Commercial Law Fall 2008 EX2

Commercial Law Fall 2008 EX2 -...

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http://www.cbe.uidaho.edu/wegman/420%20exams/420%20Fall%202008%20-%202web.htm B. Law 420 Commercial Law Exam #2 Fall 2008 November 18, 2008 Multiple 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. ratification b. diligence c. loyalty d. accounting 2. 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. True b. False 3. A principal can provide effective constructive notice to certain third parties that an agent's authority has been terminated, by doing the following: a. telling past customers b. publishing notice in newspapers of general circulation in the area where those third parties are located c. none of the above d. all of the above 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: a. He lacks authority to contract for P. b. He signs the contract "A, agent, on behalf of P". c. He signs the contract "A, agent". d. He signs the contract "A". 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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http://www.cbe.uidaho.edu/wegman/420%20exams/420%20Fall%202008%20-%202web.htm burden of proof includes which of the following? a. The plaintiff is a purchaser of securities issued pursuant to a defective registration statement. b. The auditor was negligent in preparing the registration statement. c. The auditor acted with scienter in preparing the registration statement. d. Two of the above, a and b. 7. An agent acts for a(n) ____________ principal when she appears to be acting on her own behalf and the third person with whom she is dealing has no knowledge that she is an agent. a. partially disclosed
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This note was uploaded on 07/29/2011 for the course ACCT 351B taught by Professor Inama during the Spring '11 term at Golden Gate.

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Commercial Law Fall 2008 EX2 -...

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