Chapter 21 Quiz Review: Agency Law

__________ authority is directly communicated by the principal to the agent.

• express

• implied

• apparent

• agency

__________ authority is the power to do anything that is reasonably necessary to carry out the duties expressly authorized.

• express

• implied

• apparent

• agency

The principal, with knowledge or through negligence, permits the agent to assume _______ authority.

• express

• implied

• apparent

• agency

__________ authority is created when a principal authorizes an agent to represent the principal.

• express

• implied

• apparent

• agency

Apparent authority must always come from the _________ ’s words or conduct.

• principal

• licensed

• power of attorney

• ratification

To protect the public, all states require that agents in occupations such as law, real estate, and insurance be __________.

• principal

• licensed

• power of attorney

• ratification

Any writing that appoints someone as an agent is called a(n) ________________ .

• principal

• licensed

• power of attorney

• ratification

An agent must act within the granted ____________ in order to bind the principal.

• principal

• licensed

• power of attorney

• scope of authority

The approval of an act outside the agent’s scope of authority is called ___________.

• principal

• ratification

• power of attorney

• scope of authority

___________ are the legal requirements for certain categories of persons, such as agents, to subordinate their personal interests in order to act for the benefit of another person.

• fiduciary duties

• loyalty & obedience

• trust accounts

• none of these