Exam One Review

Question 1

A legal relationship in which the agent acts for or represents the principal by the principal’s authority.

Answer 1

Agency

Question 2

The party for whom the agent acts and from whom the agent derives authority to act.

Answer 2

Principal

Question 3

The person authorized by the principal to act with third parties on the principal’s behalf.

Answer 3

Agent

Question 4

agent is authorized to transact all business of a particular kind for the principal, all business at a particular place, and/ or all acts connected with a particular employment or business.

Answer 4

General Agent

Question 5

agent is authorized to do one or more specific acts in accordance with a principals instructions.

Answer 5

Special Agent

Question 6

A type of power of attorney designed to continue for certain purposes even after the incapacity of the principal .

Answer 6

Durable Power of attorney

Question 7

Actual Authority

Answer 7

involves communications between the principal and agent.

Question 8

Actual express authority

Answer 8

is granted by a principal directly to an agent through specifically conveyed instructions

Question 9

Actual implied authority

Answer 9

is established between a principal and agent when an agent acts in accordance with the general bounds of an established agency relationship coupled with principal evidencing consent to the agency through ratification.

Question 10

Takes place when a principal behaves in a way that evidences acquiescence with the agent’s actions on behalf of the principal, such as when a principal accepts income from the agent’s actions.

Answer 10

Ratification

Question 11

When the principal intentionally or negligently causes a third party to reasonably believe that an individual is acting as the principal’s agent, and the third party relies on that belief in transacting business with a person believed to be the principal’s agent.

Answer 11

Apparent agency

Question 12

Apparent authority

Answer 12

Results from communications between a principal and a third party.

Question 13

Granted to an agent so that an agent is capable of properly completing duties to the principal.

Answer 13

Inherent authority

Question 14

can arise from actual agency or apparent agency

Answer 14

Inherent authority

Question 15

Respondeat Superior

Answer 15

An employer is responsible for the negligent or reckless actions of an employee while an employer is in the course of employment.

Question 16

An unincorporated business owned by one individual with unlimited liability.

Answer 16

Sole propietorship

Question 17

General Partnership

Answer 17

Must have at least two general partners, made up of two or more persons, for the purpose of carrying on co-ownership of a business for profit.

Question 18

A type of business organization that is very similar to a partnership, but is formed for one particular event or purpose, terminates when that event or purpose completes, and is not set up to be an ongoing concern.

Answer 18

Joint Venture

Question 19

Agency

Answer 19

A legal relationship in which the agent acts for or represents the principal by the principal’s authority.

Question 20

Principal

Answer 20

The party for whom the agent acts and from whom the agent derives authority to act.

Question 21

Agent

Answer 21

The person authorized by the principal to act with third parties on the principal’s behalf.

Question 22

General Agent

Answer 22

agent is authorized to transact all business of a particular kind for the principal, all business at a particular place, and/ or all acts connected with a particular employment or business.

Question 23

Special Agent

Answer 23

agent is authorized to do one or more specific acts in accordance with a principals instructions.

Question 24

Durable Power of attorney

Answer 24

A type of power of attorney designed to continue for certain purposes even after the incapacity of the principal .

Question 25

involves communications between the principal and agent.

Answer 25

Actual Authority

Question 26

is granted by a principal directly to an agent through specifically conveyed instructions

Answer 26

Actual express authority

Question 27

is established between a principal and agent when an agent acts in accordance with the general bounds of an established agency relationship coupled with principal evidencing consent to the agency through ratification.

Answer 27

Actual implied authority

Question 28

Ratification

Answer 28

Takes place when a principal behaves in a way that evidences acquiescence with the agent’s actions on behalf of the principal, such as when a principal accepts income from the agent’s actions.

Question 29

Apparent agency

Answer 29

When the principal intentionally or negligently causes a third party to reasonably believe that an individual is acting as the principal’s agent, and the third party relies on that belief in transacting business with a person believed to be the principal’s agent.

Question 30

Results from communications between a principal and a third party.

Answer 30

Apparent authority

Question 31

Inherent authority

Answer 31

Granted to an agent so that an agent is capable of properly completing duties to the principal.

Question 32

Inherent authority

Answer 32

can arise from actual agency or apparent agency

Question 33

An employer is responsible for the negligent or reckless actions of an employee while an employer is in the course of employment.

Answer 33

Respondeat Superior

Question 34

Sole propietorship

Answer 34

An unincorporated business owned by one individual with unlimited liability.

Question 35

Must have at least two general partners, made up of two or more persons, for the purpose of carrying on co-ownership of a business for profit.

Answer 35

General Partnership

Question 36

Joint Venture

Answer 36

A type of business organization that is very similar to a partnership, but is formed for one particular event or purpose, terminates when that event or purpose completes, and is not set up to be an ongoing concern.