chap 17 genb
Terms in this set (30)
1. The key to determining whether a principal is liable for contracts made by his agent is the amount of compensation paid to the agent
2. As long as an agent has authorization, either express or implied, she may bind the principal legally.
3. Even if the agent possessed no actual authority and there was no apparent authority on which the third party could rely, the principal may still be liable if he ratifies or adopts the agent's acts before the third party withdraws from the contract.
4. Under the zone of risk test an employer may be held liable for his employee's conduct even when devoted entirely to the employee's own purposes
5. A principal can be held liable for actions by an agent that the principal had no knowledge of
6. If a principal directs the agent to commit a tort or knows for a fact that the agent carrying out his instructions could cause someone harm, then the principal is liable
7. Respondeat superior is the Latin term for the shop rights doctrine
8. The vicarious tort liability is primarily a function of agency status and not employment relationships.
9. Vicarious liability is not limited to harm caused in the course of an agency relationship
10. Under the family purpose doctrine for the use of automobiles, a family member who negligently injures someone with a car subjects the owner to liability if the family member was furthering family purposes.
11. Unlike wives, children are not presumed at common law to be agents or extensions of the father
12. An agent directed by the principal to commit a tort does not remain liable for his own conduct and hence, is not obligated to repay the principal
13. An agent is not liable for torts of other agents unless he is personally at fault.
14. Where a third party deals with an agent, but is unaware that he/she is dealing with an agent, the principal would be contractually bound to the third party for any tort
15. When an agency is terminated after lapse of time or completion of work, it is said to be expressly terminated.
1. Bob, a professional hockey player, asks Will to be his sports agent and Will accepts. Bob tells Will that Will can review the contracts offered to Bob from the various state hockey teams. Here, Will has _____ authority to review contracts.
2. Which of the following is true of ratification by the principal?
a. It can only occur prior to the actions of the agent.
b. It is a voluntary act by the principal.
c. It discharges the principal of liability for the agent's actions.
d. It requires the usual consideration of contract law.
e. It must be made in writing to be effective.
3. In agency, _____ authority is a situation in which an agent leads a third party to believe that the agent has authority to bind the principal, even where the agent lacks actual authority to bind the principal.
4. According to the doctrine of _____, a person will not be allowed to deny a promise or assertion he/she previously made where there has been detrimental reliance on that promise or assertion.
b. shop rights
c. ultra vires
d. respondeat superior
5. A principal is considered to be vicariously responsible for his/her agent's torts if:
a. the principal gave the agent improper orders or instructions that caused the tort to occur.
b. the principal had no intention to commit and no involvement in the agent's acts.
c. the agent was improperly or negligently chosen or employed.
d. the principal failed properly to supervise or oversee the work when he had a duty to do so.
e. the principal had been negligent in performing his duties
6. Pete gave his agent chemical pesticides for use on a grove of fruit trees belonging to Lily. However, Pete made a mistake when giving his agent instructions about the application of the pesticides. If the fruit trees die or spoil due to this act,:
a. Pete would be directly liable.
b. Pete's agent would be directly liable.
c. Pete would be vicariously liable.
d. Pete's agent would be vicariously liable.
e. Lily would be liable.
7. The _____ doctrine imposes vicarious liability on the principal in case of an agency relationship.
d. ultra vires
e. family purpose
8. The modern basis for vicarious liability is termed the _____ theory as it assumes that the principal is better equipped to pay damages than an agent.
b. ultra vires
c. deep pockets
e. delectus personae
9. According to the _____ standard, an employer can be held liable for his employee's conduct even when devoted entirely to the employee's own purposes, as long as it was foreseeable that the agent might act as he did.
c. zone of tolerance
d. zone of risk
e. scope of employment
10. Kevin, a close friend of Dave's, borrowed Dave's car for the weekend, with Dave's permission. While driving, Kevin accidently ran into someone on the street. According to which of the following statutes would Dave be responsible or liable for Kevin's act?
a. The direct liability statute
b. The family purpose statute
c. The doctrine of estoppel
d. The owner's consent statute
e. The no-fault statute
11. In which of the following cases would an agent be personally liable to the other party in a contract?
a. The agent is acting on behalf of an undisclosed principal.
b. The agent makes a contract on the principal's behalf.
c. The agent lacks the principal's authority or exceeds it.
d. Other agents of the principal committed torts.
e. The agent is directed by the principal to commit a tort.
12. The agent's unilateral termination of the agency relationship is known as _____.
13. The principal's unilateral termination of agency is known as _____ of agency.
14. Termination of agency by operation of law occurs:
a. upon renunciation of agency by the agent.
b. on the death of the principal or agent.
c. upon revocation of agency.
d. upon the expiration of a fixed period of time.
e. on the accomplishment of a specific task
15. A principal can be held responsible for an agent whose authority has previously been terminated if the principal does not make the termination known to the parties who previously did business with the agent. This is known as _____ authority.
e. inter vivos