Start studying Chapter 18 : Agency Law. Learn vocabulary, terms, and more with flashcards, games, and other study tools.
T/F: A(n) implied agency is an agency that occurs when a principal and an agent do not expressly create an agency, but it is inferred from the conduct of the parties.
T/F: A principal-agent relationship exists when an employer hires an employee to perform some form of physical service.
Marcus employs a real estate broker, Dean, to sell his house. Dean's express powers are to advertise and market the house for sale, show the house to prospective buyers, and accept offers from persons who want to purchase the house. He is not allowed to complete a deal without Marcus's consent. Marcus goes away on a month-long trip where he cannot be contacted. During this time, a short circuit in the house causes a power outage. Dean uses his authority to hire an electrician to repair the circuits and restore electricity in the house. Marcus then comes back and pays Dean for the electricity repair. What is the nature of the agency that Dean used to fix the electricity problem in the house?
B) Independent contractors cannot be authorized by principals.
T/F: If a principal and an agent enter into an express agency contract, the principal cannot employ any agent other than the agent who entered into the contract.
A) It can be based on a conversation between the principal and agent.
A) A principal is responsible for the tortious conduct of an agent irrespective of the scope of his or her authority.
D) An agent divulges private details of his past employer to his principal.
B) Examples of dual agents are finders and middlemen.
A) An agent gives the seller the principal's name and phone number in a fully disclosed transaction.
C) Minksine Corporation is liable for the injuries caused by Sandy.
D) The principal is not allowed to recover for lost sales due to the agent's competing venture.
A) The principal can recover damages from the agent if the competition continues after the agency has ended.
Start studying Chapter 18 : Agency Law. Learn vocabulary, terms, and more with flashcards, games, and other study tools.
T/F: A(n) implied agency is an agency that occurs when a principal and an agent do not expressly create an agency, but it is inferred from the conduct of the parties.
T/F: A principal-agent relationship exists when an employer hires an employee to perform some form of physical service.
Marcus employs a real estate broker, Dean, to sell his house. Dean's express powers are to advertise and market the house for sale, show the house to prospective buyers, and accept offers from persons who want to purchase the house. He is not allowed to complete a deal without Marcus's consent. Marcus goes away on a month-long trip where he cannot be contacted. During this time, a short circuit in the house causes a power outage. Dean uses his authority to hire an electrician to repair the circuits and restore electricity in the house. Marcus then comes back and pays Dean for the electricity repair. What is the nature of the agency that Dean used to fix the electricity problem in the house?
B) Independent contractors cannot be authorized by principals.
T/F: If a principal and an agent enter into an express agency contract, the principal cannot employ any agent other than the agent who entered into the contract.
A) It can be based on a conversation between the principal and agent.