Question 1

The doctrine of respondeat superior imposes liability for an agent's tort on a principal without regard to the personal fault of the agent.

Accepted Answer

A) True 
 B)False

Question 2

The agent must maintain separate accounts for the principal's funds and for the agent's personal funds, but may intermingle these accounts.

Accepted Answer

A) True 
 B)False

Question 3

Under the principles of agency law, any sale of goods by a salesperson in a store to a customer can be binding on the owner of the store.

Accepted Answer

A) True 
 B)False

Question 4

Ira serves in a representative capacity for Jett. Key is injured through Ira's negligence. Jett may be liable to Key if Ira's conduct occurred

Accepted Answer

A)   due to a propensity Jett was not and could not have been aware of.
B)   during normal working hours.
C)   in the course and scope of Ira's employment.
D)   outside the parties' employment relationship.E) A) and B)
F) A) and C)

Question 5

Ray is a delivery driver for Sicilian Pasta Company. Ray does exactly what the company tells him. Ray is

Accepted Answer

A)   an employee.
B)   an employer.
C)   an independent contractor.
D)   a principal.E) B) and C)
F) A) and D)

Question 6

Lucy is married to Marco. Lucy buys food for their children's lunches and charges the cost to Marco's account. This is an agency by

Accepted Answer

A)   agreement.
B)   estoppel.
C)   operation of law.
D)   none of the choices.E) B) and D)
F) None of the above

Question 7

Suva is an agent for Tax Accountants, Inc. On the firm's behalf and at its request, Suva pays Uzo for specially coded software. Suva's right to obtain the amount of the payment from Tax Accountants arises under the duty of

Accepted Answer

A)   none of the choices.
B)   compensation.
C)   indemnification.
D)   reimbursement.E) A) and B)
F) B) and C)

Question 8

It is not illegal for a licensed professional to employ an unlicensed agent to perform professional acts.

Accepted Answer

A) True 
 B)False

Question 9

Denny, a certified public accountant and an investor, and Ethel, an insurance salesperson and a realtor, may create an agency relationship for

Accepted Answer

A)   a business purpose only.
B)   any legal purpose.
C)   any purpose.
D)   no purpose.E) B) and C)
F) None of the above

Question 10

Diamonds & Gold LLC hires Elle to buy gems and precious metals from various sources on its behalf. In this relationship, Diamonds is

Accepted Answer

A)   an employee.
B)   an independent contractor.
C)   a principal.
D)   an agent.E) None of the above
F) All of the above

Question 11

The equal dignity rule requires that a principal and an agent act in good faith and with mutual respect in their dealings with each other.

Accepted Answer

A) True 
 B)False

Question 12

Based on Nan's conduct, Odel reasonably believes that Poppy has the authority to act on Nan's behalf even though Poppy does not have the actual authority to do so. In this circumstance, Poppy has

Accepted Answer

A)   apparent authority.
B)   express authority.
C)   implied authority.
D)   no authority.E) None of the above
F) A) and B)

Exam 27: Agency Relationships in Business

Based on Nan's conduct, Odel reasonably believes that Poppy has the authority to act on Nan's behalf even though Poppy does not have the actual authority to do so. In this circumstance, Poppy has

Correct Answer
verified

Diamonds & Gold LLC hires Elle to buy gems and precious metals from various sources on its behalf. In this relationship, Diamonds is

Correct Answer
verified

The doctrine of respondeat superior imposes liability for an agent's tort on a principal without regard to the personal fault of the agent.

Correct Answer
verified

Under the principles of agency law, any sale of goods by a salesperson in a store to a customer can be binding on the owner of the store.

Correct Answer
verified

Denny, a certified public accountant and an investor, and Ethel, an insurance salesperson and a realtor, may create an agency relationship for

Correct Answer
verified

The agent must maintain separate accounts for the principal's funds and for the agent's personal funds, but may intermingle these accounts.

Correct Answer
verified

Ray is a delivery driver for Sicilian Pasta Company. Ray does exactly what the company tells him. Ray is

Correct Answer
verified

Suva is an agent for Tax Accountants, Inc. On the firm's behalf and at its request, Suva pays Uzo for specially coded software. Suva's right to obtain the amount of the payment from Tax Accountants arises under the duty of

Correct Answer
verified

Ira serves in a representative capacity for Jett. Key is injured through Ira's negligence. Jett may be liable to Key if Ira's conduct occurred

Correct Answer
verified

It is not illegal for a licensed professional to employ an unlicensed agent to perform professional acts.

Correct Answer
verified

The equal dignity rule requires that a principal and an agent act in good faith and with mutual respect in their dealings with each other.

Correct Answer
verified

Lucy is married to Marco. Lucy buys food for their children's lunches and charges the cost to Marco's account. This is an agency by

Correct Answer
verified

Exam 27: Agency Relationships in Business

Based on Nan's conduct, Odel reasonably believes that Poppy has the authority to act on Nan's behalf even though Poppy does not have the actual authority to do so. In this circumstance, Poppy has

Correct AnswerverifiedShow Answer

Diamonds & Gold LLC hires Elle to buy gems and precious metals from various sources on its behalf. In this relationship, Diamonds is

Correct AnswerverifiedShow Answer

The doctrine of respondeat superior imposes liability for an agent's tort on a principal without regard to the personal fault of the agent.

Correct AnswerverifiedShow Answer

Under the principles of agency law, any sale of goods by a salesperson in a store to a customer can be binding on the owner of the store.

Correct AnswerverifiedShow Answer

Denny, a certified public accountant and an investor, and Ethel, an insurance salesperson and a realtor, may create an agency relationship for

Correct AnswerverifiedShow Answer

The agent must maintain separate accounts for the principal's funds and for the agent's personal funds, but may intermingle these accounts.

Correct AnswerverifiedShow Answer

Ray is a delivery driver for Sicilian Pasta Company. Ray does exactly what the company tells him. Ray is

Correct AnswerverifiedShow Answer

Suva is an agent for Tax Accountants, Inc. On the firm's behalf and at its request, Suva pays Uzo for specially coded software. Suva's right to obtain the amount of the payment from Tax Accountants arises under the duty of

Correct AnswerverifiedShow Answer

Ira serves in a representative capacity for Jett. Key is injured through Ira's negligence. Jett may be liable to Key if Ira's conduct occurred

Correct AnswerverifiedShow Answer

It is not illegal for a licensed professional to employ an unlicensed agent to perform professional acts.

Correct AnswerverifiedShow Answer

The equal dignity rule requires that a principal and an agent act in good faith and with mutual respect in their dealings with each other.

Correct AnswerverifiedShow Answer

Lucy is married to Marco. Lucy buys food for their children's lunches and charges the cost to Marco's account. This is an agency by

Correct AnswerverifiedShow Answer

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