l201 final exam 50+ QUESTIONS WITH
100% SOLVED SOLUTIONS!!
Agent - Answerparty that has the power to act under control of other party
-ex: employers, independent contractors, partners, corporations have a registered agent
principal - Answerother party in law of agency
formation of agency - Answerwhen principle manifests assent to another person
(agent) that the agent will act on the principle's behalf and be subject to the principle's
control
-test is objective
-agent is a fiduciary of prinncipal
-doesn't have to be in writing
Actual Authority - Answer2 forms:
1) Express authority
-actual authority that the principle has manifested to the agent in very specific or
detailed language
2) Implied authority
-to act in a way the agent reasonably believes the principle wants him to act
-ex: agent hired to manage a business has implied authority to make contracts that are
reasonably necessary/customary
-consent must be communicated to the registered agent (articles of incorporation)
Authority - Answeran agents ability to affect his principal's legal relations
2 main forms:
1)Actual authority
2)Apparent authority
Apparent authority - Answer-must be communicated to the third party
-arises when the principal's manifestations cause a third party to believe reasonably that
the agent is authorized to act in a certain way.
fiduciary duty - Answeragent has a fiduciary duty to act loyally for the principle's
benefit in all matters
Agent duties - Answer-duty of loyalty: 1)avoiding conflicts of interest w/ the principal
2)not disclosing confidential info from the principal (confidentiality)
-Duty to obey instructions
, -duty to act w/ care and skill (care, competence, dilligence)
-duty to provide information
-duty of segregation, record-keeping, and accounting
-duty not to receive material benefit
-duty of good conduct
MDM Case - AnswerPrincipal does NOT owe a fiduciary duty to an agent, other way
around
CBS Corp V. FCC - Answer-Timberlake + Jackson
-respondeat superior claim b/c Justin exposed Jackson live on TV
-they were seen as independent contractors and considered as agents no employment
relationship to what happened.
ABKCO - Answer-agent has duty to keep confidential
-Klein used the royalty income to convince ABKCO to buy the copywright
Sanders V. Madison Square Garden - Answer-faithless servant is extreme form of
fiduciary duty, easier to collect damage $
-to violate, the employer must show 1) the employee's disloyal activity was related to the
performance of his duties and 2) the disloyalty permeated the employee's service in its
most material part.
-difference from fiduciary duty claim - not required to show it suffered provable damages
as a result of the breach of fidelity by the agent.
-did not have to forfeit entire salary b/c employee only violated an incidental work rule
Gniadek - AnswerWas an agent while working, but terminated after camp, no
apparant authority b/c the third parties were informed on the termination.
non-delegation - Answerthings principal CAN'T make agent do:
ex: voting in election, statements under oath, signing a will, specific talents
Breach of duty - Answerany hiding of information by agent
Agency terminations - Answerwhen performance becomes impossible or illegal, but
apparent authority continues until third party knows it ended
Principal liability - Answerprincipal is liable (bound by) a contract entered into by its
agent if the agent had actual or apparent authority
Frontier Leasing V. Link's Engineering - Answeragent- Fleming
principal- Lance Clute (Bluff Creek)
Principal wanted to cancel contract for beverage cart
-was unsure on authority.
100% SOLVED SOLUTIONS!!
Agent - Answerparty that has the power to act under control of other party
-ex: employers, independent contractors, partners, corporations have a registered agent
principal - Answerother party in law of agency
formation of agency - Answerwhen principle manifests assent to another person
(agent) that the agent will act on the principle's behalf and be subject to the principle's
control
-test is objective
-agent is a fiduciary of prinncipal
-doesn't have to be in writing
Actual Authority - Answer2 forms:
1) Express authority
-actual authority that the principle has manifested to the agent in very specific or
detailed language
2) Implied authority
-to act in a way the agent reasonably believes the principle wants him to act
-ex: agent hired to manage a business has implied authority to make contracts that are
reasonably necessary/customary
-consent must be communicated to the registered agent (articles of incorporation)
Authority - Answeran agents ability to affect his principal's legal relations
2 main forms:
1)Actual authority
2)Apparent authority
Apparent authority - Answer-must be communicated to the third party
-arises when the principal's manifestations cause a third party to believe reasonably that
the agent is authorized to act in a certain way.
fiduciary duty - Answeragent has a fiduciary duty to act loyally for the principle's
benefit in all matters
Agent duties - Answer-duty of loyalty: 1)avoiding conflicts of interest w/ the principal
2)not disclosing confidential info from the principal (confidentiality)
-Duty to obey instructions
, -duty to act w/ care and skill (care, competence, dilligence)
-duty to provide information
-duty of segregation, record-keeping, and accounting
-duty not to receive material benefit
-duty of good conduct
MDM Case - AnswerPrincipal does NOT owe a fiduciary duty to an agent, other way
around
CBS Corp V. FCC - Answer-Timberlake + Jackson
-respondeat superior claim b/c Justin exposed Jackson live on TV
-they were seen as independent contractors and considered as agents no employment
relationship to what happened.
ABKCO - Answer-agent has duty to keep confidential
-Klein used the royalty income to convince ABKCO to buy the copywright
Sanders V. Madison Square Garden - Answer-faithless servant is extreme form of
fiduciary duty, easier to collect damage $
-to violate, the employer must show 1) the employee's disloyal activity was related to the
performance of his duties and 2) the disloyalty permeated the employee's service in its
most material part.
-difference from fiduciary duty claim - not required to show it suffered provable damages
as a result of the breach of fidelity by the agent.
-did not have to forfeit entire salary b/c employee only violated an incidental work rule
Gniadek - AnswerWas an agent while working, but terminated after camp, no
apparant authority b/c the third parties were informed on the termination.
non-delegation - Answerthings principal CAN'T make agent do:
ex: voting in election, statements under oath, signing a will, specific talents
Breach of duty - Answerany hiding of information by agent
Agency terminations - Answerwhen performance becomes impossible or illegal, but
apparent authority continues until third party knows it ended
Principal liability - Answerprincipal is liable (bound by) a contract entered into by its
agent if the agent had actual or apparent authority
Frontier Leasing V. Link's Engineering - Answeragent- Fleming
principal- Lance Clute (Bluff Creek)
Principal wanted to cancel contract for beverage cart
-was unsure on authority.
