cheeseman_buslaw7_tif_29

cheeseman_buslaw7_tif_29 - 29 AGENCYFORMATIONAND...

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1) An agency relationship is created by the mutual consent of a principal and an agent. Answer: TRUE Diff: 1 Topic: Agency 2) An attorney is an agent when he represents a client. Answer: TRUE Diff: 1 Topic: Agency 3) A corporation must conduct all of its business affairs through agents. Answer: TRUE Diff: 2 Topic: Agency 4) Agency relationships are not necessary to the operation of a partnership. Answer: FALSE Diff: 2 Topic: Agency 5) Generally, in agency situations, the principal and agent must both have contractual capacity. Answer: FALSE Diff: 2 Topic: Agency 6) A principal who lacks contractual capacity can appoint an agent. Answer: FALSE Diff: 2 Topic: Agency 114 AGENCY FORMATION AND  TERMINATION 29
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7) Agency is a fiduciary relationship. Answer: TRUE Diff: 1 Topic: Agency 8) When a principal hires another to kill someone, an agency is created. Answer: FALSE Diff: 1 Topic: Agency 9) Even if an employee cannot enter into contracts, a principal-agent relationship is formed by virtue of the employment relationship itself. Answer: FALSE Diff: 2 Topic: Agency 10) A principal-agent relationship exists when an employer hires an employee to perform some form of physical service. Answer: FALSE Diff: 1 Topic: Agency 11) A person who is not an employee who is employed by a principal to perform a certain task on his behalf is an independent contractor. Answer: TRUE Diff: 1 Topic: Principal-Independent Contractor Relationship 12) An express agency is one that happens when a principal and an agent expressly agree to enter into an agency agreement with each other. Answer: TRUE Diff: 1 Topic: Formation of an Agency 13) In an express agency called a power of attorney, the principal is the attorney-in-fact. Answer: FALSE Diff: 2 Topic: Formation of an Agency 115
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14) Implied authority in an implied agency may be conferred by industry custom. Answer: TRUE Diff: 1 Topic: Formation of an Agency 15) An agency by estoppel arises when a principal expressly creates the agency relationship with an agent. Answer: FALSE Diff: 2 Topic: Formation of an Agency 16) An agency may be created even if a person misrepresents himself or herself as being another's agent when he or she really is not if the purported principal accepts the unauthorized act. Answer: TRUE Diff: 2 Topic: Formation of an Agency 17) A principal must compensate an agent at the completion of the agency or some other agreed upon time. Answer: TRUE Diff: 1 Topic: Principal's and Agent's Duties 18) An agent assumes the financial responsibility for all expenses within the scope of the agency. Answer: FALSE Diff: 2 Topic: Principal's and Agent's Duties 19) The principal has the duty to cooperate with the agent in the performance of his or her duties. Answer:
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This note was uploaded on 12/13/2011 for the course LAW LAW taught by Professor Ricks during the Spring '09 term at Rutgers.

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cheeseman_buslaw7_tif_29 - 29 AGENCYFORMATIONAND...

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