BUL3310 FSU Bailey Exam 3 Questions With Verified And Updated Solutions.

BUL3310 FSU Bailey Exam 3 Questions With Verified And Updated Solutions. The principal is a fiduciary of the agent. True or False? - answerTrue An agent is a fiduciary of the principal True or False? - answerTrue A principal whose identity is known to a third party is a disclosed principal. True or False? - answerTrue Undisclosed principals have no liability to third parties for contracts negotiated by their agents. True or False? - answerFalse If a third party does not know that he is dealing with an agent and believes that the agent is acting on his own behalf and will perform on the contract, the principal in this situation is ______________. A. Disclosed B. Undisclosed C. Partially disclosed D. Transparent - answerB. Undisclosed A principal whose identity is known to a third party is an _____________principal. A. Disclosed B. Undisclosed C. Partially disclosed D. Transparent - answerA. Disclosed A factor is an agent with the special limited authority of procuring a customer so that the principal can affect a sale or exchange of property. True or False? - answerFalse The legal test to determine whether someone is a general agent or a special agent is whether or not the agent is paid for his services. True or False? - answerFalse A store manager is an example of a special agent. True or False? - answerFalse A person who enters into a contract with an independent contractor is called a proprietor. True or False? - answerTrue A minor may act as an agent for an adult principal True or False? - answerTrue An agent operating under a written power of attorney is called an attorney-at-law. True or False? - answerFalse A person who is given power of attorney is called an______________. A. Attorney at law B. Attorney in fact C. Factor D. General Agent - answerB. Attorney in fact The Principal and Agent have __________ relationship with each other. A. an arms length B. a statutory C. a fiduciary D. an equitable - answerC. a fiduciary Sam is retiring and selling his business to Ed, an employee. They want Larry Lawyer to draw up a sales contract that protects both Sam's interests as the seller and Ed's interests as the buyer. If Larry agrees to this dual agency, which agency duty would he most risk violating? A. The duty of loyalty B. The duty not to be negligent C. The duty to account D. Dual agencies pose no particular problems in carrying out agency duties. - answerA. The duty of loyalty Which of the following is NOT an example of a trade secret? A. A business's marketing plans for the next five years B. A list of customers that was published in an ad in a trade journal C. The formula for a compound used in a manufacturing process D. The responses of a focus group to a company's product that have been gathered and analyzed - answerB. A list of customers that was published in an ad in a trade journal An agent has a duty to obey the principal's instructions unless which of the following is true? A. The instructions require the agent to perform duties that are not in the agency agreement. B. The instructions are to perform an illegal act. C. The instructions are not in the principal's best interest. D. Both A and B - answerD. Both A and B An agent's knowledge is imputed to the principal. True or False? - answerTrue Which of the following statements about an agent's duty to inform is false? A. The duty to inform does not apply to gratuitous agents, only to compensated agents. B. The principal is assumed to know everything that the agent knows and can be held liable legally for this information. C. The agent must inform the principal if a credit customer is having financial difficulties. D. The agent must inform the principal about changes in market conditions. - answerA. The duty to inform does not apply to gratuitous agents, only to compensated agents. An agent will not be indemnified for injuries caused to third parties if the agent's negligence caused the injury. True or False? - answerTrue If an agency agreement does not state how much an agent is to be paid, what happens? A. The agency agreement is void. B. The agency agreement is voidable by the agent, but not by the principal. C. The agent is assumed to be a gratuitous agent. D. A court will read in a reasonable amount based on the customary rate in the business community. - answerD. A court will read in a reasonable amount based on the customary rate in the business community. A multiple listing agreement lists real property with several brokers, but only the selling broker earns a commission on the sale. True or False? - answerFalse If an agent gets a monthly advance against future commissions, the advances are treated as a minimum salary and need not be returned if the commissions on sales are not earned. True or False? - answerTrue A principal is obligated to pay any judgments against an agent who incurred liability to a third party while carrying out the principal's orders. This duty to hold the agent "harmless" is the duty to ___________. A. reimburse B. indemnify C. compensate D. account - answerB. indemnify