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Business Law > Ch26 Nature and Creation of an Agency > Flashcards

Ch26 Nature and Creation of an Agency Flashcards

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0
Q

Agent

A

Nature of Agency

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1
Q

Principal

A

Nature of Agency

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2
Q

Principal appointing agent results in contract of agency.

A

Nature of Agency

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3
Q

Person who appoints another to contract with third parties.

A

Principal

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4
Q

Person appointed to contract on behalf of another.

A

Agent

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5
Q

Agents are delegated by business owners for the important details of business transactions.

A

Importance of Agency

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6
Q

Agents are necessary in order to bring one person into a business contractual relationship with other people.

A

Importance of Agency

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7
Q

An agent has all the powers the person who appointed them has.

A

What Powers May Be Delegated to an Agent?

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8
Q

Courts will not permit certain acts of a personal nature delegated to agents.

A

What Powers May Be Delegated to an Agent?

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9
Q

Agents cannot be authorized to act out against the law.

A

What Powers May Be Delegated to an Agent?

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10
Q

All people legally competent to act for themselves can act through an agent.

A

Who May Appoint an Agent?

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11
Q

A contract between a minor and an agent is voidable. Some states find this contract void.

A

Who May Appoint an Agent?

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12
Q

Any person with sufficient intelligence to carry out the principal’s order may act as an agent.

A

Who May Act as an Agent?

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13
Q

Corporations and partnerships may act as agents.

A

Who May Act as an Agent?

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14
Q

An agent may require certain requirements for some types of transactions.

A

Who May Act as an Agent?

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15
Q

Failure to meet these requirements disqualifies an agent in performing his duties of those transactions.

A

Who May Act as an Agent?

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16
Q

Agent authorized to carry out particular kind of business or all business at a place.

A

General agents

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17
Q

Agent authorized to transact specific act or acts.

A

Special agent

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18
Q

Bailee seeking to sell property on commission.

A

Factors

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19
Q

Factor who sells on credit and guarantees price will be paid.

A

Factors del credere

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20
Q

Agent with job of bringing two contracting parties together.

A

Brokers

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21
Q

General agent appointed by written authorization.

A

Attorneys in fact

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22
Q

Extent of Authority: Acts clearly within the scope of the express authority.

A

A general agent has authority to transact several classes of acts.

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23
Q

Extent of Authority: Acts customarily within such an agent’s authority.

A

A general agent has authority to transact several classes of acts.

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24
Q

Extent of Authority: Acts outside of express authority but appear to third parties to be within the scope of the agent’s authority.

A

A general agent has authority to transact several classes of acts.

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25
Q

Authority of agent stated in agreement creating agency.

A

Express authority

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26
Q

Agent’s authority to do things in order to carry out express authority.

A

Implied authority

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27
Q

Authority an agent possesses by custom.

A

Customary authority

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28
Q

Authority an agent is believed to have because of principal’s behavior.

A

Apparent authority

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29
Q

Appointment

A

Creation of an Agency

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30
Q

Ratification

A

Creation of an Agency

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31
Q

Estoppel

A

Creation of an Agency

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32
Q

Necessity

A

Creation of an Agency

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33
Q

Common way to create an agency; principal makes a statement to the agent.

A

Appointment

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34
Q

Contract may be written or oral, formal or informal.

A

Appointment

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35
Q

Power of attorney: writing appointment of agent.

A

Appointment

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36
Q

Approval by one person of the unauthorized act of another done in the former’s name.

A

Ratification

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37
Q

Requirements for ratification:

A

Ratification

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38
Q

The one who assumed the authority of an agent must have made it known to the third party that he or she was acting on behalf of the party who attempts to ratify the act.

A

Requirements for ratification

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39
Q

The one attempting to ratify must have been capable of authorizing the act at the time the act was done. Some jurisdictions apply this rule to corporations so that a corporation formed subsequent to the time of the act cannot ratify an act of a promoter. Other states have ignored this requirement in regard to ratification to ratification of the acts of corporation promoters.

A

Requirements for ratification

40
Q

The one attempting to ratify must be capable of authorizing the act at the time the approval of the act is given.

A

Requirements for ratification

41
Q

The one attempting to ratify must have knowledge of all material facts.

A

Requirements for ratification

42
Q

The one attempting to ratify must approve the entire act.

A

Requirements for ratification

43
Q

The ratified act must be legal, although the person whose name was forged may ratify a forgery on commercial paper.

A

Requirements for ratification

44
Q

The ratification must be made before the third party has withdrawn from the transaction.

A

Requirements for ratification

45
Q

Agency arising when one person leads another to believe third party is an agent.

A

Estoppel

46
Q

The principal is bound to the extent of the representations made.

A

Estoppel

47
Q

Relationship of agency may be created by necessity for one.

A

Necessity

48
Q

Agency of necessity may also arise from an unforeseen emergency.

A

Necessity

49
Q

One who contracts to do jobs and is controlled only by contract as to how performed.

A

Independent Contractor

50
Q

Employee works for an employer.

A

Employer and Employee

51
Q

Employer controls what work employee is to do and in what manner.

A

Employer and Employee

52
Q

Crossword Question: These three words represent a general agent who has been appointed by a written authorization.

A

Attorney in Fact

53
Q

Crossword Question: ___________ and partnerships, as well as individuals, may appoint agents.

A

Corporations

54
Q

Crossword Question: The principal may have behaved in a way or made a statement that caused the third person to believe that the agent has authority.

A

Apparent

55
Q

Crossword Question: This authority specifically delegated to the agent by the agreement creating the agency.

A

Express

56
Q

Crossword Question: The appointed person.

A

Agent

57
Q

Crossword Question: This acronym stands for a written instrument indicating the appointment of an agent. Many times we think of these when someone gets ill and we have to have them to act on their behalf.

A

POA

58
Q

Crossword Question: This person is a commission merchant who sells on credit and guarantees to the principal that the purchase price will be paid by the purchaser or by the factor. (Three words).

A

Factor Del Credere

59
Q

Crossword Question: A person who appoints another to contract with third parties.

A

Principal

60
Q

Crossword Question: A special agent whose task is to bring the two contracting parties together.

A

Broker

61
Q

Crossword Question: These two words represent the person that may sell in the name of the principal.

A

Commission Merchants

62
Q

Crossword Question: This is the approval by one person of the unauthorized act of another done in the former’s name.

A

Ratification

63
Q

Crossword Question: This agent is authorized by a principal to transact some specific act or acts.

A

Special

64
Q

Crossword Question: This authority allows an agent to carry out orders without them being specifically enumerated in the agreement.

A

Implied

65
Q

Crossword Question: A ______is one who receives possession of another’s for the purpose of sale on commission.

A

Factor

66
Q

Crossword Question: This agent is authorized to carry out all of the principal’s business of a particular kind….

A

General

67
Q

Cengage Learning: Contract under which one party is authorized to contract for another.

A

Agency

68
Q

Cengage Learning: Agency arising when person leads another to believe third party is agent

A

Agency by Estoppel

69
Q

Cengage Learning: Person appointed to contract on behalf of another

A

Agent

70
Q

Cengage Learning: Authority agent believed to have because of principal’s behavior

A

Apparent Authority

71
Q

Cengage Learning: General agent appointed by written authorization

A

Attorney in Fact

72
Q

Cengage Learning: Agent with job of bringing two contracting parties together

A

Broker

73
Q

Cengage Learning: Authority agent possesses by custom

A

Customary Authority

74
Q

Cengage Learning: Authority of agent stated in agreement creating agency

A

Express Authority

75
Q

Cengage Learning: Bailee seeking to sell property on commission

A

Factor

76
Q

Cengage Learning: Factor who sells on credit and guarantees price will be paid

A

Factor del Credere

77
Q

Cengage Learning: Agent authorized to carry out particular kind of business or all business at a place

A

General Agent

78
Q

Cengage Learning: Agent’s authority to do things in order to carry out express authority

A

Implied Authority

79
Q

Cengage Learning: One who contracts to do jobs and is controlled only by contract as to how performed

A

Independent Contractor

80
Q

Cengage Learning: Writing appointing an agent

A

Power of Attorney

81
Q

Cengage Learning: Person who appoints another to contract with third parties

A

Principal

82
Q

Cengage Learning: Approval of unauthorized act

A

Ratification

83
Q

Cengage Learning: Agent authorized to transact specific act or acts

A

Special Agent

84
Q
  1. Every agency relationship involves at least three parties.
A

True

85
Q
  1. Most businesses can operate without the use of agency.
A

False

86
Q
  1. A partnership can act as an agent.
A

True

87
Q
  1. A person can delegate anything to an agent.
A

False

88
Q
  1. A special agent is one authorized to carry out the principal’s business.
A

False

89
Q
  1. A commission merchant who sells on credit and guarantees to the principal that the purchase price will be paid is called a factor del credere.
A

True

90
Q
  1. A/n ________ is one who contracts to perform some tasks for a fixed fee.
A

Independent contractor

91
Q
  1. When the principal behaves in a way or makes statements that mislead a third party into mistakenly believing that the agent has authority, this authority is called ________ authority.
A

Apparent

92
Q
  1. A general agent has authority that one in his or her position usually possesses. This authority is known as ________ authority.
A

Customary

93
Q
  1. Agents may be classified as ________.
A

General and special

94
Q
  1. A person who appoints another to enter into contracts with third parties is called a ________.
A

Principal

95
Q
  1. bailee who seeks to sell the bailed property on commission is a/n ________.
A

Factor

96
Q
  1. An agency which arises when a person leads another to believe a third party is an agent is an agency by ________.
A

Estoppel

97
Q
  1. The approval by one person of the unauthorized act of another done in the former’s name is called ________.
A

Ratification

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