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 False

B True

Question #2

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

A False

B True

Question #3

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

A True

B False

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 True

B False

Question #6

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

A True

B False

Question #7

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

A False

B True

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 True

B False

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 True

B False

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 all of the contract.

B any part of the contract before performance begins.

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

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 express authority.

B implied authority.

C apparent authorityy.

D none of the choices.

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 Security Services authorized the act.

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

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

Question #14

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

A Stuart only.

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

C the public generally.

D Stuart and any 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 void.

B binding on Farley.

C binding on Eugene’s heirs.

D voidable.

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 during normal working hours.

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

C outside the parties’ employment relationship.

D in the course and scope of Mirena’s employment.

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 enforceable.

B voidable at Onora’s option.

C voidable at Nahir’s option.

D void.

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 Nayda.

B Lena.

C Musical Instruments.

D no one.

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

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

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

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

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 because she was injured on Barney’s property.

B not liable because Clean Air is an independent contractor.

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

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

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 employer and employee.

B principal and agent.

C master and servant.

D client and independent contractor.

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 an enforceable contract with Donald.

B an unaccepted offer.

C an enforceable contract with Evelyn.

D a voidable contract.

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 an apparent principal.

C a disclosed principal.

D a partially disclosed 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 when Bayou Development pays Coastal Brokerage its first commission.

B once Bayou Development obtains insurance to cover the property.

C after the condos have been sold.

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 obtain damages from Floyd for Glynis’s misconduct.

C must repudiate Glynis’s misconduct to avoid liability.

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

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Chapter 33 Study Guide Quiz

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