Agency Deck

Question 1

A principal - agent relationship may be created by express agreement, or by (i) ___________ (where a third-party implies on apparent authority), or (ii) __________, for limited legal purposes (e.g., Secretary of State as out-of-state motorists’s agent for service of process)

Answer 1

(i) estoppel; (ii) statute

Question 2

The Principal and Agent owe each other duties. The agent owes the duties of (i) _______, (ii) reasonable _____, and (iii) _______ to lawful instructions. The Principal owes the agent reasonable (iv) _________ and (v) ________ for expenses.

Answer 2

(i) loyalty; (ii) reasonable care; (iii) obedience; (iv) compensation; (v) expenses

Question 3

A (i) ________ is a peer of an agent. A (ii) ________ is an agent to whom an agent has appointed to act on behalf of the principal. An (iii) _________ has absolute liability to the (iv) __________ for breaches by the subagent.

Answer 3

(i) coagent; (ii) subagent; (iii) agent; (iv) principal

Question 4

A principal may recover (i) ______ _______ from an agent, whether or not the agent’s profit has caused the principal any loss.

Answer 4

(i) actual profit.

Question 5

Agents may act with (i) _______ or (ii) ________ authority. Actual authority can be (iii) _______ or (iv) _______ (incidental to express authority; arising out of custom; resulting from prior acquiescence, emergency measures, ministerial acts; general warranties; to pay for the delivery of goods).

Answer 5

(i) Actual; (ii) apparent; (iii) express; (implied)

Question 6

An agency may terminate after (i) ________ by a reasonable time, (ii) an _________ happening, (iii) a change in _________, (iv) the agent’s _______ in duty, or (v) either party’s _________ termination, or (vi) _______ of law (e.g., death or loss of capacity).

Answer 6

(i) lapse; (ii) event; (iii) circumstances; (iv) breach; (v) unilateral; (vi) operation

Question 7

An agency can be (i) _________ by the principal, if it is coupled with an (ii) _______ or __________, if the agency was given to protect the agent’s rights (or a (iii) ______ party)), and is supported by (iv) __________.

Answer 7

(i) irrevocable; (ii) interest or security; (iii) third; (iv) consideration

Question 8

(i) ________ authority arises from the reasonable belief of (ii) _______ parties.

Answer 8

(i) apparent; (ii) third

Question 9

There are special cases where someone with apparent authority has no (i) ________ authority. For instance, an impostor, or a lingering agent. For an impostor, the principal may not (ii) ___________ permit the individual to operate. For lingering authority, the Principal should give (iii) __________ of termination to all known third parties (actual or constructive).

Answer 9

(i) actual; (ii) negligently; (iii) notice

Question 10

Even where the Agent exceeds actual authority, the principal may be bound. For a (i) ______ _____, if the principal previously permitted the Agent to exceed his authority, and knows the third party is aware of the prior act, the Principal is Bound. Where an Agent is in a (ii) _______ that customarily carries certain responsibilities, the Principal may be bound.

Answer 10

(i) prior act; (ii) position

Question 11

Under the doctrine of (i) _______ ________, the principal is held liable for the torts other employee committed within the (ii) _______ of _________.

Answer 11

(i) respondeat superior; (ii) scope of employment

Question 12

Where an Agent exceeds his actual authority, but the conduct is ________ to acts authorized, the Principal ill be bound.

Answer 12

Similar

Question 13

A principal may subsequently (i) _________ an Agent’s prior action, giving it retroactive effect, and reliving the agent of liability.

Answer 13

Ratify

Question 14

To (i) _______ an Agent’s prior act, the Principal must know all (ii) ________ facts, accept the (iii) _______ transaction and have (iv) ________.

Answer 14

(i) ratify; (ii) material; (iii) entire; (iv) capacity.

Question 15

An Agent’s liability to a third party depends on whether the Principal was (i) _________. If a principal is (ii) __________, he is always liable, and the Agent is not. If a Principal is (iii) __________ and _________, there is liability for both the Principal and Agent. On objection, the third party must elect prior to judgment which party he wishes to be held liable. If the third party obtains a judgment against the eAgent without knowledge of the Principal’s identity, he can later sue the Principal when he discovers her identity, if the judgment has not be satisfied.

Answer 15

(i) disclosed; (ii) disclosed; (iii) undisclosed and unidentified

Question 16

When the Principal is disclosed, only the (i) ______ can enforce the contract against a third party. When the Principal is undisclosed, either the (ii) ______ or the ______ can sue the third party. But, if the Principal’s identity has been (iii) ____________, the Principal mayn’t enforce the contract.

Answer 16

(i) principal (ii) Principal or Agent; (iii) misrepresentation

Question 17

To pursue a claim under (i) ________ _________, there must be an (ii) ________-_________ relationship. In general, a Principal is liable only for the torts of (iii) ___________, not for (iv) _________ contractors. The determinative factor on whether an Agent is an employee or independent Contractor is the Principal’s right to (v) ______ the manner and method in which the job is performed. This could include the characterization of the parties, whether the business is distinct, customs of local supervision, the degree of skill require on the job, whose tools and facilities were used, the period of employment the basis for compensation, the party’s understanding, and whether the person is hired to further the principal’s business.

Answer 17

(i) respondeat superior; (ii) employer-employee; (iii) employee’s; (iv) independent; (v) control

Question 18

The appearance of an employee-employer relationship will (i) ________ the Principal from denying its existence in a tort.

Answer 18

(i) estopped

Question 19

Certain Independent Contractor activities still fall under (i) _______ ___________, including (ii) inherently ________ activities, (iii) _______ duties have been delegated, or (iv) the Principal _________ selected an incompetent contractor.

Answer 19

(i) respondeat superior; (ii) dangerous; (iii) nondelegable; (iv) knowingly (not negligently)

Question 20

If an employer-employee relationship existed, the employer will only be liable for employee torts within (i) _____ of ________. This means the conduct was either (ii) _________ authorized, (iii) _______ to the regular work of the employees. A (iv) _____ is generally within scope (small deviation), where as (v) ________- is a departure from employment.

Answer 20

(i) scope of employment; (ii) actually; (iii) similar; (iv) detour; (v) frolic

Question 21

Generally, the employer has no obligation to (i) ________ in the employee’s vehicle, and is not liable for their injuries.

Answer 21

(i) passengers

Question 22

If an employee’s trip has two purposes (private and business), it will be within the scope of employment if any (i) _______ _______ of the employer is being served.

Answer 22

(i) substantial purpose

Question 23

(i) _________ torts are normally not within the scope of employment unless their are part of the employee’s (ii) _____.

Answer 23

(i) intentional; (ii) duties

Question 24

If (i) ______ _________ does not apply, the Principal may still be (ii) _______ liable if the Agent acted with (iii) _______ authority. If the apparent authority enables the Agent to either (iv) _____ a tort or (v) ______ its commission, the Principal may be liable.

Answer 24

(i) respondeat superior; (ii) vicariously; (iii) apparent; (iv) commit; (v) conceal