LS Ch 32 T/F – Flashcards
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A fiduciary relationship allows the parties to avoid obligations without liability.
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A corporate officer is not an agent for the corporation.
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An officer of a corporation cannot possess the power to bind the corporation.
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An agent is authorized to act on behalf of a principal in doing business with third parties
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An employee may act in the capacity of an agent.
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A fiduciary relationship involves trust and confidence.
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An independent contractor's physical conduct is controlled, or subject to control, by his or her employer.
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An agency relationship does not exist outside employer-employee relationships.
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Building subcontractors are not independent contractors.
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Employees who deal with third parties are agents of their employers.
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An independent contractor is an employer who controls his or her agent's performance.
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An employee may not act in the capacity of an agent.
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All employment laws apply to independent contractors
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An independent contractor may act in the capacity of an agent
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Agency relationships exist only outside employment relationships.
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An independent contractor always acts in the capacity of an agent.
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An agency relationship can be formed without consideration.
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A minor cannot be appointed as an agent
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A minor can be an agent.
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An agency relationship cannot exist in the absence of a formal agreement.
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There does not need to be a written agreement between two parties to create an agency relationship.
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An agency relationship may be created for any legal purpose.
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. A principal may deny the existence of an agency relationship whenever it suits his or her purpose.
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A licensed professional can employ an unlicensed agent to perform professional actions.
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An agent owes his or her principal a duty to act in good faith.
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An agency relationship may be created for any illegal purpose.
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An agent must use reasonable diligence and skill in acting on behalf of his or her principal.
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A principal can ratify an agreement made without authorization on his or her behalf by one who is not his or her agent.
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Information acquired through an agency relationship is confidential.
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A principal who causes a third person to believe that another person is the principal's agent can be estopped from denying the agency relationship.
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An agent must maintain separate accounts for the principal's funds and the agent's personal funds
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An agency relationship may not occur by operation of law in a family.
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A principal owes an agent a duty of ratification.
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An agent can take advantage of an agency relationship to make a "secret" profit.
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Generally, a principal has a duty to pay an agent for services rendered.
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A principal owes an agent a duty of accounting.
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A principal has a duty to cooperate with the agent.
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If an agency relationship is contractual, the agent may have a right to specific performance.
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If a principal breaches a duty owed to an agent, an agent may withhold performance and demand an accounting.
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If an agent breaches the agency agreement, the principal may avoid the contract.
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