Business Law & Ethics- Chapter 17b TRUE/FALSE QUESTIONS 1. T An employee may act in the capacity of an agent. 2. T A minor can be an agent. 3. T A principal can ratify an agreement made without authorization on his or her behalf by one who is not his or her agent. 4. T A principal owes his or her agent a duty to act in good faith. 5. T Generally, a principal has a duty to pay an agent for services rendered. 6. T A principals liability in a contract with a third party may arise from the authority given to the agent to act on behalf of the principal. 7. F An agents authority must be implied for the agents act to bind a principal. 8. F A principal must ratify a contract to be bound to it. 9. T If an agent acts within the scope of authority, a partially disclosed principal is liable to a third party for contracts made by the agent. 10. T When a principal places an agent in a position to defraud a third party, the principal is liable for the agents fraudulent acts. 11. T A principal cannot be held liable for an agents crime. 12. T When the specific subject matter of agency is lost or destroyed, the agency terminates.... View Full Document
Comprehensive Problem 1 Chap 4 TEMPLATE (1)
Chapter 37- What is an Agency?