Legal Agency Quiz

What is the definition of an agency in legal terms?

• A) A relationship based solely on financial transactions.

• B) A fiduciary relation where one acts on behalf of another under their control and consent.

• C) A temporary partnership agreement.

• D) A legal bond only formed by written contracts.

Which of the following is NOT a way an agency relationship can be formed?

• A) Contract

• B) Mere agreement

• C) Estoppel

• D) Binding arbitration

What duty does an agent owe to the principal in an agency relationship?

• A) Duty to perform occasional services

• B) Duty of obedience and fiduciary duty

• C) Duty to avoid any legal activities

• D) Duty to engage in profit-sharing

In the example provided, what action does Bradley take that demonstrates an agency relationship?

• A) Bradley decides to purchase books for personal use.

• B) Bradley contracts with the sales rep to purchase gifts for the shop.

• C) Bradley consults his family before making a purchase.

• D) Bradley ignores the offers from the sales rep.

What is required for a gratuitous agency relationship to be established?

• Consideration must be exchanged between the principal and the agent.

• The agent must be paid a fee for their services.

• The principal and agent must agree to the agency relationship.

• A written contract must be signed by both parties.

In the context of agency by estoppel, what must a third party believe for the agency relationship to be recognized by courts?

• The agent has a written contract.

• The agent is being paid for their services.

• The agent has the authority to act for the principal.

• The principal has publicly announced the agency relationship.

What legal principle allows a principal to affirm actions taken by someone who was not originally authorized to act as an agent?

• Agency by estoppel

• Gratuitous agency

• Agency by subsequent ratification

• Agency by prior agreement

Under what condition can a minor ratify a contract upon reaching the age of majority?

• If the contract was for a necessary item like food or clothing.

• If the contract was signed by a guardian.

• If the minor chooses to accept the contract terms after reaching majority.

• If the contract was initially signed in the presence of an attorney.

What are the two general types of agents as described in the text?

• Independent contractors and non-servant agents

• Servant agents and non-servant agents

• Servant agents and independent contractors

• Authorized agents and unauthorized agents

Which of the following is NOT a factor used to determine whether an agent is an employee?

• The length of time during which the agent is engaged by the hiring

• Whether the agent is paid by the job or by the time worked

• The agent's preference for workplace location

• The extent of control that the hiring party exercises over the agent's work