Business Law 29 (cheeseman) 7e – Flashcards
Unlock all answers in this set
Unlock answersquestion
an agency relationship is created by the mutual consent of a principal and an agent
answer
True
question
an attorney is an agent when he represents a client
answer
True
question
a corporation must conduct all of its business affairs through agents
answer
True
question
Agency relationships are not necessary to the operation of a partnership
answer
False
question
Generally, in agency situations, the principal and agent must both have contractual capacity
answer
False
question
A principal who lacks contractual capacity can appoint an agent
answer
False
question
Agency is a fiduciary relationship
answer
True
question
When a principal hires another to kill someone, an agency is created
answer
False
question
Even if an employee cannot enter into contracts, a principal-agent relationship is formed by virtue of the employment relationship itself
answer
False
question
A principal-agent relationship exists when an employer hires an employee to perform some form of physical service
answer
False
question
A person who is not an employee who is employed by a principal to perform a certain task on his behalf is an independent contractor
answer
True
question
An express agency is one that happens when a principal and an agent expressly agree to enter into an agency agreement with each other
answer
True
question
In an express agency called powre of attorney, the principal is the attorney-in-fact
answer
False
question
implied authority in an implied agency may be conferred by industry custom
answer
True
question
An agency by estoppel arises when a principal expressly creates the agency relationship with an agent
answer
False
question
An agency may be created even if a person misrepresents himself or herself as being anothers agent when he or she really is not if the purported principal accepts the unauthorized act
answer
True
question
A principal must compensate an agent at the completion of the agency or some other agreed upon time
answer
True
question
An agent assumes the financial responsiility for all expenses within th escope of the agency.
answer
False
question
The principal has the duty to cooperate with the agent in the performace of his or her duties
answer
True
question
An agent who has negligently failed to perform as per the agency contract is liable only for breach of contract
answer
False
question
ANy money or other benefit recieved by the agent in the course of the agency belongs to the agent
answer
False
question
An agent may continue to represent the principal even after teh agency relationship is terminated
answer
False
question
An agency agreement may exist for an infinite period of time
answer
False
question
An agency agreement may terminate after a certain event happens
answer
True
question
When an agency agreement terminates, direct notice of the termination must be given to al persons who dealt with the agent
answer
True
question
An agency coupled with an interest is terminated by the death or incapacity of either the principal or the agent
answer
False
question
An agency may be terminated if the principal is declared bankrupt
answer
True
question
An agency is not terminated by the loss of a required qualification
answer
False
question
when a principal terminates an agency contract it is called a renunciation of authority
answer
False
question
The termination of an agency by the agent is called teh revocation of authority
answer
True
question
an agency always requires : a. Both an agent and principal who are adults b. a written contract c. consideration on the part of both the principal and the agent D an identified underlying transaction E. intent by both the principal and agent to be in the arrangement
answer
Intent by both the principal and agent to be in the arrangement
question
The general reference source for agency law is a Article 4 the uniform commercial code b. United State Supreme Court Opinions c. the Restatement (second) of Agency d. The Restatement (second) of contracts e. state constitutions
answer
The restatement (second) of Agency
question
Which is true about agency agreements a. a minor may generally be a principal b a minor may generally be an agent c. an agency agreement must have consideration on both the principals and agents side d agents must disclose their agency status to those with whom they are dealing
answer
A minor may generally be an agent
question
Assuming that any minor who is involved is old enough to understand the terms of a transaction, which of the following is generally true in order to create a contract that cannot be disaffirmed a. a minor can act as an agent on behalf of another minor b. an adult can act as an agent on behalf of a minor c. a minor can act as an agent on behalf of an adult
answer
a minor can act as an agent on behalf of an adult
question
The primary function of an agent in a principal-agent relationship is to a. protect the principal from legal liability b. conduct business on behalf of the principal c. enter into contracts with the principal d. operate as a partner with the principal e. maintain the principals status quo
answer
Conduct business on behalf of the principal
question
Someone quthorized to act on behalf of another is generally know as an a agent b independent contractor c employee d surety
answer
Agent
question
which of the following is true a all employees are agents, and no independent contractors are agents b. all employees are agents, and some independent contractors are agents c. some employees are agents, some independent contractors are agents d.
answer
some employees are agents and some independent contractors are agents
question
Compared to an employee an independent contractor is characterized by a. not being paid as much for the work performed b. a lack of liability for her own actions c. more freedom to do her work in the manner she determines d. less ability to hire others to assist her
answer
More freedom to do her work in the manner she determines
question
which of the following is generally true about a relationship where one party works for another a. A party can simultaneously be an empoyee and an independent contractor b. a party can simultaneously be an employee and an agent c.a party can simultaneously be an independent contractor and an agent d. both b and c e A,B, and C are true
answer
Both b and c
