Business and Personal Law

Chapter 14: Agency Authority and Termination

Online Practice Tests

1
The duties owed by the agent to the principal include
A)indemnification.
B)reimbursement.
C)compensation.
D)obedience.
2
A fiduciary relationship is a relationship based on
A)trust.
B)obedience.
C)liability.
D)compensation.
3
When agents enter into contracts that directly benefit themselves rather than their principal, they
A)are non-cooperative.
B)are self-dealing.
C)are double represented.
D)will be found in contempt of court.
4
If agents enter into contracts on behalf of their principals without authority to do so,
A)no one is liable for the contract.
B)both the principal and the agent are liable for the contract.
C)the agent is liable for the contract.
D)the principal is still liable for the contract.
5
Respondeat superior holds that the master is
A)responsible for the torts of his or her servants.
B)not responsible for the torts of his or her servants.
C)authorized to delegate duties to another party.
D)not authorized to delegate duties to another party.
6
A principal is generally bound to the terms of a contract made by an agent unless
A)the agent has no authority to enter into the contract.
B)negligent retention has occurred.
C)the principle of respondeat superior is in place.
D)the agent is considered a master.
7
If a proprietor authorizes an independent contractor to enter into a contract,
A)the contract is null and void.
B)the same liability rules apply as in an agency relationship.
C)the contractor is liable because he or she is not an agent.
D)the doctrine of respondeat superior takes effect.
8
Formal notice given directly to a party, using certified mail is called
A)irrevocable notice.
B)mutual notice.
C)actual notice.
D)notice by publication.
9
An agent may withdraw from the agency
A)at the end of the year.
B)at the end of the contract.
C)with proper notice.
D)at any time.
10
An agency relationship can be terminated
A)only through a court of law.
B)by actual notice or notice by publication.
C)by operation of law or by the acts of the parties.
D)by the doctrine of respondeat superior.
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