Filters
Question type

Study Flashcards

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

A) True
B) False

Correct Answer

verifed

verified

"Cheap Principal." Jason, who is very knowledgeable regarding computers, agrees to purchase computers for Nick's business. Jason is retained for that purpose only, he is paid a set rate for the job, and Nick exercised no control over the manner in which Jason did his work. Jason purchased computers from ABC Computers without any mention of Nick. The computers worked well and were not defective in any way. Unfortunately, Nick did not pay ABC Computers on a timely basis. Jason, therefore, paid ABC Computers out of his own pocket because he wanted to be able to do business with ABC Computers in the future and also because his name was on the invoice. Jason asked Nick for reimbursement, but Nick refused. Nick claimed that if Jason had only waited, ABC Computers might have agreed to take less. -Which of the following likely represents Jason's status in regards to his employment with Nick?


A) He was an independent contractor.
B) He was an employee.
C) He had a special status called employee-contractor, a term used to represent a contractor with some responsibilities indicating status as an employee and some responsibilities indicating otherwise.
D) He was an express contractor.
E) He was an implied contractor.

F) B) and C)
G) A) and D)

Correct Answer

verifed

verified

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


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) A) and B)
G) A) and E)

Correct Answer

verifed

verified

Which of the following is true regarding criteria needed for creation of the agency relationship?


A) The agency must be created for a lawful purpose, and the person hiring an agent must have contractual capacity.
B) The agency must be created for an equitable as well as a lawful purpose, and the person hiring an agent must have contractual capacity.
C) The agency must be created for a business and lawful purpose, and the person hiring an agent must have contractual capacity.
D) The agency must be created for a lawful purpose; and, although there is no requirement that the person hiring an agent have capacity, the person acting as an agent must have contractual capacity.
E) The agency must be created for an equitable as well as a lawful purpose; and, although there is no requirement that the person hiring an agent have capacity, the person acting as an agent must have contractual capacity.

F) None of the above
G) D) and E)

Correct Answer

verifed

verified

Which of the following is the most common form of agency?


A) Expressed agency
B) Implied agency
C) Apparent agency
D) Ratification
E) Endorsement

F) A) and B)
G) D) and E)

Correct Answer

verifed

verified

Which of the following is true regarding the form of authority upon which an agency relationship may be created?


A) Agency relationships can be created through expressed agency, but not through implied authority, apparent agency, or through ratification.
B) Agency relationships can be created through expressed agency or through implied authority, but not through apparent agency or through ratification.
C) Agency relationships can be created through ratification, but not through implied authority, apparent agency, or expressed authority.
D) Agency relationships can be created through ratification or expressed agency, but not through implied authority or apparent agency.
E) Agency relationships can be created through expressed agency, implied authority, apparent agency, and ratification.

F) A) and E)
G) A) and B)

Correct Answer

verifed

verified

Under which of the following does a principal give authority to an agent only for the specific areas or purposes listed in the agency agreement?


A) A specific power of attorney
B) An exact order of authority
C) An exact legal empowerment
D) A limited power of responeat superior
E) A specific power of order

F) B) and E)
G) B) and C)

Correct Answer

verifed

verified

In non-contractual relationships, which of the following may the agent seek in order to force the principal to perform the contract?


A) Specific performance
B) Specific recoupment
C) Adequate performance
D) Reformation
E) None of these

F) C) and D)
G) A) and B)

Correct Answer

verifed

verified

"High Maintenance." Paul, who runs a retail jewelry store, went with Jane, to whom he was engaged to be married, to a wholesale jewelry store. Paul had no express, written agreement with Jane by which she was his agent. The wholesaler jeweler, Pam, asked Paul if Jane was buying for him. Paul did not want to embarrass Jane so he nodded in agreement. A few minutes later Paul whispered to Jane, outside the hearing of the wholesaler, that she should not make any purchases. Paul and Jane had a big disagreement over money that evening, and Jane broke off their engagement. The next day Jane went back to the wholesale jeweler and purchased a string of pearls for $2,000. Jane also purchased a fur jacket for $3,000 from a store, owned by Harry, that was next door to the jewelry store. She told Harry that Paul wanted a fur jacket for a model in his store and that Paul would be glad to pay Harry for the jacket. -What type of agency, if any, did Jane have to act on behalf of Paul as far as Pam is concerned?


A) No type of agency was in effect because no written agreement was in place by which Jane was Paul's agent.
B) No type of agency was in effect because, in fact, Jane was not Paul's agent.
C) An express agency.
D) An implied agency.
E) An apparent agency.

F) A) and B)
G) A) and E)

Correct Answer

verifed

verified

While an agent owes duties to a principal, the principal owes no duties to an agent.

A) True
B) False

Correct Answer

verifed

verified

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


A) Principal
B) Employer
C) Fiduciary
D) Trustor
E) Benefitor

F) A) and D)
G) A) and C)

Correct Answer

verifed

verified

"Lakeside Property." Ronnie agreed to act as the agent of Sue in finding a piece of lakeside property for her at a good price and also in obtaining a loan for her with which to purchase the property. She agreed to pay him $500 for doing so. To assist Ronnie in his duties, Sue disclosed to him confidential information about her finances and debts. Ronnie decided that he needed help and paid Rick $300 to look for property for Sue. Rick told Ronnie about a great deal on a piece of lakeside property that Bruce had for sale. In fact, the deal was so good that Ronnie purchased the property for himself. When Sue found out about the property Ronnie bought for himself, she complained to Ronnie. He defended himself on the basis that he was not actually working for Sue when he found out about the deal. At the time, he was playing golf with Bruce. He also told Sue that he had hired Rick for $300 to assist him and that he could not be held liable because he had turned the job over to Rick. He asked Sue for reimbursement of the amount he paid Rick. Sue fired Ronnie threatening to sue him. Ronnie told Sue that he would counterclaim for the $300 owed to Rick. Only after he was fired, Ronnie disclosed to a number of parties information regarding Sue's spending habits which he thought were excessive. -Which of the following is the most likely result if Sue sues Ronnie for revealing confidential information?


A) Sue will lose because Ronnie was no longer her agent when he revealed the information.
B) Sue will lose because regardless of whether he was working for her or not, he had no legal duty to keep any information confidential.
C) Sue will lose unless she can establish that revealing the information caused her to suffer economic loss.
D) Sue will lose unless she can establish that revealing the information caused her to seek psychological counseling.
E) Sue will win.

F) A) and E)
G) A) and D)

Correct Answer

verifed

verified

Which of the following is a term used to describe the duty of an agent to communicate any information to the principal that the agent thinks could be important to the principal?


A) Duty of notification
B) Duty of information
C) Requirement of conveyance
D) Constructive notification
E) Constructive information

F) B) and E)
G) A) and E)

Correct Answer

verifed

verified

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?


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) None of the above
G) All of the above

Correct Answer

verifed

verified

A ______ trust is an equitable trust imposed on one who wrongfully obtains or holds legal right to property he or she should not possess.


A) Resolute
B) Actual
C) Constructive
D) Defined
E) Absolute

F) A) and B)
G) B) and D)

Correct Answer

verifed

verified

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?


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

F) C) and D)
G) B) and E)

Correct Answer

verifed

verified

"Lakeside Property." Ronnie agreed to act as the agent of Sue in finding a piece of lakeside property for her at a good price and also in obtaining a loan for her with which to purchase the property. She agreed to pay him $500 for doing so. To assist Ronnie in his duties, Sue disclosed to him confidential information about her finances and debts. Ronnie decided that he needed help and paid Rick $300 to look for property for Sue. Rick told Ronnie about a great deal on a piece of lakeside property that Bruce had for sale. In fact, the deal was so good that Ronnie purchased the property for himself. When Sue found out about the property Ronnie bought for himself, she complained to Ronnie. He defended himself on the basis that he was not actually working for Sue when he found out about the deal. At the time, he was playing golf with Bruce. He also told Sue that he had hired Rick for $300 to assist him and that he could not be held liable because he had turned the job over to Rick. He asked Sue for reimbursement of the amount he paid Rick. Sue fired Ronnie threatening to sue him. Ronnie told Sue that he would counterclaim for the $300 owed to Rick. Only after he was fired, Ronnie disclosed to a number of parties information regarding Sue's spending habits which he thought were excessive. -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?


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) D) and E)
G) B) and C)

Correct Answer

verifed

verified

Which of the following was the result in Penny Garrison et al. v. The Superior Court of Los Angeles, the case in the text in which the plaintiffs sought to sue a residential care facility and avoid the effect of a durable power of attorney by which the decedent's daughter signed agreements to arbitrate disputes involving the facility?


A) That the durable power of attorney was ineffective because it did not grant the holder authority to enter into arbitration agreements and that the arbitration agreements, therefore, were unenforceable.
B) That the durable power of attorney was ineffective because it did not specifically give the daughter authority to enter into agreements involving health care and that the arbitration agreements, therefore, were unenforceable.
C) That the durable power of attorney was ineffective because it was revoked after the decedent became ill and that the arbitration agreements, therefore, were unenforceable.
D) That the durable power of attorney was effective but that the arbitration agreements were void as against public policy.
E) That the durable power of attorney was effective and that the agreements to arbitrate would be upheld.

F) A) and B)
G) B) and D)

Correct Answer

verifed

verified

"Cheap Principal." Jason, who is very knowledgeable regarding computers, agrees to purchase computers for Nick's business. Jason is retained for that purpose only, he is paid a set rate for the job, and Nick exercised no control over the manner in which Jason did his work. Jason purchased computers from ABC Computers without any mention of Nick. The computers worked well and were not defective in any way. Unfortunately, Nick did not pay ABC Computers on a timely basis. Jason, therefore, paid ABC Computers out of his own pocket because he wanted to be able to do business with ABC Computers in the future and also because his name was on the invoice. Jason asked Nick for reimbursement, but Nick refused. Nick claimed that if Jason had only waited, ABC Computers might have agreed to take less. -Which of the following is true regarding any right of reimbursement Jason is due from Nick?


A) Jason is not due any reimbursement because he did not get permission from Nick before paying ABC Computers.
B) Jason is only due 50% of whatever he paid because he did not get permission from Nick before paying ABC Computers.
C) Jason is not due any reimbursement from Nick unless he can establish that Nick signed a written contract authorizing him to personally pay debts incurred.
D) Jason is not due any reimbursement from Nick unless Jason can establish by a preponderance of the evidence that ABC Computers would not have agreed to take a lesser amount.
E) Jason is entitled to reimbursement from Nick.

F) A) and B)
G) All of the above

Correct Answer

verifed

verified

"Cheap Principal." Jason, who is very knowledgeable regarding computers, agrees to purchase computers for Nick's business. Jason is retained for that purpose only, he is paid a set rate for the job, and Nick exercised no control over the manner in which Jason did his work. Jason purchased computers from ABC Computers without any mention of Nick. The computers worked well and were not defective in any way. Unfortunately, Nick did not pay ABC Computers on a timely basis. Jason, therefore, paid ABC Computers out of his own pocket because he wanted to be able to do business with ABC Computers in the future and also because his name was on the invoice. Jason asked Nick for reimbursement, but Nick refused. Nick claimed that if Jason had only waited, ABC Computers might have agreed to take less. -Did Jason have any legal liability to ABC Computers?


A) Yes, because he made the purchase from ABC Computers without mention of Nick.
B) Yes, but only because office equipment is involved.
C) No, because his status was as an agent regardless of whether ABC Computers was aware of that fact.
D) Yes, but only if Nick refused to pay.
E) Yes, but only if Nick were declared judicially insolvent.

F) C) and D)
G) A) and E)

Correct Answer

verifed

verified

Showing 41 - 60 of 65

Related Exams

Show Answer