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Exam 14: Agency Relationships

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Question 21

Multiple Choice

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Ben manages a warehouse and its inventory for Coffee Roaster Inc.To operate this part of the business,Ben's authority can be inferred

A) from the position Ben occupies.
B) by a reasonable party with whom Coffee Roaster does business.
C) to contradict Ben's express authority.
D) under no circumstances.

E) C) and D)
F) B) and D)

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Question 22

Multiple Choice

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Lev,an agent for Mill Grains LLC,executes an unauthorized contract with National Grocers Inc.The deal is highly advantageous to Mill Grains,and the company ratifies the contract.The contract is

A) valid.
B) vicarious.
C) void.
D) voidable.

E) A) and B)
F) None of the above

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Question 23

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A principal may be liable for an agent's or an employee's tort,with the exception of negligence,which is an unintentional tort for which the agent or employee is vicariously liable.

Bern,a salesperson at a Carpet & Tile store,tells Dan,a customer,"Buy your flooring here,and I'll install it for less than the store would charge." Dan buys carpeting,which Bern installs for half the store's price.Bern keeps the money.With respect to the store,Bern has breached

Yoshi contracts with Zach to buy a certain pub,Aficionado's,for Yoshi,who asks Zach not to reveal her identity.Zach makes a deal with Burcet,the owner of the pub,and makes a down payment.Yoshi fails to pay the rest of the price,and does not pay Zach for his services.Does Zach have any recourse against Yoshi? If so,on what basis and to what extent?

Bread Company hires Craig to sell the company's products in a certain area.Bread agrees to pay Craig a salary,plus commission,for a trial period.They also agree that he can sell using any methods and during any hours that seem appropriate.The key factor in whether Craig is Bread's employee is

Diamonds & Gold LLC hires Elle to buy gems and precious metals from various sources on its behalf.In this relationship,Diamonds is

Nora works at Oil & Gas Inc.She is a sales representative who works with Oil & Gas customers.The company closely supervises its sales reps,and dictates their schedules.With respect to third parties,Nora is

Romero employs Supply Procurement Service as an agent under a written agreement that describes the rights and duties of both parties.This is

A person who cannot legally enter into a certain contract directly can do so indirectly through an agent.

Kit hires Lanie to manage Kit's Cattle Ranch.Lanie agrees to act on Kit's behalf,subject to Kit's control,and Kit trusts Lanie to so act.Their relationship is

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

Rosario is a chef and caterer who hires out on a per-project basis to companies with on-location work sites,as well as to the hosts of banquets and other events.In this capacity,Rosario is

By using agents,a principal can conduct multiple business operations simultaneously in various locations.

Gary drives a truck as an employee for Hauling Inc.Gary would most likely be considered acting outside the scope of her employment if he

A gratuitous agent can be liable to a principal for breach of contract,even in the absence of a contract,but not liable for the negligent performance of the deal.

Under the principles of agency law,any sale of goods by a salesperson in a store to a customer can be binding on the owner of the store.

Fara hires Gil,a real estate broker,to act as her agent to sell her land for $150,000.Before the land is sold at the stated price,oil is discovered beneath it,causing its market value to increase considerably.The agreement between Fara and Gil is likely

When an agent,acting within the scope of his or her authority,contracts with a third party,in no circumstance is the agent liable to the third party.

An agency relationship can arise by ratification,which involves a determination of intent expressed by words or conduct.