Chapter 19 Flashcards
Bayou Development Corporation hires Coastal Brokerage Associates to sell the condominiums in a building at Bayou Development’s resort. The agency will terminate
a. after the condos have been sold.
b. if the prices of the condos must be reduced to sell them.
c. when Bayou Development pays Coastal Brokerage its first commission.
d. once Bayou Development obtains insurance to cover the property.
a
Bernard is an expert on exotic flowers. Custom Floral Arrangements, Inc., hires Bernard to order exotic flowers for its arrangements. Bernard does not examine the quality of the flowers he orders on behalf of Custom Floral. Bernard has breached
a. the duty of notification.
b. the duty of performance.
c. the duty of loyalty.
d. no duty.
b
Beth, acting within the scope of her authority for the Cake Bake Shop, contracts with Eden Valley Orchards to buy an assortment of fruit. Cake Bake is liable on the contract, and Beth is not, if Cake Bake is
a. not a principal.
b. an undisclosed principal.
c. a partially disclosed principal.
d. a disclosed principal.
d
Flo, an agent for Grover, enters into a contract on Grover’s behalf with Hong that must be in writing to be enforceable under the Statute of Frauds. Failure to comply with the equal dignity rule, with respect to this contract, can make the contract voidable at the option of
a. Grover.
b. none of the choices.
c. Flo.
d. Hong.
a
Garry drives a truck as an employee for Heavy Hauling, Inc. Garry would most likely be considered acting outside the scope of his employment if he
a. smashed into a store-front while intoxicated on-duty.
b. hit a pedestrian in a parking lot during a “working” lunch.
c. ran over an attendant at Quik’s gas station while refueling the truck.
d. crashed into a car at the airport while off duty.
d
Insurance Sales Corporation hires Jeremy to act as its agent. Insurance Sales’s right not to perform a contract entered into by Jeremy, if he breaches their agency agreement, is the right of
a. termination of the agency.
b. indemnification.
c. termination.
d. nullification.
a
John contracts with Kelly to buy a certain number of cattle for Kelly’s Circle K ranch. John makes a deal with Lawson, the owner of a local herd, and makes a down payment. Kelly fails to pay the rest of the price. Lawson sues John for breach of contract. John’s right to hold Kelly liable for any damages that he has to pay is the right of
a. reimbursement.
b. indemnification.
c. compensation.
d. cooperation.
b
Kevin is an agent for Lookout Mountain Accountants, Inc. On Lookout Mountain’s behalf and at its request, Kevin pays Nathan for software designed for the management of Lookout Mountain’s services. Kevin’s right to obtain the amount of those payments from Lookout Mountain arises under the principal’s duty of
a. indemnification.
b. reimbursement.
c. cooperation.
d. compensatio
b
Largo is an agent for MaryElise. MaryElise gives Largo clear instructions to enter into contracts on her behalf only on Mondays, Wednesdays, or Fridays. Largo enters into a contract on her behalf on Tuesday. Largo has breached
a. the duty of obedience.
b. the duty of performance.
c. no duty.
d. the duty of loyalty.
a
Mirena serves in a representative capacity for Netanya. Orla is injured through Mirena’s negligence. Netanya may be liable to Orla if Mirena’s conduct occurred
a. during normal working hours.
b. due to a propensity Netanya was not and could not have been aware of.
c. outside the parties’ employment relationship.
d. in the course and scope of Mirena’s employment.
d
