1.
(p. 752)
When making decisions about an agency relationship’s liability to third parties, courts
must first identify whether property damage or personal injury, or both, is at issue.
2.
(p. 752)
A special type of express agent authority is known as a power of attorney.
3.
(p. 752)
There are two basic types of power of attorney: special and allocated.
4.
(p. 752)
A special power of attorney grants the agent express authority over specifically outlined
acts.
5.
(p. 755)
Agents who go beyond their authority when the principal is disclosed or partially
disclosed are liable to third parties for breach of contract, not breach of implied warranty.
6.
(p. 760)
If an agent commits a crime in the scope of employment for a principal without the
authorization of the principal, the principal is not liable for the agent’s crime.
7.
(p. 760)
In order to terminate a principal’s responsibility, actual notice of agency termination must
be given to third parties who have had business interactions with the agent.
8.
(p. 760)
Actual notice of agency termination may not be given orally.
9.
(p. 763)
The principal may terminate an agency coupled with an interest.
10.
(p. 763)
Insolvency of either the principal or agent always terminates the agency relationship.
11.
(p. 765)
Which of the following represented the position of the Supreme Court of Tennessee in
the Case Opener in which the plaintiff attempted to hold a hospital vicariously liable for her
injuries?
12.
(p. 752–753)
Which of the following was the result on appeal in
In
re Estate of Kurrelmeyer
, the
case in the text in which the decedent’s son sued the wife of the decedent alleging that in
violation of the power of attorney that she held, she invalidly transferred the decedent’s home
into a trust?
13.
(p. 756)
As set forth in the text, which of the following is true regarding
respondeat
superior
in
Iraq?
14.
(p. 765)
As discussed in the text, which of the following is true regarding electronic contracts and
agency authority in Singapore?
15.
(p. 754)
Mary is an agent for ABC Photography, owned by Phil. Without disclosing her agency
status, Mary agrees by contract to take Polly’s wedding photographs. When Phil finds out, he
explains the agency relationship he has with Mary to Polly and says that he wants to take the
photographs because a lady he wants to ask out on a date is expected to be at the wedding.
When Polly finds out, she says “No way – I choose Mary.” Which of the following is true regarding
the rights of the parties?
16.
(p. 760)
Which of the following was the result in
Larry S. Lawrence v. Bainbridge Apartments
, the
case in the text in which the window washer argued that he was entitled to recover against the
building owner for his injuries in a fall?
17.
(p. 761–762)
Which of the following was the result in
Angela & Raul Ruiz v. Fortune Insurance
Co.
, the case in the text in which the plaintiffs claimed that the defending insurer was liable to
them for a loss to their mobile home although the agency to which plaintiffs’ premium was
remitted no longer had an agency relationship with the defendant; and the defendant had not
received the payment nor renewed the plaintiffs’ policy?
18.
(p. 752)
Which of the following allows an agent to conduct all business for the principal?
19.
(p. 752)
Which of the following specifies that the agent’s authority is intended to continue beyond
the principal’s incapacitation?
20.
(p. 754)
Bobby wants to purchase a lot next door to Sarah’s home that is owned by Sarah. Bobby
knows Sarah will not sell the lot to him because of his barking dogs that she dislikes. Bobby
agrees with Susie that Susie will purchase the lot from Sarah for him. Susie and Sarah reach an
agreement and enter into a contract whereby Sarah is to sell the lot to Susie for a price within the
scope of Susie’s authority. Susie tells Sarah nothing about her plan to later transfer the lot to
Bobby. Before title to the lot is transferred to Susie, Bobby tells Susie that he no longer wants the
lot. Susie tells Sarah about Bobby. Sarah tells Susie that as far as she is concerned, Susie has
bought a lot. Sarah says that she plans to move anyway and really does not care whether Susie
or Bobby end up with the lot. She just wants her money and is unconcerned about barking dogs.
They will be the next owner’s problem. Which of the following is true regarding whether Susie is
personally bound on the contract with Sarah?
21.
(p. 754)
Which of the following is true if a third party comes to know of an undisclosed principal’s
identity and obtains a judgment against the principal?
22.
(p. 753)
Which of the following is
false
regarding classification of principals?
23.
(p. 753)
When a principal is classified as a[n] ______ principal, a third party is aware that an agent
is making an agreement on behalf of a principal, and the third party also knows the identity of the
principal.
24.
(p. 757)
An employee’s significant deviation from the employer’s business is often referred to as a
_______.
25.
(p. 754)
Which of the following is true regarding liability of an agent acting within his or her
authority on a contract involving an undisclosed principal?