Agency Relationships, Creation, and Types

Question 1

What was the issue in Gorton v. Doty?

Answer 1

Was the coach acting as an agent of the teacher when the accident occurred

Question 2

What is the law of agency?

Answer 2

A set of rules governing the situation in which one person (the agent) acts on behalf of another (the principal)

Question 3

According to both the Restatement of Agency and the court in A. Gay Jenson Farms, Co., v. Cargill, Inc., an agreement may result in the creation of an agency relationship

1. even though the parties do not call it an agency
2. even though the two parties do not intend the legal consequences of an agency relationship to follow
3. when the elements of agency (principal assents that the agent shall act on its behalf and subject to its control, and agent consents so to act) are present
4. all of the above
5. a and c only

Answer 3

4. all of the above

Question 4

What was the primary issue in A. Gay Jenson Farms, Co. v. Cargill, Inc.?

Answer 4

Was Warren Grain and Seed an agent of Cargill in its dealings with the plaintiff farmers?

Question 5

An agent with two principals is most likely to be:

Answer 5

a subagent

Question 6

Agency may be defined as

Answer 6

A fiduciary relationship that arises when one person (the principal) manifests assent to another person (the agent) that the agent shall act on the principal’s behalf and subject to the principal’s control, and the agent manifests assent or otherwise consents so to act

Question 7

Which of the following is not a category of agency authority?

1. apparent agency
2. actual implied agency
3. inherent agency/liability of the undisclosed principal
4. actual express agency
5. control agency

Answer 7

5. control agency

Question 8

A business association must act:

1. at a profit
2. by purchasing others
3. through its agents
4. with shareholders
5. within a single state

Answer 8

3. through its agents

Question 9

When a person manifests assent, that manifestation may be:

1. written words
2. spoken words
3. observable conduct that expresses meaning
4. all of the above
5. a and b only

Answer 9

4. all of the above

Question 10

When an agent acts on behalf of a[n] __________ principal, the third party knows that the agent is acting as an agent, but the third party does not know the name of the principal party.

Answer 10

unidentified