CPCU 530 Ch. 7

Question 1

A legal, consensual relationship that exists when one party, the agent, acts on behalf of another party, the principal

Answer 1

Agency

Question 2

In the agency relationship, the party that is authorized by the principal to act on the principal’s behalf

Answer 2

Agent

Question 3

The party in an agency relationship that authorizes the agent to act on that party’s behalf

Answer 3

Principal

Question 4

A written document that authorizes one person to act as another person’s agent or attorney-in-0fact

Answer 4

Power of attorney

Question 5

An agency relationship created by a principal’s words or conduct that cause a third party to reasonably believe that an agency exists

Answer 5

Agency by estoppel

Question 6

Creation of an agency relationship resulting when a principal adopts the act of another who has purported to act for the principal and has neither power nor authority to perform the act for the principal

Answer 6

Ratification

Question 7

Authority (express or implied) conferred by the principal on an agent under an agency contract

Answer 7

Actual authority

Question 8

The authority that the principal specifically grants to the agent

Answer 8

Express authority

Question 9

The authority implicitly conferred on an agent by custom, usage, or a principal’s conduct indicating intention to confer such authority

Answer 9

Implied authority

Question 10

A third party’s reasonable belief that an agent has authority to act on the principal’s behalf

Answer 10

Apparent authority

Question 11

The routine or mechanical task performed by agents

Answer 11

Ministerial duties

Question 12

A principal whose existence and identity are known to the third party dealing with the agent

Answer 12

Disclosed principal

Question 13

A principal whose existence is known, but whose identity is not known, to the third party dealing with the agent

Answer 13

Partially disclosed principal

Question 14

A person hired to perform services for another under the direction and control of the other party, called the employer

Answer 14

Employee

Question 15

A person (an organization) hired to perform services without being subject to the hirer’s discretion and control regarding work details

Answer 15

Independent contractor

Question 16

The legal principle under which an employer is vicariously liable for the torts of an employee acting within the course and scope of employment

Answer 16

Respondeat superior

Question 17

The liability of multiple defendants either collectively or individually for the entire amount of damages sought by the plaintiff regarding their relative degree of responsibility

Answer 17

Joint and several liability