Question 1

Denny, a certified public accountant and an investor, and Ethel, an insurance salesperson and a realtor, may create an agency relationship for

Accepted Answer

A)   a business purpose only.
B)   any legal purpose.
C)   any legal or illegal purpose.
D)   no purpose.E) All of the above
F) C) and D)

Question 2

I f a principal makes statements that would cause a reasonable person to believe that an agency relationship exists, then the supposed agent receives actual authority to act as the agent.

Accepted Answer

A) True 
 B)False

Question 3

Rosario is a chef and caterer who works for different event planners, party hosts, and some private companies and families where he goes to their location to prepare meals. In this capacity, Rosario likely is

Accepted Answer

A)   an agent.
B)   an employee.
C)   an independent contractor.
D)   a principal.E) B) and C)
F) All of the above

Question 4

Kelly hires John to buy a certain number of cattle for Kelly's ranch. John makes a deal with Lawson, the owner of a local herd, and makes a down payment on Kelly ' s behalf. Kelly fails to pay the rest of the price. Lawson sues John for breach of contract. John's right to hold Kelly liable for any damages that he has to pay is the right to

Accepted Answer

A)   none of the choices.
B)   compensation.
C)   indemnification.
D)   reimbursement.E) B) and D)
F) All of the above

Question 5

Fact Pattern 25-2 Berry indicates that she is acting as an agent on behalf of an unidentified client-Cuisine Catering, LLC-when she enters into a contract with Dean.
Refer to Fact Pattern 25-2. Cuisine Catering is

Accepted Answer

A)   a disclosed principal.
B)   an apparent agent.
C)   an undisclosed principal.
D)   a partially disclosed principal.E) A) and B)
F) A) and C)

Question 6

By using agents, a principal can conduct multiple business operations simultaneously in various locations.

Accepted Answer

A) True 
 B)False

Question 7

Giving an agent a power of attorney confers express authority.

Accepted Answer

A) True 
 B)False

Question 8

The doctrine of respondeat superior imposes vicarious liability on a principal without regard to the personal fault of the agent.

Accepted Answer

A) True 
 B)False

Question 9

An agency relationship exists between spouses even where there is no formal agreement.

Accepted Answer

A) True 
 B)False

Question 10

Larry is an agent for Mary. She gives him clear instructions to enter into contracts on her behalf only on Mondays, Wednesdays, or Fridays. He enters into a contract on her behalf on Tuesday. Larry has breached

Accepted Answer

A)   no duty.
B)   the duty of loyalty.
C)   the duty of performance.
D)   the duty of obedience.E) A) and C)
F) B) and C)

Question 11

Ingmar asks Jess to contract with Kay's Lawn Service on Ingmar ' s behalf to maintain Ingmar's lawn. Jess orally agrees to do so. This is an agency by

Accepted Answer

A)   agreement.
B)   estoppel.
C)   operation of law.
D)   none of the choices.E) C) and D)
F) A) and B)

Question 12

Bern, a salesperson at a Cabinets store, tells Dan, a customer, "Buy your cabinets here, and I'll install them for less than the store would charge." Dan buys the cabinets, which Bern installs for half the store's price. Bern keeps the money. With respect to the store, Bern has breached

Accepted Answer

A)   no duty.
B)   the duty of loyalty.
C)   the duty of performance.
D)   the duty of obedience.E) All of the above
F) B) and C)

Exam 25: Agency Relationships

Bern, a salesperson at a Cabinets store, tells Dan, a customer, "Buy your cabinets here, and I'll install them for less than the store would charge." Dan buys the cabinets, which Bern installs for half the store's price. Bern keeps the money. With respect to the store, Bern has breached

Correct Answer
verified

Fact Pattern 25-2 Berry indicates that she is acting as an agent on behalf of an unidentified client-Cuisine Catering, LLC-when she enters into a contract with Dean. Refer to Fact Pattern 25-2. Cuisine Catering is

Correct Answer
verified

Giving an agent a power of attorney confers express authority.

Correct Answer
verified

Ingmar asks Jess to contract with Kay's Lawn Service on Ingmar ' s behalf to maintain Ingmar's lawn. Jess orally agrees to do so. This is an agency by

Correct Answer
verified

The doctrine of respondeat superior imposes vicarious liability on a principal without regard to the personal fault of the agent.

Correct Answer
verified

Correct Answer
verified

By using agents, a principal can conduct multiple business operations simultaneously in various locations.

Correct Answer
verified

Larry is an agent for Mary. She gives him clear instructions to enter into contracts on her behalf only on Mondays, Wednesdays, or Fridays. He enters into a contract on her behalf on Tuesday. Larry has breached

Correct Answer
verified

Denny, a certified public accountant and an investor, and Ethel, an insurance salesperson and a realtor, may create an agency relationship for

Correct Answer
verified

I f a principal makes statements that would cause a reasonable person to believe that an agency relationship exists, then the supposed agent receives actual authority to act as the agent.

Correct Answer
verified

An agency relationship exists between spouses even where there is no formal agreement.

Correct Answer
verified

Rosario is a chef and caterer who works for different event planners, party hosts, and some private companies and families where he goes to their location to prepare meals. In this capacity, Rosario likely is

Correct Answer
verified

Exam 25: Agency Relationships

Bern, a salesperson at a Cabinets store, tells Dan, a customer, "Buy your cabinets here, and I'll install them for less than the store would charge." Dan buys the cabinets, which Bern installs for half the store's price. Bern keeps the money. With respect to the store, Bern has breached

Correct AnswerverifiedShow Answer

Fact Pattern 25-2 Berry indicates that she is acting as an agent on behalf of an unidentified client-Cuisine Catering, LLC-when she enters into a contract with Dean. Refer to Fact Pattern 25-2. Cuisine Catering is

Correct AnswerverifiedShow Answer

Giving an agent a power of attorney confers express authority.

Correct AnswerverifiedShow Answer

Ingmar asks Jess to contract with Kay's Lawn Service on Ingmar ' s behalf to maintain Ingmar's lawn. Jess orally agrees to do so. This is an agency by

Correct AnswerverifiedShow Answer

The doctrine of respondeat superior imposes vicarious liability on a principal without regard to the personal fault of the agent.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

By using agents, a principal can conduct multiple business operations simultaneously in various locations.

Correct AnswerverifiedShow Answer

Larry is an agent for Mary. She gives him clear instructions to enter into contracts on her behalf only on Mondays, Wednesdays, or Fridays. He enters into a contract on her behalf on Tuesday. Larry has breached

Correct AnswerverifiedShow Answer

Denny, a certified public accountant and an investor, and Ethel, an insurance salesperson and a realtor, may create an agency relationship for

Correct AnswerverifiedShow Answer

I f a principal makes statements that would cause a reasonable person to believe that an agency relationship exists, then the supposed agent receives actual authority to act as the agent.

Correct AnswerverifiedShow Answer

An agency relationship exists between spouses even where there is no formal agreement.

Correct AnswerverifiedShow Answer

Rosario is a chef and caterer who works for different event planners, party hosts, and some private companies and families where he goes to their location to prepare meals. In this capacity, Rosario likely is

Correct AnswerverifiedShow Answer

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