Question 1
The doctrine of respondeat superior generally:
Answer
a.
applies to both employees and independent contractors.
b.
does not apply to either employees or independent contractors.
c.
applies to independent contractors but not employees.
d.
applies to employees but not independent contractors.
17 points
Question 2
Chance is a traveling marketing representative for a publishing company. He is an independent contractor. One afternoon while driving to a meeting, he negligently runs a stop sign and causes an accident. Judy is injured. Judy can:
Answer
a.
not hold Chance or his company liable for her injury.
b.
hold the company but not Chance liable.
c.
hold both Chance and his company liable for her injury.
d.
hold Chance but not the company liable.
17 points
Question 3
Factors influencing whether an employee is acting “within the scope of employment” include all but which of the following?
Answer
a.
The act is similar to the one the principal authorized.
b.
The act is not seriously criminal.
c.
The act took place during hours that the employee is generally employed.
d.
All of the answer choices are factors in determining if an act is “within the scope of employment.”
17 points
Question 4
Mike worked for Frank’s Pizza as a driver. His duties consisted of making deliveries along a designated route. One day Mike decided to see his girlfriend, Jackie, who lived 50 miles out of his pizza route. While driving to his girlfriend’s, Mike injured a pedestrian, Chuck. The accident was caused because of Mike’s negligent operation of the delivery truck. Chuck is now suing both Mike and Frank’s for personal injuries. Under the circumstances:
Answer
a.
Frank’s is not liable for the negligent torts of its agents.
b.
Frank’s is probably liable under the doctrine of respondeat superior.
c.
Frank’s is probably not liable because Mike’s excursion was not within the scope of his employment.
d.
Chuck can probably recover damages from both Frank’s and Mike.
17 points
Question 5
Ellen is an employee for Good Eats Restaurant. When serving a the chicken a la king he ordered, she accidentally spills some of the sauce on Henry’s designer suit. Henry claims that his $1,200 business suit is ruined. The legal liability here can best be described as:
Answer
a.
the restaurant is liable to Henry, but Ellen is not.
b.
Neither Ellen nor the restaurant is liable to Henry as the incident was just an accident.
c.
Ellen is liable to Henry, but the restaurant is not.
d.
Both the restaurant and Ellen are liable to Henry.
17 points
Question 6
If the agent and principal are jointly and severally liable, the injured party:
Answer
a.
may choose to sue only the agent.
b.
may choose to sue only the principal.
c.
can sue both the agent and the principal.
d.
All of the above.
Question 1
Apparent authority can only be created by the actions of
Answer
a.
The agent himself
b.
A disclosed principal
c.
A partially disclosed principal
d.
An undisclosed principal
9 points
Question 2
When a principal decides to adopt and be bound on a contract that his agent did not have the authority to form, the principal _______________ the contract.
Answer
a.
Indemnifies
b.
Reforms
c.
Ratifies
d.
Restores
9 points
Question 3
An agent’s actual authority may be
Answer
a.
Express
b.
Implied
c.
Ostensible
d.
Both a and b
e.
A and b and c
9 points
Question 4
Alan is the general manger of a restaurant. Although not mentioned in his employment contract, as part of carrying out his management duties he has the authority to buy supplies, hire employees, put ads on the radio, engage a cleaning service, pay bills, etc. These duties are expressions of his _____________authority.
Answer
a.
Actual express
b.
Actual implied
c.
Actual apparent
d.
Constructive implied
9 points
Question 5
The legal doctrine that holds the master liable for the torts committed by a servant while acting within the scope of this employment is
Answer
a.
Quid pro quo
b.
Respondeat superior
c.
Caveat emptor
d.
Alter ego liability
9 points
Question 6
Raines Realty, a property management firm, hired Al Agent to manage an office complex. One of Al’s duties was to collect the rents. Raines fired Al for negligence, but did not notify the tenants before the next rent payment was due. Al collected the rents as usual and left town with the money. Are the tenants required to pay that month’s rent again to Raines?
Answer
a.
Yes, because third parties have a duty to verify that agents are acting within the scope of their authority.
b.
Yes, because a payment to Al stopped being a payment to Raines when Al’s actual authority to accept payments ended.
c.
No, because Al still had implied authority to collect the rents until Raines told the tenants otherwise.
d.
No, because Al still had apparent authority to collect the rents until Raines told the tenants otherwise.
9 points
Question 7
An agent incurs personal liability on a contract with a third party when
Answer
a.
he acts outside the scope of his authority in negotiating the contract
b.
he is an agent for an undisclosed principal
c.
he is an agent for a partially disclosed principal
d.
all of the above would impose personal liability on the agent .
9 points
Question 8
An agent is not entitled to indemnification when
Answer
a.
His own negligence caused the damage for which he is being held responsible
b.
He was acting outside the scope of his authority
c.
He committed a tort while following the instructions of the principal
d.
Both a and b
e.
Both b and c
9 points
Question 9
Someone authorized to act on behalf of another is generally known as a(n):
Answer
a. agent
b. independent contractor
c. employee
d. surety
9 points
Question 10
Where the principal makes representations to a third party about the role that an agent is to play which kind of authority can be created?
Answer
a. apparent authority
b. authority by estoppel
c. inherent authority
d. express authority
9 points
Question 11
In the context of agency, ratification refers to:
Answer
a. reaffirming a contract that one previously agreed to
b. agreeing, after reaching majority, to be bound by a contract entered into as a minor
c.
agreeing to be bound to a contract entered into by an agent that exceeded the agent’s authority at the time the agent entered into it
d. getting the appropriate agency to agree to take steps to reduce an excessively large rodent population
