blaw chapter 28 – Flashcards
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A corporate officer is NOT an agent for the corporation.
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false
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A fiduciary relationship allows parties to avoid obligations without liability.
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false
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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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true
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A fiduciary relationship involves trust and confidence.
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true
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Employees who deal with third parties are agents of their employers.
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true
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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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false
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Building subcontractors are not independent contractors.
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false
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An independent contractor is an employer who controls his or her agent's performance.
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false
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All employment laws apply to independent contractors.
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false
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An agency relationship can be formed without consideration.
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true
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An agency relationship may be created for any legal purpose.
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true
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A licensed professional can employ an unlicensed agent to perform professional actions.
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false
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An agency relationship cannot exist in the absence of a formal agreement.
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false
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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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true
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An agency relationship may not occur by operation of law in a family.
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false
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An agent can take advantage of an agency relationship to make a "secret" profit.
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false
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A principal owes an agent a duty of accounting.
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false
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Express authority is authority declared in clear, direct, definite terms.
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true
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A power of attorney is a written document.
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true
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A power of attorney can be given only to an actual attorney.
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false
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The equal dignity rule does not apply to a corporate officer who, in an ordinary business situation, acts on behalf of his or her firm.
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true
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For an agent's implied authority to be effective, a principal must confirm it in writing.
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false
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In considering the scope of an agent's implied authority, the test is whether the agent reasonably believed that he or she had the authority.
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true
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If a principal does not ratify an authorized contract, the principal is not bound.
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false
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Before a principal can ratify a contract, the principal must know all of the material facts involved in the deal.
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true
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Before a principal can ratify a contract, the agent must withdraw from the deal.
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false
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If a principal does not ratify an UNAUTHORIZED contract, the principal is not bound.
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true
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A principal is NOT liable to a third party for any contract made by the agent acting outside the scope of his or her authority.
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true
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A disclosed principal is not liable to a third party for contracts made by the agent acting outside the scope of his or her authority.
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true
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Under the doctrine of respondeat superior, an agent is liable for the principal's negligence.
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false
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A principal is not liable for an agent's fraud unless the agent has the apparent authority to commit torts.
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false
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A principal is responsible for all intentional torts committed by an agent.
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false
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A principal is liable for harm caused to a third party by an agent who commits a tort while acting in the scope of his or her employment.
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true
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An agency can terminate once its purpose is achieved.
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true
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Ozzy is an officer of Prudent Financial Corporation. Ozzy serves in a representative capacity for Prudent Financial's owners. With respect to binding Prudent Financial to contracts, Ozzy is...
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(a) an agent and has the authority
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Genetic Seed Company hires Howie to work on Genetic's shipping dock, accepting deliveries and dealing with other companies' drivers. With respect to Genetic, Howie is most likely...
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(a) an agent
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Bubbly Soda Company hires Carlo to work on Bubbly's shipping dock, checking outgoing loads and dispatching Bubbly's drivers. With respect to Carlo, Bubbly is most likely...
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(d) a principal
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Oscar is Precise Service Company's chief executive officer. On Precise's behalf, Oscar solicits business, hires and fires workers, and handles the finances. Precise pays Oscar varying amounts, depending on his "needs." Oscar is most likely...
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(b) an employee
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KupaJava hires Lola to manage one of KupaJava's seven drive-through coffee stands. KupaJava agrees to pay Lola a salary, plus commission. KupaJava stipulates the standards that should be observed, the goals that should be attained, and the methods that should be used. Lola is most likely KupaJava's...
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(a) employee
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Delite Candy Company hires Elton to sell Delite's products in a certain area. Delite agrees to pay Elton a salary, plus commission, for a trial period. They also agree that Elton can sell using any methods and during any hours that seem appropriate. The key factor in whether Elton is Delite's employee is...
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(b) the control Delite has over the details of the work
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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...
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(d) a principal and an agent
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Lenore is the sole proprietor of Mall Kiosks. With respect to contracting for her own business interests, Lenore is...
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(d) not an agent but does have the authority
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Louis, a certified public accountant and an investor, and Maria, an insurance salesperson and a realtor, may create an agency relationship for...
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(b) a legal purpose only
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Sela agrees to act on Tom's behalf, subject to Thom's control, and Tom trusts Sela to so act. They set out the terms in a written document, which they both sign. This is...
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(a) an agency by agreement
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Dizzy is not Edwina's agent but enters into a contract with Frida on Edwina's behalf. Edwina later contacts Frida to approve the contract. This is...
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(c) an agency by ratification
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Rita is appointed as an agent for Superior Sales, Inc. The agency agreement is silent as to the level of sales that Rita is expected to achieve. She must...
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(d) use reasonable diligence and skill in selling
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Elle is an agent for Fine Cosmetics, Inc. Elle owes Fine Cosmetics the duty of...
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(d) performance
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Home Development Company employs llya to buy property for a future residential development. Ilya secretly buys some of the property and sells it to Home Development at a profit. Ilya has breached...
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(c) the duty of loyalty
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Bob, a salesperson at a Carpets Galore store, tells Dita, a customer, "Buy your carpet here, and I'll install it for half of what the store would charge." Dita buys the carpet, which Bob in¬stalls for half the store's price. Bob keeps the money. Bob has breached...
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(b) the duty of loyalty
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Jody is an agent for Insta Cross Country Trucking Inc. In the course of Jody's performance for the firm, Jody pays Heck for certain vehicle maintenance and repair services. Jody's right to obtain the amount of those payments from Insta arises under the principal's duty of...
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(d) reimbursement
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Lather Up Soap Products Company grants its agent Kathy an exclusive territory in which to sell Lather Up products. The firm cannot compete with Kathy in that territory under the principal's duty of...
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(b) cooperation
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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...
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(b) Miklos's death or incapacity
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Kady, an agent for Lebron, enters into a contract on Lebron's behalf with Madge that must be in writing to be enforceable under the Statute of Frauds. Kady's authority to enter into this contract is not in writing. Under the equal dignity rule, this contract is...
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(c) voidable at Lebron's option
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Cory employs Daily Delivery Agency as an agent under a written agreement that describes the rights and duties of both parties. This is...
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(c) express authority
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Geoff serves in a representative capacity for Huck. To accomplish the objectives of this relationship, Geoff's authority can be implied...
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(b) by custom
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Sonia manages a Tasty Pastry store for United Food Company. To manage the business, Sonia's authority can be implied by...
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(a) an inference from the position Sonia occupies
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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...
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(a) apparent authority
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Based on Bluto's conduct, Cass reasonably believes that Dee has the authority to act on Bluto's behalf even though Dee does not have the actual authority to do so. Cass makes a payment to Dee for Bluto. Dee keeps the money and disappears. Bluto...
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(c) may be estopped from denying that Dee had authority
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Iggy hires Joy to act as his agent to purchase Cup-a-Coffee Company. Iggy tells Joy to reveal only that she is buying the firm on behalf of a third party, without telling Cup-a-Coffee's seller who that third party is. Iggy is...
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(d) a partially disclosed principal
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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...
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(d) totally unsuccessful
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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...
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(d) totally successful
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Jock hires Kym to act as his agent to purchase Lifetime Gym & Fitness, Inc. Jock tells Kym to reveal that she is buying the firm on behalf of a third party and to tell Lifetime's seller who that third party is. Jock is...
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(a) a disclosed principal
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Trey, an agent for Uno Music Corporation, executes an unauthorized contract with Variety Recording, Inc., that is highly advantageous to Uno. Variety withdraws from the deal before Uno ratifies the con¬tract. The contract is...
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(c) void
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Clu serves in a representative capacity for Digger. Elmo is injured through Clu's negligence. Digger may be liable to Elmo if Clu's conduct occurred...
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(c) in the course and scope of Clu's employment
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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 consider whether...
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(a) Brad indicated that he was acting on behalf of Custodial
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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...
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(a) crashed into a car at the airport while off duty
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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...
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(b) whether exceptionally hazardous activities are involved
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Tire Manufacturing Company employs Uri as an agent. To terminate Uri's authority, Tire Manufacturing must notify...
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(c) Uri and any third parties who are aware of the agency relationship
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Frida hires Gert, a real estate broker, to act as her agent to sell her house. The house burns down before being sold. The agency agreement is likely...
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(d) terminated by operation of law
