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Exam 10: Agency Liability and Termination

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Question 31

Multiple Choice

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Flo, an agent for Grover, enters into a contract on Grover's behalf with Hong that must be in writing to be enforceable under the Statute of Frauds. Failure to comply with the equal dignity rule, with respect to this contract, can make the contract voidable at the option of​

A) ​Flo.
B) ​Grover.
C) ​Hong.
D) ​none of the choices.

E) B) and C)
F) A) and D)

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Question 32

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A partially disclosed principal is liable to a third party for a contract made by the agent acting within the scope of his or her authority.

A) True
B) False

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Question 33

Multiple Choice

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Chemical Refining Corporation hires Disposal & Recovery Company to work as an independent contractor. Whether Chemical Refining will be liable for torts committed at the site by Disposal & Recovery depends on​

Based on Oona's conduct, Porcio reasonably believes that Qasim has the authority to act on Oona's behalf even though Qasim does not have the actual authority to do so. In this circumstance, Qasim has​

On March 1, Eugene retains Farley to act as his authorized agent. On April 1, Eugene dies. On April 2, before Farley knows of Eugene's death, he enters into a contract on Eugene's behalf. The contract is​

Vida is a purchasing agent for Wholesome Foods with the authority to buy grain up to a certain quantity. After the grain is bought, the agency relationship terminates​

A power of attorney does not permit an agent to transact business for a principal.

Becca is a purchasing agent for Cable & Wire Corporation. Doyle, a Cable & Wire corporate officer, gives Becca written authority to buy for the firm as much copper as necessary. The next day, Doyle calls Becca and tells her to buy only a certain quantity of copper and no more. Becca shows the written authority to Earthbound Resources, Inc., and enters into a contract to buy more than the quantity specified by Doyle. Earthbound Resources ships the order to Cable & Wire. Is Cable & Wire liable to Earthbound Resources under the contract? Is Becca liable? In each case, if so, why? If not, why not?

Reliable Insurance Company employs Stuart as an agent. To terminate Stuart's authority, Reliable Insurance must notify​

Donald approves on behalf of Evelyn-but without authorization-a contract with Farouk to build a new silo. Evelyn does not ratify the contract. The deal with Farouk is​

An agency relationship terminates only when both parties consent to end it.

A special power of attorney permits an agent to transact all business for a principal.

Rod is an employee of Savers Bank. In deciding whether Rod acts within the scope of his employment when he commits a tort against Tracy, a court will not consider whether​

Mikayla, an agent for Nahir, enters into a contract on Nahir's behalf with Onora that must be in writing to be enforceable under the Statute of Frauds. Mikayla's authority to enter into this contract is not in writing. Under the equal dignity rule, this contract is​

Ratification occurs when a principal affirms, or accepts responsibility for, an agent's unauthorized act.

If an agent has no authority but nevertheless contracts with a third party, the principal cannot normally be held liable on the contract.

A disclosed principal is a principal whose identity is known by a third party with whom an agent contracts on the principal's behalf.

Linus hires Mieko to act as his agent to purchase Ngoc's Southeast Asian Buffet. Linus tells Mieko to reveal only that she is buying the restaurant on behalf of a third party, without telling Ngoc's seller who that third party is. Linus is​

Failure to comply with the equal dignity rule can make a contract voidable at the option of the principal.

When an agency relationship is to terminate on the happening of a certain event, notice is all that is required to terminate the relationship.