MGMT 311- Honors Exam 2 Questions
with Answers
Power of Attorney - Answer-special or general - gives an agent express authority (is the
best evidence of express authority)
- example: signing spouses name
- general: lots of power
- special: specific
Implied Authority - Answer-is reasonably necessary to carry out express authority, and
can be conferred by custom or inferred from the agent's position
- details that go along with the written contract
Apparent Authority - 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.
- think of Agency by Estoppel
1. Pattern of Conduct: Courts hold the Principal liable based on their actions - pattern of
conduct over time - not based on an agreement
2. Apparent Authority and Estoppel: the Principal is usually denying the agency
relationship but the court holds the principal liable using the estoppel doctrine
Emergency Powers - Answer-- in an Agency by Operation of Law
- very limited scope
- unforeseen emergency demands action by an agent to protect rights and/or property
of the principal; agent is unable to communicate with the principal; agent has
emergency power
Ratification - Answer-- in an Agency by Ratification the Agent's unauthorized acts are
"ratified"
- principal accepts responsibility for agent's UNauthorized actions
Disclosed Principal - Answer-A principal whose identity is known to a third party at the
time the agent makes a contract with the third party.
- agent signs Principal's name and own, says he is agent
Partially Disclosed Principal - Answer-A principal whose identity is unknown by a third
party, but the third party knows that the agent is or may be acting for a principal at the
time the agent and the third party form a contract.
- do not know who exactly, agent signs his name/title, but not Principal
,Undisclosed Principal - Answer-principal's identity is totally unknown by the 3rd party
and the 3rd party has no knowledge that the agent is acting on the principal's behalf at
the time of the contract
- agent only signs his name
- think doing contract only with agent
Authorized Acts - Answer-1. The principal is obligated to perform the contract
2. The agent's liability depends on:
- disclosed principal: the agent has no contractual liability for the principal's
nonperformance.
- partially disclosed principal: the agent is treated as a party to the contract
- undisclosed principal: the agent is liable but is entitled to indemnification from the
principal
Unauthorized Acts - Answer-principal is not liable but the agent is
- UNLESS the acts are not ratified by principal
Employer's Own Negligence - Answer-Negligent hiring and retention of employees
Employer is Liable for Torts Committed by Employees - Answer-wrongs harming third
parties (civil liability - 3rd party sues Employer for $$)
Doctrine of Respondeat Superior - Answer-the employer (principal) is liable for any
harm caused to a third party by an employee (agent) committed by the employee
(agent) within the course and scope of employment
Doctrine of Respondeat Superior 2 Part Analysis - Answer-1. an employee
2. if the harm is committed within the course and scope of employment
Going and Coming Rule - Answer-employee traveling to and from work is not acting in
course and scope of employment
- going into work and going home from work
Special Errand Exception - Answer-if employee is on a special errand for employer at
time of accident, employer is liable
Detour - Answer-employee is still in the course and scope
- slight personal detour with no negative affect on employer, employee not ignoring they
are at work
Frolic - Answer-employee is outside the course and scope
- disregard for employer's business
Liability for Independent Contractor's Torts: General Rule - Answer-person who hires an
I.C. is not liable if a 3rd party is injured by the acts of the I.C. in performing the contract
- respondeat superior does not apply
, Liability for Independent Contractor's Torts: Exceptions - Answer-1. Right to Control -
right to treat as an employee
2. Inherently Dangerous (or Hazardous) Activities - carry strict liability, both will have
liability
Liability for Agent's Crimes - Answer-if you do the crime, you do the time
- employee/agent
- parking tickets, speeding tickets, etc
Immigration Reform & - Answer-1. Cannot hire, employ, or recruit for a fee an illegal
alien
2. The employer must complete an I-9 for each employee showing that it has verified
that the employee is either a US citizen or is authorized to work in the US
- SSN and drivers license or work visa and passport
3. if the employer violates IRCA, can be subject to both civil and criminal penalties
Civil Violation of IRCA - Answer-First Offense: up to $2,200 per illegal
Second Offense: up to $5,00 per illegal
Subsequent Offenses: up to $11,000 per illegal
Intellectual Property - Answer-the work of the human mind which consists of the
products that result from intellectual and creative processes; personal property
Intellectual Property Information - Answer-the author or inventor of the intellectual
property has exclusive rights to their intellectual properties
Types of Intellectual Properties (all have infringement) - Answer-1. Trademarks
2. Patents
3. Copyrights
4. Trade Secrets
Examples of Intellectual Property - Answer-1. design graphics
2. logo (name)
3. source code
4. art work
5. business processes in a game
6. motif
7. secret recipes
8. menu design
9. themes or ideas
10. etc.
Non-examples of Intellectual Property - Answer-1. ownership of a house
2. vehicle
3. personal items (real property)
with Answers
Power of Attorney - Answer-special or general - gives an agent express authority (is the
best evidence of express authority)
- example: signing spouses name
- general: lots of power
- special: specific
Implied Authority - Answer-is reasonably necessary to carry out express authority, and
can be conferred by custom or inferred from the agent's position
- details that go along with the written contract
Apparent Authority - 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.
- think of Agency by Estoppel
1. Pattern of Conduct: Courts hold the Principal liable based on their actions - pattern of
conduct over time - not based on an agreement
2. Apparent Authority and Estoppel: the Principal is usually denying the agency
relationship but the court holds the principal liable using the estoppel doctrine
Emergency Powers - Answer-- in an Agency by Operation of Law
- very limited scope
- unforeseen emergency demands action by an agent to protect rights and/or property
of the principal; agent is unable to communicate with the principal; agent has
emergency power
Ratification - Answer-- in an Agency by Ratification the Agent's unauthorized acts are
"ratified"
- principal accepts responsibility for agent's UNauthorized actions
Disclosed Principal - Answer-A principal whose identity is known to a third party at the
time the agent makes a contract with the third party.
- agent signs Principal's name and own, says he is agent
Partially Disclosed Principal - Answer-A principal whose identity is unknown by a third
party, but the third party knows that the agent is or may be acting for a principal at the
time the agent and the third party form a contract.
- do not know who exactly, agent signs his name/title, but not Principal
,Undisclosed Principal - Answer-principal's identity is totally unknown by the 3rd party
and the 3rd party has no knowledge that the agent is acting on the principal's behalf at
the time of the contract
- agent only signs his name
- think doing contract only with agent
Authorized Acts - Answer-1. The principal is obligated to perform the contract
2. The agent's liability depends on:
- disclosed principal: the agent has no contractual liability for the principal's
nonperformance.
- partially disclosed principal: the agent is treated as a party to the contract
- undisclosed principal: the agent is liable but is entitled to indemnification from the
principal
Unauthorized Acts - Answer-principal is not liable but the agent is
- UNLESS the acts are not ratified by principal
Employer's Own Negligence - Answer-Negligent hiring and retention of employees
Employer is Liable for Torts Committed by Employees - Answer-wrongs harming third
parties (civil liability - 3rd party sues Employer for $$)
Doctrine of Respondeat Superior - Answer-the employer (principal) is liable for any
harm caused to a third party by an employee (agent) committed by the employee
(agent) within the course and scope of employment
Doctrine of Respondeat Superior 2 Part Analysis - Answer-1. an employee
2. if the harm is committed within the course and scope of employment
Going and Coming Rule - Answer-employee traveling to and from work is not acting in
course and scope of employment
- going into work and going home from work
Special Errand Exception - Answer-if employee is on a special errand for employer at
time of accident, employer is liable
Detour - Answer-employee is still in the course and scope
- slight personal detour with no negative affect on employer, employee not ignoring they
are at work
Frolic - Answer-employee is outside the course and scope
- disregard for employer's business
Liability for Independent Contractor's Torts: General Rule - Answer-person who hires an
I.C. is not liable if a 3rd party is injured by the acts of the I.C. in performing the contract
- respondeat superior does not apply
, Liability for Independent Contractor's Torts: Exceptions - Answer-1. Right to Control -
right to treat as an employee
2. Inherently Dangerous (or Hazardous) Activities - carry strict liability, both will have
liability
Liability for Agent's Crimes - Answer-if you do the crime, you do the time
- employee/agent
- parking tickets, speeding tickets, etc
Immigration Reform & - Answer-1. Cannot hire, employ, or recruit for a fee an illegal
alien
2. The employer must complete an I-9 for each employee showing that it has verified
that the employee is either a US citizen or is authorized to work in the US
- SSN and drivers license or work visa and passport
3. if the employer violates IRCA, can be subject to both civil and criminal penalties
Civil Violation of IRCA - Answer-First Offense: up to $2,200 per illegal
Second Offense: up to $5,00 per illegal
Subsequent Offenses: up to $11,000 per illegal
Intellectual Property - Answer-the work of the human mind which consists of the
products that result from intellectual and creative processes; personal property
Intellectual Property Information - Answer-the author or inventor of the intellectual
property has exclusive rights to their intellectual properties
Types of Intellectual Properties (all have infringement) - Answer-1. Trademarks
2. Patents
3. Copyrights
4. Trade Secrets
Examples of Intellectual Property - Answer-1. design graphics
2. logo (name)
3. source code
4. art work
5. business processes in a game
6. motif
7. secret recipes
8. menu design
9. themes or ideas
10. etc.
Non-examples of Intellectual Property - Answer-1. ownership of a house
2. vehicle
3. personal items (real property)
