Reference no: EM139912

Q. 1. Express authority:
1) is produced when the principal specifically describes the extent of the agent's powers.
2) Arises from the principal's failure to inform third persons that the relationship is not Illustrate it appears to be.
3) Occurs with respect to an act of an agent who has exceeded the authority given.
4) is produced by the conduct of the principal that causes a third person reasonably to believe that another has the authority to act for the principal.

2. Jacobsen contracted with Orr to purchase some of Orr's property. Jacobsen informed Orr that he (Jacobsen) was purchasing the property on behalf of other person whereas Jacobsen did not reveal to Orr the name of the person for whom Jacobsen was making the purchase. The agency here is:
1) illegal.
2) Disclosed.
3) Undisclosed.
4) Partially disclosed.

3. A principal intention to ratify a contract:
1) may be inferred by a court from the fact that the principal accepted the benefits of an unauthorized contract.
2) May be inferred from the principal's repudiation of an unauthorized contract after becoming aware of it.
3) Needs to be expressed explicitly.
4) May not be implied by his acts or failure to act.

4. When the principal is negligent in the hiring also/or supervision of the agent, the principal may be liable under:
1) vicarious liability.
2) Direct liability.
3) Joint liability.
4) Apparent agency.

5. By representations is principal bound:
1) even if the third person knows that the agent has exceeded his actual authority.
2) That is reasonably necessary for the agent to make in order to accomplish the purpose of the agency since they would be apparently authorized.
3) that is not customary in the kind of business being transacted by the agent.
4) That the agent is expressly authorized to make.

6. Liability is imposed on an agent who has exceeded his authority on the basis of an:
1) actual warranty of authority.
2) Implied warranty of authority.
3) Inherent warranty of authority.
4) Apparent warranty of authority.

7. Ratification releases:
1) the agent from liability.
2) The third party from liability for acts of the principal.
3) The principal also the third party from liability.
4) The principal from liability.

8. The test of an agent's express authority is:
1) the justifiable belief of the agent.
2) The technical label given to an agent.
3) The specific language the principal used in granting the authority.
4) The surrounding circumstances such as the words also conduct of the parties.

9. The test of an agent's implied authority is:
1) the justifiable belief of the agent.
2) The specific language the principal used in granting the authority.
3) to determine whether the authority is also apparent.
4) The technical label given to an agent.

10. Jen is a buyer for Autumn's Iowa store of health food. Whereas Jen is in California buying tofu, she finds a solar car for sale for just $3,000. Jen contracts to buy the car for autumn, which has been looking for a solar car for the earlier period 2 yrs. Autumn instructs the seller of the car to ship it. Under these circumstances:
1) Autumn has ratified the contract.
2) Jen is liable on the contract.
3) Jen has ratified the contract.
4) Autumn is not liable on the contract.

11. A large also well-known corporation wants to acquire a plot of ground for a fresh plant. Avoid extra cost, purchases the land through several agents, each purporting to be buying personally. In such cases, the corporation is a(n) ______.
1) Undisclosed principal
2) subagent
3) disclosed principal
4) partially disclosed principal

12. Ratification may be inferred by a court:
1) from the agent's failure to repudiate an unauthorized contract after becoming aware of it.
2) From the third party's extent of knowledge about the contract.
3) From the principal's failure to give express authority to the agent.
4) From the fact that the principal accepted the benefits of an unauthorized contract.

13. Apparent authority may exist:
1) if a principal has unintentionally permitted third persons to believe a person is her agent.
2) only if actual authority has been conferred.
3) if the principal specifically describes the extent of the agent's powers in writing or orally also makes him/her a special agent.
4) when the conduct of the principal causes a third person reasonably to believe that another has the authority to act for the principal.

14. An agent will be relieved from liability for representations in excess of the agent's authority if:
1) the agency is partially disclosed.
2) The act was undertaken with a good intent.
3) The third party knows that the agent is acting in excess of his authority.
4) The entity has a legal existence.

15. A principal's liability under respondent superior often is called:
1) contributory liability.
2) Direct liability.
3) Vicarious liability.
4) Enterprise liability.

16. A manager can bound the liability for the acts of a subagent to the principal by using:
1) ministerial actions
2) exculpatory clause
3) implied authority
4) express authority

17. A person who commits a crime under instructions from her principal:
1) Is guilty of the crime because newly revised criminal codes will almost always impose liability on the third party.
2) Is relieved from liability if the crime is committed to accomplish the objectives of the agency.
3) Is guilty of the crime because the agent's duty to society overrides the duty to follow the direction of the principal.
4) Is relieved from liability if committed within the scope of employment.