Advanced Business Law Final Exam
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1. what does the law of It allows one person to act on behalf of another
agency allow?
2. what is agency law? Large body of common law that governs agency
3. what is mixed in agency a mixture of common law and tort law
law/
4. what does a prin- a fiduciary relationship that resulted from the manifestation of con-
cipal-agent relationship sent by one person to another that the other shall act on his/her
look like? behalf.
5. who is the principal and they are the party who employs another to acton his/her behalf.
what do they do?
6. who is the agent and they are the party who agrees to act on behalf of another
what do they do?
7. who can initiate and - Any person who has the capacity to contract can appoint an agent
agency relationship?? to act on his or her behalf
- Persons who lack contractual capacity cannot appoint an agent
8. when is a persons-agent it is formed when a principal hires an agent and gives that agent
relationship formed? authority to act and enter into contracts on behalf of the employer.
9. when does an employ- it exists when an employer hires an employee to person some form
er-employee relationship of physical service for the employer.
exist?
10. who is an independent the contractor is not an employee of the principal but has been hired
contractor? by the principal to perform a certain task on behalf of them
11. the principal
, Advanced Business Law Final Exam
Study online at https://quizlet.com/_hkozr0
who can authorize inde-
pendent contractors to
enter into contracts
12. when does an express it occurs when a principal and an agent expressly agree to enter into
agency occur? an agency agreement with eachother.
13. can an express agency be yes UNLESS the statute of frauds says it has to be in writing.
oral or written?
14. what happens if a prin- the principal cannot employ any agent other than the exclusive.
cipal and an agent has
an exclusive agency con-
tract??
15. when does an implied it occurs when a principal and an agent do NOT expressly create an
agency occur? agency relationship but it is inferred from the conduct of the parties.
16. what determines the ex- it is determined from the facts and circumstances of the situation
tent of an agents author-
ity in an implied agency?
17. when does agency by rat- it occurs when a person misrepresents himself/herself as another's
ification occur? agent when in fact they are not AND the principal accepts (ratifies) the
contract.
18. if the principal ratifies they are required to perform
a contract in an agency
by ratification situation,
what do they have to do?
19. if the principal ratifies a they are relived of any liability for misrepresentation
contract in an agency by
, Advanced Business Law Final Exam
Study online at https://quizlet.com/_hkozr0
ratification situation, how
is the agent affected?
20. what is the power of at- a type of expressed agency that is often used to give an agentt he
tourney? power to sign legal documents on behalf of the principal
21. what is the general pow- a situation in which the principal confers broad powers on the agent
er of attourney? to act in any matters on their behalf.
22. what is the special power a situation in which the principal confers powers on the agent to act
of attourney? in specified matters on their behalf.
23. when does an apparent it arises when a principal creates the appearance of an agency that
agency arise? does not exist.
24. what happens to the the principal is stopped from denying the agency relationship and
principal if an apparent is bound to contracts made by the apparent agent on behalf of the
agency is established? principal.
25. whose actions create an the principals
apparent agency?
26. what are the duties of the -Compensation
principal?
-Reimbursement
-Indemnification
-Cooperation
27. what are the duties of the - Performance
agent?
-Notification
-Accounting
, Advanced Business Law Final Exam
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28. when should the prin- if the expenses incurred by the agent were:
cipal owe their duty of authorized by the principal
reimbursement to the within the scope of agency
agent? necessesary to discharge the agents duties in carrying out the agency.
29. what does the principals it requires the principal to pay an agreed-upon amount to the agent
duty of compensation re-
quire?
30. when does the duty to in- when an agent is held liable for the principals misconduct.
demnify arise to the prin-
cipal?
31. what is included in the performing the lawful duties expressed in the contract
agents duty to perform? meeting the standards of reasonable care, skill, diligence implicit in
ALL contracts.
32. what is imputed knowl- information learned by an agent that is attributed to the principal
edge?
33. what does the agents it requires the agent to:
duty to account require? maintain a separate account for the principal
use the principals property in an authorized manner of an agency.
34. what does the termina- it is a situation where the parties to an agency contract terminate their
tion of an agency by the contract by mutual agreement or when a previously agreed on event
act of the parties look occurs.
like?
35. an agency can be ter- 1. Mutual assent of the parties
minated by the following 2. If a stated time has lapsed
acts: 3. If a specified purpose is achieved
4. Occurrence of a stated event
Study online at https://quizlet.com/_hkozr0
1. what does the law of It allows one person to act on behalf of another
agency allow?
2. what is agency law? Large body of common law that governs agency
3. what is mixed in agency a mixture of common law and tort law
law/
4. what does a prin- a fiduciary relationship that resulted from the manifestation of con-
cipal-agent relationship sent by one person to another that the other shall act on his/her
look like? behalf.
5. who is the principal and they are the party who employs another to acton his/her behalf.
what do they do?
6. who is the agent and they are the party who agrees to act on behalf of another
what do they do?
7. who can initiate and - Any person who has the capacity to contract can appoint an agent
agency relationship?? to act on his or her behalf
- Persons who lack contractual capacity cannot appoint an agent
8. when is a persons-agent it is formed when a principal hires an agent and gives that agent
relationship formed? authority to act and enter into contracts on behalf of the employer.
9. when does an employ- it exists when an employer hires an employee to person some form
er-employee relationship of physical service for the employer.
exist?
10. who is an independent the contractor is not an employee of the principal but has been hired
contractor? by the principal to perform a certain task on behalf of them
11. the principal
, Advanced Business Law Final Exam
Study online at https://quizlet.com/_hkozr0
who can authorize inde-
pendent contractors to
enter into contracts
12. when does an express it occurs when a principal and an agent expressly agree to enter into
agency occur? an agency agreement with eachother.
13. can an express agency be yes UNLESS the statute of frauds says it has to be in writing.
oral or written?
14. what happens if a prin- the principal cannot employ any agent other than the exclusive.
cipal and an agent has
an exclusive agency con-
tract??
15. when does an implied it occurs when a principal and an agent do NOT expressly create an
agency occur? agency relationship but it is inferred from the conduct of the parties.
16. what determines the ex- it is determined from the facts and circumstances of the situation
tent of an agents author-
ity in an implied agency?
17. when does agency by rat- it occurs when a person misrepresents himself/herself as another's
ification occur? agent when in fact they are not AND the principal accepts (ratifies) the
contract.
18. if the principal ratifies they are required to perform
a contract in an agency
by ratification situation,
what do they have to do?
19. if the principal ratifies a they are relived of any liability for misrepresentation
contract in an agency by
, Advanced Business Law Final Exam
Study online at https://quizlet.com/_hkozr0
ratification situation, how
is the agent affected?
20. what is the power of at- a type of expressed agency that is often used to give an agentt he
tourney? power to sign legal documents on behalf of the principal
21. what is the general pow- a situation in which the principal confers broad powers on the agent
er of attourney? to act in any matters on their behalf.
22. what is the special power a situation in which the principal confers powers on the agent to act
of attourney? in specified matters on their behalf.
23. when does an apparent it arises when a principal creates the appearance of an agency that
agency arise? does not exist.
24. what happens to the the principal is stopped from denying the agency relationship and
principal if an apparent is bound to contracts made by the apparent agent on behalf of the
agency is established? principal.
25. whose actions create an the principals
apparent agency?
26. what are the duties of the -Compensation
principal?
-Reimbursement
-Indemnification
-Cooperation
27. what are the duties of the - Performance
agent?
-Notification
-Accounting
, Advanced Business Law Final Exam
Study online at https://quizlet.com/_hkozr0
28. when should the prin- if the expenses incurred by the agent were:
cipal owe their duty of authorized by the principal
reimbursement to the within the scope of agency
agent? necessesary to discharge the agents duties in carrying out the agency.
29. what does the principals it requires the principal to pay an agreed-upon amount to the agent
duty of compensation re-
quire?
30. when does the duty to in- when an agent is held liable for the principals misconduct.
demnify arise to the prin-
cipal?
31. what is included in the performing the lawful duties expressed in the contract
agents duty to perform? meeting the standards of reasonable care, skill, diligence implicit in
ALL contracts.
32. what is imputed knowl- information learned by an agent that is attributed to the principal
edge?
33. what does the agents it requires the agent to:
duty to account require? maintain a separate account for the principal
use the principals property in an authorized manner of an agency.
34. what does the termina- it is a situation where the parties to an agency contract terminate their
tion of an agency by the contract by mutual agreement or when a previously agreed on event
act of the parties look occurs.
like?
35. an agency can be ter- 1. Mutual assent of the parties
minated by the following 2. If a stated time has lapsed
acts: 3. If a specified purpose is achieved
4. Occurrence of a stated event
