BUL 3310 Exam 3 FSU Woodyard 2026
Questions and Answers
Actual Authority - Correct answer-Authority an agent actually possesses. Maybe
expressed or implied.
Agency - Correct answer-Relations in which one person, the agent, acts on behalf
of another, the principal.
Agency by Estoppel or Apparent Authority - Correct answer-Arises where an agent
has no actual authority, but the principal leads third parties to believe the agent
may act on his behalf.
Agent - Correct answer-One who acts for the benefit of another.
Disclosed Principal - Correct answer-If the parties have notice they are working for
an agent who is employed by a principal.
Duties - Correct answer-Obligatory conduct owed by one person to another person.
Employee - Correct answer-One who works for another under an express or
implied contract. The employer has control over the conduct of the employee.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,Express Authority - Correct answer-When an agent is expressly authorized to act
on behalf of the principal through either written or oral communication.
Fiduciary - Correct answer-A person having a legal duty to act primarily for the
benefit of another.
Implied Authority - Correct answer-Actual authority implied from the
circumstances.
Independent Contractor - Correct answer-One who is not an employee. He retains
in himself the means of producing the result.
Loyalty - Correct answer-Faithfulness to one's office. A duty owed by an agent to a
principal.
Master-Servant (employer) relationship - Correct answer-Employer-employee
relationship; the relation that develops from an express or implied employment
contract.
Partnership - Correct answer-An association of two or more persons to carry on as
co-owners a business for profit.
Power of Attorney - Correct answer-An instrument by which one person appoints
another as his agent and confers upon him the authority to perform certain
specified acts on behalf of the principal. Power revoked at death.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, Principal - Correct answer-One who has permitted another to act for his benefit and
subject to his directions or control.
Ratification - Correct answer-A voluntary election to adopt an act purportedly done
on one's behalf and to treat the act as originally authorized by that person.
Renunciation of Authority - Correct answer-The act by which a person abandons a
right acquired without transferring it to another.
Respondeat Superior - Correct answer-When an employer is acting through an
agent, and tort liability is incurred, the employer is responsible.
Subagent - Correct answer-A party to whom an agent delegates his or her authority.
Undisclosed Prinicpal - Correct answer-If another party has no notice that an agent
is acting for a principal.
Corporate activity could be carried on without the concept of agency. t/f - Correct
answer-False
A general agent has authority to alter the principal's legal relationships with third
parties. t/f - Correct answer-True
A power of attorney can only be held by an attorney at law. t/f - Correct answer-
False
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
Questions and Answers
Actual Authority - Correct answer-Authority an agent actually possesses. Maybe
expressed or implied.
Agency - Correct answer-Relations in which one person, the agent, acts on behalf
of another, the principal.
Agency by Estoppel or Apparent Authority - Correct answer-Arises where an agent
has no actual authority, but the principal leads third parties to believe the agent
may act on his behalf.
Agent - Correct answer-One who acts for the benefit of another.
Disclosed Principal - Correct answer-If the parties have notice they are working for
an agent who is employed by a principal.
Duties - Correct answer-Obligatory conduct owed by one person to another person.
Employee - Correct answer-One who works for another under an express or
implied contract. The employer has control over the conduct of the employee.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,Express Authority - Correct answer-When an agent is expressly authorized to act
on behalf of the principal through either written or oral communication.
Fiduciary - Correct answer-A person having a legal duty to act primarily for the
benefit of another.
Implied Authority - Correct answer-Actual authority implied from the
circumstances.
Independent Contractor - Correct answer-One who is not an employee. He retains
in himself the means of producing the result.
Loyalty - Correct answer-Faithfulness to one's office. A duty owed by an agent to a
principal.
Master-Servant (employer) relationship - Correct answer-Employer-employee
relationship; the relation that develops from an express or implied employment
contract.
Partnership - Correct answer-An association of two or more persons to carry on as
co-owners a business for profit.
Power of Attorney - Correct answer-An instrument by which one person appoints
another as his agent and confers upon him the authority to perform certain
specified acts on behalf of the principal. Power revoked at death.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, Principal - Correct answer-One who has permitted another to act for his benefit and
subject to his directions or control.
Ratification - Correct answer-A voluntary election to adopt an act purportedly done
on one's behalf and to treat the act as originally authorized by that person.
Renunciation of Authority - Correct answer-The act by which a person abandons a
right acquired without transferring it to another.
Respondeat Superior - Correct answer-When an employer is acting through an
agent, and tort liability is incurred, the employer is responsible.
Subagent - Correct answer-A party to whom an agent delegates his or her authority.
Undisclosed Prinicpal - Correct answer-If another party has no notice that an agent
is acting for a principal.
Corporate activity could be carried on without the concept of agency. t/f - Correct
answer-False
A general agent has authority to alter the principal's legal relationships with third
parties. t/f - Correct answer-True
A power of attorney can only be held by an attorney at law. t/f - Correct answer-
False
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
