Question 1

The scope of an agent's authority may be determined from all of the following except: ______.

Accepted Answer

A)  ​express words of the principal.
B)  actions of the principal.
C)  ​customs of the trade or business.
D)  ​consideration paid to agent

Question 2

An employer does not have control over the performance of the work done by an independent contractor.

Accepted Answer

A) True 
 B)False

Question 3

Barnes agrees with Morgan to enter into the management of a new subdivision of residential housing.Morgan appoints Barnes as his manager for the duration of the development program.During the course of the construction, Barnes decides to use funds specified for the subdivision for an office space project that Barnes alone has been interested in completing.Morgan is very angry on learning of Barnes' actions and terminates the agency.Barnes insists that the agency cannot be terminated in this manner.Is Barnes correct?

Accepted Answer

​No. Morgan hired Barnes to manage a new...

Question 4

The acts of the agent obligate the principal to third persons and give the principal rights against third persons.

Accepted Answer

A) True 
 B)False

Question 5

A(n)  _______ gives an agent an interest in the property with which she is dealing.

Accepted Answer

A)  ​special agency
B)  agency with an interest in the authority
C)  ​general agency
D)  ​agency with an interest in the subject matter

Question 6

A universal agent is authorized by the principal to transact all affairs in connection with a particular type of business or trade or to transact all business at a certain place.

Accepted Answer

A) True 
 B)False

Question 7

An agent appointed by a power of attorney is referred to as an: ______.

Accepted Answer

A)  ​implied attorney.
B)  attorney in fact.
C)  ​implied agent.
D)  ​attorney at law.

Question 8

Notification to a principal may be implied when the principal does not object to a contract and accepts its benefits.

Accepted Answer

A) True 
 B)False

Question 9

An agent has incidental authority to perform any act reasonably necessary to execute the express authority given to the agent.

Accepted Answer

A) True 
 B)False

Question 10

A __________ agent is authorized by the principal to handle a definite business transaction or to do a specific act.

Accepted Answer

A)  ​special
B)  general
C)  ​secret
D)  ​universal

Question 11

An agent is under a duty to obey: ______.

Accepted Answer

A)  ​all instruction given by the third party.
B)  all lawful instructions given by the principal.
C)  ​all instructions given by the principal.
D)  ​none of these, since "obedience" is not an obligation of the agent.

Question 12

When an unauthorized act is ratified, the effect is the same as though the act had been originally authorized.

Accepted Answer

A) True 
 B)False

Question 13

A(n)  ______ is bound by a contract to produce a certain result, with performance of the work controlled by the ______.

Accepted Answer

A)  ​agent, principal.
B)  employee, employer.
C)  ​independent contractor, employer
D)  ​independent contractor, contractor

Question 14

A third person who deals with a person claiming to be an agent: ______.

Accepted Answer

A)  ​can rely on the statements made by the agent regarding the extent of the authority.
B)  cannot ignore any knowledge regarding a limitation of the agent's authority.
C)  ​is not required to take notice of any acts clearly adverse to the interest of the principal.
D)  ​is bound by the agent's secret limitations, regardless of the third person's knowledge.

Question 15

The term apparent authority is used when there is: ______.

Accepted Answer

A)  ​no interaction between the principal and third persons.
B)  actual authority.
C)  ​only the appearance of authority and that appearance of authority was created by the principal.
D)  ​only the appearance of authority and that appearance of authority was created by the agent.

Question 16

Ames, an agent for Baker Antiques, had the authority to purchase early 20th-century American furniture costing a maximum of $1,500 per piece.Ames bought a 19th-century French desk for $3,000 from Carter.Baker was furious when she saw the desk, and she fired Ames.Nevertheless, she put the desk on display in the shop with a $5,000 price tag.When the best offer she got for the desk was $2,500, Baker returned the desk to Carter.Baker told Carter that Ames had exceeded his authority in purchasing the desk, and she demanded that Carter refund the $3,000 that Ames had paid for the desk.Will Carter have to do so?

Accepted Answer

​No. By displaying the desk an...

Question 17

An agent's implied authority to perform any act reasonably necessary to execute express authority is called __________ authority.​

Accepted Answer

A)  ​express
B)  customary
C)  ​apparent
D)  ​incidental

Question 18

If the principal terminates the agency: ______.

Accepted Answer

A)  ​the agent's authority to act for the principal is terminated automatically.
B)  the right of the agent to bind the principal to third persons generally ends immediately.
C)  ​the termination is not effective until notice is given to third parties.
D)  ​the termination is not effective until the agent receives the notice.

Question 19

Which of the following is not a necessary condition for ratification?

Accepted Answer

A)  ​The agent must have purported to act on behalf of or as an agent for the identified principal.
B)  The third party benefiting from the ratification must give consideration for the ratification.
C)  ​The principal must have been capable of authorizing the act both at the time of the act and at the time it was ratified.
D)  ​The principal must have full knowledge of all material facts.

Question 20

An agent has an interest in the authority when consideration has been given or paid for the right to exercise the authority.

Accepted Answer

A) True 
 B)False

Exam 36: Agency

Notification to a principal may be implied when the principal does not object to a contract and accepts its benefits.

Correct Answer
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Correct Answer
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No. Morgan hired Barnes to manage a new...
View Answer

An agent appointed by a power of attorney is referred to as an: ______.

Correct Answer
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An agent has an interest in the authority when consideration has been given or paid for the right to exercise the authority.

Correct Answer
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A third person who deals with a person claiming to be an agent: ______.

Correct Answer
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An agent is under a duty to obey: ______.

Correct Answer
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When an unauthorized act is ratified, the effect is the same as though the act had been originally authorized.

Correct Answer
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The scope of an agent's authority may be determined from all of the following except: ______.

Correct Answer
verified

Correct Answer
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No. By displaying the desk an...
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A(n) is bound by a contract to produce a certain result, with performance of the work controlled by the .

Correct Answer
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A(n) _______ gives an agent an interest in the property with which she is dealing.

Correct Answer
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An agent's implied authority to perform any act reasonably necessary to execute express authority is called __________ authority.

Correct Answer
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The term apparent authority is used when there is: ______.

Correct Answer
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Which of the following is not a necessary condition for ratification?

Correct Answer
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If the principal terminates the agency: ______.

Correct Answer
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The acts of the agent obligate the principal to third persons and give the principal rights against third persons.

Correct Answer
verified

A __________ agent is authorized by the principal to handle a definite business transaction or to do a specific act.

Correct Answer
verified

An employer does not have control over the performance of the work done by an independent contractor.

Correct Answer
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An agent has incidental authority to perform any act reasonably necessary to execute the express authority given to the agent.

Correct Answer
verified

A universal agent is authorized by the principal to transact all affairs in connection with a particular type of business or trade or to transact all business at a certain place.

Correct Answer
verified

Exam 36: Agency

Notification to a principal may be implied when the principal does not object to a contract and accepts its benefits.

Correct AnswerverifiedShow Answer

Correct Answerverified​No. Morgan hired Barnes to manage a new...View AnswerShow Answer

An agent appointed by a power of attorney is referred to as an: ______.

Correct AnswerverifiedShow Answer

An agent has an interest in the authority when consideration has been given or paid for the right to exercise the authority.

Correct AnswerverifiedShow Answer

A third person who deals with a person claiming to be an agent: ______.

Correct AnswerverifiedShow Answer

An agent is under a duty to obey: ______.

Correct AnswerverifiedShow Answer

When an unauthorized act is ratified, the effect is the same as though the act had been originally authorized.

Correct AnswerverifiedShow Answer

The scope of an agent's authority may be determined from all of the following except: ______.

Correct AnswerverifiedShow Answer

Correct Answerverified​No. By displaying the desk an...View AnswerShow Answer

A(n) ______ is bound by a contract to produce a certain result, with performance of the work controlled by the ______.

Correct AnswerverifiedShow Answer

A(n) _______ gives an agent an interest in the property with which she is dealing.

Correct AnswerverifiedShow Answer

An agent's implied authority to perform any act reasonably necessary to execute express authority is called __________ authority.​

Correct AnswerverifiedShow Answer

The term apparent authority is used when there is: ______.

Correct AnswerverifiedShow Answer

Which of the following is not a necessary condition for ratification?

Correct AnswerverifiedShow Answer

If the principal terminates the agency: ______.

Correct AnswerverifiedShow Answer

The acts of the agent obligate the principal to third persons and give the principal rights against third persons.

Correct AnswerverifiedShow Answer

A __________ agent is authorized by the principal to handle a definite business transaction or to do a specific act.

Correct AnswerverifiedShow Answer

An employer does not have control over the performance of the work done by an independent contractor.

Correct AnswerverifiedShow Answer

An agent has incidental authority to perform any act reasonably necessary to execute the express authority given to the agent.

Correct AnswerverifiedShow Answer

A universal agent is authorized by the principal to transact all affairs in connection with a particular type of business or trade or to transact all business at a certain place.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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No. Morgan hired Barnes to manage a new...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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No. By displaying the desk an...
View Answer

A(n) is bound by a contract to produce a certain result, with performance of the work controlled by the .

Correct Answer
verified

Correct Answer
verified

An agent's implied authority to perform any act reasonably necessary to execute express authority is called __________ authority.

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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