EXAM STUDY MATERIALS 8/7/2024 11:29 AM
BLAW CHAPTER 14 Exam Questions With
Correct Answers
(C) agency relationship - answer✔✔An employment of an agent for the purpose of
representation in establishing relations between
a principal and third parties is known as a(n):
(A) third party relationship
(B) principal relationship
(C) agency relationship
(D) real relationship
(E) representative relationship
(B) principal - answer✔✔Through an agency relationship, the agent becomes a representative of
the:
(A) third party
(B) principal
(C) customer or supplier of the principal
(D) shareholder
(E) all of the other choices
(C) third parties - answer✔✔An agency relationship normally involves the use of an agent to
represent a principal in dealing
with which of the following:
(A) shareholders
(B) representatives
(C) third parties
(D) attorneys
(E) ratifications
, EXAM STUDY MATERIALS 8/7/2024 11:29 AM
(B) principal - answer✔✔An agency is created when an agent agrees to act for, or in place of,
the:
(A) third party
(B) principal
(C) shareholder
(D) attorney
(E) representative
(A) provides the agent with authority - answer✔✔In an agency the principal:
(A) provides the agent with authority
(B) provides the agent with legal support
(C) does not provide the agent with authority
(D) is given authority by the agent
(E) none of the other choices are correct
(A) access to the expertise of agents - answer✔✔Which of the following is an advantage to
having the ability to use agents:
(A) access to the expertise of agents
(B) reduced tax burden
(C) exemption from income tax
(D) creation of many small companies within one larger company
(E) easier organization of a company
(A) expanded business opportunities - answer✔✔Which of the following is an advantage to
having the ability to use agents:
(A) expanded business opportunities
(B) reduced tax burden
(C) exemption from income tax
(D) creation of many small companies within one larger company
(E) easier organization of a company
(E) X hires Y to buy some property on X's behalf and X makes an oral agreement that Y will
work for
, EXAM STUDY MATERIALS 8/7/2024 11:29 AM
X's company as the company's general manager and X and Y enter into a written agreement that
Y
will work for X as the general manager of X's company - answer✔✔In which of the following
situations can an agency relationship be created?
(A) X hires Y to buy some property on X's behalf
(B) X makes an oral agreement that Y will work for X's company as the company's general
manager
(C) X and Y enter into a written agreement that Y will work for X as the general manager of X's
company
(D) X hires Y to buy some property on X's behalf and X makes an oral agreement that Y will
work for
X's company as the company's general manager
(E) X hires Y to buy some property on X's behalf and X makes an oral agreement that Y will
work for
X's company as the company's general manager and X and Y enter into a written agreement that
Y
will work for X as the general manager of X's company
(C) authority - answer✔✔An agent's ____ is the power to change the principal's legal
obligations.
(A) legal right
(B) official power
(C) authority
(D) responsibility
(E) authorization
(C) foreign agent - answer✔✔Which of the following is not a category of agents covered in the
text:
(A) gratuitous agent
(B) special agent
(C) foreign agent
(D) general agent
, EXAM STUDY MATERIALS 8/7/2024 11:29 AM
(E) universal agent
(B) universal agent - answer✔✔Someone designated to do all acts that can be legally granted to
an agent is called a(n):
(A) special agent
(B) universal agent
(C) general agent
(D) subagent
(E) gratuitous agent
(B) a general power of attorney - answer✔✔To carry out their duties, universal agents are
typically granted:
(A) powers to act by estoppel
(B) a general power of attorney
(C) authority to cancel contracts anticipatorily
(D) all of the other specific choices
(E) none of the other choices
(A) universal agent - answer✔✔A person designated by a principal to do all acts that can be
legally delegated to an agent is a:
(A) universal agent
(B) special agent
(C) gratuitous agent
(D) general agent
(E) none of the other choices
(D) general agent - answer✔✔A person authorized to execute all regular transactions connected
with a business is called a:
(A) universal agent
(B) special agent
(C) gratuitous agent
(D) general agent
(E) none of the other choices
BLAW CHAPTER 14 Exam Questions With
Correct Answers
(C) agency relationship - answer✔✔An employment of an agent for the purpose of
representation in establishing relations between
a principal and third parties is known as a(n):
(A) third party relationship
(B) principal relationship
(C) agency relationship
(D) real relationship
(E) representative relationship
(B) principal - answer✔✔Through an agency relationship, the agent becomes a representative of
the:
(A) third party
(B) principal
(C) customer or supplier of the principal
(D) shareholder
(E) all of the other choices
(C) third parties - answer✔✔An agency relationship normally involves the use of an agent to
represent a principal in dealing
with which of the following:
(A) shareholders
(B) representatives
(C) third parties
(D) attorneys
(E) ratifications
, EXAM STUDY MATERIALS 8/7/2024 11:29 AM
(B) principal - answer✔✔An agency is created when an agent agrees to act for, or in place of,
the:
(A) third party
(B) principal
(C) shareholder
(D) attorney
(E) representative
(A) provides the agent with authority - answer✔✔In an agency the principal:
(A) provides the agent with authority
(B) provides the agent with legal support
(C) does not provide the agent with authority
(D) is given authority by the agent
(E) none of the other choices are correct
(A) access to the expertise of agents - answer✔✔Which of the following is an advantage to
having the ability to use agents:
(A) access to the expertise of agents
(B) reduced tax burden
(C) exemption from income tax
(D) creation of many small companies within one larger company
(E) easier organization of a company
(A) expanded business opportunities - answer✔✔Which of the following is an advantage to
having the ability to use agents:
(A) expanded business opportunities
(B) reduced tax burden
(C) exemption from income tax
(D) creation of many small companies within one larger company
(E) easier organization of a company
(E) X hires Y to buy some property on X's behalf and X makes an oral agreement that Y will
work for
, EXAM STUDY MATERIALS 8/7/2024 11:29 AM
X's company as the company's general manager and X and Y enter into a written agreement that
Y
will work for X as the general manager of X's company - answer✔✔In which of the following
situations can an agency relationship be created?
(A) X hires Y to buy some property on X's behalf
(B) X makes an oral agreement that Y will work for X's company as the company's general
manager
(C) X and Y enter into a written agreement that Y will work for X as the general manager of X's
company
(D) X hires Y to buy some property on X's behalf and X makes an oral agreement that Y will
work for
X's company as the company's general manager
(E) X hires Y to buy some property on X's behalf and X makes an oral agreement that Y will
work for
X's company as the company's general manager and X and Y enter into a written agreement that
Y
will work for X as the general manager of X's company
(C) authority - answer✔✔An agent's ____ is the power to change the principal's legal
obligations.
(A) legal right
(B) official power
(C) authority
(D) responsibility
(E) authorization
(C) foreign agent - answer✔✔Which of the following is not a category of agents covered in the
text:
(A) gratuitous agent
(B) special agent
(C) foreign agent
(D) general agent
, EXAM STUDY MATERIALS 8/7/2024 11:29 AM
(E) universal agent
(B) universal agent - answer✔✔Someone designated to do all acts that can be legally granted to
an agent is called a(n):
(A) special agent
(B) universal agent
(C) general agent
(D) subagent
(E) gratuitous agent
(B) a general power of attorney - answer✔✔To carry out their duties, universal agents are
typically granted:
(A) powers to act by estoppel
(B) a general power of attorney
(C) authority to cancel contracts anticipatorily
(D) all of the other specific choices
(E) none of the other choices
(A) universal agent - answer✔✔A person designated by a principal to do all acts that can be
legally delegated to an agent is a:
(A) universal agent
(B) special agent
(C) gratuitous agent
(D) general agent
(E) none of the other choices
(D) general agent - answer✔✔A person authorized to execute all regular transactions connected
with a business is called a:
(A) universal agent
(B) special agent
(C) gratuitous agent
(D) general agent
(E) none of the other choices
