Agency Liability

Question 1

Please fill in the following blanks:

Master = ___________; Servant = _____________; Independent Contractor = _____________

Answer 1

employer; employee; non-employee agent

Question 2

An employee acts within her scope of employment when she:

1. is performing work assigned by the employer
2. is acting subject to the employer’s control
3. is not pursuing an independent course of conduct not intended to serve the employer
4. all of the above
5. 1 and 3 only

Answer 2

4. all of the above

Question 3

When an agent acting with apparent authority makes a contract on behalf of a disclosed principal

Answer 3

the principal and the third party are parties to the contract

Question 4

A principal is subject to vicarious liability for conduct by its agent that harms a third party when:

Answer 4

the agent is an employee who commits a tort while acting within the scope of his employment for the principal

Question 5

In agency law, when referring to the manner and means of an employee’s work, what distinguishes employees from non-employee agents?

Answer 5

control by the principal

Question 6

When an agent’s tortious conduct harms a third party:

Answer 6

the agent is liable

Question 7

Usually, when an agent acting with actual authority makes a contract on behalf of an undisclosed principal, who is a party to the contract?

Answer 7

the principal, the agent and the third party are parties to the contract

Question 8

In Ira S. Bushey & Sons., Inc, v. U.S., Judge Friendly:

1. Held that business entity may be liable for the accidents which may fairly be said to be characteristic of its activities
2. Found that the motive (i.e., intent to serve) test was too narrow
3. Introduced the “characteristic risk” test to decide a scope of employment question
4. Held that the U.S. Government was liable for the damage done to the drydock by Seaman Lane
5. All of the above

Answer 8

5. All of the above

Question 9

Which of the following is most likely to relieve an employer of liability for the tort of its employee?

1. The employer has no right to exercise control over the manner and means of the employee’s performance of the work
2. The employee performs the work gratuitously
3. The work is “ultra-hazardous”
4. The employee has worked for the employer for less than one year
5. The employer has the right to control the manner and means of the employee’s performance of the work, but does not exercise that right

Answer 9

The employer has no right to exercise control over the manner and means of the employee’s performance of the work

Question 10

Please fill in the blanks:

Vicarious liability requires ___________; direct liability requires __________

Answer 10

Requires the agent to be an employee acting within the scope of his employment; usually requires some fault by the principal

Question 11

An ______ is subject to liability to a third party harmed by the agent’s tortious conduct.

Answer 11

agent

Question 12

_____ liability does not require fault on the part of the principal, while ________ generally involves fault on the part of the principal

Answer 12

vicarious; direct

Question 13

a non-employee agent is also known as an

Answer 13

independent contractor

Question 14

A principal is subject to vicarious liability to a third party harmed by an agent’s conduct when:

Answer 14

agent is an employee who commits a tort while acting within the scope of employment or the agent commits a torn when acting with apparent authority in dealing with a third party on or purportedly on behalf of the principal

Question 15

An employee’s act is not within the scope of employment when it occurs within an:

Answer 15

independent course of conduct not intended by the employee to serve any purpose of the employer