Chapter 8 Quiz Sample Solutions

Chapter 8 Quiz Sample Solutions - 1 Answer Key 1 2 3 4 5 6...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
1
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Answer Key 1. D 2. A 3. D 4. B 5. C 6. B 7. B 8. C 9. B 10. D 11. D 12. A 13. A 14. A 15. B 2
Image of page 2
Answer Key with Explanations Question #1 Answer: D Explanation: Agency law governs all relationships among agents, principals, and third parties. Question #2 Answer: A Explanation: Accepting a buyer's deposit was within the agent's scope of authority, as authorized by the seller. Therefore, the seller bears the risk of loss of the deposit. Question #3 Answer: D Explanation: A broker working for a seller has a fiduciary duty to disclose all offers to the seller, regardless of the contents of the offers. A seller's agent would have no fiduciary duty to the buyer. Question #4 Answer: B Explanation: The agent's duty to keep the principal informed is part of the fiduciary relationship. A fiduciary is held to exacting standards in disclosure and accountability because she operates in a position requiring trust and confidence. Question #5 Answer: C Explanation: Consideration is not necessary to the formation of an agency relationship; an agency may be gratuitous. Whether or not the agent is being paid, though, the relationship is
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern