Generally, a person can do anything through an agent that he or she could legally do personally.Group of answer choicesTrueFalse Flag question: Question $3$Question $31$ ptsA corporation is a legal entity that can act only through agents.Group of answer choicesTrueFalse Flag question: Question $4$Question $41$ ptsThe agent has a duty to inform the principal of knowledge the agent gains in the course of his or her responsibilities.Group of answer choicesTrueFalse Flag question: Question $5$Question $51$ ptsNormally, a duty to pay the agent is implied unless special circumstances or the relationship of the parties suggests that a gratuitous agency was intended.Group of answer choicesTrueFalse Flag question: Question $6$Question $61$ ptsMost agency rules arise from $\_\_\_\_\_.$Group of answer choicesadministrative lawstatutory lawcommon lawconstitutional law Flag question: Question $7$Question $71$ ptsAn agency relationship $\_\_\_\_\_.$Group of answer choicescan be either compensated or uncompensatedcan be formed only by contractexists only when it is in the form of a written agreement signed by both the principal and the agentcannot exist if the parties have expressly agreed that they do not intend to create one Flag question: Question $8$Question $81$ ptsIndependent contractors $\_\_\_\_\_.$Group of answer choicesare under the control of their principal both as to the objective of their work and the means used to achieve itserve merely as intermediaries and do not actually negotiate a contract of saledo not maintain their own inventory of goods; instead, they take orders on behalf of the principalare under the control of their principal as to the result that is to be achieved, but not as to the means used to accomplish that result Flag question: Question $9$Question $91$ ptsA duty imposed on the agent by the common law generally includes the duty $\_\_\_\_\_.$Group of answer choicesto reimburseof loyaltyto compensateof indemnification Flag question: Question $10$Question $101$ ptsAgents breach their duty of loyalty by buying for the principal from themselves even if they charge a fair price. Which of the following common law duties of an agent does this violate?Group of answer choicesThe duty to obey instructionsThe duty of loyaltyThe duty to account for funds and propertyThe duty of indemnification Flag question: Question $11$Question $111$ ptsWhen an agent's duties conflict with the principal's own interests, $\_\_\_\_\_.$Group of answer choicesthe agent must disclose these facts to the principalif the agency is gratuitous, there is no duty of disclosurethe agent has breached the duty of loyaltythe agent must resign immediately Flag question: Question $12$Question $121$ ptsA person may act as a dual agent $\_\_\_\_\_.$Group of answer choiceswith the consent of any one principalwith the consent of both principals on being fully informed about itat her own discretion and can be bound to multiple principals without disclosureafter partial disclosure of the circumstances to either principal Flag question: Question $13$Question $131$ ptsA gratuitous agent is one who $\_\_\_\_\_.$Group of answer choicesfreely substitutes her own discretion for the principals judgmentmakes arrangements for the principals gift transactionshas no prior experience as an agentacts without pay Flag question: Question $14$Question $141$ ptsWhen an agent makes advances from her own funds in conducting the principal's business, the principal has $\_\_\_\_\_.$Group of answer choicesa duty to reimburse the agent for expenses incurred for the principala duty to reimburse the agent even if the agent is not acting within the scope of her authorityno duty to reimburse the agent because the agent commingled fungible goodsno duty to reimburse the agent because the agent has assumed the risk Flag question: Question $15$Question $151$ ptsWhen an agent breaches a duty owed to the principal, the agent may $\_\_\_\_\_.$Group of answer choicesbe discharged, but only if the principal can show actual damagenot be discharged until contract$-$related damages are paidnot be discharged until the contract has expiredbe discharged without liability despite an unexpired contract Flag question: Question $16$Question $161$ ptsIf no time or event is specified explaining when the agency relationship will end, the agency $\_\_\_\_\_.$Group of answer choicesautomatically ends after ninety $(90)$ days even if the result for which the agency was created has not been accomplishedwill continue indefinitelywill continue, but for no longer than the statutory maximum of three $(3)$ yearsautomatically ends when the result for which the agency was created has been accomplished Flag question: Question $17$Question $171$ ptsAccording to the doctrine of agency at will, $\_\_\_\_\_.$Group of answer choiceseach party has the power to terminate the agency even if there is no contractual right to do soonly the agent can terminate the agencyeither party can terminate the agency at any time, but only if there is a contractual right to do soonly the principal has the right to terminate the agency at his will Flag question: Question $18$Question $181$ ptsAdya borrowed $$900$ from Olga to purchase a cell phone. In a written contract, the parties stipulated to the terms of the loans repayment, and Adya gave Olga the authority to sell his sectional sofa if he failed to pay her back the $$900$ as agreed. Adya did not pay back the loan as he promised. Under these circumstances, $\_\_\_\_\_.$Group of answer choicesAdya can revoke Olga's power to sell his sofa if the cell phone is damageda dual agency existsif Adya dies and the debt remains unpaid, Olga has no right of recovery from Adyas estateAdya cannot revoke Olga's power to sell his sofa Flag question: Question $19$Question $191$ ptsA real estate broker was hired as a rental agent for a house. The house was destroyed by fire due to accidental causes. In these circumstances, the $\_\_\_\_\_.$Group of answer choicesagency may be terminated, but only by mutual consentagent must be compensated even if the purpose of the agency has not been fulfilledagency automatically terminates since the subject matter of the agency was destroyedagency is automatically transferred to any other real estate the principal owns Flag question: Question $20$Question $201$ ptsTo avoid being bound by the acts of the agent after the agency has ended, the principal $\_\_\_\_\_.$Group of answer choicesshould request that the former agent give notice to those who have dealt with the agentmust give actual notice to those who have dealt with the former agentneed not give notice to those who have dealt with the former agent, since a principal has no liability for an agents acts after an agency has endedmust give verbal notice to those who have dealt with the former agent if the termination is due to the principals loss of legal capacity Flag question: Question $21$Question $211$ ptsOne may become liable through ratification for an unauthorized act that was done by an agent.Group of answer choicesTrueFalse Flag question: Question $22$Question $221$ ptsThere can be no ratification of an act done in the name of a corporation that was not in existence when the act was done.Group of answer choicesTrueFalse