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Exam 16: Agency Relationships

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Question 31

True/False

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If a principal does not ratify an unauthorized contract, the principal is not bound.

A) True
B) False

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Question 32

Multiple Choice

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Miklos employs Nathalie to handle a list of financial transactions on Miklos's behalf.This power will terminate on

A) any transaction causing a loss to Miklos.
B) Miklos's death or incapacity.
C) Miklos's sixty-fifth birthday.
D) Nathalie's handling of one of each stipulated transaction.

E) A) and D)
F) C) and D)

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Question 33

Multiple Choice

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Carol is married to Andy.Carol buys food for their children's lunches and charges the cost to Andy's account.This is

If a principal cannot be contacted in an emergency situation, an agent cannot deviate from previously given instructions.

Bernard is an expert on exotic flowers.Fine Floral Fixtures, Inc.(FFF) hires Bernard to order exotic flowers from various greenhouses.Bernard does not bother to examine the quality of the flowers he purchases on behalf of FFF.Bernard has breached

Picabo drives a truck as an employee for Quik Delivery, Inc.Picabo would most likely be considered acting outside the scope of her employment if she

An independent contractor is an employee.

Rita is appointed as an agent for Superior Sales, Inc.The agency agreement is silent as to the level of sales that Rita is expected to achieve.She must

Dizzy is not Edwina's agent but enters into a contract with Frida on Edwina's behalf.Edwina later contacts Frida to affirm the contract.This is

Rangle contracts with Siena to buy a certain horse for her.Rangle makes a deal with Timberline Stables, the owner of the horse, and makes a down payment.Siena fails to pay the rest of the price.Timberline sues Rangle for breach of contract.His right to hold Siena liable for any damages that he has to pay is the right of

An agent has a duty to keep and make available to the principal an account of all property and funds received and paid out on behalf of the principal.

A principal is responsible for all intentional torts committed by an agent.

Without authorization, Rolf contracts on behalf of Sari to have Tige paint the interior and exterior of Sari's house.Sari ratifies the contract.Later, Sari tries to rescind the part of the contract relating to the exterior.This attempt will be

An agency relationship may occur by operation of law in a family.

In a principal-agent relationship, the parties agree that the principal will act on behalf and instead of the agent in negotiating and transacting business with third persons.

A principal has the right to control an agent's conduct in matters entrusted to the agent.

Through agents, a principal can conduct multiple business operations simultaneously.

The relationship between a principal and an independent contractor always involves an agency relationship.

Based on Nan's conduct, Odel reasonably believes that Poppy has the authority to act on Nan's behalf even though Poppy does not have the actual authority to do so.In this circumstance, Poppy has

Sonia manages a Tasty Pastry store for United Food Company.To manage the business, Sonia's authority can be implied by