BULE 303 Final questions and
answers
Agency - correct answer ✔✔Principal and agent
What do principals use agents for? - correct answer ✔✔To be able to conduct multiple business
operations simultaneously in various locations.
What do principals have the right to do? - correct answer ✔✔The principal has the right to
control the agent in matter entrusted to the agent.
Determining Independent contractor status - correct answer ✔✔•Is the worker engaged in an
occupation or business distinct from Employer?
•Is the worker paid at the end of the job?
•Is there a great degree of skill required?
Determining employee status - correct answer ✔✔•Does the Employer exercise a great degree
of control over the details of the work?
•Is the work usually done under Employer's supervision?
•Does Employer provide the tools?
•Has the worker been employed a long time?
,Agency by Agreement - correct answer ✔✔Formed through express consent (oral or written) or
implied by conduct.
Formation of agency relationship - correct answer ✔✔•Consensual agreement
•No consideration required
•Principal needs contractual capacity, agent does not
•For any legal purpose
Agency by ratification - correct answer ✔✔Principal either by act or by agreement ratifies
conduct of a person who is not in fact an agent.
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 her detriment in reasonable reliance
on that belief.
Agency by operation of Law - correct answer ✔✔Agency based on social duty is formed in
certain situations when the Agent is unable to contact the Principal
Necessaries for family
Emergency
Agent's duties to the principal - correct answer ✔✔o Performance: reasonable diligence and
skill (special skills)
, o Notification to P
o Loyalty (no conflict of interest)
o Obedience
o Accounting
Principal's duties to the agent - correct answer ✔✔o Compensation (Express or Implied)
o Reimbursement and Indemnification
o Cooperation
o Provide safe working conditions
Actual authority - correct answer ✔✔Express or implied
Apparent authority - correct answer ✔✔Estoppel, emergency, course of conduct and ratification
Expressed authority - correct answer ✔✔can be oral or written
"equal dignity rule"
Equal Dignity Rule - correct answer ✔✔If law requires written contract, Agent's authority must
be in writing. Failure to comply with the rule renders contract voidable
answers
Agency - correct answer ✔✔Principal and agent
What do principals use agents for? - correct answer ✔✔To be able to conduct multiple business
operations simultaneously in various locations.
What do principals have the right to do? - correct answer ✔✔The principal has the right to
control the agent in matter entrusted to the agent.
Determining Independent contractor status - correct answer ✔✔•Is the worker engaged in an
occupation or business distinct from Employer?
•Is the worker paid at the end of the job?
•Is there a great degree of skill required?
Determining employee status - correct answer ✔✔•Does the Employer exercise a great degree
of control over the details of the work?
•Is the work usually done under Employer's supervision?
•Does Employer provide the tools?
•Has the worker been employed a long time?
,Agency by Agreement - correct answer ✔✔Formed through express consent (oral or written) or
implied by conduct.
Formation of agency relationship - correct answer ✔✔•Consensual agreement
•No consideration required
•Principal needs contractual capacity, agent does not
•For any legal purpose
Agency by ratification - correct answer ✔✔Principal either by act or by agreement ratifies
conduct of a person who is not in fact an agent.
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 her detriment in reasonable reliance
on that belief.
Agency by operation of Law - correct answer ✔✔Agency based on social duty is formed in
certain situations when the Agent is unable to contact the Principal
Necessaries for family
Emergency
Agent's duties to the principal - correct answer ✔✔o Performance: reasonable diligence and
skill (special skills)
, o Notification to P
o Loyalty (no conflict of interest)
o Obedience
o Accounting
Principal's duties to the agent - correct answer ✔✔o Compensation (Express or Implied)
o Reimbursement and Indemnification
o Cooperation
o Provide safe working conditions
Actual authority - correct answer ✔✔Express or implied
Apparent authority - correct answer ✔✔Estoppel, emergency, course of conduct and ratification
Expressed authority - correct answer ✔✔can be oral or written
"equal dignity rule"
Equal Dignity Rule - correct answer ✔✔If law requires written contract, Agent's authority must
be in writing. Failure to comply with the rule renders contract voidable
