Reference no: EM131665305

True or False

1. When an agency is terminated, actual notice to everyone who dealt or might deal with the agent is necessary.

2. An agent may represent both parties to a contract if each principal is fully informed of this situation and consents to it.

3. An agent is always liable to the principal for not following the principal’s instructions.

4. One aspect of the agent's duty of loyalty is that an agent cannot ever compete with his principal, even after the agency has ended.

5. Under the duty of loyalty, an agent must avoid even the appearance of impropriety.

6. An insurance agent terminates his employment with the insurance company. The agent decides to keep the computer that was furnished for him by the company. The agent is liable for conversion.

7. Under the procuring cause rule, an agent is not entitled to receive commissions on sales that occur after the agency relationship is terminated.

8. Marriage does not automatically make each spouse the agent of the other.

9. An exception to the rule that either party to an agency relationship has the power to terminate the agency at any time is agency coupled with an interest.

10. Agency at will generally empowers either an agent or principal to terminate the agency relationship at any time, even if the agency agreement states that the agency will continue for a certain length of time.