BUL 3310 Exam 3 Bailey
Which legal rule will not impose punitive damages on a master for the torts of his
servants unless the master himself took some part in the wrongful action?
- vicarious liability rule
- durham rule
- complicity rule
- transferred liability rule - ✔️✔️Complicity rule
When a servant completely abandons the master's work to pursue his own interests, the
servant is on ___
- a detour
- an outing
- a trespass
- a frolic - ✔️✔️A frolic
In contracts negotiated by an agent who is acting within the scope of his authority for a
disclosed principal, the agent, the principal, and the third party are equally liable on the
contract
T or F? - ✔️✔️False
The legal doctrine that holds the master liable for the torts committed by a servant while
acting within the scope of this employment is ___
- quid pro quo
- respondeat superior
- caveat emptor
- alter ego liability - ✔️✔️Respondeat Superior
In which of the following situations would an employee avoid liability for torts committed
while carrying out his employment obligations?
- a corporate officer acting on behalf of the corporation
- a servant following the instructions of his master
- an agent carrying out the orders of his principal
- none of the above; everyone has personal liability for the torts he commits -
✔️✔️None of the above; everyone has personal liability for the torts he commits
,Which of the following is NOT a factor in determining whether a servant was acting
within the scope of his employment?
- was the servant carrying on the master's business when the tort was committed?
- was the servant disobeying the instructions of the master when the tort was
committed?
- was the instrumentality of the injury furnished by the master?
- did the master authorize the servant to use the instrumentality of the injury? -
✔️✔️Was the servant disobeying the instructions of the master when the tort was
committed?
Normally a master is not liable for torts committed by a servant while traveling from his
home to the workplace
T or F? - ✔️✔️True
A master can normally avoid liability for damages caused by a servant if he can show
that the servant misunderstood his instructions
T or F? - ✔️✔️True
The general legal doctrine that holds one person responsible for the torts committed by
another because of the relationship they have to each other is ___
- respondeat superior
- vicarious liability
- primary liability
- transferred liability - ✔️✔️Vicarious liability
Which legal principle always imposes punitive damages on a master if the wrongful
conduct of the servant in the course of business justifies punitive damages?
- vicarious liability rule
- complicity rule
- transferred liability rule
- durham rule - ✔️✔️Vicarious liability rule
Respondeat superior is a form of vicarious liability
T or F? - ✔️✔️True
In some states, a parent-owner is liable for any damages caused by a family member
operating the vehicle. This is the ___ doctrine
- durham
- family car
,- in loco parentis
- family negligence - ✔️✔️Family car
Assume that you hire an independent contractor to transport hazardous chemicals for
your company. If he negligently causes damages to a third party while carrying out the
job, you will not be liable because of his status as an independent contractor
T or F? - ✔️✔️False
The principal is a fiduciary of the agent
T or F? - ✔️✔️True
An agent is a fiduciary of the principle
T or F? - ✔️✔️True
A principal whose identity is known to a third party is a disclosed principal
T or F? - ✔️✔️True
Undisclosed principals have no liability to third parties for contracts negotiated by their
agents
T or F? - ✔️✔️False
If a third party does not know that he is dealing with an agent and believes that the
agent is acting on his own behalf and will perform on the contract, the principal in this
situation is ___
- disclosed
- undisclosed
- partially disclosed
- transparent - ✔️✔️Undisclosed
A principal whose identity is known to a third party is a ___ principal
- disclosed
- undisclosed
- partially disclosed
- transparent - ✔️✔️Disclosed
A factor is an agent with the special limited authority of procuring a customer so that the
principal can affect a sale or exchange of property
, T or F? - ✔️✔️False
The legal test to determine whether someone is a general agent or a special agent is
whether or not the agent is paid for his services
T or F? - ✔️✔️False
A store manager is an example of a special agent
T or F? - ✔️✔️False
A person who enters into a contract with an independent contractor is called a proprietor
T or F? - ✔️✔️True
A minor may act as an agent for an adult principal
T or F? - ✔️✔️True
An agent operating under a written power of attorney is called an attorney-at-law
T or F? - ✔️✔️False
A person who is given power of attorney is called an ___
- attorney at law
- attorney in fact
- factor
- general agent - ✔️✔️Attorney in fact
The Principal and Agent have ___ relationship with each other
- an arms length
- a statutory
- a fiduciary
- an equitable - ✔️✔️A fiduciary
Sam is retiring and selling his business to Ed, an employee. They want Larry Lawyer to
draw up a sales contract that protects both Sam's interests as the seller and Ed's
interests as the buyer. If Larry agrees to this dual agency, which duty would be most
risk violating?
- the duty of loyalty
- the duty not to be negligent
Which legal rule will not impose punitive damages on a master for the torts of his
servants unless the master himself took some part in the wrongful action?
- vicarious liability rule
- durham rule
- complicity rule
- transferred liability rule - ✔️✔️Complicity rule
When a servant completely abandons the master's work to pursue his own interests, the
servant is on ___
- a detour
- an outing
- a trespass
- a frolic - ✔️✔️A frolic
In contracts negotiated by an agent who is acting within the scope of his authority for a
disclosed principal, the agent, the principal, and the third party are equally liable on the
contract
T or F? - ✔️✔️False
The legal doctrine that holds the master liable for the torts committed by a servant while
acting within the scope of this employment is ___
- quid pro quo
- respondeat superior
- caveat emptor
- alter ego liability - ✔️✔️Respondeat Superior
In which of the following situations would an employee avoid liability for torts committed
while carrying out his employment obligations?
- a corporate officer acting on behalf of the corporation
- a servant following the instructions of his master
- an agent carrying out the orders of his principal
- none of the above; everyone has personal liability for the torts he commits -
✔️✔️None of the above; everyone has personal liability for the torts he commits
,Which of the following is NOT a factor in determining whether a servant was acting
within the scope of his employment?
- was the servant carrying on the master's business when the tort was committed?
- was the servant disobeying the instructions of the master when the tort was
committed?
- was the instrumentality of the injury furnished by the master?
- did the master authorize the servant to use the instrumentality of the injury? -
✔️✔️Was the servant disobeying the instructions of the master when the tort was
committed?
Normally a master is not liable for torts committed by a servant while traveling from his
home to the workplace
T or F? - ✔️✔️True
A master can normally avoid liability for damages caused by a servant if he can show
that the servant misunderstood his instructions
T or F? - ✔️✔️True
The general legal doctrine that holds one person responsible for the torts committed by
another because of the relationship they have to each other is ___
- respondeat superior
- vicarious liability
- primary liability
- transferred liability - ✔️✔️Vicarious liability
Which legal principle always imposes punitive damages on a master if the wrongful
conduct of the servant in the course of business justifies punitive damages?
- vicarious liability rule
- complicity rule
- transferred liability rule
- durham rule - ✔️✔️Vicarious liability rule
Respondeat superior is a form of vicarious liability
T or F? - ✔️✔️True
In some states, a parent-owner is liable for any damages caused by a family member
operating the vehicle. This is the ___ doctrine
- durham
- family car
,- in loco parentis
- family negligence - ✔️✔️Family car
Assume that you hire an independent contractor to transport hazardous chemicals for
your company. If he negligently causes damages to a third party while carrying out the
job, you will not be liable because of his status as an independent contractor
T or F? - ✔️✔️False
The principal is a fiduciary of the agent
T or F? - ✔️✔️True
An agent is a fiduciary of the principle
T or F? - ✔️✔️True
A principal whose identity is known to a third party is a disclosed principal
T or F? - ✔️✔️True
Undisclosed principals have no liability to third parties for contracts negotiated by their
agents
T or F? - ✔️✔️False
If a third party does not know that he is dealing with an agent and believes that the
agent is acting on his own behalf and will perform on the contract, the principal in this
situation is ___
- disclosed
- undisclosed
- partially disclosed
- transparent - ✔️✔️Undisclosed
A principal whose identity is known to a third party is a ___ principal
- disclosed
- undisclosed
- partially disclosed
- transparent - ✔️✔️Disclosed
A factor is an agent with the special limited authority of procuring a customer so that the
principal can affect a sale or exchange of property
, T or F? - ✔️✔️False
The legal test to determine whether someone is a general agent or a special agent is
whether or not the agent is paid for his services
T or F? - ✔️✔️False
A store manager is an example of a special agent
T or F? - ✔️✔️False
A person who enters into a contract with an independent contractor is called a proprietor
T or F? - ✔️✔️True
A minor may act as an agent for an adult principal
T or F? - ✔️✔️True
An agent operating under a written power of attorney is called an attorney-at-law
T or F? - ✔️✔️False
A person who is given power of attorney is called an ___
- attorney at law
- attorney in fact
- factor
- general agent - ✔️✔️Attorney in fact
The Principal and Agent have ___ relationship with each other
- an arms length
- a statutory
- a fiduciary
- an equitable - ✔️✔️A fiduciary
Sam is retiring and selling his business to Ed, an employee. They want Larry Lawyer to
draw up a sales contract that protects both Sam's interests as the seller and Ed's
interests as the buyer. If Larry agrees to this dual agency, which duty would be most
risk violating?
- the duty of loyalty
- the duty not to be negligent
