85%(89)76 out of 89 people found this document helpful
This preview shows page 6 - 9 out of 51 pages.
38. In an agency relationship the principal's control must be total and continuous over the agent. True False39. The doctrine of negligent hiring only applies to independent contractors when the contractor is hired to do a hazardous or inherently dangerous job. 10-6
Chapter 10 - Agency and Employment Relationships40. Whether an agency is classified as disclosed, undisclosed or partially disclosed, the principal has the duty to fully perform the contract obligations. Multiple Choice Questions41. Agency law primarily exists on the: 42. In Estrada v. Fedex Ground Package System, Inc., the court determined that the plaintiffs were employees for each of the following reasons except: A. Fedex exercised extensive control over the driver's schedules.B. Fedex maintained a standard pay rate for all similarly situated drivers.C. Fedex required the drivers to work exclusively for the company.D. Fedex required the drivers to supply and use their own trucks.43. Robert is a wealthy businessman who wishes to purchase a particular property. Realizing that the price might become inflated if his name is made known, he asks Faye to negotiate the purchase of the property on his behalf. Faye is the general manager of Robert's east coast operations. Faye reports directly to Robert and is supervised in all respects. Faye is told to tell Philip, the property owner, that she represents someone but she's told not to specify who she works for. The agency would be described as: 10-7
Chapter 10 - Agency and Employment Relationships44. Sanchez borrowed money from Fifth National Bank to buy a car. She defaulted on the loan. Fifth National hired Rex's Recovery Service to repossess the car for a set fee. They weresimply told to locate and seize the car. Rex's would be classified as a/an: 45. The nonagent employee relationship is sometimes referred too as the: 46. Which of the following is the true statement? A. ratification applies to previously unauthorized actsB. actual authority must be expressly created and cannot be based on custom or past dealingsC. apparent authority is based on what the principal communicates to the agent and not the third partyD. actual authority must always be expressed in writing