Question 1

Trudy, who was angry with her business law teacher, Tom, because of a hard test, angrily watched him come into the fast food restaurant where she worked as a cashier. She noticed that he had on his new designer suit, the one he wore when he wanted to impress the chancellor. Trudy completely lost her temper, threw a milkshake on Tom, and then reached across the counter and punched him in the eye. The police were called. Tom says that he wants both Trudy and the owner of the restaurant, Sally, arrested. Assuming that Trudy committed the crimes of assault and battery, is Sally also criminally responsible? Set forth reasoning in support of the conclusion.

Accepted Answer

If an agent commits a crime, clearly the...

Question 2

The doctrine of ______ applies in the context of the principal/employer-agent/employee relationship in relation to liability of the principal/employer for acts of the agent/employee.

Accepted Answer

A)   Superior respondeat
B)   Respondeat superior
C)   Stare decisis
D)   Res superior
E)   Supre superiorF) B) and D)
G) D) and E)

Question 3

Which of the following was the result in Iglesia Cristiana La Casa Del Senor Inc., Etc. v. L.M., the case in which an alleged victim sued the former pastor and a church alleging the pastor had sexually assaulted her when she was a minor?

Accepted Answer

A)   That the assault did not occur within the scope of the pastor's employment and that the church was not vicariously liable for his act.
B)   That the assault occurred within the scope of the pastor's employment and that the church was vicariously liable for his act.
C)   That although the assault did not occur within the scope of the pastor's employment, the church was vicariously liable for the act because of its criminal nature.
D)   That the church was vicariously liable because it knew of the criminal act but did nothing.
E)   That regardless of whether or not the assault occurred within the scope of the pastor's employment, the church was vicariously liable because it had negligently hired the priest.F) C) and E)
G) D) and E)

Question 4

Which of the following is not necessarily a means may an agency relationship be terminated?

Accepted Answer

A)   Fulfillment of purpose
B)   Occurrence of a specific event
C)   Revocation of authority
D)   Insolvency of the principal
E)   Renunciation by the agentF) None of the above
G) A) and B)

Question 5

Which of the following is true regarding liability of an agent acting within his or her authority on a contract involving an undisclosed principal?

Accepted Answer

A)   The law will likely hold the agent liable for the agreement.
B)   The law will hold the agent liable for the agreement unless the contract the agent had with the principal expressly provided that the agent would not be held liable in such cases.
C)   The law will hold the agent liable for the agreement unless the contract the agent had with the principal impliedly or expressly provided that the agent would not be held liable in such cases.
D)   The law will hold the agent liable for the agreement unless a contract for under $1,000 is involved in which case only the principal would be held liable.
E)   The law would not hold the agent liable on the agreement.F) A) and B)
G) C) and D)

Question 6

Which of the following is false regarding termination of agency in the Netherlands?

Accepted Answer

A)   The agent is entitled to compensation if his or her duties are concluded within a reasonable time after termination.
B)   Compensation is due if the agent received the orders for a certain action before the termination of the contract.
C)   The agent is entitled to goodwill compensation in certain situations.
D)   An agent is not entitled to additional compensation based on bringing the principal new customers or because agreements with clients obtained by the agent remain profitable.
E)   There are requirements on the agent in regard to time limits in filing for certain compensation.F) C) and E)
G) None of the above

Question 7

Which of the following holds the principal-employer liable for any harm caused by the agent-employee during the time that the agent-employee is working for the principal?

Accepted Answer

A)   Vicarious liability
B)   Responsible liability
C)   Comparative liability
D)   Contributory liability
E)   There is no such conceptF) B) and D)
G) A) and C)

Question 8

As discussed in the text, which of the following is true regarding electronic contracts and agency authority in Singapore?

Accepted Answer

A)   In Singapore because of the fear of fraud, agents are not allowed to engage in electronic transactions on behalf of principals.
B)   Singapore relies on a type of law similar to U.S. common law in addressing agency authority in regard to electronic transactions.
C)   Singapore passed a law providing that a principal must countersign any electronic transaction engaged in by an agent.
D)   Singapore passed a law providing that each employer must post a list electronically of all its agents with authority to act on its behalf.
E)   Singapore passed a law by which lack of awareness of a principal for an agent's acts is not recognized as a defense.F) D) and E)
G) A) and E)

Question 9

A special type of express agent authority is known as a power of attorney.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is true if an agent has no authority to act on behalf of a principal, but the agent still enters into a contract with a third party?

Accepted Answer

A)   The principal is bound only if the principal is a disclosed principal.
B)   The principal is bound only if the principal is an unidentified principal.
C)   The principal is bound only if the principal is a partially disclosed principal.
D)   The principal is bound unless the principal can establish clearly and convincingly that the agent was expressly barred from engaging in the conduct at issue.
E)   The principal is not bound unless the principal ratifies the agreement.F) B) and E)
G) C) and D)

Question 11

Which of the following was the result in Angela & Raul Ruiz v. Fortune Insurance Co., the case in the text in which the plaintiffs claimed that the defending insurer was liable to them for a loss to their mobile home although the agency to which plaintiffs' premium was remitted no longer had an agency relationship with the defendant; and the defendant had not received the payment nor renewed the plaintiffs' policy?

Accepted Answer

A)   The defendant was held liable to the plaintiffs because they had not been notified of the agency termination and the nonrenewal.
B)   The defendant was held liable to the plaintiffs because even if the defendant sent a notice of nonrenewal, the plaintiffs did not receive it.
C)   The defendant was held liable to the plaintiffs because its former agent was in possession of funds meant for the defendant, and it was up to the defendant to obtain the funds from the former agent.
D)   The defendant was not held liable to the plaintiffs because of proof it had mailed the notice of nonrenewal, even if the plaintiffs did not receive it or did not read it.
E)   The court ruled that a jury question existed as to whether the plaintiffs understood the meaning of the notification of nonrenewal and that if the plaintiffs did not understand its meaning, then they were entitled to recover from the defendant.F) C) and D)
G) B) and D)

Question 12

"The Big Sale." Christy, the owner of ABC department store, needed to hire a number of employees in a hurry because of a big summer sale she was planning. Bob was hired by Christy to run a cash register and to assist customers with taking large purchases to their cars. Bob encountered a particularly annoying customer, Frank. Frank started complaining the minute he saw Bob. Frank complained about having to wait for Bob to assist him with carrying his television purchase to his car, about the merchandise in the store, and about the quality of the store's employees. Bob tried to control himself while he carted Frank's television to the car. The final straw, however, came when Bob told Frank that he should get the earring out of his ear, cut his hair, and act professionally. Bob threw the television to the ground and punched Frank in the nose. Frank did investigation and discovered that Bob has been fired from his previous three jobs for taking violent action against customers. Two of his former employers are willing to testify that if Christy had called them, they would have disclosed Bob's tendencies to her. Bob listed the former employers on his application, but because she was in a hurry to hire employees, Christy did not take the time to check with the former employers. Another problem confronting Christy during the big sale is that Susie, a long-time employee of Christy who had never caused any problem before, accidentally, but negligently, dropped a box on the foot of Greg, a customer. Greg had to have an X-ray and is threatening to sue both Christy and Susie.
-Which of the following is true regarding whether Greg has any right of recovery against Christy for his injured foot?

Accepted Answer

A)   Greg has no right of recovery against Christy because Susie had not dropped any boxes before, and Christy had no reason to suspect she would injure Greg.
B)   Greg has a right of recovery against Christy only if Susie is insolvent.
C)   Greg has a right of recovery against Christy, but only for 50% of his damages.
D)   Greg has no right of recovery against Christy unless he is able to establish wrongdoing on her part in hiring Susie.
E)   Greg has a right of recovery against Christy.F) D) and E)
G) A) and B)

Question 13

Which of the following was the result in Larry S. Lawrence v. Bainbridge Apartments, the case in the text in which the window washer argued that he was entitled to recover against the building owner for his injuries in a fall?

Accepted Answer

A)   The window washer was entitled to workers' compensation as an employee.
B)   The window washer was entitled to a recovery in tort based on the inherently dangerous activity at issue and the defendant's failure to take sufficient precautions.
C)   The window washer was entitled to recovery for breach of contract.
D)   The window washer was not entitled to recover because he took insufficient precautions for his own safety.
E)   The window washer was entitled to no recovery based on his status as an independent contractor.F) B) and E)
G) C) and E)

Question 14

If a manager has business transactions in one of the European Union countries and wants to terminate an agency relationship, he or she would want to have access to knowledge about which of the following?

Accepted Answer

A)   Chapter IV of the Agency Relationship Law
B)   Chapter VII of the Employment Relationship
C)   Article VI of the European Union Regulations
D)   Article VII of the European Union Regulations
E)   Section X of the Agency RegulationsF) A) and E)
G) A) and D)

Question 15

Which of the following is an agency agreement created for the agent's benefit, not for the principal's?

Accepted Answer

A)   Agency interest principle
B)   Agency coupled with an interest
C)   Agency benefit interest
D)   Agency compensation principle
E)   Agency entitlement principleF) All of the above
G) A) and D)

Question 16

How long does an agent's apparent authority continue once an agency relationship is terminated?

Accepted Answer

A)   It ends immediately
B)   24 hours
C)   7 days
D)   30 days
E)   Until the principal notifies third parties that the agency relationship has ended.F) None of the above
G) C) and E)

Question 17

Which of the following refers to an employer's right, if any, to recover from an employee damages the employer paid a third party as a result of the employee's negligence?

Accepted Answer

A)   The right of recompense
B)   The right of reimbursement
C)   The entitlement to equity
D)   The right of indemnification
E)   There is no such rightF) A) and D)
G) None of the above

Question 18

In order to terminate a principal's responsibility, actual notice of agency termination must be given to third parties who have had business interactions with the agent.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is true regarding liability of a principal if a contract an agent makes with a third party expressly excludes the principal from the contract?

Accepted Answer

A)   The principal is liable on the contract because it is unconscionable to exclude a principal from a contract.
B)   The principal is liable on the contract only if the principal is an unidentified principal.
C)   The principal is liable on the contract only if the principal is a partially disclosed principal.
D)   The principal is liable on the contract unless the principal gave the agent authority in writing to make the agreement with the third party.
E)   The principal is not liable on the contract.F) A) and E)
G) A) and C)

Question 20

There are two basic types of power of attorney: special and allocated.

Accepted Answer

A) True 
 B)False

Exam 34: Liability to Third Parties and Termination

Which of the following is an agency agreement created for the agent's benefit, not for the principal's?

Correct Answer
verified

The doctrine of ______ applies in the context of the principal/employer-agent/employee relationship in relation to liability of the principal/employer for acts of the agent/employee.

Correct Answer
verified

Which of the following is false regarding termination of agency in the Netherlands?

Correct Answer
verified

Correct Answer
verified

Which of the following is not necessarily a means may an agency relationship be terminated?

Correct Answer
verified

A special type of express agent authority is known as a power of attorney.

Correct Answer
verified

Correct Answer
verified
If an agent commits a crime, clearly the...
View Answer

How long does an agent's apparent authority continue once an agency relationship is terminated?

Correct Answer
verified

Which of the following refers to an employer's right, if any, to recover from an employee damages the employer paid a third party as a result of the employee's negligence?

Correct Answer
verified

Which of the following was the result in Larry S. Lawrence v. Bainbridge Apartments, the case in the text in which the window washer argued that he was entitled to recover against the building owner for his injuries in a fall?

Correct Answer
verified

Which of the following is true regarding liability of an agent acting within his or her authority on a contract involving an undisclosed principal?

Correct Answer
verified

Which of the following is true if an agent has no authority to act on behalf of a principal, but the agent still enters into a contract with a third party?

Correct Answer
verified

Correct Answer
verified

There are two basic types of power of attorney: special and allocated.

Correct Answer
verified

As discussed in the text, which of the following is true regarding electronic contracts and agency authority in Singapore?

Correct Answer
verified

In order to terminate a principal's responsibility, actual notice of agency termination must be given to third parties who have had business interactions with the agent.

Correct Answer
verified

If a manager has business transactions in one of the European Union countries and wants to terminate an agency relationship, he or she would want to have access to knowledge about which of the following?

Correct Answer
verified

Which of the following is true regarding liability of a principal if a contract an agent makes with a third party expressly excludes the principal from the contract?

Correct Answer
verified

Which of the following was the result in Iglesia Cristiana La Casa Del Senor Inc., Etc. v. L.M., the case in which an alleged victim sued the former pastor and a church alleging the pastor had sexually assaulted her when she was a minor?

Correct Answer
verified

Which of the following holds the principal-employer liable for any harm caused by the agent-employee during the time that the agent-employee is working for the principal?

Correct Answer
verified

Exam 34: Liability to Third Parties and Termination

Which of the following is an agency agreement created for the agent's benefit, not for the principal's?

Correct AnswerverifiedShow Answer

The doctrine of ______ applies in the context of the principal/employer-agent/employee relationship in relation to liability of the principal/employer for acts of the agent/employee.

Correct AnswerverifiedShow Answer

Which of the following is false regarding termination of agency in the Netherlands?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is not necessarily a means may an agency relationship be terminated?

Correct AnswerverifiedShow Answer

A special type of express agent authority is known as a power of attorney.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedIf an agent commits a crime, clearly the...View AnswerShow Answer

How long does an agent's apparent authority continue once an agency relationship is terminated?

Correct AnswerverifiedShow Answer

Which of the following refers to an employer's right, if any, to recover from an employee damages the employer paid a third party as a result of the employee's negligence?

Correct AnswerverifiedShow Answer

Which of the following was the result in Larry S. Lawrence v. Bainbridge Apartments, the case in the text in which the window washer argued that he was entitled to recover against the building owner for his injuries in a fall?

Correct AnswerverifiedShow Answer

Which of the following is true regarding liability of an agent acting within his or her authority on a contract involving an undisclosed principal?

Correct AnswerverifiedShow Answer

Which of the following is true if an agent has no authority to act on behalf of a principal, but the agent still enters into a contract with a third party?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

There are two basic types of power of attorney: special and allocated.

Correct AnswerverifiedShow Answer

As discussed in the text, which of the following is true regarding electronic contracts and agency authority in Singapore?

Correct AnswerverifiedShow Answer

In order to terminate a principal's responsibility, actual notice of agency termination must be given to third parties who have had business interactions with the agent.

Correct AnswerverifiedShow Answer

If a manager has business transactions in one of the European Union countries and wants to terminate an agency relationship, he or she would want to have access to knowledge about which of the following?

Correct AnswerverifiedShow Answer

Which of the following is true regarding liability of a principal if a contract an agent makes with a third party expressly excludes the principal from the contract?

Correct AnswerverifiedShow Answer

Which of the following was the result in Iglesia Cristiana La Casa Del Senor Inc., Etc. v. L.M., the case in which an alleged victim sued the former pastor and a church alleging the pastor had sexually assaulted her when she was a minor?

Correct AnswerverifiedShow Answer

Which of the following holds the principal-employer liable for any harm caused by the agent-employee during the time that the agent-employee is working for the principal?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
verified
If an agent commits a crime, clearly the...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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