Question 1

What type of relationship has formed when one person has the right to control the conduct of another person?

Accepted Answer

A)  Principal-agent
B)  Principal-independent contractor
C)  Employer-independent contractor
D)  Employer-employee
E)  Employer-agentF) A) and E)
G) A) and B)

Question 2

If a principal agrees to hire no other agent for a period of time or until a particular job is done,the principal and agent have entered into a[n] _ agency contract.

Accepted Answer

A)  Exclusive
B)  Exact
C)  Identified
D)  Encompassing
E)  SpecificF) D) and E)
G) C) and D)

Question 3

Which of the following is not a type of independent contractor?

Accepted Answer

A)  Building contractor
B)  Lawyer
C)  Stockbroker
D)  Elementary school teacher
E)  DoctorF) None of the above
G) B) and E)

Question 4

[Lakeside Property] Kumar agreed to act as the agent of Melanie in finding a piece of lakeside property for her at a good price,and also in obtaining a loan for her with which to purchase the property.She agreed to pay him$500 for doing so.To assist Kumar in his duties,Melanie disclosed to him confidential information about her finances and debts.Kumar decided that he needed help and paid Rick $300 to look for property for Melanie.Rick told Kumar about a great deal on a piece of lakeside property that Phil had for sale.In fact,the deal was so good that Kumar purchased the property for himself.When Melanie found out about the property Kumar bought for himself,she complained to Kumar.He defended himself on the basis that he was not actually working for Melanie when he found out about the deal.At the time,he was playing golf with Phil.He also told Melanie that he had hired Rick for $300 to assist him and that he could not be held liable because he had turned the job over to Rick.He asked Melanie for reimbursement of the amount he paid Rick.Melanie fired Kumar threatening to sue him.Kumar told Melanie that he would counterclaim for the $300 owed to Rick.After he was fired,Kumar disclosed to a number of parties information regarding Melanie's spending habits which he thought were excessive.
-If Melanie sues Kumar for purchasing the property from Phil instead of offering it to her,which of the following is the most likely result?

Accepted Answer

A)  Melanie will lose but only because Kumar was not involved in work duties when he heard about the property.
B)  Melanie will win because as the principal,she has right of first refusal.
C)  Melanie will lose because Kumar had validly assigned all duties to Rick.
D)  Melanie will win only if she can establish that she expressly told Kumar that he could not assign the contractual duties under the contract.
E)  Melanie will lose because Kumar had the right to act in his own best interest.F) A) and B)
G) A) and C)

Question 5

Which of the following is false regarding intellectual property rights?

Accepted Answer

A)  The employer owns the copyright to a work for hire completed by an employee.
B)  Only by an agreement of both parties that a specific work is a work for hire may an employer gain copyright ownership of the work of an independent contractor.
C)  When an employee completes work at the request of the employer,the product is considered a "work for hire."
D)  Federal law does not address the issue of when a work is a "work for hire" because such issues are left to state legislatures.
E)  The classification as an employee or independent contractor is also important in determining who owns the output of a work project.F) A) and B)
G) A) and C)

Question 6

Which document gives an agent authority to sign legal documents on behalf of the principal?

Accepted Answer

A)  Legal empowerment
B)  Power of attorney
C)  Order of authority
D)  Respondeat superior
E)  Power of orderF) A) and E)
G) None of the above

Question 7

Which of the following is true regarding any right of reimbursement Paolo is due from Joe?

Accepted Answer

A)  Paolo is entitled to reimbursement from Joe.
B)  Paolo is not due any reimbursement from Joe unless Paolo can establish by a preponderance of the evidence that AAA Computers would not have agreed to take a lesser amount.
C)  Paolo is not due any reimbursement from Joe unless he can establish that Joe signed a written contract authorizing him to personally pay debts incurred.
D)  Paolo is only due 50% of whatever he paid because he did not get permission from Joe before paying AAA Computers.
E)  Paolo is not due any reimbursement because he did not get permission from Joe before paying AAA Computers.F) A) and B)
G) C) and E)

Question 8

An agent cannot represent both the principal and a third party in an agreement because there could be a[n] .

Accepted Answer

A)  Conflict of interest
B)  Consortium
C)  Absolution
D)  Disagreement
E)  Delineation of interestF) A) and D)
G) B) and E)

Question 9

In non-contractual relationships,in order to force the principal to perform the contract,the agent may seek which of the following?

Accepted Answer

A)  Specific performance
B)  Recover for services rendered
C)  Specific recoupment
D)  Reformation
E)  Adequate performanceF) A) and D)
G) C) and E)

Question 10

What type of agency is formed when it appears an agency relationship exists based on the conduct of the parties?

Accepted Answer

A)  Agency by implied authority
B)  Expressed agency
C)  Agency by ratification
D)  Apparent agency
E)  An agency relationship cannot be formed based on the conduct of the parties alone.F) None of the above
G) A) and B)

Question 11

Which of the following is the best solution for a U.S.company that is attempting to enter a foreign market but is having difficulty due to a language barrier and lack of knowledge?

Accepted Answer

A)  The company should continue to conduct business the way it would in the U.S.
B)  The company should focus all of its advertising in the desired market.
C)  The company should hire an agent familiar with the local laws,customs,and practices to help it function smoothly.
D)  The company should not do business in a foreign market if there is a language barrier.
E)  The company should open a local business office to become familiar with the area.F) B) and E)
G) A) and E)

Question 12

Agents may have contract remedies available against a principal,but not tort remedies.

Accepted Answer

A) True 
 B)False

Question 13

If Rebecca,the wholesaler jeweler,sues Malcolm for the price of the pearls,which of the following is the most likely result?

Accepted Answer

A)  Rebecca will lose because it was her responsibility to ask Malcolm for written documentation that Ashley was his agent.
B)  Rebecca will lose unless it can be established that Ashley at some time in the past had actual authority to act as Malcolm's agent.
C)  Rebecca will win only if she can show that Ashley has no assets with which to pay for the necklace.
D)  Rebecca will win assuming that she can prove that she reasonably believed,based on Malcolm's conduct,that Ashley was acting as his agent.
E)  Rebecca will win only if she can show that through reasonable investigative efforts on her part Ashley cannot be located.F) C) and D)
G) A) and B)

Question 14

An individual who lacks contractual capacity may hire an agent to make contracts on his or her behalf.

Accepted Answer

A) True 
 B)False

Question 15

In the text case,Penny Garrison v.The Superior Court of Los Angeles,plaintiffs sought to sue a residential care facility and avoid the effect of a durable power of attorney by which the decedent's daughter signed agreements to arbitrate disputes involving the facility.Which of the following was the result?

Accepted Answer

A)  The durable power of attorney was effective and the agreements to arbitrate would be upheld.
B)  The durable power of attorney was effective but the arbitration agreements were void as against public policy.
C)  The durable power of attorney was ineffective because it was revoked after the decedent became ill and the arbitration agreements,therefore,were unenforceable.
D)  The durable power of attorney was ineffective because it did not grant the holder authority to enter into arbitration agreements and the arbitration agreements,therefore,were unenforceable.
E)  The durable power of attorney was ineffective because it did not specifically give the daughter authority to enter into agreements involving health care and the arbitration agreements,therefore,were unenforceable.F) A) and B)
G) B) and E)

Question 16

Which of the following is the most common form of agency?

Accepted Answer

A)  Implied agency
B)  Endorsement
C)  Expressed agency
D)  Ratification
E)  Apparent agencyF) None of the above
G) A) and B)

Question 17

Which of the following is the term used to describe the duty and responsibilities of the agent as specified in the agency agreement?

Accepted Answer

A)  Duty of contract
B)  Duty of performance
C)  Duty of action
D)  Duty of obedience
E)  Express duty of actionF) B) and C)
G) A) and E)

Question 18

Which of the following is false regarding civil law and a power of attorney in Luxembourg?

Accepted Answer

A)  One type of power of attorney in Luxembourg is a power of attorney that is valid until death.
B)  In Luxembourg,the person on whose behalf the power of attorney is created is called a donor,instead of a principal.
C)  In civil law countries,a power of attorney authorizes the agent only to conduct a series of transactions under instruction from the principal.
D)  The law in Luxembourg requires that the power of attorney be authenticated by a public authority or a public notary.
E)  One type of power of attorney in Luxembourg is a power of attorney that has unlimited validity even after death.F) B) and E)
G) All of the above

Question 19

Not all ________ are ________ because they cannot enter into contracts on behalf of the principal unless the principal authorizes them to do so.Examples include building contractors,doctors,stockbrokers,and lawyers.

Accepted Answer

A)  Agents;independent contractors
B)  Agents;employees
C)  Employees;independent contractors
D)  Independent contractors;employees
E)  Independent contractors;agentsF) C) and E)
G) A) and E)

Question 20

Which of the following refers to the principal's duty to assist the agent with his or her duties and not interfere with the agent's reasonable conduct?

Accepted Answer

A)  Compensation
B)  Obedience
C)  Notification
D)  Cooperation
E)  LoyaltyF) A) and B)
G) A) and E)

Exam 33: Agency Formation and Duties

An individual who lacks contractual capacity may hire an agent to make contracts on his or her behalf.

Correct Answer
verified

If Rebecca,the wholesaler jeweler,sues Malcolm for the price of the pearls,which of the following is the most likely result?

Correct Answer
verified

Which of the following is false regarding intellectual property rights?

Correct Answer
verified

What type of agency is formed when it appears an agency relationship exists based on the conduct of the parties?

Correct Answer
verified

What type of relationship has formed when one person has the right to control the conduct of another person?

Correct Answer
verified

Which of the following is true regarding any right of reimbursement Paolo is due from Joe?

Correct Answer
verified

Which of the following refers to the principal's duty to assist the agent with his or her duties and not interfere with the agent's reasonable conduct?

Correct Answer
verified

Correct Answer
verified

In non-contractual relationships,in order to force the principal to perform the contract,the agent may seek which of the following?

Correct Answer
verified

Which of the following is false regarding civil law and a power of attorney in Luxembourg?

Correct Answer
verified

Which of the following is the best solution for a U.S.company that is attempting to enter a foreign market but is having difficulty due to a language barrier and lack of knowledge?

Correct Answer
verified

Which document gives an agent authority to sign legal documents on behalf of the principal?

Correct Answer
verified

Correct Answer
verified

Which of the following is the most common form of agency?

Correct Answer
verified

An agent cannot represent both the principal and a third party in an agreement because there could be a[n] .

Correct Answer
verified

Which of the following is the term used to describe the duty and responsibilities of the agent as specified in the agency agreement?

Correct Answer
verified

If a principal agrees to hire no other agent for a period of time or until a particular job is done,the principal and agent have entered into a[n] _ agency contract.

Correct Answer
verified

Not all are because they cannot enter into contracts on behalf of the principal unless the principal authorizes them to do so.Examples include building contractors,doctors,stockbrokers,and lawyers.

Correct Answer
verified

Which of the following is not a type of independent contractor?

Correct Answer
verified

Agents may have contract remedies available against a principal,but not tort remedies.

Correct Answer
verified

Exam 33: Agency Formation and Duties

An individual who lacks contractual capacity may hire an agent to make contracts on his or her behalf.

Correct AnswerverifiedShow Answer

If Rebecca,the wholesaler jeweler,sues Malcolm for the price of the pearls,which of the following is the most likely result?

Correct AnswerverifiedShow Answer

Which of the following is false regarding intellectual property rights?

Correct AnswerverifiedShow Answer

What type of agency is formed when it appears an agency relationship exists based on the conduct of the parties?

Correct AnswerverifiedShow Answer

What type of relationship has formed when one person has the right to control the conduct of another person?

Correct AnswerverifiedShow Answer

Which of the following is true regarding any right of reimbursement Paolo is due from Joe?

Correct AnswerverifiedShow Answer

Which of the following refers to the principal's duty to assist the agent with his or her duties and not interfere with the agent's reasonable conduct?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In non-contractual relationships,in order to force the principal to perform the contract,the agent may seek which of the following?

Correct AnswerverifiedShow Answer

Which of the following is false regarding civil law and a power of attorney in Luxembourg?

Correct AnswerverifiedShow Answer

Which of the following is the best solution for a U.S.company that is attempting to enter a foreign market but is having difficulty due to a language barrier and lack of knowledge?

Correct AnswerverifiedShow Answer

Which document gives an agent authority to sign legal documents on behalf of the principal?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is the most common form of agency?

Correct AnswerverifiedShow Answer

An agent cannot represent both the principal and a third party in an agreement because there could be a[n] .

Correct AnswerverifiedShow Answer

Which of the following is the term used to describe the duty and responsibilities of the agent as specified in the agency agreement?

Correct AnswerverifiedShow Answer

If a principal agrees to hire no other agent for a period of time or until a particular job is done,the principal and agent have entered into a[n] _ agency contract.

Correct AnswerverifiedShow Answer

Not all ________ are ________ because they cannot enter into contracts on behalf of the principal unless the principal authorizes them to do so.Examples include building contractors,doctors,stockbrokers,and lawyers.

Correct AnswerverifiedShow Answer

Which of the following is not a type of independent contractor?

Correct AnswerverifiedShow Answer

Agents may have contract remedies available against a principal,but not tort remedies.

Correct AnswerverifiedShow Answer

Correct Answer
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Not all are because they cannot enter into contracts on behalf of the principal unless the principal authorizes them to do so.Examples include building contractors,doctors,stockbrokers,and lawyers.

Correct Answer
verified

Correct Answer
verified

Correct Answer
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