GBL 385 Final Exam – Molesky Questions With Correct Answers.

GBL 385 Final Exam – Molesky Questions
With Correct Answers
agency |- |CORRECT |ANSWER✔✔-fiduciary |relationship |between |2 |persons |in |which |one |acts |on
|behalf |of |the |other




types |of |agency |relationships |- |CORRECT |ANSWER✔✔-principal |--> |agent

employer |--> |employee

employer |--> |independent |contractor



principal |--> |agent |- |CORRECT |ANSWER✔✔-principal |gives |the |agent |expressed |or |actual |
authority |to |act |on |the |former's |behalf



expressed |authority |- |CORRECT |ANSWER✔✔-arises |from |specific |statements |made |by |the |
principal |to |the |agent



actual |authority |- |CORRECT |ANSWER✔✔-includes |expressed |authority |and |implied |authority



implied |authority |- |CORRECT |ANSWER✔✔-customarily |given |to |an |agent |in |an |industry, |trade, |
or |profession



employer |--> |employee |- |CORRECT |ANSWER✔✔-agent |who |works |for |pay |and |is |subject |to |
the |control |of |the |principal |may |enter |into |contractual |relationships |on |the |latter's |behalf



respondent |superior |- |CORRECT |ANSWER✔✔-imposes |liability |on |a |principle |for |torts |
committed |by |an |agent |employed |by |him |or |her |and |subject |to |his |or |her |control

,employer |--> |independent |contractor |- |CORRECT |ANSWER✔✔-agent |is |hired |but |he |principal |
to |do |a |specific |job |but |is |not |controlled |with |respect |to:

-physical |conduct

-details |of |work |performance



determine |whether |an |agent |is |an |independent |contractor |by: |- |CORRECT |ANSWER✔✔--
whether |agent |had |distinct |occupation

-whether |agent |supplied |own |tools

-whether |agent |was |employed |for |specific |time

-whether |agent |was |paid |hourly |or |on |completion |of |job

-what |degree |of |skill |was |required |to |do |the |job



agency |through |ratification |by |principal |- |CORRECT |ANSWER✔✔-conditions |for |a |ratification |to
|be |effective: |



-principal |must |have |full |knowledge |of |agent's |action

-existence |of |principal |must |be |clear |to |3rd |part |at |time |of |agent's |unauthorized |act



principals |duties |to |agent |- |CORRECT |ANSWER✔✔--duty |of |compensation

-duty |of |reimbursement |& |indemnification

-duty |of |cooperation

-duty |to |provide |safe |working |conditions

-duty |of |loyalty



duty |of |compensation |- |CORRECT |ANSWER✔✔-implied |that |principal |will |compensate |the |
agent |for |services |rendered

-contingency |fee

, contingency |fee |- |CORRECT |ANSWER✔✔-agent's |compensation |that |consists |of |a |% |of |amount
|agent |secured |for |principal |in |business |transaction




duty |of |reimbursement |& |indemnification |- |CORRECT |ANSWER✔✔-indemnity: |principal's |
obligation |to |reimburse |agent |for |any |losses |agent |incurs |while |acting |on |principal's |behalf



duty |of |cooperation |- |CORRECT |ANSWER✔✔-principal |must |do |nothing |to |interfere |with |
reasonable |conduct |of |agent |as |agreed |upon |in |an |express |or |implied |contract



duty |to |provide |safe |working |conditions |- |CORRECT |ANSWER✔✔-Employers |who |repeatedly |
violate |standards |set |by |the |Occupational |Safety |and |Health |Act |(OSHA) |may |be |fined |or |
imprisoned |or |both



duty |of |loyalty |- |CORRECT |ANSWER✔✔--acting |on |behalf |of |one |principal |to |avoid |conflicts |of |
interest

-communicating |all |material |info |to |principal

-refraining |from |acting |in |a |manner |adverse |to |principal's |interest



agents |duties |to |principal |- |CORRECT |ANSWER✔✔--duty |of |obedience

-duty |of |accounting

-duty |of |performance



duty |of |obedience |- |CORRECT |ANSWER✔✔-following |principal's |reasonable |and |lawful |
instructions



duty |of |accounting |- |CORRECT |ANSWER✔✔-when |the |principal |requests |an |accounting |of |
money |or |property, |providing |it