BUS 311 Week 3 Quiz Chapter 018in Business (Education) by RD777DR
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BUS 311 Week 3 Quiz Chapter 018
- A person who represents another is known as a principal.
- Anyone who is legally competent to act for himself or herself can act as an agent of himself or herself but cannot serve as an agent for another.
- Agents are usually classified according to the nature of their relationship with their principals.
- An agency by ratification results when a principal approves an unauthorized act performed by an agent.
- An agency by invention is created when circumstances make such an agency necessary.
- An agency by operation of law is created when a court finds the need for an agency to achieve a desired social policy.
- Express authority is the authority an agent reasonably assumes he or she has that relates to the express authority granted by the principal.
- A principal is liable for the torts and crimes of the agent if they are committed at the direction of the principal or while the agent is performing authorized duties during the ordinary course of the agency.
- It is not necessary for the agent to obey all of the principal's reasonable and lawful orders and instructions within the scope of the agency contract.
- A principal must pay the agent the compensation agreed to in the contract.
- If a person acts as agent for more than one party with their knowledge, the agent is entitled to receive compensation from each principal.
- A principal is not responsible to third parties for all agreements made by the agent on behalf of the principal even if the agent acted within the scope of his or her authority.
- When the agent informs the third party that he or she is acting on behalf of another, and makes the third party aware of the identity of the principal, the principal is known as a furtive principal.
- Agency is a type of contract and, like other contracts, may be terminated by agreement, by performance, or by operation of law.
- The legal principles governing the relationship of principal and agent and of employer and employee are entirely different from each other.
- It is often necessary or desirable for a person or firm to be represented by another in business or personal dealings with third parties. This relationship is called a(n):
A. employer-employee relationship.
B. principal-agency relationship.
C. title-agency relationship.
D. third party-agent relationship.
- Individuals who lack the capacity to enter into contracts on their own are:
A. the physically disabled.
B. senior citizens.
- If minors are capable of properly carrying out the duties of an agency relationship:
A. then they may be considered to represent other persons as agents.
B. they may still not be eligible to enter into a contract with an agent.
C. then may still not be considered to represent other persons as agents.
D. then they are exempted from representing other persons as agents.
- A person who is delegated the authority to act only in a particular kind of transaction, under definite instructions, and with specific limits on the scope of his or her authority, is called a:
A. general agent.
B. hired agent.
C. special agent.
D. super agent.
- The legal document formally creating an agency is called a:
A. general contract.
B. power of attorney.
C. special delegation.
D. collateral power.
- Which legal term is used for a person who is appointed as an agent?
A. Special Attorney
B. Attorney in Law
C. Attorney in Fact
D. Apparent Attorney
- A principal cannot accept the benefits of a transaction and refuse to accept the:
B. parallel benefits.
C. apparent benefits.
- In an agency by agreement, "authorization" occurs:
A. after the fact occurs.
B. before the fact occurs.
C. during the occurrence of the fact.
D. after the agency becomes defunct.
- An agent may perform only those acts that have been authorized by the principal or:
A. the spouse of the principal.
B. his or her employer.
C. the court.
D. the government.
- The authority that has actually been given by the principal, either orally or in writing, is known as:
A. forbidden authority.
B. foreseen authority.
C. implied authority.
D. express authority.
- The authority that a third party may reasonably assume an agent possesses despite the fact that the agent does not actually possess such authority is known as:
A. unlawful authority.
B. ultra vires authority.
C. apparent authority.
D. delegated responsibility.
- If an agent makes a fraudulent statement in a contract within the scope of his or her authority, then the:
A. principal is responsible.
B. agent is responsible.
C. principal is not responsible.
D. contracting party's agent is responsible.
- If an agent commits any torts or crimes acting within the scope of his or her ___, then both principal and agent may be held liable.
A. mental capacity
D. financial capacity
- An agent is liable for losses to the principal resulting from the agent's:
A. capital accumulation.
B. personal business.
D. explicit agreement.
- An agent must keep accurate accounts of his or her transactions conducted as part of the:
A. termination clause.
B. appointment letter.
D. agency agreement.
- If a person acts as an agent for more than one party with their knowledge, the agent is entitled to receive compensation from:
A. each principal.
B. each agent.
C. his or her first employer.
D. his or her last employer.
- A principal must reimburse an agent for any loss or damage suffered by the agent in the legitimate:
A. ownership of property.
B. performance of duties.
C. enforcement of rules.
D. transfer of power.
- When an agent signs a contract in the principal's name, he or she is acting on behalf of a(n):
A. disclosed principal.
B. undisclosed principal.
C. apparent principle.
D. statutory principal.
- When an agent does not inform the third party that he or she is acting on behalf of another person, the unidentified principal is known as a(n):
A. undisclosed principal.
B. unaware principle.
C. unauthorized principle.
D. distinct principle.
- If the third party does not know the identity of the principal, the agent can be held personally responsible to the:
B. third party.
C. identified principal.
D. unidentified principal.
- An agency contract is terminated by an act of the parties when the principal and the agent have mutually agreed on:
- A principal may not revoke an agency contract if the agent has an interest in the subject matter of the agency in addition to the remuneration that he or she receives for services. Such a contract is called an irrevocable agency, which is also known as:
A. agency coupled with an interest.
B. collection agencies.
C. agency by ratification.
D. apparent authority.
- If an employee is required to perform duties for the employer that necessitate the exercise of judgment and discretion and that result in the establishment of a contractual relationship between the employer and a third party, then the employee has the status of an agent even without a:
A. formal contract of agency.
B. deed of trust.
C. stock purchase agreement.
D. joinder agreement.
- The main difference between principal-agent and employer-employee relationships is an employer's power to control the activities of a(n):
A. non-agent employee.
B. non-employee agent.
D. third party.
- Some employees are agents; some are not. Some agents are also employees and some are not. The two relationships are judged: