LEGAL ENVIRONMENT FINAL EXAM
QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS
, Concept of agents, there are three ideas - ANSWERSPrincipal-Agent, Employer-
Employee, and Master-Server
__________ is someone who is given power for the principal. Contrasted with a
independent contractor. - ANSWERSAgent
_________ _________ is liable for their own contractual violations of others and their
own tortes. (Window washer) - ANSWERSIndependent Contractor
How does an agency get created? - ANSWERS1. Expressed (In writing or oral)
2. Implied (by conduct)
3. Ratification (no relationship, "you're not my agent but I like what you've done so I'll
ratify it")
4. Estoppel (injustice enrichment)
The duties of agent to the principal. The ________ has a fiduciary duty, based on trust
(the highest duty of care). If the ________ violates the fiduciary duties then the agent
could be liable. List of agent's duties to the principal. - ANSWERSagent; agent
1. Performance
2. Notification
3. Loyalty
4. Obedience
5. Accounting
Scope of agent's authority - ANSWERS1. Expressed authority
2. Implied authority
3. Apparent authority
When there is an expressed agency it will expressly allow the person to do whatever
they are tasked to do - ANSWERSExpressed authority
To do what is reasonable necessary to carry out the duty of that agency (Ex: Putting
someone in-charge of the store) - ANSWERSImplied authority
If you, the principal, allows to someone who looks like their agent that gives them
________ ________ to act for you. - ANSWERSApparent authority
Who is liable? (Principal to the agents) - ANSWERS1. Disclosed principal- the one
they're making the contract for (Buying parts for GM, you are not liable) (Generally the
principal is liable)
2. Particularly disclosed principal- they do not know who could be liable
QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS
, Concept of agents, there are three ideas - ANSWERSPrincipal-Agent, Employer-
Employee, and Master-Server
__________ is someone who is given power for the principal. Contrasted with a
independent contractor. - ANSWERSAgent
_________ _________ is liable for their own contractual violations of others and their
own tortes. (Window washer) - ANSWERSIndependent Contractor
How does an agency get created? - ANSWERS1. Expressed (In writing or oral)
2. Implied (by conduct)
3. Ratification (no relationship, "you're not my agent but I like what you've done so I'll
ratify it")
4. Estoppel (injustice enrichment)
The duties of agent to the principal. The ________ has a fiduciary duty, based on trust
(the highest duty of care). If the ________ violates the fiduciary duties then the agent
could be liable. List of agent's duties to the principal. - ANSWERSagent; agent
1. Performance
2. Notification
3. Loyalty
4. Obedience
5. Accounting
Scope of agent's authority - ANSWERS1. Expressed authority
2. Implied authority
3. Apparent authority
When there is an expressed agency it will expressly allow the person to do whatever
they are tasked to do - ANSWERSExpressed authority
To do what is reasonable necessary to carry out the duty of that agency (Ex: Putting
someone in-charge of the store) - ANSWERSImplied authority
If you, the principal, allows to someone who looks like their agent that gives them
________ ________ to act for you. - ANSWERSApparent authority
Who is liable? (Principal to the agents) - ANSWERS1. Disclosed principal- the one
they're making the contract for (Buying parts for GM, you are not liable) (Generally the
principal is liable)
2. Particularly disclosed principal- they do not know who could be liable
