LAW CH. 27 OL QUIZ

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lecaly
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112291
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LAW CH. 27 OL QUIZ
Updated:
2011-11-24 14:14:03
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LAW 27 ONLINE QUIZ
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LAW CH. 27 ONLINE QUIZ
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  1. T/F: The agency relationship imposes upon both principal and agent certain duties and obligations to third parties
    true
  2. T/F: Discretionary instructions must be carried out to the exact letter
    false
  3. T/F: A principal's money should be deposited in a bank account separate from the agent's account
    true
  4. T/F: Incapacity of the principal does not terminate all agencies
    true
  5. T/F: The contract of agency determines the compensation due an agent
    true
  6. T/F: A principal has the right to terminate the agency at any time
    false
  7. T/F: Destruction of the subject matter usually does not destroy the agency relationship
    false
  8. T/F: Bankruptcy of a principal has not effect in the continuations of an agency
    false
  9. The duty of an agent to promote the principal's interests to the utmost is ____________

    a. renunciation

    b. boundability

    c. bankruptcy

    d. loyalty
    d
  10. The duty of an agent to carry out the principal's instructions is called ______________

    a. compensation

    b. information

    c. obedience

    d. revocation
    c
  11. Payment to the agent set on a contingent basis is called _____________

    a. compensation

    b. termination

    c. discretionary income

    d. revocation
    a
  12. If an agent was negligent in the course of employment and caused injury to a third party:

    a. neither the agent nor the principal is liable

    b. only the agent is liable

    c. both the agent and principal are liable

    d. only the principal is liable
    c
  13. The two types of instructions an agent may receive from the principal are _____________

    a. good and bad

    b. routine and discretionary

    c. accounting and managerial

    d. colorful and drab
    b
  14. The right of the agent to be reimbursed by the principal for a loss incurred by the agent while carrying out his or her agency duties is the right to _____________

    a. power of attorney

    b. reimbursement

    c. indemnification

    d. discretion
    c

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