Quiz

Question 1

Duty of care: the duty to use ____________ care when performing duties as ________.

Answer 1

reasonable
agent

Question 2

Duty of loyalty: the duty to act _________ and __________ for the __________’s benefit.

Answer 2

solely
loyally
principal’s

Question 3

Duty of obedience: the duty to obey all reasonable _______________ from the _______________.

Answer 3

directions
principal

Question 4

Agency is a _____________ relationship in which the ________ acts for the _____________.

Answer 4

fiduciary
agent
principal

Question 5

An agency relationship exist if there is:
1) a formal or informal agreement (_________)
2) the activity primarily ___________s the principal ; AND
3) the principal has the right to ___________ the agent.

Answer 5

assent
benefits
control

Question 6

A principal is obligated to a contract entered into by its agent if the agent had __________ or ____________ authority.

Answer 6

actual
apparent

Question 7

Express authority means that the agent is acting according to the principal’s explicit
______________ to the agent.

Answer 7

directions

Question 8

Actual authority can be ___________ or ___________ authority.

Answer 8

express
implied

Question 9

Implied authority happens when any one of the following is true:
1) A given action is ____________ for the agent to carry out its expressly ___________ duties;
2) The agent acted ____________ in ________ dealings with the same principal; OR
3) It is _______________ for an agent in this position to act in this way.

Answer 9

necessary
Authorized
similarly
prior
customary

Question 10

If there is an _____________ principal, then ______________ authority CANNOT exist.

Answer 10

undisclosed
apparent

Question 11

The agent may seek indemnification from the principal if:
1) the agent is _________; AND
2) his conduct is _________________.

Answer 11

liable
authorized

Question 12

The agent WILL be liable if:
1) the conduct was _______________; OR
2) the principal was ______________ or partially ______________ (without a _______) to the third party.

Answer 12

unauthorized
undisclosed
disclosed
name

Question 13

An agent will usually have no liability if they:
1) fully _____________ the principal to the third party; AND
2) acted within their scope of _____________.

Answer 13

disclosed
authority

Question 14

Employee vs. Independent Contractor

Deciding between these two labels depends on a number of factors, but the primary focus is…..

whether the principal had the right to control the __________ and ___________ in which the job was performed.

Answer 14

manner
method

Question 15

Intentional torts are generally outside the scope of employment UNLESS:
1) the act was specifically _______________ by the employer;
2) the act was driven by a desire to __________ the employer; OR
3) the act was a result of naturally occurring _________ from the type of employment.

Answer 15

authorized
serve
friction

Question 16

To determine the scope of employment, courts analyze whether the conduct:
1) is the kind the employee is employed to _________;
2) happens substantially within the authorized ______ and _______ limits; and
3) is _______________ to serve the employer (in whole or part).

Answer 16

perform
time and space
motivated

Question 17

An employee is acting within the scope of employment when:
1) he is performing work _____________ by the employer; OR
2) he is engaging in a __________ ___ _____________ subject to the employer’s control.

Answer 17

assigned
course of conduct

Question 18

Conduct is NOT within the scope of employment if:
1) it is _________ and
2) not intended to serve any ____________ of the employer.

Answer 18

unrelated
purpose

Question 19

Factors that courts use to analyze whether a person is an employee or an independent contractor:

1) the _______ of work
2) if the work ____________ the employer’s business
3) the extent of the principal’s _________ over work __________

Answer 19

type
benefits
control
details

Question 20

Factors that courts use to analyze whether a person is an employee or an independent contractor:

4) whether the agent/contractor is engaged in a ___________ business
5) the _________ of ______ of the employment/engagement
6) whether the agent was hired for a business _________

Answer 20

distinct
length of time
purpose

Question 21

Factors that courts use to analyze whether a person is an employee or an independent contractor:

7) the pay (hourly vs. ___ __________);
8) who supplied the equipment and ________;
9) the degree of ____________;
10) the level of ______ required;
11) the characterization and belief of ______________;

Answer 21

by project
tools
supervision
skill
relationship

Question 22

Apparent authority exists when:
1) A third party ______________ believes that the agent has authority to act for the
principal; AND
2) The third party’s belief is ___________ to the principal’s _________________.

Answer 22

reasonably
traceable
manifestations

Question 23

A principal indicates that an agent has authority when he:
1) gives the agent a ___________ or ______ that indicates authority;
2) previously held the agent out as authorized and did not ____________ revoke; OR
3) ___________ the agent with the appearance of _____________.

Answer 23

position or title
publicly
cloaked
authority

Question 24

Apparent authority does NOT exist if the third party knew that the agent did not have
___________ _______________.

Answer 24

actual authority

Question 25

If there is an unidentified or partially disclosed principal, then apparent authority
___________ exist.

Answer 25

CAN