BADM300 Chapter 19: Agency Exam Questions with Correct Answers
Question 1:
Agency
Answer:
The fiduciary relation that results from the manifestation of consent by one person to
another that the other shall act in his or her behalf and subject to his or her control, and
consent by the other so to act.
Question 2:
Fiduciary
Answer:
A person who undertakes to act on behalf of—and primarily for the benefit of—another.
Question 3:
What does a fiduciary relationship involve?
Answer:
Trust and confidence
Question 4:
Employment laws (state and federal) only apply to who?
Answer:
Employer-employee relationships
Question 5:
Agency relationships may exist between...?
Answer:
Employers and Employees OR Employers and Independent Contractors.
Question 6:
Agent
Answer:
,All employees who deal with third parties.
Question 7:
Employer-Independent Contractor Relationships
Answer:
Independent contractors are not employees
Question 8:
2. Criteria used by the courts: Courts often consider certain questions.
Answer:
employees.
Question 9:
What questions are considered by the Court to determine if someone is an employee or
independent contractor?
Answer:
1. How much control does the employer exercise over the details of the
Question 10:
8. If the worker's action affects employer's liability.
What criteria is used by the IRS to determine employee status?
Answer:
The degree of control the
Question 11:
business exercises over the worker. (esp. regarding taxes) Who owns the work if the
copyrighted work was created by an employee?
Answer:
The employer
Question 12:
Who owns the work if the copyrighted work was created by an independent contractor?
, Answer:
The
Question 13:
contractor UNLESS the parties agree in writing that it is a "work for hire" Agency relationships
-Require no consideration
-Require principal to have contractual capacity
Answer:
-Are consensual
Question 14:
-Can be created for any legal purpose Agency by agreement
Answer:
Formed through express consent (oral or written) or implied by conduct.
Question 15:
Agency by ratification
Answer:
Principal either by act or by agreement ratifies conduct of a person who is not in fact an agent.
Question 16:
Agency by Estoppel
Answer:
The principal causes a third person to believe that another person is the
principal's agent, and the third person acts to his or her detriment in reasonable reliance on
that belief.
Question 17:
Agency by Operation of Law
Answer:
The agency relationship is based on a social or legal duty(such as
the need to support family members) or formed in emergency situations when the agent is
unable to contact the principal and failure to act outside the scope of the agent's authority
would cause the principal substantial loss.
Question 1:
Agency
Answer:
The fiduciary relation that results from the manifestation of consent by one person to
another that the other shall act in his or her behalf and subject to his or her control, and
consent by the other so to act.
Question 2:
Fiduciary
Answer:
A person who undertakes to act on behalf of—and primarily for the benefit of—another.
Question 3:
What does a fiduciary relationship involve?
Answer:
Trust and confidence
Question 4:
Employment laws (state and federal) only apply to who?
Answer:
Employer-employee relationships
Question 5:
Agency relationships may exist between...?
Answer:
Employers and Employees OR Employers and Independent Contractors.
Question 6:
Agent
Answer:
,All employees who deal with third parties.
Question 7:
Employer-Independent Contractor Relationships
Answer:
Independent contractors are not employees
Question 8:
2. Criteria used by the courts: Courts often consider certain questions.
Answer:
employees.
Question 9:
What questions are considered by the Court to determine if someone is an employee or
independent contractor?
Answer:
1. How much control does the employer exercise over the details of the
Question 10:
8. If the worker's action affects employer's liability.
What criteria is used by the IRS to determine employee status?
Answer:
The degree of control the
Question 11:
business exercises over the worker. (esp. regarding taxes) Who owns the work if the
copyrighted work was created by an employee?
Answer:
The employer
Question 12:
Who owns the work if the copyrighted work was created by an independent contractor?
, Answer:
The
Question 13:
contractor UNLESS the parties agree in writing that it is a "work for hire" Agency relationships
-Require no consideration
-Require principal to have contractual capacity
Answer:
-Are consensual
Question 14:
-Can be created for any legal purpose Agency by agreement
Answer:
Formed through express consent (oral or written) or implied by conduct.
Question 15:
Agency by ratification
Answer:
Principal either by act or by agreement ratifies conduct of a person who is not in fact an agent.
Question 16:
Agency by Estoppel
Answer:
The principal causes a third person to believe that another person is the
principal's agent, and the third person acts to his or her detriment in reasonable reliance on
that belief.
Question 17:
Agency by Operation of Law
Answer:
The agency relationship is based on a social or legal duty(such as
the need to support family members) or formed in emergency situations when the agent is
unable to contact the principal and failure to act outside the scope of the agent's authority
would cause the principal substantial loss.
