LAW 3220 CHAPTER 14 EXAM QUESTIONS WITH VERIFIED SOLUTIONS LATEST UPDATE 2026
Through an agency relationship, the agent becomes a representative of the: - Answers principal
An agency is created when an agent agrees to act for, or in place of, the - Answers principal
In an agency, the principal - Answers provides the agent with authority
In which of the following situations can an agency relationship be created? - Answers X hires Y to buy
some property on X's behalf, X makes an oral agreement that Y will work for X's company's general
manager, X and Y enter into a written agreement that Y will work for X as the general manger of X's
company
To carry out their duties, universal agents are typically granted - Answers a general power of attorney
Advantage of an agent - Answers expand business opportunities and access to expertise of agents
Agents covered - Answers gratuitous, special, universal, general
Universal agent - Answers person designated by a principal to do all acts that can be legally delegated
to an agent
General agent - Answers a person authorized to execute all regular transactions connected with a
business
A manager who runs all aspects of a hotel is most likely what kind of agent? - Answers general agent
An agency is couples with an interest is created: - Answers by an agent who has paid for the right to
exercise authority with regard to a business
Special agent - Answers an agent with authority to represent the principal only for specific
transactions, usually for a limited time
You hire an agent to sell your house for you. Typically, such an agent receives a fee only if they
actually sell the house. This person is most likely: - Answers special agent
Persons appointed by an agent delegated some authority - Answers subagents
Subagents owe duties to - Answers both the agent and the principal
To establish an agency relationship - Answers the principal and agent must agree to form an agency
Agency is establish by - Answers operation of law, doctrine estoppel, ratification, written agreement,
oral agreement
Many states require agencies for ? to be established in writing - Answers sale of land
A legal document that establishes some agency relationships - Answers power of attorney
For an agency to be valid in most states: - Answers the agent must be subject to the principal's
control
A principal's ratification is: - Answers the principal's acceptance of responsibility for an agent's
activities
You post a notice at school that you will sell your laptop computer for $600. A buyer comes by your
room to look at it while you are gone and your roommate sells it for $500, thinking you would be
happy with that price, which you did not authorize. - Answers you can accept the deal by express or
implied ratification
Express ratification creating an agency by the principal occurs when the principal: - Answers by action
shows a clear intent to bound by unauthorized acts of the agent
Implied ratification of an agency occurs when the principal: - Answers fails to object to unauthorized
activities of an agent and accepts the benefits of an unauthorized agreement with a third part
Implied ratification usually occurs when: - Answers the agent accepts the benefits of the agreement
To ratify an agreement a principal must know: - Answers the important facts of the agreement
Clark, a movie producer, was allowed to work at a movie production company's offices (ITC) out of
courtesy. His business card listed the ITC address and his phone calls were handled by ITC staff. In the
office, he made a deal to produce a movie for another company. When problems developed and the
company, presuming Clark worked for ITC, sued ITC. The court would be likely to hold that ITC: -
Answers ratified Clark's actions and so became liable for his actions
Agency by estoppel means: - Answers actions by the principal lead a person to believe that the
presumed agent has authority to act on the principal's behalf
Agency through operation of law is established: - Answers when an emergency exists and the
"agent's" actions are in the public interest
When you go on vacation you give your neighbor authority to pick up your mail and watch for
burglars for you. You tell the neighbor not to go into the house or let anyone else in. A fire on the hills
threatens your house. The neighbor goes in to carry out valuables before the house burns. This action
is: - Answers an agency through operation of law
Through an agency relationship, the agent becomes a representative of the: - Answers principal
An agency is created when an agent agrees to act for, or in place of, the - Answers principal
In an agency, the principal - Answers provides the agent with authority
In which of the following situations can an agency relationship be created? - Answers X hires Y to buy
some property on X's behalf, X makes an oral agreement that Y will work for X's company's general
manager, X and Y enter into a written agreement that Y will work for X as the general manger of X's
company
To carry out their duties, universal agents are typically granted - Answers a general power of attorney
Advantage of an agent - Answers expand business opportunities and access to expertise of agents
Agents covered - Answers gratuitous, special, universal, general
Universal agent - Answers person designated by a principal to do all acts that can be legally delegated
to an agent
General agent - Answers a person authorized to execute all regular transactions connected with a
business
A manager who runs all aspects of a hotel is most likely what kind of agent? - Answers general agent
An agency is couples with an interest is created: - Answers by an agent who has paid for the right to
exercise authority with regard to a business
Special agent - Answers an agent with authority to represent the principal only for specific
transactions, usually for a limited time
You hire an agent to sell your house for you. Typically, such an agent receives a fee only if they
actually sell the house. This person is most likely: - Answers special agent
Persons appointed by an agent delegated some authority - Answers subagents
Subagents owe duties to - Answers both the agent and the principal
To establish an agency relationship - Answers the principal and agent must agree to form an agency
Agency is establish by - Answers operation of law, doctrine estoppel, ratification, written agreement,
oral agreement
Many states require agencies for ? to be established in writing - Answers sale of land
A legal document that establishes some agency relationships - Answers power of attorney
For an agency to be valid in most states: - Answers the agent must be subject to the principal's
control
A principal's ratification is: - Answers the principal's acceptance of responsibility for an agent's
activities
You post a notice at school that you will sell your laptop computer for $600. A buyer comes by your
room to look at it while you are gone and your roommate sells it for $500, thinking you would be
happy with that price, which you did not authorize. - Answers you can accept the deal by express or
implied ratification
Express ratification creating an agency by the principal occurs when the principal: - Answers by action
shows a clear intent to bound by unauthorized acts of the agent
Implied ratification of an agency occurs when the principal: - Answers fails to object to unauthorized
activities of an agent and accepts the benefits of an unauthorized agreement with a third part
Implied ratification usually occurs when: - Answers the agent accepts the benefits of the agreement
To ratify an agreement a principal must know: - Answers the important facts of the agreement
Clark, a movie producer, was allowed to work at a movie production company's offices (ITC) out of
courtesy. His business card listed the ITC address and his phone calls were handled by ITC staff. In the
office, he made a deal to produce a movie for another company. When problems developed and the
company, presuming Clark worked for ITC, sued ITC. The court would be likely to hold that ITC: -
Answers ratified Clark's actions and so became liable for his actions
Agency by estoppel means: - Answers actions by the principal lead a person to believe that the
presumed agent has authority to act on the principal's behalf
Agency through operation of law is established: - Answers when an emergency exists and the
"agent's" actions are in the public interest
When you go on vacation you give your neighbor authority to pick up your mail and watch for
burglars for you. You tell the neighbor not to go into the house or let anyone else in. A fire on the hills
threatens your house. The neighbor goes in to carry out valuables before the house burns. This action
is: - Answers an agency through operation of law
