Chapter 8: Duties, Rights and Remedies of Agents and Principals

Question 1

the five duties the agent owes the principal.

Answer 1

1. Performance
2. Notification
3. Loyalty
4. Obedience
5. Accounting

Question 2

The principal-agent relationship is fiduciary and therefore not based on trust, but specific laws.

Answer 2

False

Question 3

the four typical duties that the principal has to the agent.

Answer 3

1. Compensation
2. Reimbursement & Idemnification
3. Cooperation
4. Safe working conditions

Question 4

The principal has a duty to indemnify an agent for liabilities incurred because of authorized and lawful acts and transactions.

Answer 4

True

Question 5

When the principal grants an agent an exclusive territory, we say that the principal has created a(n)

Answer 5

exlcusive agency

Question 6

When the principal breaches a duty owed to the agent, an agent may:

Answer 6

withhold further performance and demand an accounting

Question 7

The agent has the right to be compensated, to be reimbursed and indemnified, and to have a safe working environment. What other right does the agent also have in performing his agency duties?

Answer 7

No interference by the principal

Question 8

When the principal-agent relationship is not contractual, the agent has no right to specific performance.

Answer 8

False

Question 9

If the agent engages in misrepresentation, negligence, deceit, liable, slander, or trespass, what type of remedies does the principal have?

Answer 9

Tort