if the principal demands an accounting.

Correct AnswerverifiedShow Answer

Fab Auto Sales, Inc., employs GR8 Collection Company as a collection agent. While repossessing a car from Hadji, one of Fab's customers, GR8 causes an accident in which Hadji is injured. Hadji can recover from

Correct AnswerverifiedShow Answer

Miklos grants an ordinary power of attorney to Nathalie to handle a list of financial transactions on Miklos's behalf. This power will terminate on

Correct AnswerverifiedShow Answer

A power of attorney may be created orally.

Correct AnswerverifiedShow Answer

Malachi hires Nadine to sell Malachi's land. Before the land is sold, Nadine discov?ers that there is a rich vein of gold in a hill on the property. Can Nadine con?sider the agency terminated?

Correct AnswerverifiedYes. Nadine could reasonably infer that ...View AnswerShow Answer

Sonia manages a Tasty Pastry store for United Food Company. To manage the business, Sonia's authority can be implied by

Correct AnswerverifiedShow Answer

An agent's authority to act on behalf of a principal derives exclusively from the agent's express au?thor?ity.

Correct AnswerverifiedShow Answer

Trey, an agent for Uno Music Corporation, executes an unau?thor?ized contract with Variety Recording, Inc., that is highly ad?vanta?geous to Uno. Variety withdraws from the deal before Uno ratifies the con?tract. The contract is

Correct AnswerverifiedShow Answer

Brad is an employee of Custodial Service, Inc. In deciding whether Brad acts within the scope of his employment when he commits a tort against Didi, a court will not con?sider whether

Correct AnswerverifiedShow Answer

Before a principal can ratify a contract, the agent must withdraw from the deal.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedYes. When a principal causes a third par...View AnswerShow Answer

Maia hires Nero, a real estate broker, to sell her warehouse. The ware?house burns down be?fore being sold. Nero is

Correct AnswerverifiedShow Answer

An disclosed principal is liable to a third party for contracts made by the agent acting outside the scope of his or her authority.

Correct AnswerverifiedShow Answer

An agent's authority to act on behalf of a principal derives exclusively from the agent's express or implied au?thor?ity.

Correct AnswerverifiedShow Answer

Under the doctrine of respondeat superior, an agent is liable for the principal's negligence.

Correct AnswerverifiedShow Answer

Under the doctrine of respondeat superior, a principal has a superior duty of caring for the agent.

Correct AnswerverifiedShow Answer

Cory employs Daily Delivery Agency as an agent under a writ?ten agreement that describes the rights and duties of both parties. This is

Correct AnswerverifiedShow Answer

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Yes. Nadine could reasonably infer that ...
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Yes. When a principal causes a third par...
View Answer

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