Question 1

A principal's intent to ratify a contract:

Accepted Answer

A)   can only be inferred by the agent's actions.
B)   may not be implied by his acts or failure to act.
C)   may be inferred by a court from the fact that the agent accepted the benefits of an unauthorized contract.
D)   may be inferred from the principal's failure to repudiate an unauthorized contract after becoming aware of it.E) All of the above
F) A) and D)

Question 2

An agent's exercise of apparent authority,in the absence of actual authority,is in violation of the agent's duty to the principal.

Accepted Answer

A) True 
 B)False

Question 3

Express authority:

Accepted Answer

A)   is created when the principal specifically describes the extent of the agent's powers.
B)   arises from the principal's failure to inform third persons that the relationship between the principal and the agent is not what it appears to be.
C)   arises from the justifiable belief of a third party dealing with the agent.
D)   is created by the conduct of the principal that causes a third person to incorrectly believe that another has the authority to act for the principal.E) All of the above
F) C) and D)

Question 4

An agent can exercise his implied authority when:

Accepted Answer

A)   third persons believe that authority exists because past actions of the agent were ratified by the principal.
B)   the agent is a special agent and not a general agent.
C)   the principal's property interests need to be protected by the agent during an emergency.
D)   the principal does not grant the agent any powers.E) C) and D)
F) A) and B)

Question 5

Under the theory of _____ the principal basically is liable because of its own tort.

Accepted Answer

A)   direct liability
B)   respondeat superior
C)   joint liability
D)   vicarious liabilityE) A) and B)
F) B) and C)

Question 6

Liability is imposed on an agent who has exceeded his authority on the basis of an:

Accepted Answer

A)   implied warranty of authority.
B)   actual warranty of authority.
C)   direct warranty of authority.
D)   definitive warranty of authority.E) All of the above
F) None of the above

Question 7

The test of an agent's implied authority is:

Accepted Answer

A)   the justifiable belief of the agent.
B)   the specific language the principal used in granting the authority.
C)   the explicit agency agreement between the principal and the agency.
D)   the deduction of the third party dealing with the agent.E) A) and D)
F) B) and C)

Question 8

Misrepresentations by an agent made with the intent to deceive a third person:

Accepted Answer

A)   will make the agent liable to the third person.
B)   will absolve the principal of any liabilities toward the third person.
C)   will make the third person liable to the principle.
D)   will make the principal liable to the agent and the third person.E) C) and D)
F) None of the above

Question 9

An agent who commits a criminal act under instruction from the principal is guilty of that crime.

Accepted Answer

A) True 
 B)False

Question 10

Agents cannot delegate to employees acts for the principal that involve no judgment or discretion.

Accepted Answer

A) True 
 B)False

Exam 24: Liability of Principals and Agents to Third Parties

An agent who commits a criminal act under instruction from the principal is guilty of that crime.

Correct Answer
verified

The test of an agent's implied authority is:

Correct Answer
verified

Liability is imposed on an agent who has exceeded his authority on the basis of an:

Correct Answer
verified

An agent can exercise his implied authority when:

Correct Answer
verified

Under the theory of _____ the principal basically is liable because of its own tort.

Correct Answer
verified

An agent's exercise of apparent authority,in the absence of actual authority,is in violation of the agent's duty to the principal.

Correct Answer
verified

A principal's intent to ratify a contract:

Correct Answer
verified

Agents cannot delegate to employees acts for the principal that involve no judgment or discretion.

Correct Answer
verified

Misrepresentations by an agent made with the intent to deceive a third person:

Correct Answer
verified

Express authority:

Correct Answer
verified

Exam 24: Liability of Principals and Agents to Third Parties

An agent who commits a criminal act under instruction from the principal is guilty of that crime.

Correct AnswerverifiedShow Answer

The test of an agent's implied authority is:

Correct AnswerverifiedShow Answer

Liability is imposed on an agent who has exceeded his authority on the basis of an:

Correct AnswerverifiedShow Answer

An agent can exercise his implied authority when:

Correct AnswerverifiedShow Answer

Under the theory of _____ the principal basically is liable because of its own tort.

Correct AnswerverifiedShow Answer

An agent's exercise of apparent authority,in the absence of actual authority,is in violation of the agent's duty to the principal.

Correct AnswerverifiedShow Answer

A principal's intent to ratify a contract:

Correct AnswerverifiedShow Answer

Agents cannot delegate to employees acts for the principal that involve no judgment or discretion.

Correct AnswerverifiedShow Answer

Misrepresentations by an agent made with the intent to deceive a third person:

Correct AnswerverifiedShow Answer

Express authority:

Correct AnswerverifiedShow Answer

Correct Answer
verified

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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