BUL Exam 3 Bailey / BUL 3310 Exam 3 Study
Guide | Bailey | Business Law Concepts,
Contracts, UCC & Case Applications (2025
Update)
A master can normally avoid liability for damages caused by a servant if he can
show that the servant misunderstood his instructions
T or F? - ---✔✔✔ANSWER----True
In contracts negotiated by an agent who is acting within the scope of his authority
for a disclosed principal, the agent, the principal, and the third party are equally
liable on the contract
T or F? - ---✔✔✔ANSWER----False
,The legal doctrine that holds the master liable for the torts committed by a
servant while acting within the scope of this employment is ___
- quid pro quo
- respondeat superior
- caveat emptor
- alter ego liability - ---✔✔✔ANSWER----Respondeat Superior
In which of the following situations would an employee avoid liability for torts
committed while carrying out his employment obligations?
- a corporate officer acting on behalf of the corporation
- a servant following the instructions of his master
- an agent carrying out the orders of his principal
- none of the above; everyone has personal liability for the torts he commits - ---
✔✔✔ANSWER----None of the above; everyone has personal liability for the
torts he commits
Which legal rule will not impose punitive damages on a master for the torts of his
servants unless the master himself took some part in the wrongful action?
- vicarious liability rule
- durham rule
- complicity rule
,- transferred liability rule - ---✔✔✔ANSWER----Complicity rule
Which of the following is NOT a factor in determining whether a servant was
acting within the scope of his employment?
- was the servant carrying on the master's business when the tort was committed?
- was the servant disobeying the instructions of the master when the tort was
committed?
- was the instrumentality of the injury furnished by the master?
- did the master authorize the servant to use the instrumentality of the injury? - -
--✔✔✔ANSWER----Was the servant disobeying the instructions of the
master when the tort was committed?
Normally a master is not liable for torts committed by a servant while traveling
from his home to the workplace
T or F? - ---✔✔✔ANSWER----True
Whether or not a servant was acting in the scope of his employment when he
injured a third party is a question of ___ to be decided by the ___
- fact, judge
- law, judge
- fact, jury
, - law, jury - ---✔✔✔ANSWER----Fact ; Jury
The general legal doctrine that holds one person responsible for the torts
committed by another because of the relationship they have to each other is ___
- respondeat superior
- vicarious liability
- primary liability
- transferred liability - ---✔✔✔ANSWER----Vicarious liability
Which legal principle always imposes punitive damages on a master if the
wrongful conduct of the servant in the course of business justifies punitive
damages?
- vicarious liability rule
- complicity rule
- transferred liability rule
- durham rule - ---✔✔✔ANSWER----Vicarious liability rule
Respondeat superior is a form of vicarious liability
T or F? - ---✔✔✔ANSWER----True
Guide | Bailey | Business Law Concepts,
Contracts, UCC & Case Applications (2025
Update)
A master can normally avoid liability for damages caused by a servant if he can
show that the servant misunderstood his instructions
T or F? - ---✔✔✔ANSWER----True
In contracts negotiated by an agent who is acting within the scope of his authority
for a disclosed principal, the agent, the principal, and the third party are equally
liable on the contract
T or F? - ---✔✔✔ANSWER----False
,The legal doctrine that holds the master liable for the torts committed by a
servant while acting within the scope of this employment is ___
- quid pro quo
- respondeat superior
- caveat emptor
- alter ego liability - ---✔✔✔ANSWER----Respondeat Superior
In which of the following situations would an employee avoid liability for torts
committed while carrying out his employment obligations?
- a corporate officer acting on behalf of the corporation
- a servant following the instructions of his master
- an agent carrying out the orders of his principal
- none of the above; everyone has personal liability for the torts he commits - ---
✔✔✔ANSWER----None of the above; everyone has personal liability for the
torts he commits
Which legal rule will not impose punitive damages on a master for the torts of his
servants unless the master himself took some part in the wrongful action?
- vicarious liability rule
- durham rule
- complicity rule
,- transferred liability rule - ---✔✔✔ANSWER----Complicity rule
Which of the following is NOT a factor in determining whether a servant was
acting within the scope of his employment?
- was the servant carrying on the master's business when the tort was committed?
- was the servant disobeying the instructions of the master when the tort was
committed?
- was the instrumentality of the injury furnished by the master?
- did the master authorize the servant to use the instrumentality of the injury? - -
--✔✔✔ANSWER----Was the servant disobeying the instructions of the
master when the tort was committed?
Normally a master is not liable for torts committed by a servant while traveling
from his home to the workplace
T or F? - ---✔✔✔ANSWER----True
Whether or not a servant was acting in the scope of his employment when he
injured a third party is a question of ___ to be decided by the ___
- fact, judge
- law, judge
- fact, jury
, - law, jury - ---✔✔✔ANSWER----Fact ; Jury
The general legal doctrine that holds one person responsible for the torts
committed by another because of the relationship they have to each other is ___
- respondeat superior
- vicarious liability
- primary liability
- transferred liability - ---✔✔✔ANSWER----Vicarious liability
Which legal principle always imposes punitive damages on a master if the
wrongful conduct of the servant in the course of business justifies punitive
damages?
- vicarious liability rule
- complicity rule
- transferred liability rule
- durham rule - ---✔✔✔ANSWER----Vicarious liability rule
Respondeat superior is a form of vicarious liability
T or F? - ---✔✔✔ANSWER----True
