BLAW Exam 3 - UTD Betanzos Final
Test Questions All Solved Correct
2025-2026 Updated.
Agency Law - Answer a relationship in which an agent agrees to perform a task for, and
under the control of, the principal. Two parties.
Requirements:
1. Consent
2. Agent acts under direction
3. Fiduciary relationship
- Does not have to be a written agreement
- Does not have to be a formal agreement
- No compensation is needed.
Duties of Agent to Principal - Answer Duty of loyalty, the agent must act for the benefit of
the principal. (key is disclosure.)
- May not receive outside benefits without approval
- Cannot use or benefit from any confidential info
- Cannot compete with the principal within the scope of the agency
- May not act for two principals whose interests conflict
- May not become a party to a transaction without the principal's permission
- May not engage in inappropriate behavior that reflects badly on the principal.
The Agent has a...
- duty to obey instructions
- duty of care
- duty to provide information
Duties of Principal to Agent - Answer - Duty to reimburse
, Remedy to a Breach of Agency - Answer 1. If the agent breaches, the principal can recover
damages
2. If the agent breaches his duty of loyalty, the agent must refund any profits made from the
agency
3. If the agent is disloyal, the principal may rescind a transaction.
5 basic ways an agency is terminated - Answer 1. Expiration of a period of time
2. Purpose is served
3. Mutual agreement to terminate
4. One member decides to leave
5. By operation of law (principal/agent can no longer perform, change of circumstances.)
Effect of Termination - Answer With respect to the agent: they can no longer act on the
principal's behalf
With respect to the principal: they no longer have to pay agent
With respect to confidential information learned: they have to keep or maintain the
confidentiality EVEN AFTER termination, until it becomes public knowledge.
Authority - Answer A principal is bound by the acts of an agent if the agent has authority
1. Actual: Express (specific instructions the principal gives) Implied (allowed by virtue of agency,
ex: staging a house to sell it.)
2. No Authority (no agency, no agreement)
3. Apparent (no actual authority, leading a third party to believe that they have the power to act
as your agent. Ex: fired employee buying a lot of something to get back at the company)
The principal is only bound by the actions of the agent if they have authority.
Disclosed Principal, Partially Disclosed Principal, Undisclosed Principal, and Tort and Criminal
Liability Diagrams - Answer https://jamboard.google.com/d/1QvXUuNkBlCU-pRak9PjhgXtnZ-
U_oMTRAfDKpNUzXIw/edit?usp=sharing
Doctrine of Employment at Will - Answer can fire or be fired at ant time for any reason, same
with quitting.
Test Questions All Solved Correct
2025-2026 Updated.
Agency Law - Answer a relationship in which an agent agrees to perform a task for, and
under the control of, the principal. Two parties.
Requirements:
1. Consent
2. Agent acts under direction
3. Fiduciary relationship
- Does not have to be a written agreement
- Does not have to be a formal agreement
- No compensation is needed.
Duties of Agent to Principal - Answer Duty of loyalty, the agent must act for the benefit of
the principal. (key is disclosure.)
- May not receive outside benefits without approval
- Cannot use or benefit from any confidential info
- Cannot compete with the principal within the scope of the agency
- May not act for two principals whose interests conflict
- May not become a party to a transaction without the principal's permission
- May not engage in inappropriate behavior that reflects badly on the principal.
The Agent has a...
- duty to obey instructions
- duty of care
- duty to provide information
Duties of Principal to Agent - Answer - Duty to reimburse
, Remedy to a Breach of Agency - Answer 1. If the agent breaches, the principal can recover
damages
2. If the agent breaches his duty of loyalty, the agent must refund any profits made from the
agency
3. If the agent is disloyal, the principal may rescind a transaction.
5 basic ways an agency is terminated - Answer 1. Expiration of a period of time
2. Purpose is served
3. Mutual agreement to terminate
4. One member decides to leave
5. By operation of law (principal/agent can no longer perform, change of circumstances.)
Effect of Termination - Answer With respect to the agent: they can no longer act on the
principal's behalf
With respect to the principal: they no longer have to pay agent
With respect to confidential information learned: they have to keep or maintain the
confidentiality EVEN AFTER termination, until it becomes public knowledge.
Authority - Answer A principal is bound by the acts of an agent if the agent has authority
1. Actual: Express (specific instructions the principal gives) Implied (allowed by virtue of agency,
ex: staging a house to sell it.)
2. No Authority (no agency, no agreement)
3. Apparent (no actual authority, leading a third party to believe that they have the power to act
as your agent. Ex: fired employee buying a lot of something to get back at the company)
The principal is only bound by the actions of the agent if they have authority.
Disclosed Principal, Partially Disclosed Principal, Undisclosed Principal, and Tort and Criminal
Liability Diagrams - Answer https://jamboard.google.com/d/1QvXUuNkBlCU-pRak9PjhgXtnZ-
U_oMTRAfDKpNUzXIw/edit?usp=sharing
Doctrine of Employment at Will - Answer can fire or be fired at ant time for any reason, same
with quitting.
