Business Law II Ch. 23 test review

Agency need not be consensual.

• True

• False

An agent action outside his or her scope of authority may be

• liable to third parties.

• in breach of apparent authority.

• binding the principal illegally.

• in breach of confidence.

The agent is liable to a third party for any injury caused by acting outside the scope of authority.

• True

• False

_____________________ require(s) certain categories of persons, such as agents, to subordinate their personal interests in order to act for the benefit of another person.

• Duty of ordinary care

• Fiduciary duties

• Reasonable care

• Duty of confidentiality

_______ is the approval of a previously unauthorized act, or an act outside the agent's scope of authority.

• Ratification

• Apparent authority

• Power of attorney

• Implied authority

Confidentiality is a(n) ________________ that agents are bound to even after the agency relationship has ended.

• principle

• accounting

• fiduciary duty

• apparent authority

Which of the following will not terminate an agency?

• death of the principal

• court's determination that the principal is insane

• bankruptcy of the agent

• principal found guilty of a crime unrelated to the agency

A power of attorney is a writing that appoints someone as

• the principal's attorney.

• agent.

• the executor in fact.

• principal.

An agent may quit his or her position at any time.

• True

• False

A duty of confidentiality

• ends at the termination of the agency relationship.

• lasts even after the agency relationship is terminated.

• may only be breached by attorneys.

• can be breached upon discovery of a crime.