FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 19: Agency Relationships

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

True/False

Review LaterAdd Note

Review Later

The greater the employer's control over the work, the more likely it is that the worker is an employee.

A) True
B) False

Correct Answer

verified

Show Answer

Question 32

Multiple Choice

Review LaterAdd Note

Review Later

Jon contracts with Kino to buy a certain number of sheep for Kino's Animal Farm. Jon makes a deal with Lila for the sheep, but neither Jon nor Kino pays the price. Lila sues Jon for breach. Jon's right to hold Kino liable for any damages is the right to

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

E) All of the above
F) B) and D)

Correct Answer

verified

Show Answer

Question 33

True/False

Review LaterAdd Note

The duties that an agent owes a principal must be set forth in the agency agreement because they do not arise by operation of law.

A principal has a duty to pay an agent in a timely manner the customary compensation for services rendered.

If an agent has represented himself or herself as possessing special skills, the agent is expected to use them.

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

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

An agency relationship can arise by ratification, which involves a determination of intent expressed by words or conduct.

By using agents, a principal can conduct multiple business operations simultaneously in various locations.

Both parties to an agency relationship have the power and the right to terminate the relationship at any time.

When an agent's acts create the appearance of an agency that does not in fact exist, the principal is estopped to deny the agency relationship.

Watercraft Inc. employs Vern as a sales agent for a trial period. At the end of the period, Watercraft and Vern disagree on the amount of the commissions Vern is due for sales that he made. Vern may demand

When an agent, acting within the scope of his or her authority, contracts with a third party, in no circumstance is the agent liable to the third party.

Luis hires Mieko to act as his agent to buy Ngoc's Southeast Asian Café. Luis tells Mieko to reveal only that she is buying the restaurant on behalf of a third party, without telling Ngoc's seller who that third party is. Luis is

Rosa introduces Sal to her friend Trey as "my associate." Sal purports to act as Rosa's agent in a business transaction with Trey. If Rosa is liable for Sal's actions, it will be because their relationship is

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.

Without authorization, Lars contracts on behalf of Mina to have Nemo paint Mina's Boutique. If Mina decides to ratify the contract, she must affirm

A gratuitous agent can be liable to a principal for breach of contract, even in the absence of a contract, but not liable for the negligent performance of the deal.

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

Lorene, an attorney, contracts with Milos to incorporate the client's business. Their contract stipulates the amount of the fee. On completion of the work, the attorney's right to be paid this amount arises from the client's duty of