REG mod 32b

Question 1

Describe the doctrine of Respondeat Superior.

Answer 1

This doctrine states that the corporation is responsible for the torts of its employees if the tort occurred during the course of employment.

Question 2

Who is considered to be an agent of a limited partnership?

Answer 2

The general partners, but not the limited partners

Question 3

How can a principle eliminate apparent authority of an agent?

Answer 3

By providing constructive notice (published notice in the newspaper)

Question 4

Does the principal owe the agent a fiduciary duty?

Answer 4

No, but the agent owes the principal a fiduciary duty.

Question 5

Describe Agency by Estoppel.

Answer 5

Agency by estoppel is when a third party reasonably believes a person is an agent of a principal.

Question 6

What is a Sub-agent?

Answer 6

An agent who is hired by an agent.

Question 7

An agent who enters a contract without any level of authority is personally liable for the contract. True / False

Answer 7

TRUE

Question 8

Describe the requirements to obtain a power of attorney.

Answer 8

It must be in writing and signed by the person granting the power of attorney

Question 9

When is the principal not liable for the contract entered into by the agent?

Answer 9

If the agent lacked actual authority and apparent authority, the principal is not liable on the contract. The principal may later ratify the contract.

Question 10

What is the difference between actual and apparent authority?

Answer 10

Actual authority is expressly given to the agent by the principal. Apparent authority is the authority that a third party reasonably believes the agent has.

Question 11

What duties does the agent owe the principal?

Answer 11

A fiduciary duty of loyalty, the duty of due care, provide information (relevant facts), accounting of money, duty of obedience