CBAD 344 Unit 4 with 100% correct
answers rated A+
You and a friend are taking a road trip during summer break and decide to stop for lunch. You choose
your favorite fast food restaurant. You both order a burger, fries, and a soft drink and chow down. In the
afternoon, as you are continuing your journey, both of you begin to feel stomach cramps. They get worse
so you decide to go to an urgent care clinic. The doctor there diagnoses you both with food poisoning
and prescribes medication. You fill the prescription, check into a hotel, and experience several days of
agony. You later discover the cook at the restaurant undercooked the beef in your burger, which caused
your food poisoning. You sue the restaurant.
Is the restaurant liable to you or is only the employee liable? - correct answer ✔✔The restaurant is
liable.
Which of the following scenarios illustrates a business world without agency relationships? - correct
answer ✔✔The owner prepares the tax returns.
How do agency relationships affect businesses and the business world? Choose 2 answer choices. -
correct answer ✔✔Businesses can grow by hiring employees.
Workers can specialize and become experts.
A sales representative sells products from two competing companies without disclosing to either
company. Which agent duty owed to a principal applies to this situation? - correct answer ✔✔Conflict of
Interest
What rules are included in an agent's duty of loyalty? Choose 2 answer choices. - correct answer ✔✔An
agent cannot share or use confidential information.
An agent cannot secretly deal with the principal.
What does the ratification of an agency relationship include? - correct answer ✔✔x-There is an
agreement between the principal and the agent.
, -The law creates an agency relationship in the case of an emergency.
-A party affirms the contract another person made with a third party.
x-The principal led a third party to believe someone was an agent.
What does agency by ratification require? Choose 2 answer choices - correct answer ✔✔The principal
affirms the agent's entire act, not just a portion.
The principal must have the legal capacity to contract.
What is the key factor in apparent authority? - correct answer ✔✔The principal's actions
What are the two types of actual authority? Choose 2 answer choices. - correct answer ✔✔Implied
authority
Express authority
In which situation does an agent have the least exposure to liability? - correct answer ✔✔-Fully disclosed
principal
What are some good reasons to refrain from disclosing an agency or a principal's identity? Choose 2
answer choices. - correct answer ✔✔-When a principal wishes to enter into transactions, but is
concerned that if third parties knew his or her identity they would be less likely to enter into the
agreement
-When a principal wishes to remain anonymous for privacy reasons
x-When a principal wishes to avoid exposure to liability
x-When a principal does not have adequate resources in case he or she is held liable for damages related
to an agency relationship
What is required to form an agency relationship? - correct answer ✔✔The agent and principal must
agree to enter the relationship.
How may an agency relationship be formed? Choose 3 answers. - correct answer ✔✔by express oral
agreement between agent and principal
answers rated A+
You and a friend are taking a road trip during summer break and decide to stop for lunch. You choose
your favorite fast food restaurant. You both order a burger, fries, and a soft drink and chow down. In the
afternoon, as you are continuing your journey, both of you begin to feel stomach cramps. They get worse
so you decide to go to an urgent care clinic. The doctor there diagnoses you both with food poisoning
and prescribes medication. You fill the prescription, check into a hotel, and experience several days of
agony. You later discover the cook at the restaurant undercooked the beef in your burger, which caused
your food poisoning. You sue the restaurant.
Is the restaurant liable to you or is only the employee liable? - correct answer ✔✔The restaurant is
liable.
Which of the following scenarios illustrates a business world without agency relationships? - correct
answer ✔✔The owner prepares the tax returns.
How do agency relationships affect businesses and the business world? Choose 2 answer choices. -
correct answer ✔✔Businesses can grow by hiring employees.
Workers can specialize and become experts.
A sales representative sells products from two competing companies without disclosing to either
company. Which agent duty owed to a principal applies to this situation? - correct answer ✔✔Conflict of
Interest
What rules are included in an agent's duty of loyalty? Choose 2 answer choices. - correct answer ✔✔An
agent cannot share or use confidential information.
An agent cannot secretly deal with the principal.
What does the ratification of an agency relationship include? - correct answer ✔✔x-There is an
agreement between the principal and the agent.
, -The law creates an agency relationship in the case of an emergency.
-A party affirms the contract another person made with a third party.
x-The principal led a third party to believe someone was an agent.
What does agency by ratification require? Choose 2 answer choices - correct answer ✔✔The principal
affirms the agent's entire act, not just a portion.
The principal must have the legal capacity to contract.
What is the key factor in apparent authority? - correct answer ✔✔The principal's actions
What are the two types of actual authority? Choose 2 answer choices. - correct answer ✔✔Implied
authority
Express authority
In which situation does an agent have the least exposure to liability? - correct answer ✔✔-Fully disclosed
principal
What are some good reasons to refrain from disclosing an agency or a principal's identity? Choose 2
answer choices. - correct answer ✔✔-When a principal wishes to enter into transactions, but is
concerned that if third parties knew his or her identity they would be less likely to enter into the
agreement
-When a principal wishes to remain anonymous for privacy reasons
x-When a principal wishes to avoid exposure to liability
x-When a principal does not have adequate resources in case he or she is held liable for damages related
to an agency relationship
What is required to form an agency relationship? - correct answer ✔✔The agent and principal must
agree to enter the relationship.
How may an agency relationship be formed? Choose 3 answers. - correct answer ✔✔by express oral
agreement between agent and principal
