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The duty of ____ requires the agent to act in the principal's affairs only as authorized by the principal and to obey all reasonable instructions and directions given by the principal a. accounting b. obedience c. fiduciary d. diligence |
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Contracutal duties of a principal to an agent include all but the duty to: a. pay the agent for losses suffered while acting legally as directed by principal b.. account for financial benefits pay for authorized expenses incurred d. compensate the agent as specified in the contrac |
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Definition
| b. account for financial benefits |
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Term
Which of the following is false with respect to an agency agreement by an agent to act as the principal's exclusive agent for five years? a. such an agency is capapble of being revoked b. if either party revokes the contract withing five years, he will be liable for breach of contract c. the agent has the power to renounce the agreement d. this is an agency coupled with an interes |
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Definition
| d. this is an agency coupled with an interest |
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Term
Which of the following is NOT a major duty which the agent owes to his principal? a. duty to obey instructions b. duty to act in good faith and with loyalty c. duty to indemnify d. duty to exercise care |
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Which of the following is correct with regard to a gratuitous agency? a. a gratuitous agent is a paid agent b. a gratuitous agent is subject to the same duty of loyalty as other agents c. a gratuitous agent has no duty of diligence d. a gratutiotus agent need not be reimbursed for her expenses |
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Definition
| b. a gratutitous agent is subject to the same duty of loyalty as other agents |
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Term
in circumstances under which a person is held liable as a principal even though no actual agency has been created, there is a a. agency by estoppel b. apparent agency c. ostensible agency d. all of the above |
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| Milton owns a business delivering coffee and donuts within the downtown are of the city. Smith Co. calls him to deliver a large quantity of his products to their office. Milton is in building and drops it on Lester, scalding him. Who is liable |
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| Mark, who is 16 years old, appoints Joe, age 21, as his agent to purchase a videotape recorder from VideoWorld. This transaction between Joe and VideoWorld is: |
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Definition
| voidable by mark because he is a minor |
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Term
When is an agency relationship irrevocable? a. it is never irrevocable b. when the agency is coupled with an interest of the agent in the subject matter c. when the principal violates his duties to the agent d. when the agency is gratuitous |
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Definition
| b. when the agency is coupled with an interest of the agent in the subject matter |
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Term
| Mark hires Joe's real estate agency to sell his estate, telling Joe he has lost too much money playing the stock market to afford to keep it up. Then mark wins the three million dollar lottery. joe reads this in the newspaper and that afternoon makes a contract with Sharon to sell the estate. is the contract valid? |
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Definition
| no, the agency terminated becasue of the change in conditions |
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Term
| Carl loans dan 1500 for dan's honeymoon. Dan gives Carl his ruby ring as security for the loan and after a year, tells Carl he may as well sell it to recoup the 155. When Dan's wife hears of this, she persuades Dan to call Carl and get back the ring. Can Carl sell it anyway? |
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Definition
| yes, because Dan cannot terminate this agency |
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Term
| Richard writes a letter to Sarah authorizing her to sell his car and sends a copy of the letter to Timothy, a prospective purchaser. the next day, Richard sends a letter to Sarah revoking her authority, but he fails to notify Timothy |
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Definition
| Sarah has apparent authority with respect to Timothy to sell the car |
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Term
Except in cases of death or incapacity, or where the perfermance of an authorized act becasue impossible, actual notice of termination of angency is required to the third party if she is one: a. with whom the agent has dealt on credit b. to whom the agent has been specially accredited c. with whom the agent has begun to deal d. all of the above |
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conduct of the employee, not involving intential force, is within the scope of employment if it: a. is of the kind he is employed to perform b. is actuated at least in part by a purpose to serve the employer c. occurs substantially within authorized time and space limits d. all of the above |
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