Agency: The Outside Relationship Flashcards
True/False: If apparent authority is present, the principal is liable for even the unauthorized acts of the agent.
True
True/False: If ambiguity is present as to the principal’s intent, the court will look to the principal’s subjective intent.
False
True/False: If someone acts without authority, a “principal” can decide later to be bound by the actions as long as the “agent” indicates to the third party that he is acting for a principal, the “principal” knows all the material facts of the transaction, and the “principal” accepts the benefit of at least part of the transaction.
False
True/False: If Denise is hired to work as a cashier, she has the implied authority to do acts reasonably necessary to carry out her job.
True
True/False: The implied authority of an agent is the same an agent’s apparent authority.
False
True/False: Respondeat superior means “let the master answer.”
True
True/False: As a general rule, an agent is liable on contracts entered into on behalf of a fully disclosed principal.
False
True/False: Erica’s supervisor told her to arrange for a conference room at the Kelly Inn. Erica has express authority to contract for the room.
True
True/False: An act is not “within the scope of employment” if it is expressly forbidden, even if it is of the same general nature as an authorized act.
False
True/False: The issue in apparent authority is what the principal has done to make the third party believe that the agent actually has authority.
True
True/False: An employer is generally liable for the intentional wrongful acts of his or her employees.
False
True/False: If a principal accepts the benefits of a whole unauthorized contract, the principal is deemed to have ratified the contract and is bound as if the act had been originally authorized.
True
True/False: If estoppel applies, the principal would be prevented from asserting that no agency relationship existed.
True
True/False: Maylin has the authority to delegate her tasks as agent for Brian unless he has expressly restricted her from doing so.
False
True/False: An agent is always liable for his or her own torts committed within the scope of the agency relationship.
True
Jenny is a salesperson in a hardware store. As such, she:
a. ) is an agent of the store.
b. ) has express authority to conduct sales transactions.
c. ) has implied authority to conduct sales transactions.
d. ) All the above are correct.
The doctrine of estoppel would most often apply in situations of:
apparent authority.
Express authority can be created by:
a. ) words spoken directly to the agent.
b. ) conduct.
c. ) written words given to one person to give to another person, the agent.
d. ) All the above.
Thomas, the manager of an apartment complex, rented an apartment to Donna. A few weeks later, Donna complained that the hot water did not work. Thomas hired Hometown Plumbers to fix the hot water, but the job was not successful. A few days later Donna moved out since she had no hot water. She sued the landlord and Thomas for breach of contract.
The landlord is liable, but not Thomas.
In the Dickinson v. Charter Oaks case, the court found:
a reasonable inference could be made that Carol Dickinson knowingly permitted her husband to act as having apparent authority.
Circus Pizza contracted with Art to run its birthday parties. Art’s responsibilities included supervising the children and organizing the games. Circus did not investigate Art’s background, which included a history of assaulting children. Art assaulted a 7-year-old girl in the restaurant’s kitchen during a birthday party. Circus Pizza:
may be held liable on the basis of negligent hiring.
Kirk is bound by the acts of his agent, Tyra, if:
a. ) Tyra has express, implied, or apparent authority for the acts.
b. ) for reasons of fairness, Kirk is estopped from denying that Tyra had authority for the acts.
c. ) Kirk fails to repudiate an unauthorized transaction after knowing all the material facts of the transaction.
d. ) All of the above.
Paula appointed Al to be her agent via a contract in writing that spelled out the scope of Al’s authority. The contract provided that Al was not to disclose that he was acting on behalf of Paula. In entering into a contract for Paula, Al did not disclose to the third party that he was acting as an agent. In this case, the principal was:
undisclosed.
When a principal is partially disclosed:
the agent and principal will be jointly and severally liable on the contract.