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Chapter 8 Legal Terms-Agency

Total questions: 31

Worksheet time: 2hrs 33mins

Name
Class
Date
1.

An agent commits an unauthorized act when he does exactly as the principal instructs.

a)

True

b)

False

2.

A power of appointment that includes an interest in the thing itself, such as the power and interest of a partner in a business who is given the right to manage the business as security for loans he has made to the partnership, is:

a)

an implied authority

b)

an undisclosed agency

c)

respondeat superior

d)

a power coupled with an interest.

3.

An AGENT can also be called

a)

representative

b)

imposter

c)

spy

d)

manager

4.

Slightly digressing from a principal’s instructions by an agent does not excuse the principal of liability of the agent’s negligence under the

a)

principal

b)

deviation doctrine

c)

special agent

d)

undisclosed agency

5.

A MASTER can also be called

a)

ruler

b)

original

c)

third party

d)

employer

6.

When a negligent agent is responsible when departing from doing the principal’s business, it is called

a)

power of attorney

b)

frolic and detour

c)

servant

d)

agency

7.

A man negotiates a fantastic movie role for a star. The star never hired the man to do this but the star thinks it’s a great opportunity and wishes to sign the contract. This is an example of agency by ratification.

a)

True

b)

False

8.

When a hospital administrator orders a nurse to paint the outside of the hospital, this is an example of work that is outside the scope of the nurse’s employment.

a)

True

b)

False

9.

When an ice cream seller drives around a neighborhood wearing a uniform, operating a company truck, and offers to mow peoples’ lawns, this is an example of apparent agency.

a)

True

b)

False

10.

An insurance agency hires an outside consulting firm to come in and evaluate how to make the insurance company more efficient. It’s up to the consulting firm how it will accomplish this job. This is an example of an independent contractor.

a)

True

b)

False

11.

An agent who is authorized to do everything the principal is entitled to delegate is a(n):

a)

implied agent

b)

universal agent

c)

agent in fact

d)

third person

12.

VICARIOUS LIABILITY can also be called

a)

respondeat superior

b)

fault

c)

conflict of interest

d)

duty of loyalty

13.

When an ice cream seller drives around a neighborhood wearing a uniform, operating a company truck, and offers to mow peoples’ lawns, this is an example of apparent agency

a)

True

b)

False

14.

A person who contracts to do work for another person in her own way, controlling the means and method by which work is done but not the end product, is:

a)

a third party

b)

master

c)

employee

d)

independent contractor

15.

A bailee who is sometimes called a consignee is a(n)

a)

agent

b)

agency

c)

factor

d)

servant

16.

An agent’s knowledge that is binding upon his principal because of his agency relationship is ___________

a)

imputed knowledge

b)

implied authority

c)

with a third party

d)

principal

17.

A(n) is an agent authorized to perform a particular act for a principal

a)

cosigner

b)

general agent

c)

third party

d)

special agent

18.

The person for whom the agent acts is called a(n) _____

a)

manager

b)

principal

c)

special agent

d)

cosigner

19.

A written instrument giving another authority to perform a certain act

a)

contract in lieu

b)

power of attorney

c)

universal agent

d)

factor

20.

A power of appointment that includes an interest in the thing itself, such as the power and interest of a partner in a business who is given the right to manage the business as security for loans he has made to the partnership, is:

a)

respondeat superior

b)

an implied authority

c)

a power coupled with an interest

d)

an undisclosed agency

21.

A man negotiates a fantastic movie role for a star. The star never hired the man to do this but the star thinks it’s a great opportunity and wishes to sign the contract. This is an example of agency by ratification.

a)

True

b)

False

22.

Sometimes, outsiders known as aren’t aware of the existence of an agency relationship between agent and principal

a)

spy

b)

third party

c)

power of attorney

d)

agency

23.

An agent authorized to perform all acts connected with the business of the principal is a(n)

a)

general agent

b)

power of attorney

c)

special agent

d)

implied agent

24.

ESTOPPEL can also mean

a)

encouragement

b)

universal agent

c)

stop

d)

prohibition

25.

CONSIGNEE can also be called

a)

alter ego

b)

receiver

c)

obligation

d)

third party

26.

A liability imposed upon a person because of the act or omission of another is called

a)

vicarious liability

b)

principal

c)

estoppel

d)

consignment

27.

The relationship that exists in law between a principal and an agent is a(n) ___

a)

implied agency

b)

power of attorney

c)

agency relationship

d)

employment

28.

An employee can also be named

a)

manager

b)

servant

c)

power of attorney

d)

agency

29.

There is a fully disclosed agency when an agent reveals he is acting for a principal and gives the name of the principal he represents.

a)

True

b)

False

30.

A general power of attorney might be used to allow another to sign a person’s checks or conduct business on his behalf while he is out of town.

a)

True

b)

False

31.

When an agent is told to negotiate a contract for the sale of diamonds and follows instructions exactly, this is known as an unauthorized act.

a)

True

b)

False