AgencyMCQ - Agency MC Questions 1. Eric Farber, a...

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Agency MC Questions 1. Eric Farber, a principal, engaged Ethel Waters for 6 months as his exclusive agent to sell specific antiques. A. The creation of such an agency must be in writing. B. If the principal sells the antiques through another agent, he will be liable to Waters for damages. C. The principal does not have the legal power to terminate the agency because it is an agency coupled with an interest. D. Waters has impliedly guaranteed that she will sell the antiques within the 6-month period. 2. Vicki Trent was retained in writing to act as Post’s agent for the sale of Post’s memorabilia collection. Which of the following statements is true? I. To be an agent, Trent must be at least 21 years of age. II. Post would be liable to Trent if the collection was destroyed before Trent found a purchaser. A. Both I and II. B. Neither I nor II. C. I only. D. II only. 3. Frost’s accountant and business manager has the authority to A. Sell Frost’s business. B. Obtain bank loans for Frost. C. Insure Frost’s property against fire loss. D. Mortgage Frost’s business property. 4. Which of the following statements represent(s) a principal’s duty to an agent who works on a commission basis? I. The principal is required to maintain pertinent records, account to the agent, and pay the agent according to the terms of their agreement. II. The principal is required to reimburse the agent for all authorized expenses incurred unless the agreement calls for the agent to pay expenses out of the commission. A. Neither I nor II. B. II only. C. I only. D. Both I and II.
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5. A principal and agent relationship requires a A. Power of attorney. B. Written agreement. C. Meeting of the minds and consent to act. D. Specified consideration. 6. Generally, an agency relationship is terminated by operation of law in all of the following situations except the A. Principal’s incapacity. B. Principal’s death. C. Agent’s failure to acquire a necessary business license. D. Agent’s renunciation of the agency. 7. Jim entered into an oral agency agreement with Sally in which he authorized Sally to sell his interest in a parcel of real estate, Blueacre. Within 7 days, Sally sold Blueacre to Dan, signing the real estate contract on behalf of Jim. Dan failed to
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AgencyMCQ - Agency MC Questions 1. Eric Farber, a...

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