Chapter 32 True/False – Flashcards
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A familiar example of an agent is the owner of a corporation
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FALSE
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Agency relationships do not permeate the business world
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FALSE
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The term fiduciary is at the heart of agency law
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TRUE
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Through agents, a principal can conduct only one business operation at a time
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FALSE
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If work is usually done under the employer's direction, this indicates independent-contractor status
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TRUE
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If a great degree of skill is required, this may indicate that a person is an employee hired for a specialized job and not an independent contractor
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FALSE
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Whether a worker is an employee or an independent contractor has no effect on the employer's liability for the worker's actions
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FALSE
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Employers can avoid certain tax liabilities by hiring independent contractors instead of employees
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TRUE
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Any copyrighted work created by an employee within the scope of his or her employment at the request of the employer is a "work for hire
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" TRUE
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An agency agreement can be implied by conduct
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TURE
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An agency relationship created for a purpose that is contrary to public policy may still be enforceable
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FALSE
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A person must have contractual capacity to be an agent
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FALSE
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Ratification involves a question of intent, and intent can be expressed only by words
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FALSE
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An agency by estoppel arises when the principal's actins have created the appearance of an agency that does not in fact exist
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TRUE
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Generally, the law assumes that the principal is aware of any information acquired by the agent that is relevant to the agency
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TRUE
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An agent can represent two principals in the same transaction as long as neither of them knows about it
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FALSE
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Even during emergency situations, when the principal cannot be consulted, the agent may not deviate from the principal's instructions without violating the duty of obedience
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FALSE
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A principal has a duty to cooperate with the agent and to assist the agent in performing his or he duties
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TRUE
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The agent has the right to be compensated, to be reimbursed and indemnified, and to have a safe working environment
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TRUE
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Anything that an agent obtains by virtue of the employment or agency relationship is his or hers to keep
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FALSE
