http://www.cbe.uidaho.edu/wegman/420%20exams/420%20Fall%202008%20-%202web.htmB. Law 420 –Commercial LawExam #2 Fall 2008November 18, 2008Multiple choice portion: 35 questions, each question is 2 points. Select the best answer.1. Which of the following is not a duty an agent owes to the principal?a. ratificationb. diligencec. loyaltyd. accounting2. An agent for a partially disclosed principal is liable on the contract to the third party no matter whether the particular transaction is authorized or not.a. Trueb. False3. A principal can provide effective constructive notice to certain third parties that an agent's authority has been terminated, by doing the following:4. Rocky Mountain Mall hired George to be a Santa Claus in the mall. After a tough day of demanding kids, he stops at a bar in the mall for a cold beer. Before he knows it, he's had 6 beers and heads home still wearing his Santa suit. While driving, he injures a pedestrian. The injured pedestrian sues the owner of the shopping mall. Which of the following is true?a. Because he is still in uniform he would probably be found to be within the scope of employment and the mall owner would be liable.b. The only way the mall could avoid liability here is to prove that he was on a frolic and detour at the time of the accident.c. The "coming and going" rule would probably protect the owner of the mall from liability.d. The mall owner would probably be liable because the bar was in the same mall where George worked as Santa.5. A is an agent for a disclosed principal named P. A makes a contract with T on P's behalf. A is least likely to be personally liable on this contract to T when:6. Under Section 11 of the Securities Act of 1933, in order to establish liability of an auditor, a plaintiff's http://www.cbe.uidaho.edu/wegman/420%20exams/420%20Fall%202008%20-%202web.htm (1 of 8) [7/8/2009 11:41:05 PM]
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