Unit 5 Review 21-40 Question Preview (ID: 22741)


Unit 5 Review Part 2. TEACHERS: click here for quick copy question ID numbers.

The relationship of agency exists when one person has the authority to
a) alter legal relations
b) control and supervise
c) both control and supervise
d) none of these

The person who authorizes another in an agency relationship is the
a) principal
b) agent
c) employee
d) third party

Any agreement reached by the representative in an agency relationship binds
a) the principal and the third party
b) the agent and the principal
c) the agent and the third party
d) the employee and the third party

The range of acts authorized by the principal is
a) fiduciary duty
b) the scope of authority
c) the warranty of the principal's capacity
d) none of these

Examples of fiduciary duties would not include
a) finances
b) accounting
c) confidentiality
d) loyalty and obedience

A warranty of the principal's capacity is imposed by law on the
a) agent
b) employer
c) principal
d) third party

Direct communication by the principal to the agent whether oral or written is
a) an express authority
b) an apparent authority
c) an implied authority
d) none of these

When the principal's words or conduct create an authority, it is called
a) an apparent authority
b) an express authority
c) an implied authority
d) none of these

Savannah wrote a letter to Dusty giving him the authority to buy and sell stocks on her behalf. What was, in fact, created in this situation?
a) both express authority and power of attorney
b) express authority
c) power of attorney
d) apparent authority

Grant is a high school basketball player. Although he is a minor, he wants to enter into contract negotiations with colleges. In this situation, which of these statements is true?
a) Even though he lacks contractual capacity, Grant can be a principal or can act through an agent
b) Because he is a minor, Grant can not act as either a principal or agent
c) A third-party agent can not be held liable because Grant lacks contractual capacity as a principal
d) None of these is true

The fiduciary duty that binds the agent even years after the agency relationship has ended is
a) confidentiality
b) care and skill
c) accounting
d) loyalty and obedience

The principal has an obligation to the agent to
a) pay what was promised
b) reimburse expenses
c) repay any losses suffered due to the principal's instructions
d) all of these

The power, but not the right to eliminate the agency at any time goes to
a) both the agent and the principal
b) the agent
c) the principal
d) none of these

An agency may be terminated by
a) all of these
b) an agreement
c) bankruptcy
d) a change of law

If an agent mixes his funds with that of his principal, what fiduciary duty has the agent violated?
a) duty of accounting
b) commingling duty
c) duty to communicate
d) confidentiality duty

Which of the following as an agent's core duty to a principal?
a) duty of loyalty and obedience
b) duty to communicate
c) duty of accounting
d) duty of confidentiality

Employment relationship can be established without
a) length of term
b) contract to pay
c) supervision and control
d) all of these

A common element for an employee and an independent contractor would be
a) a contract to pay
b) a length of term
c) supervision and control
d) all of these

Employment contract terms can be derived from
a) all of these
b) express agreements
c) implied agreements
d) state and federal laws

Employees that can be discharged at any time are
a) employees working at will
b) employees working for a specific term
c) public employees
d) none of these

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