BULE 303 - Test #5 questions well
answered graded A+
Agency = - correct answer ✔✔Principal & Agent
Agency - correct answer ✔✔A relationship between two parties in which one party (the agent)
agrees to represent or act for the other (the principal).
*The most common and most important legal relationship*
Employer-Employee Relationship - correct answer ✔✔- is a fiduciary relationship based on trust
and confidence
- principals are legally liable for the negligent acts and in some cases the torts and criminal acts
of their agents (ie, an employee)
- the key feature is the employer's right to control in the performance of tasks involved in the
employment
Fiduciary - correct answer ✔✔As a noun, a person having a duty created by his or her
undertaking to act primarily for another's benefit in matters connected with the undertaking. As
an adjective, a relationship founded on trust and confidence.
Independent Contractor - correct answer ✔✔One who works for, and receives payment from,
an employer but whose working conditions and methods are not controlled by the employer. An
independent contractor is not an employee but may be an agent.
Employer-Independent Contractor Relationship - correct answer ✔✔- principals are not liable
for their negligent acts
- principals have a low level of control
,Determining Employee Status - correct answer ✔✔Criteria used by the courts:
1) How much control can the employer exercise over the details of the work?
2) Is the worker engaged in an occupation or business distinct from that of the employer?
3) Is the work usually done under the employer's direction or by a specialist without
supervision?
4) Does the employer supply the tools at the place of work?
5) For how long is the person employed?
6) What is the method of payment—by time period or at the completion of the job?
7) What degree of skill is required of the worker?
Agency by Agreement - correct answer ✔✔Formed through express consent (oral or written) or
implied by conduct
Agency by Ratification - correct answer ✔✔- principal either by act or by agreement ratifies
conduct of a person who is not in fact the agent
- a party's act of accepting or giving legal force to a contract or other obligation entered into by
another that previously was not enforceable
- only liable when a principal has given authority
Agency by Estoppel - correct answer ✔✔principal causes a third person to believe that another
person is the principal's agent, and the third person acts to their detriment in reasonable
reliance on that believe.
*remember: acts and declarations made by the "agent" alone, without the knowledge of the
principal do NOT create this*
Agents Duties to the Principal - correct answer ✔✔Performance - reasonable diligence and skill
in performing work
, Notification - inform of important matters
Loyalty - act solely for the benefit of the principal
Obedience - follow instructions
Accounting - keep and make funds available
Principal's Duties to the Agent - correct answer ✔✔Compensation (Express or Implied).
Reimbursement and Indemnification (compensation for harm or loss).
Cooperation.
Safe Working Conditions.
Actual Authority - correct answer ✔✔is the express and implied powers of an agent.
Express Authority - correct answer ✔✔is authority declared in clear, direct, and definite terms,
can be given orally or in writing.
Implied Authority - correct answer ✔✔to do what is reasonably necessary to carry out his or
her express authority and accomplish the objectives of the agency.
Apparent Authority and Estoppel - correct answer ✔✔Authority that is only apparent, not real.
An agent's apparent authority arises when the principal causes a third party to believe that the
agent has authority, even though she or he does not.
Ratification - correct answer ✔✔occurs when the principal affirms an agent's unauthorized act
1) agent must act on the behalf of the principal
2) principals must know all the material facts involved in the transaction
3) principal must affirm the entire deal
answered graded A+
Agency = - correct answer ✔✔Principal & Agent
Agency - correct answer ✔✔A relationship between two parties in which one party (the agent)
agrees to represent or act for the other (the principal).
*The most common and most important legal relationship*
Employer-Employee Relationship - correct answer ✔✔- is a fiduciary relationship based on trust
and confidence
- principals are legally liable for the negligent acts and in some cases the torts and criminal acts
of their agents (ie, an employee)
- the key feature is the employer's right to control in the performance of tasks involved in the
employment
Fiduciary - correct answer ✔✔As a noun, a person having a duty created by his or her
undertaking to act primarily for another's benefit in matters connected with the undertaking. As
an adjective, a relationship founded on trust and confidence.
Independent Contractor - correct answer ✔✔One who works for, and receives payment from,
an employer but whose working conditions and methods are not controlled by the employer. An
independent contractor is not an employee but may be an agent.
Employer-Independent Contractor Relationship - correct answer ✔✔- principals are not liable
for their negligent acts
- principals have a low level of control
,Determining Employee Status - correct answer ✔✔Criteria used by the courts:
1) How much control can the employer exercise over the details of the work?
2) Is the worker engaged in an occupation or business distinct from that of the employer?
3) Is the work usually done under the employer's direction or by a specialist without
supervision?
4) Does the employer supply the tools at the place of work?
5) For how long is the person employed?
6) What is the method of payment—by time period or at the completion of the job?
7) What degree of skill is required of the worker?
Agency by Agreement - correct answer ✔✔Formed through express consent (oral or written) or
implied by conduct
Agency by Ratification - correct answer ✔✔- principal either by act or by agreement ratifies
conduct of a person who is not in fact the agent
- a party's act of accepting or giving legal force to a contract or other obligation entered into by
another that previously was not enforceable
- only liable when a principal has given authority
Agency by Estoppel - correct answer ✔✔principal causes a third person to believe that another
person is the principal's agent, and the third person acts to their detriment in reasonable
reliance on that believe.
*remember: acts and declarations made by the "agent" alone, without the knowledge of the
principal do NOT create this*
Agents Duties to the Principal - correct answer ✔✔Performance - reasonable diligence and skill
in performing work
, Notification - inform of important matters
Loyalty - act solely for the benefit of the principal
Obedience - follow instructions
Accounting - keep and make funds available
Principal's Duties to the Agent - correct answer ✔✔Compensation (Express or Implied).
Reimbursement and Indemnification (compensation for harm or loss).
Cooperation.
Safe Working Conditions.
Actual Authority - correct answer ✔✔is the express and implied powers of an agent.
Express Authority - correct answer ✔✔is authority declared in clear, direct, and definite terms,
can be given orally or in writing.
Implied Authority - correct answer ✔✔to do what is reasonably necessary to carry out his or
her express authority and accomplish the objectives of the agency.
Apparent Authority and Estoppel - correct answer ✔✔Authority that is only apparent, not real.
An agent's apparent authority arises when the principal causes a third party to believe that the
agent has authority, even though she or he does not.
Ratification - correct answer ✔✔occurs when the principal affirms an agent's unauthorized act
1) agent must act on the behalf of the principal
2) principals must know all the material facts involved in the transaction
3) principal must affirm the entire deal
