Test #1-Ch. 24

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13 terms · Advanced Business Law Test #1 FA09

T

Ee who deal with 3rd parties are agents of their employees. *

T

An agent owes his/her principal a duty to act in good faith. *

T

An agent who fails to use reasonable diligence and skill in acting on behalf of his/her principal may be liable for breaching a duty of performance. *

T

A disclosed principal is liable to a 3rd party for contracts made by the agent acting within the scope of authority. *

F (Agent is liable for his or her own torts. Principle would be liable under respondeat superior. Key is whether it was committed in the scope of employment or not and whether the act was authorized or not.)

A principal is not liable for harm caused to a 3rd party by an agent acting in the scope of employment. *

T

An undisclosed principal is liable to a 3rd party for contracts made by an agent acting within the scope of authority. *

F (Have power to terminate, but not necessarily the right to terminate)

Both parties to an agency have the right to terminate the agency at any time. *

T

If a principal does not ratify an otherwise unauthorized contract, the principal is not bound. *

F (Computer Program)

An e-agent is a person. *

F (Agent's acts on behalf of principal is bound by principal whether disclosed or not)

When an agent enters into a contract on behalf of a principal, the principal must ratify the contract to be bound. *

Agent

Andy is an officer for Beta Corporation. When acting for Beta in ordinary business situations, Andy is...

The degree of control that Delta exercises over Carol.

Carol is a salesperson for Delta Products, Inc. In determining whether Carol is Delta's ee or an IC, the most important factor is...

A person having those special skill

Eagle Company hires Fran, who holds herself out as possessing special accounting skills, to act as its agent. As an agent, Fran must use the degree of skill or care expected of...

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