Test 2

Question 0

Ways to terminate an agency relationship

Answer 0

Completion of contract
Contract is up
Termination of contract
Principal dies or becomes mentally unstable

Question 1

Define Agency Relationship

Answer 1

One party represents another

Question 2

What is a fiduciary relationship?

Answer 2

Is a type of special relationship.

Owes someone a higher duty of care.

Question 3

What type of authority does an agency relationship come about by?

Answer 3

Apparent

Estoppel

Question 4

What is estoppel authority?

Answer 4

When you put someone in a position where appears to others that that person has the authority to act such

Question 5

When is a principal liable for and independent contractor?

Answer 5

Hidden relationship

Inherently dangerous

Question 6

What can an agent not do?

Answer 6

Hire subcontractors except for minor clerical tasks

Question 7

Is an agent an employee

Answer 7

An agent is always an employee but an employee is not always an agent.

Question 8

When is the principal liable for the agent’s actions?

Answer 8

When the agent is within the scope of their authority.

Question 9

When can a principal agent relationship be terminated?

Answer 9

At any time

Question 10

What is an agent’s scope of authority?

Answer 10

Only things which the principal has told the agent to do

Question 11

Can an agent make a profit off the principal.

Answer 11

An agent can only make a disclosed profit off the principal.

Question 12

What is the difference between an agent and an independent contractor?

Answer 12

Principal has more control over an agent and less control over an independent contractor.

Question 13

What is a power of attorney?

Answer 13

A written agency agreement relationship

Question 14

Can a power of attorney be limited?

Answer 14

Yes

Question 15

When does power of attorney terminate?

Answer 15

Upon death or incompetence

Question 16

What is vicarious liability?

Answer 16

When you are liable for someone else’s actions

Question 17

What is negligent hiring?

Answer 17

When you never should have hired someone

Question 18

What does respondent superior mean?

Answer 18

“Let the Master respond”

Question 19

What is a uniform durable power of attorney?

Answer 19

A power of attorney that lasts beyond death or incompetency

Question 20

What is a disclosed principal?

Answer 20

Where 3rd party knows identity of principal and liability is between principal and 3rd party.

Question 21

What is a partially undisclosed principal?

Answer 21

Where 3rd party does not know identity of principal and liability is between principal, agent and 3rd party.

Question 22

What is an undisclosed principal?

Answer 22

Where the 3rd party does not know of principal and liability is between principal, agent and 3rd party.

Question 23

What attributes does a partnership have?

Answer 23

Unlimited liability
Partners
Pass through organization
10-65
K-1

Question 24

What attributes does a corporation have?

Answer 24

Limited liability
Shareholders
Separate entity
Income taxes

Question 25

What is a franchise?

Answer 25

The right to use someone else’s product/name/logo

Question 26

What is the franchisor’s liability?

Answer 26

Not liable for anything unless they provided it to the franchisee

Question 27

Define imputed.

Answer 27

Lays on both persons

It is presumed that both principal and agent knows what agent knows

Question 28

When can an agency coupled with an interest be terminated?

Answer 28

Not at anytime

Question 29

When an agent is terminated what do you do?

Answer 29

Give personal notices to all customers

Place notice in newspaper off general circulation

Question 30

What is a written agency contract?

Answer 30

Power of attorney

Question 31

What is a pass through organization?

Answer 31

An organization who’s taxes pass thorough to your personal tax return

Question 32

What type of organization is a pass through organization?

Answer 32

Sole proprietorship.