Question 1

How long does an agent's apparent authority continue once an agency relationship is terminated?

Accepted Answer

A)  24 hours
B)  7 days
C)  Until the principal notifies third parties that the agency relationship has ended.
D)  30 days
E)  It ends immediatelyF) A) and C)
G) A) and E)

Question 2

[Beach Home] Wendy hires Rob to find and negotiate a price for her perfect vacation home.Rob previously helped Wendy find a home and Wendy was very satisfied with his service.Wendy had many demands for her dream vacation home and told Rob that each demand was nonnegotiable.Wendy desired her home to have five bedrooms,seven bathrooms,a large master suite with a balcony,a pool house,and she wanted the property to be within a block of the beach.Rob informed Wendy this was a high demand and he was not confident he could find a property that met all of Wendy's requirements within her price range.Wendy thought Rob was underestimating himself and told him that she was not willing to budge.Rob finds a home that meets all of her requirements,except it is five blocks from the beach.Rob informed the seller he was working on behalf of a principal and the property met all of her requirements.Rob negotiates an outstanding price and is excited to share it with Wendy.Rob tells Wendy about the stellar price and Wendy is devastated that the property is not in her defined location.She immediately calls the seller to rescind the offer but the seller declines,stating the offer is binding because as the seller knew,Rob had authority to contract and the seller was not aware of Wendy's requirements.
-What is Wendy's best cause of action?

Accepted Answer

A)  Wendy should sue Rob for breach of implied warranty.
B)  Wendy should sue the seller for breach of contract.
C)  Wendy should sue Rob for breach of contract.
D)  Wendy should sue the seller for breach of implied warranty.
E)  Wendy does not have a valid cause of action against the seller or Rob.F) None of the above
G) A) and E)

Question 3

According to the text,which of the following is not a factor considered by courts in determining whether an act committed by an employee occurred within the course and scope of employment?

Accepted Answer

A)  Whether the employee used force not expected by the employer.
B)  Whether the employer authorized the employee's act.
C)  Whether the employer knew that the act would involve the commission of a serious crime.
D)  Whether the employer provided the tools by which the act occurred.
E)  Whether the employee had worked for the employer for a substantial amount of time.F) A) and D)
G) All of the above

Question 4

Which of the following is true regarding whether Greg has any right of recovery against Simone for his injured foot?

Accepted Answer

A)  Greg has a right of recovery against Simone only if Lea is insolvent.
B)  Greg has no right of recovery against Simone unless he is able to establish wrongdoing on her part in hiring Lea.
C)  Greg has no right of recovery against Simone because Lea had not dropped any boxes before,and Simone had no reason to suspect she would injure Greg.
D)  Greg has a right of recovery against Simone,but only for 50% of his damages.
E)  Greg has a right of recovery against Simone.F) A) and B)
G) A) and C)

Question 5

Which of the following is true regarding whether Sakura is personally bound on the contract with Gwen?

Accepted Answer

A)  Sakura is personally bound unless she can establish that Jason has the funds with which to pay Gwen.
B)  Sakura is personally bound.
C)  Sakura is not personally bound unless Jason is legally insolvent.
D)  Sakura is not personally bound because she was acting on behalf of Jason.
E)  Sakura is personally bound unless she can establish that Gwen would not have sold her the book if she had known that Jason was involved.F) A) and E)
G) B) and D)

Question 6

Agents who go beyond their authority when the principal is disclosed or partially disclosed are liable to third parties for breach of contract,not breach of implied warranty.

Accepted Answer

A) True 
 B)False

Question 7

A power of attorney is a special type of express agent authority.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following specifies that the agent's authority is intended to continue beyond the principal's incapacitation?

Accepted Answer

A)  Living power of attorney
B)  Durable power of attorney
C)  Permanent power of attorney
D)  Nonterminable power of attorney
E)  Special power of attorneyF) A) and B)
G) None of the above

Question 9

If an agent makes a contract with a third party that expressly excludes the principal from the contract,which statement effectively describes the liability of the principal?

Accepted Answer

A)  The principal is liable on the contract only if the principal is an unidentified principal.
B)  The principal is liable on the contract unless the principal gave the agent authority in writing to make the agreement with the third party.
C)  The principal is liable on the contract only if the principal is a partially disclosed principal.
D)  The principal is liable on the contract because it is unconscionable to exclude a principal from a contract.
E)  The principal is not liable on the contract.F) B) and E)
G) A) and D)

Question 10

Carlos wants to purchase a lot,owned by Sarah,that is next door to Sarah's home.Carlos knows Sarah will not sell the lot to him because of his barking dogs that she dislikes.Carlos agrees with Jasmine that Jasmine will purchase the lot from Sarah for him.Jasmine and Sarah reach an agreement and enter into a contract whereby Sarah is to sell the lot to Jasmine for a price within the scope of Jasmine's authority.Jasmine tells Sarah nothing about her plan to later transfer the lot to Carlos.Before title to the lot is transferred to Jasmine,Carlos tells Jasmine that he no longer wants the lot.Jasmine tells Sarah about Carlos.Sarah tells Jasmine that as far as she is concerned,Jasmine has bought the lot.Sarah says that she plans to move anyway and really does not care whether Jasmine or Carlos ends up with the lot.She just wants her money and is unconcerned about barking dogs,which will be the next owner's problem.Which of the following is true regarding whether Jasmine is personally bound on the contract with Sarah?

Accepted Answer

A)  Jasmine is personally bound.
B)  Jasmine is not personally bound because she was acting on behalf of Carlos.
C)  Jasmine is personally bound unless she can establish that Sarah would not have sold her the lot if she had known that Carlos was involved;and the contract is,therefore,void.
D)  Jasmine is not personally bound unless Carlos has legally filed for bankruptcy.
E)  Jasmine is personally bound unless she can establish that Carlos has the funds with which to pay Sarah.F) A) and B)
G) C) and E)

Exam 34: Liability to Third Parties and Termination

Correct Answer
verified

Agents who go beyond their authority when the principal is disclosed or partially disclosed are liable to third parties for breach of contract,not breach of implied warranty.

Correct Answer
verified

Correct Answer
verified

If an agent makes a contract with a third party that expressly excludes the principal from the contract,which statement effectively describes the liability of the principal?

Correct Answer
verified

Which of the following is true regarding whether Sakura is personally bound on the contract with Gwen?

Correct Answer
verified

Which of the following specifies that the agent's authority is intended to continue beyond the principal's incapacitation?

Correct Answer
verified

Which of the following is true regarding whether Greg has any right of recovery against Simone for his injured foot?

Correct Answer
verified

How long does an agent's apparent authority continue once an agency relationship is terminated?

Correct Answer
verified

According to the text,which of the following is not a factor considered by courts in determining whether an act committed by an employee occurred within the course and scope of employment?

Correct Answer
verified

A power of attorney is a special type of express agent authority.

Correct Answer
verified

Exam 34: Liability to Third Parties and Termination

Correct AnswerverifiedShow Answer

Agents who go beyond their authority when the principal is disclosed or partially disclosed are liable to third parties for breach of contract,not breach of implied warranty.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If an agent makes a contract with a third party that expressly excludes the principal from the contract,which statement effectively describes the liability of the principal?

Correct AnswerverifiedShow Answer

Which of the following is true regarding whether Sakura is personally bound on the contract with Gwen?

Correct AnswerverifiedShow Answer

Which of the following specifies that the agent's authority is intended to continue beyond the principal's incapacitation?

Correct AnswerverifiedShow Answer

Which of the following is true regarding whether Greg has any right of recovery against Simone for his injured foot?

Correct AnswerverifiedShow Answer

How long does an agent's apparent authority continue once an agency relationship is terminated?

Correct AnswerverifiedShow Answer

According to the text,which of the following is not a factor considered by courts in determining whether an act committed by an employee occurred within the course and scope of employment?

Correct AnswerverifiedShow Answer

A power of attorney is a special type of express agent authority.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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