Agency relationships:
a. do not necessarily need to be in writing.
b. are consensual in nature.
c. are typically formed by agreement of the parties.
d. All of these answers are correct. correct answers d. All of these answers are correct.
Agents for sales of real property:
a. must follow th...
MBA 650-Ch 5 || All Questions Answered Correctly.
Agency relationships:
a. do not necessarily need to be in writing.
b. are consensual in nature.
c. are typically formed by agreement of the parties.
d. All of these answers are correct. correct answers d. All of these answers are correct.
Agents for sales of real property:
a. must follow the equal dignities rule contracting on the principal's behalf.
b. must follow the equal dignities rule except when they will bind the principal.
c. All of these answers are correct.
d. are normally excepted from the equal dignities rule. correct answers a. must follow the equal
dignities rule contracting on the principal's behalf.
The most common form of an agency relationship is:
a. principal-independent contractor relationship.
b. respondeat superior.
c. the employer-employee relationship.
d. the employer-independent contractor relationship. correct answers c. the employer-employee
relationship.
Which of the following is true about an independent contractor?
a. They have the right to contract for the principal at all times.
b. They are fully subjected to the control of the principal.
c. The person that hires them only bargains for the results of the work.
d. All of these answers are correct. correct answers c. The person that hires them only bargains
for the results of the work.
The responsibility of the agent to obey all reasonable and lawful orders of the principal is the
duty of:
a. obedience.
b. care.
c. fiduciary.
d. loyalty. correct answers a. obedience.
Once an agent is given express authority, he or she has __________ to do whatever is reasonable
to complete the task at hand.
a. implied authority
b. usual authority
c. express authority
d. customary authority correct answers a. implied authority
In order to determine an agent's implied authority, courts consider the usual and customary
authority that has occurred within the agent's duration of authority given by the principal.
a. True
, b. False correct answers a. True
An example of express agency authority would be:
a. anything according to the custom of that agency relationship.
b. a pattern of conduct by the principal.
c. a durable power of attorney which gives a person the authority to determine how his or her
medical care should be taken care of if the principal were to become incapacitated.
d. that which is reasonable and necessary to accomplish the objectives at hand. correct answers c.
a durable power of attorney which gives a person the authority to determine how his or her
medical care should be taken care of if the principal were to become incapacitated.
A major deviation from the employer's business is referred to as a:
a. frolic, and the employer would not have liability for the torts of the employee.
b. detour, and the employer would not have liability for the torts of the employee.
c. detour, and the employer would still have liability for the torts of the employee.
d. frolic, and the employer would still have liability for the torts of the employee. correct answers
a. frolic, and the employer would not have liability for the torts of the employee.
Employers may have liability for torts of employees acting outside the scope of employment:
a. by the aided-in-the-agency-relation theory.
b. if the employee's actions can be attributed to the employer's own negligence or recklessness.
c. if the employee's high rank with the company makes him or her the employer's alter ego.
d. All of these answers are correct. correct answers d. All of these answers are correct.
Which of the following is true about an agent's signature on a written agreement concerning the
sale of real property?
a. The agent's signature on the agreement is never binding.
b. It is binding if the relationship between agent and principal is supported by oral agreement.
c. The agent's signature on the agreement is always binding.
d. It is binding if the relationship between agent and principal is supported by written evidence.
correct answers d. It is binding if the relationship between agent and principal is supported by
written evidence
Independent contractors:
a. are closely supervised by employees of the company that they contract with.
b. can utilize a high degree of skill in order to complete their work.
c. normally obtain the tools needed for the work from the principal.
d. typically earn an hourly wage. correct answers b. can utilize a high degree of skill in order to
complete their work.
The duty of loyalty includes a duty to avoid mistakes, whether through negligence, recklessness,
or intentional misconduct.
a. True
b. False correct answers b. False
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