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8. Irma retains Jerry as her authorized agent, unaware that Jerry is a minor. Jerry enters into a contract with Ken on Irmas behalf. The contract is a. binding on Irma. b. binding on Jerry and Ken, but not Irma. c. binding on Ken, but not Irma or Jerry. d. void. 9. A court declares Rose to be legally incompetent. Rose can be a. an agent only. b. an agent or a principal. c. a principal only. d. neither an agent nor a principal. 10. Macro Corporation and National Purchasing Company may create an agency agreement a. by conduct, in writing, or orally. b. by conduct or orally only. c. in writing only. d. under no circumstances. 11. Rita is appointed as an agent for Superior Sales, Inc. The agency agreement is silent as to the level of sales that Rita is expected to achieve. She must a. achieve nothing because the agreement says nothing on the issue. b. attain the level that Rita achieved with her previous employer. c. maintain the level Superior attained before Rita became an agent. d. use reasonable diligence and skill in selling . 12. Jay holds himself out as possessing special accounting skills. As an agent, he must exercise the degree of skill or care expected of a. a person having those skills. b. an average, unskilled person. c. a reasonable person.? d. the principal. 13. Prospective Enterprises (PE) employs Quinn to buy property for a possible commercial development. Quinn secretly buys some of the property and sells it to PE at a profit. Quinn has breached a. no duty. b. the duty of accounting. c. the duty of loyalty. d. the duty of notification. 14. Elle is an agent for Fine Cosmetics, Inc. Elle owes Fine Cosmetics the duty of a. avoidance. b. compensation. c. indemnification. d. performance. 15. Hugh is an agent for Industrial Solvents, Inc. Hugh owes Industrial Solvents the duty of a. compensation. b. loyalty. c. reimbursement. d. safe working conditions. 16. Regional Investment Corporation (RIC) hires Sam, a real estate agent, to locate investment properties for RIC. Sam learns of a warehouse available for $100,000, buys it himself, and offers it to RIC for $200,000. Under the reasoning of the court in Case 31.3, Cousins v. Realty Ventures, Inc., Sam a. breached the agents fiduciary duties to the principal. b. did nothing wrong. c. failed to take advantage of a business opportunity. d. set an unreasonable price based on current market value. 17. Mona is an agent for Nationwide Restaurant Corporation (NRC). In acting as an agent, Mona follows all of NRCs clearly stated instructions. This responsibility arises under a. no agents duty.... View Full Document

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