1. Fact Pattern 25-2

Berry indicates that she is acting as an agent on behalf of an unidentified clientCuisine Catering, LLCwhen she enters into a contract with Dean.

Refer to Fact Pattern 25-2. Cuisine Catering is

A) a disclosed principal.

B) an apparent agent.

C) an undisclosed principal.

D) a partially disclosed principal.

2. The principal is bound by the agent's unauthorized act, unless the principal negates it.

A) True

B) False

3. Kevin is an agent for Lookout Accountants, Inc. On Lookout's behalf and at its request, Kevin pays Nathan for software designed for the management of Lookout's services. Kevin's right to obtain the amount of the payment from Lookout arises under the duty of

A) none of the choices.

B) compensation.

C) indemnification.

D) reimbursement.

4. If a principal makes statements that would cause a reasonable person to believe that an agency relationship exists, then the supposed agent receives actual authority to act as the agent.

A) True

B) False

5. Any person can be a principal, regardless of whether he or she has the capacity to contract.

A) True

B) False

6. Mira serves in a representative capacity for Netanya. Orly is injured through Mira's negligence. Netanya may be liable to Orly if Mira's conduct occurred

A) due to a propensity Netanya was not and could not have been aware of.

B) during normal working hours.

C) in the course and scope of Mira's employment.

D) outside the parties' employment relationship.

7. Len, an agent for Mind Games LLC, executes an unauthorized contract with NOW Marketing, Inc. The deal is highly advantageous to Mind, and the company ratifies the contract. The contract is

A) vaild

B) vicarious

C) void

D) voidable

8. Hot Dog Vendors Inc. grants its agent Iona an exclusive territory in which to sell Hot Dog products. The company cannot compete with Iona in that territory under the duty of

A) none of the choices

B) cooperation

C) indemnification

D) reimbursement

9. The greater the employer's control over the work, the more likely it is that the worker is an employee.

A) True

B) False

10. Ingmar asks Jess to contract with Kay's Lawn Service on Ingmar's behalf to maintain Ingmar's lawn. Jess orally agrees to do so. This is an agency by

A) agreeement

B) estoppel

C) operating of law

D) none of the choices

11. Jewelry & Coin Company hires Kelly Ann to buy gems and precious metals from various sources on its behalf. In this relationship, Jewelry & Coin is

A) an employee

B) an independent contractor

C) a principle

D) an agent

12. An agent is not empowered to bind the principal in a contract with a third person.

A) True

B) False

13. Ratification is the affirmation of a previously authorized contract or act.

A) True

B) False

14. An agency coupled with an interest is an agency where the principal agrees to pay interest on any payments due to the agent.

A) True

B) False

15. Roberta introduces Steve to her friends as "my associate." Steve purports to act as Roberta's agent in several business transactions with those friends. If Roberta is liable for Steve's actions, it will be because their relationship is

A) an agency by agreement.

B) an agency by estoppel.

C) an agency by operation of law.

D) not an agency relationship.

16. Ben manages a warehouse and its inventory for Coffee Shops, Inc. To operate this part of the business, Ben's authority can be inferred

A) from the position Ben occupies.

B) by a reasonable party with whom Coffee Shops does business.

C) to contradict Ben's express authority.

D) under no circumstances.

17. Emmett, an agent for Fridley, signs an agreement with Grover on Fridley's behalf but neglects to tell Fridley that the agreement requires the payment of a certain tax. The government prosecutes Fridley for failing to pay the tax. Fridley is

A) liable, because notice to Emmett is notice to Fridley.

B) liable, because notice to Glover is notice to Fridley.

C) not liable, because Emmett did not notify Fridley of the tax.

D) not liable, because Glover did not tell Fridley about the tax.

18. Lucy is married to Marco. Lucy buys food for their children's lunches and charges the cost to Marco's account. This is an agency by

A) agreeement

B) estoppel

C) operating of law

D) none of the choices

19. Agency relationships normally come about by agreement of the parties.

A) True

B) False

20. Darla serves in a representative capacity for Ellen. To accomplish the objectives of this relationship, Darla's authority can be implied

A) by contradiction.

B) by custom.

C) by any subjective measure.

D) under no circumstances.