BUL 5810 Part III – Agency Exam
Questions and Answers 100% Pass
A power of attorney is a formal manifestation that states an agent's authority. The
agent is known as the: - ✔✔attorney at fact
A(n) __________ is a written instrument that expresses the principal's intention that the
agent's authority will not be affected by the principal's subsequent incapacity or that the
agent's authority will become effective upon the principal's subsequent authority. -
✔✔Durable power of attorney
Agency is a consensual relationship that the principal and agent may form by: -
✔✔contract or relationship
Is the agent subject to liability to her principal for breach of the duty of obedience if she
sells the principal's product on credit in violation of explicit instructions? - ✔✔Yes, and
she is liable to the principal for any amounts that the purchaser doesn't pay
Which of the following will terminate a valid durable power of attorney after the
principal is incapacitated? - ✔✔The death of the principal
Which of the following is a major duty, which the agent owes to the principal? -
✔✔Duty to act in good faith and with loyalty
If the agent is authorized to sell certain property of her principal for $1,000 and sells it
for $1,500. Which of the following is the best description of her violation if she keeps the
COPYRIGHT © 2025 BY BRITTIE DONALD, ALL RIGHTS RESERVED 1
, money? - ✔✔An agent has a duty not to acquire any financial or material benefits in
connection with transactions conducted on behalf of the principal .
A principal has a duty to compensate his or her agent if: - ✔✔the agent rendered
authorized services
All of the following are contractual duties owed by a principal to an agent, except:
-compensation
-reimbursement
-indemnification
-self-dealing - ✔✔Self-dealing
An agent's authority can terminate by: - ✔✔Both acts of the parties and by operation of
law.
Assume that Dr. Early is a sales representative for Pharzime, as well as for other
pharmaceutical companies. What would be the main factor in determining whether he
was an employee or an independent contractor for Pharzime? - ✔✔The degree to which
Pharzime controls the details of Dr. Early's work.
Assume that Dr. Early is an independent contractor for Pharzime and was calling on a
doctor at the hospital. The hospital wanted to order some Gensol. Dr. Early sells some
pills to the hospital that he was given as samples and keeps the money for himself.
What duty has Dr. Early violated? - ✔✔The duty of loyalty
Assume Dr. Early is an independent contractor for Pharzime and that Pharzime allows
Dr. Early to spend money to take doctors who may be interested in buying Gensol to
lunch and other events to entertain them. Pharzime sends a notice to Dr. Early that it
COPYRIGHT © 2025 BY BRITTIE DONALD, ALL RIGHTS RESERVED 2
Questions and Answers 100% Pass
A power of attorney is a formal manifestation that states an agent's authority. The
agent is known as the: - ✔✔attorney at fact
A(n) __________ is a written instrument that expresses the principal's intention that the
agent's authority will not be affected by the principal's subsequent incapacity or that the
agent's authority will become effective upon the principal's subsequent authority. -
✔✔Durable power of attorney
Agency is a consensual relationship that the principal and agent may form by: -
✔✔contract or relationship
Is the agent subject to liability to her principal for breach of the duty of obedience if she
sells the principal's product on credit in violation of explicit instructions? - ✔✔Yes, and
she is liable to the principal for any amounts that the purchaser doesn't pay
Which of the following will terminate a valid durable power of attorney after the
principal is incapacitated? - ✔✔The death of the principal
Which of the following is a major duty, which the agent owes to the principal? -
✔✔Duty to act in good faith and with loyalty
If the agent is authorized to sell certain property of her principal for $1,000 and sells it
for $1,500. Which of the following is the best description of her violation if she keeps the
COPYRIGHT © 2025 BY BRITTIE DONALD, ALL RIGHTS RESERVED 1
, money? - ✔✔An agent has a duty not to acquire any financial or material benefits in
connection with transactions conducted on behalf of the principal .
A principal has a duty to compensate his or her agent if: - ✔✔the agent rendered
authorized services
All of the following are contractual duties owed by a principal to an agent, except:
-compensation
-reimbursement
-indemnification
-self-dealing - ✔✔Self-dealing
An agent's authority can terminate by: - ✔✔Both acts of the parties and by operation of
law.
Assume that Dr. Early is a sales representative for Pharzime, as well as for other
pharmaceutical companies. What would be the main factor in determining whether he
was an employee or an independent contractor for Pharzime? - ✔✔The degree to which
Pharzime controls the details of Dr. Early's work.
Assume that Dr. Early is an independent contractor for Pharzime and was calling on a
doctor at the hospital. The hospital wanted to order some Gensol. Dr. Early sells some
pills to the hospital that he was given as samples and keeps the money for himself.
What duty has Dr. Early violated? - ✔✔The duty of loyalty
Assume Dr. Early is an independent contractor for Pharzime and that Pharzime allows
Dr. Early to spend money to take doctors who may be interested in buying Gensol to
lunch and other events to entertain them. Pharzime sends a notice to Dr. Early that it
COPYRIGHT © 2025 BY BRITTIE DONALD, ALL RIGHTS RESERVED 2
