Business Law Chapter 15

A person who does work for pay under the supervision and control of another person is an employee.

• True

• False

All employees are also agents.

• True

• False

When a salesperson makes sales contracts with customers for a business owner, agency exists.

• True

• False

Agency can only be used in contracting.

• True

• False

If an agent acts outside the scope of authority, the principal is still bound.

• True

• False

All agents owe to their principals obligations called fiduciary duties.

• True

• False

While there may be contractual liability for ending the agency, no one can be compelled to continue in an agency relationship.

• True

• False

When there is no contract and the agent receives no consideration, the agency is called an implied agency.

• True

• False

A power of attorney is a writing that appoints someone as an agent.

• True

• False

Ratification is the approval of a previously unauthorized act.

• True

• False