LEB 320F Unit 9: Agency and
Employment Law Exam Questions and
Answers 100% Solved
Who are the parties in an agency? - ✔✔The agent and the principal
Can employers be held liable for employees? what about independent
contractors? - ✔✔An employer often can be held liable for the job-related
torts of its employees, but usually cannot be held liable for such torts
committed by those working for it as independent contractors
What's the usual question that must be asked in a case of agency and
authority? - ✔✔Was the subordinate an employee who acted within the
scope of his or her employment?
When is an employer liable for a subordinate's tort no matter if they were
an employee or independent contractor? - ✔✔When the superior has
directly authorized the agent to engage in the wrongful conduct.
What are the necessary elements to establish the agency relationship? -
✔✔consent and capacity
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,what are the different types of principal-agent relationships? - ✔✔Power of
attorney (POA) - the formal written authorization given by a principal to an
agent
Attorney in Fact - when a formal power of attorney is used, the agent is
sometimes referred to as an attorney-in-fact
general power of attorney - grants the agent broad powers to act on the
principal's behalf
special power of attorney - grants the agent power to act only in narrow
ways, such as to sell the principal's house
durable power of attorney - appoints a relative as agent and is limited in the
kinds of powers that can be assigned. Usually continues after the
principal's incompetency; other types of POA typically do not
Does capacity generally matter in a principal-agent case? - ✔✔No; agent's
capacity is usually immaterial because the contract made by the agent for
the principal is the principal's contract
What duties does the principal owe the agent? - ✔✔complying with the
terms of their employment contract; failure to do so will result in the
principal paying damages
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, What duties does the agent owe the principal? - ✔✔obedience, reasonable
care (no negligence), duty to account, duty to notify, and loyalty
What does obedience to a principal mean? - ✔✔to obey the clear
instructions of the principal, so long as such instructions are legal; agent
may depart from instructions in emergencies
What does duty to account mean? - ✔✔Agent's duty to keep and make
available to the principal an account of all the money or property received
or paid out in behalf of the principal. If the agent commingles (mixes) his or
her own money or property with the principal's in such a way that it cannot
be separated or identified, the principal can legally claim all of it.
What does duty to notify mean? - ✔✔notify the principal of all relevant facts
as soon as reasonably possible after learning of them
What does loyalty to a principal entail? - ✔✔agent should not compete with
the principal, should avoid any existing or potential conflict of interest, and
should not disclose confidential information
Girard v. Meyers - premise - ✔✔Myers buys a bunch of land and splits it
into seven parts. He then sells these parts. Each buyer signed a "Trust and
Resale Agreement" which specified that if they later wanted to sell the
property, Myers had the right of first refusal under which they first had to
3
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
Employment Law Exam Questions and
Answers 100% Solved
Who are the parties in an agency? - ✔✔The agent and the principal
Can employers be held liable for employees? what about independent
contractors? - ✔✔An employer often can be held liable for the job-related
torts of its employees, but usually cannot be held liable for such torts
committed by those working for it as independent contractors
What's the usual question that must be asked in a case of agency and
authority? - ✔✔Was the subordinate an employee who acted within the
scope of his or her employment?
When is an employer liable for a subordinate's tort no matter if they were
an employee or independent contractor? - ✔✔When the superior has
directly authorized the agent to engage in the wrongful conduct.
What are the necessary elements to establish the agency relationship? -
✔✔consent and capacity
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,what are the different types of principal-agent relationships? - ✔✔Power of
attorney (POA) - the formal written authorization given by a principal to an
agent
Attorney in Fact - when a formal power of attorney is used, the agent is
sometimes referred to as an attorney-in-fact
general power of attorney - grants the agent broad powers to act on the
principal's behalf
special power of attorney - grants the agent power to act only in narrow
ways, such as to sell the principal's house
durable power of attorney - appoints a relative as agent and is limited in the
kinds of powers that can be assigned. Usually continues after the
principal's incompetency; other types of POA typically do not
Does capacity generally matter in a principal-agent case? - ✔✔No; agent's
capacity is usually immaterial because the contract made by the agent for
the principal is the principal's contract
What duties does the principal owe the agent? - ✔✔complying with the
terms of their employment contract; failure to do so will result in the
principal paying damages
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, What duties does the agent owe the principal? - ✔✔obedience, reasonable
care (no negligence), duty to account, duty to notify, and loyalty
What does obedience to a principal mean? - ✔✔to obey the clear
instructions of the principal, so long as such instructions are legal; agent
may depart from instructions in emergencies
What does duty to account mean? - ✔✔Agent's duty to keep and make
available to the principal an account of all the money or property received
or paid out in behalf of the principal. If the agent commingles (mixes) his or
her own money or property with the principal's in such a way that it cannot
be separated or identified, the principal can legally claim all of it.
What does duty to notify mean? - ✔✔notify the principal of all relevant facts
as soon as reasonably possible after learning of them
What does loyalty to a principal entail? - ✔✔agent should not compete with
the principal, should avoid any existing or potential conflict of interest, and
should not disclose confidential information
Girard v. Meyers - premise - ✔✔Myers buys a bunch of land and splits it
into seven parts. He then sells these parts. Each buyer signed a "Trust and
Resale Agreement" which specified that if they later wanted to sell the
property, Myers had the right of first refusal under which they first had to
3
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
