1. In agreeing to act on behalf of the principal, the agent becomes a fiduciary.
a.
True
b.
False
2. In all cases, an agency agreement must be written in order to be enforceable.
a.
True
b.
False
False
1
Moderate
3. Whether a person is an independent contractor or an employee depends on what he or she does, not how the
relationship is characterized by the parties.
a.
True
b.
False
True
1
Moderate
4. A master-servant agency is a type of modern day slavery that is illegal.
a.
True
b.
False
False
1
Easy
5. An independent contractor is also considered an employee of the person for whom work is being done.
True
1
Moderate
a.
True
b.
False
6. A manager should review the scope of authority granted to the company’s workers and consider the company’s potential
liability for the actions of those workers.
a.
True
b.
False
True
1
Moderate
7. The Electronic Signatures in Global and National Commerce Act (E-SIGN) provides that contracts executed by
electronic agents are invalid.
a.
True
b.
False
8. Implied ratification of an agent’s unauthorized acts can occur through the silence of the principal.
a.
True
b.
False
True
1
Moderate
9. The respondeat superior doctrine typically applies to the actions of independent contractors.
False
1
Moderate
a.
True
b.
False
10. The principal has the right to demand reimbursement from the agent for any damages paid to a third party because of
an agent’s negligence.
a.
True
b.
False
True
1
Moderate
11. CASE 5.1, Meinhard v. Salmon (1928), involved the question of respondeat superior.
a.
True
b.
False
False
1
Challenging
12. The fact that leased workers are on the payroll of an employment agency does not preclude them from being
considered employees of the company at which they are actually working on a joint employer theory.
a.
True
b.
False
True
1
Moderate
13. The term “usual authority” refers to the authority that an agent has been allowed to exercise in the past.
False
1
Moderate
a.
True
b.
False
14. An agent who refuses to follow legal instructions of a principal has breached the duty of care.
a.
True
b.
False
False
1
Moderate
15. Principals may be held liable for the torts of independent contractors involving highly dangerous acts.
a.
True
b.
False
True
1
Moderate
16. CASE 5.3 O’Shea v. Welch (2003), involved the question of whether an employee was on a frolic or a detour at the
time of the accident.
a.
True
b.
False
True
1
Moderate
17. An undisclosed principal will be bound by any contract the agent enters into with actual authority.
a.
True
True
1
Moderate
b.
False
18. The “Inside Story” discusses how the Telephone Records and Privacy Protection Act of 2006 made it illegal for a
person to use fraud to obtain individual customer billing records and other customer information from telephone
companies.
a.
True
b.
False
True
1
Challenging
19. Leased workers are precluded from being considered employees of the company for which they are doing work
because they are on the payroll of an employment agency.
a.
True
b.
False
False
1
Moderate
20. The term “customary authority” refers to authority that agents must have by law.
a.
True
b.
False
False
1
Moderate
21. The person hiring an independent contractor bargains both for the results and the means of achieving the results.
True
1
Moderate
a.
True
b.
False
22. The most common form of agency relationship is employer-employee.
a.
True
b.
False
True
1
Easy
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
5-2 Types of Agency Relationships
Blooms: Knowledge
23. Federal law provides that electronic agents may legally bind a user to click-wrap agreements.
a.
True
b.
False
False
1
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
5-4 Agent’s Ability to Bind the Principal to Contracts Entered into by the Agent
Blooms: Application
24. Which of the following is NOT a duty of an agent to a principal?
a.
Loyalty
b.
Due care
c.
Maximizing profits
d.
Obedience
c
1
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
5-3 Fiduciary Duty
Blooms: Comprehension
25. An agency relationship can be created by:
False
1
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
5-5 Liability for Torts of Agents
Blooms: Application
a.
an express contract.
b.
an implied contract.
c.
an express contract, but not an implied contract.
d.
both by an express contract and an implied contract.
26. An __________ occurs if a principal approves or accepts the benefits of the actions of an otherwise unauthorized
agent.
a.
agency by ratification
b.
agency by estoppel
c.
agency by independent action
d.
agency by intervention
1
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
5-1 Formation of an Agency Relationship
Blooms: Comprehension
27. Which of the following is NOT true regarding an agency relationship?
a.
The most common form of agency relationship is the employer-employee relationship.
b.
An agent may not be in independent contractor.
c.
An agency agreement may be implied.
d.
Agency may be established by estoppel.
b
1
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
5-2 Types of Agency Relationships
Blooms: Comprehension
28. What is the meaning of the term “respondeat superior”?
a.
Let the master answer
b.
Let the servant respond
c.
Let both the master and servant respond
d.
The agreement must be in writing
1
d
1
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
5-1 Formation of an Agency Relationship
Blooms: Comprehension
29. Which of the following is an example of a hallmark of the fiduciary relationship?
a.
Loyalty
b.
Subservience
c.
Politeness
d.
Both loyalty and subservience, but not politeness
a
1
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
5-3 Fiduciary Duty
Blooms: Comprehension
30. Under the duty of __________ an agent has a duty to act solely for the benefit of his or her principal in all matters
directly connected with the agency undertaking.
a.
loyalty
b.
subservience
c.
trust
d.
obedience
a
1
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
5-3 Fiduciary Duty
Blooms: Application
31. Which of the following is true?
a.
Cannot be bound on contracts made by an agent if the principal’s identity is not disclosed to the third party.
b.
Cannot through ratification be bound on contracts made by an agent.
c.
Can be bound on contracts made by an agent even if the principal’s identity is not disclosed to the third party.
d.
Cannot through ratification be bound on contracts made by an agent, but a principal can be bound on contracts
made by an agent even if the principal’s identity is not disclosed to the third party.
c
1
Moderate
DISC: – AICPA: BB-Legal
5-4 Agent’s Ability to Bind the Principal to Contracts Entered into by the Agent
Blooms: Application
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
5-2 Types of Agency Relationships
Blooms: Comprehension
32. Agency is perhaps the most pervasive legal relationship in the business world.
a.
True
b.
False
33. Which of the following is true regarding express authority?
a.
It may be given by the principal’s actual words but not by action.
b.
It may be given by written contract only.
c.
It may be given by the principal’s actual words and also by an action that indicates the principal’s consent.
d.
It may be given by action but only after a contract of agency has been signed.
c
1
United States – BUSBROG: – Analytic
34. Once an agent is given __________ authority, he or she also has __________ authority to do whatever is reasonable to
complete the task he or she has been instructed to undertake.
a.
express, implied
b.
express, absolute
c.
express, limited
d.
apparent, contractual
a
1
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
5-4 Agent’s Ability to Bind the Principal to Contracts Entered into by the Agent
Blooms: Application
35. Which of the following is true regarding a principal’s duty to pay unemployment taxes?
a.
A principal must pay unemployment taxes for both an employee and an independent contractor.
b.
A principal must pay unemployment taxes for an independent contractor but not for an employee.
c.
A principal must pay unemployment taxes for an employee but not for an independent contractor.
d.
A principal is not required to pay unemployment taxes for either an employee or an independent contractor.
c
1
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
5-2 Types of Agency Relationships
Blooms: Comprehension
True
1
Easy
DISC: – AICPA: BB-Legal
Introduction
Blooms: Knowledge
36. Unless state law is to the contrary, an agent may lawfully conceal __________ of the principal.
a.
the existence
b.
the identity
c.
the existence and identity
d.
nothing regarding
37. An agent may bind the principal due to the agent’s __________ authority.
a.
express
b.
implied
c.
apparent
d.
express, implied, or apparent
d
1
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
5-4 Agent’s Ability to Bind the Principal to Contracts Entered into by the Agent
Blooms: Comprehension
38. Which of the following is true regarding situations in which an agent enters into a contract without authority?
a.
The principal is not bound nor is the agent bound.
b.
The principal is bound and the agent may be personally liable.
c.
The principal is not bound, but the agent may personally liable.
d.
Neither the principal nor the agent is bound if the contract is oral; but if the contract is written, both the
principal and agent are bound.
c
1
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
5-4 Agent’s Ability to Bind the Principal to Contracts Entered into by the Agent
Blooms: Application
39. The most basic legal characteristic of the employer-employee relationship is that the employer has the right to:
a.
deduct taxes.
b.
control the conduct of the employee.
c.
provide health care.
d.
deduct taxes, control the conduct of the employee, and provide health care.
c
1
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
5-4 Agent’s Ability to Bind the Principal to Contracts Entered into by the Agent
Blooms: Application
40. Which of the following is true regarding an independent contractor’s entitlement to fringe benefits offered by a
principal?
a.
An independent contractor is generally eligible for the same fringe benefits provided to employees.
b.
An independent contractor is generally eligible for the same medical insurance provided to employees but not
for retirement benefits.
c.
An independent contractor is generally eligible for the same retirement benefits provided to employees but not
for medical benefits.
d.
An independent contractor is not generally eligible for the fringe benefits provided to employees.
d
1
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
5-2 Types of Agency Relationships
Blooms: Analysis
41. Which of the following is not usually considered an independent contractor?
a.
A delivery driver working for a delivery service
b.
A lawyer working for a client
c.
A plumber working for a homeowner
d.
An architect working for a developer
1
United States – BUSPROG: – ANALYTIC
DISC: – AICPA: BB-Legal
5-2 Types of Agency Relationships
Blooms: Application
42. Which of the following is NOT one of the factors the law looks at in distinguishing between employees and
independent contractors?
a.
The amount of experience of the worker
b.
Whether the work is usually performed by a specialist without supervision
c.
Whether the worker is paid hourly or by the job
d.
The degree of skill the work requires
1
b
1
DISC: – AICPA: BB-Legal
United States – BUSBROG: – Analytic
5-2 Types of Agency Relationships
Blooms: Application
43. Which of the following is true regarding whether an independent contractor is an agent of a principal?
a.
An independent contractor is always an agent of the principal.
b.
An independent contractor, by definition, is not an agent of the principal.
c.
An independent contractor may or may not be an agent generally depending on whether the independent
contractor has authority to enter into contracts on behalf of the hiring party.
d.
An independent contractor is an agent only if the hiring party is a merchant.
c
1
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
5-2 Types of Agency Relationships
Blooms: Comprehension
44. Which of the following terms refers to a slight deviation from the employer’s business that is still within the scope of
employment?
a.
Frolic
b.
Detour
c.
Errand
d.
Chore
b
1
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
45. An agency by __________ occurs when a person leads another to believe that someone else is his or her agent and is
thereafter prevented from denying it.
a.
ratification
b.
conduct
c.
agreement
d.
estoppel
d
1
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
5-1 Formation of an Agency Relationship
Blooms: Comprehension
46. The “Inside Story” referenced the actions of Hewlett-Packard and its corporate spying activities. What is the
investigative technique called “pretexting”?
United States – BUSPROG: – ANALYTIC
DISC: – AICPA: BB-Legal
5-2 Types of Agency Relationships
Blooms: Comprehension
a.
A practice whereby a person pretends to be someone else, typically over the telephone, in order to obtain
information.
b.
A practice whereby a person pretends to be someone else, typically through a personal visit, in order to obtain
information.
c.
A practice whereby a person induces someone, often an elderly person, to sign a contract purchasing unneeded
services.
d.
A practice whereby a person induces someone, often an elderly person, to sign a contract purchasing unneeded
goods.
47. Apparent authority may be based on which of the following?
a.
Only words of the principal or acts of the principal.
b.
Only words of the principal or knowledge that the principal has allowed its agent to engage in certain activities
on its behalf over an extended period of time.
c.
Words of the principal, acts of the principal, or knowledge that the principal has allowed its agent to engage in
certain activities on its behalf over an extended period of time.
d.
Express contractual authority only.
c
1
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
5-1 Formation of an Agency Relationship
Blooms: Application
48. A principal may be held liable for the torts of a(n) __________ only in extraordinary circumstances, usually involving
highly dangerous acts or nondelegable duties.
a.
agent
b.
servant
c.
employee
d.
independent contractor
d
1
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
5-2 Liability for Torts of Agents
Blooms: Comprehension
49. When would the “aided-in-the-agency” theory likely be asserted?
a.
By a defending employer in an attempt to show that although an employee was acting within the scope of
a
1
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
Inside Story
Blooms: Application
employment, the employer should not be held responsible for the employee’s actions because the employee
was aided by a non-employee.
b.
By a plaintiff in an attempt to show that even if an employee was acting outside the scope of employment, the
employer may be liable for the employee’s action because the employee was aided by the agency relationship.
c.
By a defending employer in an attempt to show that an employee was acting outside the scope of employment
and that the employer should not, therefore, be held liable for the employee’s actions.
d.
By a plaintiff in an attempt to show that an employee was acting within the scope of employment and that the
employer should, therefore, be held liable for the employee’s actions.
50. In CASE 5.2 EBC I, Inc. v. Goldman, Sachs & Co., (2005) the plaintiffs claimed that Goldman Sachs breached a
fiduciary duty in acting as an underwriter and in providing advice to eToys, the plaintiff’s predecessor, in regard to an
initial public offering of stock. How did the court rule and why?
a.
The court dismissed the case on the basis that Goldman Sachs as an underwriter could not be considered a
fiduciary based on its role in the transactions at issue.
b.
The court refused to order a dismissal of the plaintiff’s claim and found that Goldman Sachs’ failure to disclose
a material conflict of interest established a claim for breach of fiduciary duty.
c.
The court dismissed the case because Goldman Sachs had every right to make a profit out of the transaction so
long as no actual misrepresentations were made to the plaintiffs.
d.
The court refused to order a dismissal of the plaintiff’s claim and found that Goldman Sachs’ could be held
liable based on material misrepresentations made to the plaintiffs regarding the value of the stock involved in
the initial public offering.
b
1
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
5-3 Fiduciary Duty
Blooms: Comprehension
51. Under the Uniform Computer Information Transactions Act (UCITA), what would be the result if an electronic agent
agrees to a click-wrap agreement?
a.
The user of the electronic agent would not be liable for the agreement.
b.
The user of the electronic agent would be liable for the agreement only if the evidence established that the user
had an opportunity to look over the agreement and cancel it within a reasonable length of time.
c.
The use of the electronic agent would be liable for the agreement.
d.
The user of the electronic agent would be liable for the agreement only if the user was a merchant in respect to
goods or services of the type purchased by the agreement.
1
United States – BUSBROG: – Analytic
b
1
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
5-5 Liability for Torts of Agents
Blooms: Application
52. CASE 5.3 O’Shea v. Welch (2003) involved a question of whether Welch, an employee, was acting within the scope of
his employment when he struck O’Shea’s car. How did the court find and why?
a.
The court found that as a matter of law the employee was not acting within the scope of his employment
because he was involved in a frolic of his own.
b.
The court found that as a matter of law the employee was not acting within the scope of his employment
because he was involved in a detour.
c.
The court found that as a matter of law the employee was acting within the scope of his employment because
he was involved in only a detour, not a frolic on his own.
d.
The court found that the jury should determine whether the employee was acting within the scope of his
employment during the time period at issue.
d
1
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
5-5 Liability for Torts of Agents
Blooms: Application
53. Under the theory of __________, a company can be held liable for violations of __________ law by its employee,
even if a manager told the employee not to violate the law.
a.
vicarious liability, civil
b.
aided-in-the-agency, civil
c.
vicarious liability, criminal
d.
disclosure of principal, civil
a
1
Moderate
United States – BUSPROG: – ANALYTIC
DISC: – AICPA: BB-Legal
5-6 Liability of the Principal for Violations of Law by the Agent
Blooms: Comprehension
54. Which of the following are autonomous computer programs that can be dispatched by the user to execute certain
tasks?
a.
Electronic agents
b.
Software identifiers
c.
Click programs
d.
Fortran identifiers
a
Moderate
United States – AACSB: Technology
DISC: – AICPA: BB-Legal
DISC: – AICPA: BB-Legal
5-4 Agent’s Authority to Bind the Principal to Contracts Entered into by the Agent
Blooms: Application
55. Which of the following is true regarding respondeat superior?
a.
Under that theory, a principal may be liable for not only the contracts but also the torts of its agents.
b.
Under that theory, a principal may be liable for only the contracts of its agents, not the torts.
c.
Under that theory, a principal may be liable for only the torts of its agents, not the contracts.
d.
Under that theory, a principal may not be held liable for either the contracts or torts of its agent unless the
principal expressly authorize the agent‘s actions.
a
1
Moderate
United States – BUSBROG: – Analytic
DISC: – AICPA: BB-Legal
5-5 Liability for Torts of Agents
Blooms: Application
56. Maureen owns a business that makes kites. Maureen’s agent Bob entered into an agreement with Alice to purchase
some land for a new kite factory. Maureen’s agency relationship with Bob was not memorialized by any writing. The day
after Bob signs the papers finalizing the sale, Maureen learned of the purchase, was furious with Bob, and said that she
wanted out of the deal. Assuming that Bob was legally considered the agent of Maureen in making the purchase, which of
the following is Maureen’s best argument?
a.
That the agency agreement with Bob was not in writing and that under the equal dignities rule she should not
be bound.
b.
That agency agreements may not extend to the purchase of land.
c.
That under the exclusion principle, Bob was not authorized to purchase land unless expressly authorized by
Maureen.
d.
That she did not need land and that therefore she should not be bound because Bob was mistaken.
a
1
Moderate
United States – BUSPROG: – ANALYTIC
DISC: – AICPA: BB-Legal
5-1 Formation of an Agency Relationship
Blooms: Application
Fact Pattern 5-1
Candy owns a nail and hair salon. She reaches an agreement with Todd, an independent contractor, allowing him to do
nails in her salon three days per week. Todd has a sign on his desk informing his customers that he is an independent
contractor of the shop. After working for a month, Todd asks Candy if she has been paying appropriate social security
taxes for him. He also informs Candy that Phyllis, a customer, is preparing to sue both Todd and Candy based upon a
nasty nail fungus she developed after having her nails done by Todd.
57. Refer to Fact Pattern 5-1. Which of the following is true regarding the duty of Candy, if any, to pay social security
taxes for Todd?
a.
Candy must pay all of Todd’s social security taxes.
5-4 Agent’s Ability to Bind the Principal to Contracts Entered into by the Agent
Blooms: Comprehension
b.
Candy is responsible for 50% of Todd’s social security taxes, and he is responsible for 50%.
c.
Candy is responsible for all of Todd’s social security taxes only if he works at least 30 hours per week;
otherwise, Todd is responsible for all of the taxes.
d.
Candy is not responsible for any of Todd’s social security taxes.
58. Refer to Fact Pattern 5-1. Which of the following is true regarding legal responsibility to Phyllis assuming negligence
on the part of Todd can be established?
a.
Both Candy and Todd are responsible to Phyllis with Candy being primarily responsible meaning that if Todd
pays then he can recover any payments from Candy.
b.
Both Candy and Todd are responsible to Phyllis with Todd being primarily responsible meaning that if Candy
pays then she can recover any payments from Todd.
c.
Candy owes 50% of any payments due Phyllis, and Todd owes 50%; but neither Candy nor Todd can recover
against the other.
d.
Candy does not owe Phyllis any amounts.
d
1
DISC: – AICPA: BB-Legal
United States – BUSPROG: – ANALYTIC
5-5 Liability for Torts of Agents
Blooms: Analysis
Fact Pattern 5-2
Billy owns a used car lot. Samantha works for Billy selling used cars. Billy fully directs and controls her work, sets her
hours, and pays her an hourly salary as well as a commission. Belinda comes to the lot to buy a used car. Samantha,
however, tells Belinda that she needs to sell her mother’s used vehicle and that if Belinda will meet her after hours, she
will give Belinda an excellent deal. Belinda meets Samantha after work and ends up buying the car belonging to
Samantha’s mother. The next day, Samantha, acting within the scope of her employment, is moving a car. She, however,
is in a hurry and in a grossly negligently manner backs it over the foot of Wesley, another customer. While waiting for the
ambulance to come for Wesley, Belinda storms onto the lot complaining about the condition of the vehicle she purchased
from Samantha’s mother. Billy fires Samantha on the spot based on her obviously intoxicated condition and the fact that
she arranged for the sale of her mother’s vehicle. Samantha informs him that she has been an excellent employee and that
he has no reason to be unhappy with her.
59. Refer to Fact Pattern 5-2. Did Samantha breach any fiduciary duties owed to Billy?
a.
Yes, only the duty of loyalty
b.
Yes, only the duty of care
c.
Yes, both the duty of loyalty and the duty of care
d.
No
1
d
1
United States – BUSPROG: – ANALYTIC
DISC: – AICPA: BB-Legal
60. Refer to Fact Pattern 5-2. Who is liable for Wesley’s injured foot?
a.
Only Billy
b.
Only Samantha
c.
Both Billy and Samantha with Billy having the right to recover from Samantha any amounts paid
d.
Both Billy and Samantha with Samantha having the right to recover from Billy any amounts paid
1
United States – BUSPROG: – ANALYTIC
DISC: – AICPA: BB-Legal
5-5 Liability for Torts of Agents
Blooms: Analysis
61. Agents owe a fiduciary duty to the principal. Describe the specific responsibilities that are generated by this duty.
Discuss fully.
intentional misconduct.
1
United States – BUSPROG: – ANALYTIC
DISC: – AICPA: BB-Legal
5-3 Fiduciary Duty
Blooms: Application
62. Sam is an employee of Binky, Inc. While delivering a truckload of binkies to a local retailer, Sam decided to stop at
his bank to deposit his paycheck. The bank is three blocks from the retailer and it takes approximately 15 minutes to
deposit a check. While Sam is in the bank, the truck rolled down the street because Sam negligently forgot to set the
parking brake. The truck crashed through the window of Market, killing two people and causing $500,000 in damage.
Discuss the issues involved in determining whether Binky, Inc. is liable for the damages at issue. If Binky, Inc. is liable,
can it recover against Sam for the damages?
held liable, it can recover the judgment from Sam.
1
United States – BUSPROG: – ANALYTIC
DISC: – AICPA: BB-Legal
5-5 Liability for Torts of Agents
United States – BUSPROG: – ANALYTIC
5-3 Fiduciary Duty
Blooms: Application
63. Carl is a contractor that is building a home for Orel. Pam is one of Orel’s neighbors. One day Pam was walking in the
neighborhood. As she passed the construction site, a piece of lumber fell from the partially finished garage roof and hit
her in the head, injuring her severely. The lumber was left negligently on the roof by Carl. Pam now wishes to sue Orel.
Should Orel be held liable to Pam? Discuss.
64. Molly wants to buy a vacant lot that is for sale in her neighborhood. The problem is that she had a skirmish with the
current owner, Ben, over his dog barking at all hours of the night. Molly asks Sam if he will purchase the lot on her behalf
without telling Ben that she will be the true owner. Sam agrees and reaches an agreement with Ben. A few months after
the purchase, Molly begins to do some work on the lot. Ben sees her and asks what she is doing. Molly tells him that she
was the true purchaser. Ben becomes furious and yells at her that he will have the sale rescinded and sue both Molly and
Sam for fraud. What will be the likely result if Ben sues Molly and Sam?
65. Discuss the elements that are considered in determining whether a worker is an employee or an independent
contractor.
66. What factors do courts consider in determining whether an act of an agent was within the scope of employment?
67. What is considered in determining the scope of an agent’s implied authority?