Chapter 19: Agency and Liability to Third Parties

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Chapter 19: Agency and Liability to Third Parties
2015-03-17 16:48:05
Business Law

business law
Show Answers:

  1. In an express agency relationship, the agent has ______________ authority.
  2. __________ holds the principal-employer liable for any harm caused by the agent-employee during the time that the agent-employee is working for the principal?
    Vicarious liability
  3. _____________ is generally defined as a relationship between a principal and an agent?
  4. True or False

    Agency law is primarily federal law.
  5. ___________ is a term used to describe the duty of an agent to communicate any information to the principal that the agent thinks could be important to the principal?
    Duty of notification
  6. True or False

    The equal dignity rule requires that all agency agreements be in writing.
  7. True or False

    In order to properly provide notice of the termination of an agency relationship, actual notice of agency termination must be given to third parties who have had business interactions with the agent.
  8. What is true regarding liability of a principal to an agent based on a contract an agent makes with a third party that expressly excludes the principal from the contract?
    The principal is not liable to the agent.
  9. In which types of agency relationships is the agency relationship inferred from the conduct of the parties?
    Implied agency
  10. If a manager has business transactions in one of the European Union countries and wants to terminate an agency relationship, he or she would want to have access to knowledge about which of the following?
    Chapter IV of the Agency Relationship Law
  11. True or False

    Singapore outlawed the use of electronic contracts.
  12. What is a document that gives an agent authority to sign legal documents on behalf of the principal?
    Power of attorney
  13. What is true under the UCC regarding liability of a principal to an agent if the agent enters into a contract that is a negotiable instrument?
    The principal cannot be held liable unless the principal's name is on the instrument or the agent's signature indicates that it was made in a representative capacity.
  14. To what is the employer-employee relationship subject?
    • Workers' compensation
    • Workplace safety
    • Employment discrimination
    • Unemployment statutes
  15. True or False

    All employees are agents of their employers, and all agents are employees.
  16. What four thing is a form of authority upon which an agency relationship may be based?
    • Expressed agency
    • Implied agency
    • Apparent agency
    • Ratification
  17. What are 3 types of business relationships to which agency laws are relevant?
    • Principal-agent,
    • employer-employee, and
    • employer-independent contractor
  18. Whenever an employer hires an employee to perform some sort of physical service, the parties have created an ______________ relationship.
    Employer-employee relationship
  19. True or False

    Employers are generally liable in tort for the actions of their employees while they are generally not liable for the actions of independent contractors.
  20. ____________ refers to the right of a principal to sue an agent to recover any amount assessed against the principal for a breach of contract caused by the agent's negligence?