M1-Agency Flashcards
A clear example of an employee is one who works full time for the employer, uses the employer’s tools, is compensated on a time basis, and is subject to supervision of the employer in the details of the work. (true or false)_
true
A clear example of an independent contractor is one who has a calling of his own, uses his own tools, is hired for a particular job, is paid a given amount for the job, and follows his own discretion. (true or false)
true
A subagent is one who assist the agent in the performance of his or her duties. When a subagent is appointed by an agent with authority to appoint a subagent, the subagent owes a duty to whom?
both the agent and the principal.
If an agent breaches her fiduciary duty, the principal can terminate the agency and receive the remedy of a constructive trust to ensure that the principal can recover secret profits obtained by the agent because of the wrongful conduct. (true or false)
true
A principal owes her agent the duty of indemnification, which requires the principal to reimburse the agent for costs and liabilities incurred by the agent as a result of authorized acts on behalf of the principal. (true or false)
true
the principal owes the agent the duty of indemnification even if the principal is nondisclosed
Actual authority is the authority that the agent reasonably believes she possesses because of the principal’s communications to the agent. The agent has the same actual authority whether the principal is disclosed or undisclosed. (true or false)
true
A principal is required to pay its commissioned agent as agreed and thus must maintain sufficient records in order to do so. Generally, a principal must also indemnify an agent for all expenses the agent reasonably incurs on the principal’s behalf unless the parties have agreed otherwise. (true or false)
true
An agency is terminated by operation of law upon the incapacity of the principal; no notice is needed. (true or false)
true
Once disclosed, an undisclosed principal can be held liable on a contract made on the principal’s behalf by an agent if the agent had authority. (true or false)
true
An agent generally is not liable on contracts that the agent makes on the principal’s behalf if the principal is disclosed, but the agent is personally liable on contracts the agent makes on behalf of the principal when the principal is undisclosed. (true or false)
true
Generally, agency power may be granted orally, even if the agent enters into contract that must be in writing to be enforceable. However, most states require an agency agreement to be in writing if the agent is to purchase or convey interests in land. (true or false)
true
A power of attorney is a form of agency, and like all agencies the power of attorney agency relationship may be limited in scope of authority. (true or false)
true
As a general rule, no writing is required to form an agency relationship, and even where a writing is required, the writing need only be signed by the principal (the one sought to be bound).
A power of attorney, like other agencies, need not explicitly state a duration.
A power of attorney, like all agencies, is terminated by the death of either the principal or the agent.
An employer is liable for torts of employees committed within the scope of employment. Employers are generally not liable for the torts of independent contractors. (true or false)
true
A tortfeasor is liable for the damages caused by his negligence. Additional, if the tortfeasor is an employee operating within the scope of his employment, his employer also is liable under the doctrine of repondeat superior. (true or false)
true
Generally, a general agent’s apparent authority does not cease unless and until notice is given. However, if the principal has received a discharge in bankruptcy, notice is not required to terminate the agent’s apparent authority. (true or false)
true
