Business and Personal Law

Chapter 13: Agency and Employment

Online Practice Tests

1
An agency relationship lets us
A)provide service to others without fear of liability.
B)act through other people to accomplish things that might be impossible to do on our own.
C)enter into a contract to provide services to a local community agency.
D)use an agency outside the state we reside in to provide consumer protection.
2
A person who has been given authority to perform any act within the scope of a business is a(n)
A)agent by estoppel.
B)special agent.
C)general agent.
D)ratified agent.
3
A sales representative is an example of a(n)
A)agent by estoppel.
B)special agent.
C)general agent.
D)ratified agent.
4
A subagent is an agent
A)who can hire and fire employees.
B)who serves as a discretionary agent.
C)who has authority to perform any act within the scope of the business.
D)lawfully appointed by another agent.
5
The law allows some actual authority to be implied because
A)mentioning every single act that the agent is allowed to perform would make the agreement cumbersome.
B)agency by estoppel is in place to protect the principal.
C)in an agency situation, real power is transferred from the principal to the agent.
D)agency relationships can differ from situation to situation.
6
An independent contractor
A)is controlled by the master or proprietor.
B)must follow the Equal Dignity Rule.
C)works for a proprietor to perform a particular task using his or her own tools.
D)may not be a minor.
7
An agent who represents a principal for free is called a(n)
A)estoppel agent.
B)ratified agent.
C)master agent.
D)gratuitous agent.
8
A general power of attorney gives
A)the agent authority to act for the principal in a wide range of activities.
B)gives the agent authority to deal with tasks named in the agreement.
C)gives the agent the power to make health care decisions with the principal becomes incapacitated.
D)implied authority to the principal.
9
Authority that a third party believes an agent has while acting on behalf of the principal is called
A)general authority.
B)apparent authority.
C)express authority.
D)implied authority.
10
If an agent oversteps his or her authority when negotiating a contract, the principal
A)is legally bound to the contract created.
B)may choose to ignore the action or ratify it.
C)has 24 hours to fire the agent without recourse.
D)may sue the agent for injuries.
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