Cory employs Dash Delivery Agency as an agent under a written agreement that describes the rights and duties of both parties. This is
a.
express authority.
b.
implied authority.
c.
apparent authority.
d.
equal authority.
question
d.
cooperation.
answer
Spicy Hot Dog Vendors, Inc., grants its agent Teona an exclusive territory in which to sell Spicy Hot Dog products. Spicy Hot Dog cannot compete with Teona in that territory under the principal's duty of
a.
compensation.
b.
indemnification.
c.
reimbursement.
d.
cooperation.
question
a.
indemnification.
answer
John contracts with Kelly to buy a certain number of cattle for Kelly's Circle K ranch. John makes a deal with Lawson, the owner of a local herd, and makes a down payment. Kelly fails to pay the rest of the price. Lawson sues John for breach of contract. John's right to hold Kelly liable for any damages that he has to pay is the right of
a.
indemnification.
b.
compensation.
c.
cooperation.
d.
reimbursement.
question
c.
an agency by agreement.
answer
Jerry agrees to act on Joyce's behalf, subject to her control, and Joyce trusts Jerry to so act. They set out the terms in a written document, which they both sign. This is
a.
not an agency relationship.
b.
an agency by operation of law.
c.
an agency by agreement.
d.
an agency by estoppel.
question
c.
apparent authority.
answer
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
a.
express authority.
b.
no authority.
c.
apparent authority.
d.
implied authority.
question
c.
Miklos's death or incapacity.
answer
Miklos employs Nathalie to handle a list of financial transactions on Miklos's behalf. This power will terminate on
a.
Nathalie's handling of one of each stipulated transaction.
b.
Miklos's sixty-fifth birthday.
c.
Miklos's death or incapacity.
d.
any transaction causing a loss to Miklos.
question
b.
from the position Alexandra occupies.
answer
Alexandra manages a Beans Bistro for Coffee Shops, Inc. To manage the business, Alexandra's authority can be inferred
a.
to contradict Alexandra's express authority.
b.
from the position Alexandra occupies.
c.
under no circumstances.
d.
by a reasonable customer or supplier.
question
b.
totally unsuccessful.
answer
Bud approves on behalf of Cody—but without authorization—a contract with Dick to build a new silo. Cody does not ratify the contract. Later, Dick tries to enforce the deal. This attempt will be
a.
partly unsuccessful.
b.
totally unsuccessful.
c.
totally successful.
d.
partly successful.
question
c.
a person having those skills.
answer
Ronda holds herself out as possessing special accounting skills. As an agent, she must exercise the degree of skill or care expected of
a.
an average, unskilled person.
b.
a reasonable person.
c.
a person having those skills.
d.
the principal.
question
d.
an agency by estoppel.
answer
Roberta introduces Steve to her friends as "my associate." Steve purports to act as Roberta's agent in several business transactions with those friends. If Roberta is liable for Steve's actions, it will be because their relationship is
a.
an agency by agreement.
b.
an agency by operation of law.
c.
not an agency relationship.
d.
an agency by estoppel.
question
b.
liable, because notice to Emmett is notice to Fridley.
answer
Emmett, an agent for Fridley, signs an agreement with Grover on Fridley's behalf but neglects to tell him that the agreement requires the payment of a certain tax. The government prosecutes Fridley for failing to pay the tax. He is
a.
liable, because notice to Grover is notice to Fridley.
b.
liable, because notice to Emmett is notice to Fridley.
c.
not liable, because Grover did not tell Fridley about the tax.
d.
not liable, because Emmett did not notify Fridley of the tax.
question
a.
totally unsuccessful.
answer
Without authorization, Rolf contracts on behalf of Sari to have Tige paint the interior and exterior of Sari's house. Sari ratifies the contract. Later, Sari tries to rescind the part of the contract relating to the exterior. This attempt will be
a.
totally unsuccessful.
b.
partly unsuccessful.
c.
totally successful.
d.
partly successful.
question
c.
valid.
answer
Limon, an agent for Mindwonder Games LLC, executes an unauthorized contract with NOW Marketing, Inc. The deal is highly advantageous to Mindwonder, and the company ratifies the contract. The contract is
a.
void.
b.
vicarious.
c.
valid.
d.
voidable.
question
d.
an agent.
answer
Mountain States Distribution Inc. hires Norris to work on Mountain States's shipping dock, accepting deliveries, dispatching trucks, and dealing with customers and other companies' drivers. With respect to Mountain States, Norris is most likely
a.
an independent contractor.
b.
a principal.
c.
an employer.
d.
an agent.
question
b.
in the course and scope of Mirena's employment.
answer
Mirena serves in a representative capacity for Netanya. Orla is injured through Mirena's negligence. Netanya may be liable to Orla if Mirena's conduct occurred
a.
outside the parties' employment relationship.
b.
in the course and scope of Mirena's employment.
c.
due to a propensity Netanya was not and could not have been aware of.
d.
during normal working hours.
question
d.
an agent and has the authority.
answer
Emery is a corporate officer of Frakking Mining Corporation. Emery serves in a representative capacity for Frakking's owners. With respect to binding Frakking Mining to contracts, Emery is
a.
an employee and does not have the authority.
b.
not an agent, an employee, or an independent contractor but does have the authority.
c.
an independent contractor and does not have the authority.
d.
an agent and has the authority.
question
b.
no longer Orina's agent.
answer
Orina hires Padget, a real estate broker, to sell her oceanfront house. The house is destroyed in a hurricane before being sold. Padget is
a.
Orina's agent until the destroyed house is sold.
b.
no longer Orina's agent.
c.
Orina's agent until the destroyed house is rebuilt and sold.
d.
Orina's agent until Orina's insurer pays Padget's commission.
question
d.
the agent's duty of loyalty.
answer
Dakota Energy Company employs Evan to negotiate the purchase of mineral rights for future mining projects. Evan secretly buys some of the property and sells it to Dakota at a profit. Evan has breached
a.
no duty.
b.
the principal's duty of compensation.
c.
the agent's duty of accounting.
d.
the agent's duty of loyalty.
question
a.
a principal.
answer
Jewelry & Coin Company hires Kelly Ann to buy gems and precious metals from various sources on its behalf. In this relationship, Jewelry & Coin is
a.
a principal.
b.
an employee.
c.
an agent.
d.
an independent contractor.
question
d.
the control Baked Bread has over the details of the work.
answer
Baked Bread Company hires Connie to sell the company's products in a certain area. Baked Bread agrees to pay Connie a salary, plus commission, for a trial period. They also agree that Connie can sell using any methods and during any hours that seem appropriate. The key factor in whether Connie is Baked Bread's employee is
a.
the length of the trial period.
b.
the amount of Connie's salary.
c.
the size of Connie's sales area.
d.
the control Baked Bread has over the details of the work.
question
d.
reimbursement.
answer
Kelvin is an agent for Lookout Mountain Accountants, Inc. On Lookout's behalf and at its request, Kelvin pays Nerdlinger for custom software designed for the management of Lookout's services. Kelvin's right to obtain the amount of those payments from Lookout arises under the principal's duty of
a.
compensation.
b.
cooperation.
c.
indemnification.
d.
reimbursement.
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