Business Law 29 (cheeseman) 7e – Flashcards

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question
an agency relationship is created by the mutual consent of a principal and an agent
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True
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an attorney is an agent when he represents a client
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True
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a corporation must conduct all of its business affairs through agents
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True
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Agency relationships are not necessary to the operation of a partnership
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False
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Generally, in agency situations, the principal and agent must both have contractual capacity
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False
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A principal who lacks contractual capacity can appoint an agent
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False
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Agency is a fiduciary relationship
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True
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When a principal hires another to kill someone, an agency is created
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False
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Even if an employee cannot enter into contracts, a principal-agent relationship is formed by virtue of the employment relationship itself
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False
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A principal-agent relationship exists when an employer hires an employee to perform some form of physical service
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False
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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
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True
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An express agency is one that happens when a principal and an agent expressly agree to enter into an agency agreement with each other
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True
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In an express agency called powre of attorney, the principal is the attorney-in-fact
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False
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implied authority in an implied agency may be conferred by industry custom
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True
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An agency by estoppel arises when a principal expressly creates the agency relationship with an agent
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False
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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
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True
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A principal must compensate an agent at the completion of the agency or some other agreed upon time
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True
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An agent assumes the financial responsiility for all expenses within th escope of the agency.
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False
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The principal has the duty to cooperate with the agent in the performace of his or her duties
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True
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An agent who has negligently failed to perform as per the agency contract is liable only for breach of contract
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False
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ANy money or other benefit recieved by the agent in the course of the agency belongs to the agent
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False
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An agent may continue to represent the principal even after teh agency relationship is terminated
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False
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An agency agreement may exist for an infinite period of time
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False
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An agency agreement may terminate after a certain event happens
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True
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When an agency agreement terminates, direct notice of the termination must be given to al persons who dealt with the agent
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True
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An agency coupled with an interest is terminated by the death or incapacity of either the principal or the agent
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False
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An agency may be terminated if the principal is declared bankrupt
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True
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An agency is not terminated by the loss of a required qualification
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False
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when a principal terminates an agency contract it is called a renunciation of authority
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False
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The termination of an agency by the agent is called teh revocation of authority
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True
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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
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Intent by both the principal and agent to be in the arrangement
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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
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The restatement (second) of Agency
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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
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A minor may generally be an agent
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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
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a minor can act as an agent on behalf of an adult
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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
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Conduct business on behalf of the principal
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Someone quthorized to act on behalf of another is generally know as an a agent b independent contractor c employee d surety
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Agent
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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.
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some employees are agents and some independent contractors are agents
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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
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More freedom to do her work in the manner she determines
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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
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