Chapter 33 Study Guide Quiz

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Question #1

Under the doctrine of respondeat superior, a principal may be liable for any harm that his or her agent causes to a third party.

A True

B False

Question #2

If a principal ratifies a contract without knowing all of the facts, the principal can rescind the contract.

A True

B False

Question #3

Apparent authority usually comes into existence through a principal’s pattern of conduct over time.

A False

B True

Question #4

An executive officer of a corporation normally can conduct ordinary business transactions without obtaining written authority from the corporation.

A True

B False

Question #5

An employer is charged with the knowledge of any dangerous condition discovered by an employee and pertinent to the employment situation.

A False

B True

Question #6

An agent’s implied authority can be implied by custom.

A False

B True

Question #7

An agent has the implied authority to do what is reasonably necessary to accomplish the objectives of the agency.

A True

B False

Question #8

A special power of attorney permits an agent to transact all business for a principal.

A True

B False

Question #9

A principal’s ratification of an agent’s unauthorized act must be express.

A False

B True

Question #10

A principal or employer normally is not liable for an agent’s crime even if the crime was committed within the scope of authority or employment.

A False

B True

Question #11

Without authorization, Lars contracts on behalf of Mina to have Nemo paint the interior and exterior of Mina’s house. If Mina decides to ratify the contract, she must affirm

A any part of the contract, with Lars liable to Nemo for the difference.

B any part of the contract before performance begins.

C all of the contract.

D any part of the contract at any time.

Question #12

Trucking Dispatch Company and Ucello put their agency agreement into a written document that describes the rights and duties of both parties. Ucello, as the agent, has

A implied authority.

B apparent authorityy.

C none of the choices.

D express authority.

Question #13

Rodney is an employee of Security Services, Inc. In deciding whether Rodney acts within the scope of his employment when he commits a tort against Tracy, a court will not consider whether

A Rodney indicated that he was acting on behalf of Security Services.

B the act is one commonly performed by employees for their employers.

C Security Services furnished the means by which the injury was inflicted.

D Security Services authorized the act.

Question #14

Reliable Insurance Company employs Stuart as an agent. To terminate Stuart’s authority, Reliable Insurance must notify

A the public generally.

B Stuart and any third parties who are aware of the agency relationship.

C Stuart only.

D only third parties who are aware of the agency relationship.

Question #15

On March 1, Eugene retains Farley to act as his authorized agent. On April 1, Eugene dies. On April 2, before Farley knows of Eugene’s death, he enters into a contract on Eugene’s behalf. The contract is

A voidable.

B void.

C binding on Eugene’s heirs.

D binding on Farley.

Question #16

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 in the course and scope of Mirena’s employment.

B due to a propensity Netanya was not and could not have been aware of.

C during normal working hours.

D outside the parties’ employment relationship.

Question #17

Mikayla, an agent for Nahir, enters into a contract on Nahir’s behalf with Onora that must be in writing to be enforceable under the Statute of Frauds. Mikayla’s authority to enter into this contract is not in writing. Under the equal dignity rule, this contract is

A void.

B voidable at Nahir’s option.

C voidable at Onora’s option.

D enforceable.

Question #18

Lena is a salesperson for Musical Instruments, Inc. She tells Nayda, a customer, that an instrument has a certain quality when, as Lena knows, it does not. In reliance, Nayda buys the instrument. Liable for this misrepresentation is

A Musical Instruments.

B no one.

C Nayda.

D Lena.

Question #19

Garry drives a truck as an employee for Heavy Hauling, Inc. Garry would most likely be considered acting outside the scope of her employment if he

A ran over an attendant at a gas station while refueling the truck.

B crashed into a car at the airport while off duty.

C hit a pedestrian in a parking lot during a “working” lunch.

D smashed into a store-front while intoxicated on-duty.

Question #20

Barney hires Clean Air, Inc., to install a new air conditioning system in his Dental Clinic, LLP. Barney does not have the right to control the details of Clean Air’s performance.
. While working, Elton, a Clean Air worker, drops a tool on Francine, Barney’s patient, causing an injury. Barney is

A liable to Francine unless Elton’s act is intentional.

B liable to Francine because she was injured on Barney’s property.

C not liable because Clean Air is an independent contractor.

D not liable because Clean Air, and thus Elton, are Barney’s employees.

Question #21

Barney hires Clean Air, Inc., to install a new air conditioning system in his Dental Clinic, LLP. Barney does not have the right to control the details of Clean Air’s performance.

The relationship between Barney and Clean Air is

A client and independent contractor.

B employer and employee.

C master and servant.

D principal and agent.

Question #22

Donald approves on behalf of Evelyn—but without authorization—a contract with Farouk to build a new silo. Evelyn does not ratify the contract. The deal with Farouk is

A a voidable contract.

B an enforceable contract with Donald.

C an unaccepted offer.

D an enforceable contract with Evelyn.

Question #23

Clark hires Dimitri to act as his agent to purchase Expo Sports Arena, Inc. Clark tells Dimitri to reveal that he is buying the firm and its assets on behalf of a third party and to tell the seller who that third party is. Clark is

A an undisclosed principal.

B a disclosed principal.

C a partially disclosed principal.

D an apparent principal.

Question #24

Bayou Development Corporation hires Coastal Brokerage Associates to sell the condominiums in a building at Bayou Development’s resort. The agency will terminate

A once Bayou Development obtains insurance to cover the property.

B after the condos have been sold.

C when Bayou Development pays Coastal Brokerage its first commission.

D if the prices of the condos must be reduced to sell them.

Question #25

Based on Esteban’s conduct, Floyd reasonably believes that Glynis has the authority to act on Esteban’s behalf even though Glynis does not have the actual authority to do so. Floyd makes a payment to Glynis for Esteban. Glynis keeps the money and disappears. Esteban

A may be estopped from denying that Glynis had authority.

B can demand that Floyd make a repayment directly to Esteban.

C can obtain damages from Floyd for Glynis’s misconduct.

D must repudiate Glynis’s misconduct to avoid liability.

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Chapter 33 Study Guide Quiz

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