No explanation needed.

QUESTION 1

Ira serves in a representative capacity for Jett. Key is injured through Iras negligence. Jett may be liable to Key if Iras conduct occurred

	a.	during normal working hours.
	b.	outside the parties employment relationship.
	c.	in the course and scope of Iras employment.
	d.	due to a propensity Jett was not and could not have been aware of.

4 points

QUESTION 2

Which of the following is a way in which an agency relationship can be terminated?

	a.	Lapse of time.
	b.	Purpose achieved.
	c.	At option of one of the parties, or by mutual agreement.
	d.	All of the above.

4 points

QUESTION 3

Fara hires Gill, a real estate broker, to act as her agent to sell her land for a set price of $150,000. Before the land is sold at the stated price, Gill learns that there is oil beneath it, causing its market value to increase substantially. So, without telling Fara what she knows, Gill decides to sell the land to her son for the $150,000 price. This is

	a.	not a problem because the agency agreement terms do not mention any agent's duties owed to a principal..
	b.	a criminal act for which the principal is vicariously liable to the agent.
	c.	a violation of an agent's duties owed to a principal.
	d.	a violation of a principal's duties owed to an agent .

4 points

QUESTION 4

In an agency relationship, how is actual authority created?

	a.	when the principal directly grants authority to the agent.
	b.	when the principal's action causes a third party to reasonably believe the agent has authority.
	c.	when the agent tells a third party that the agent has authority.
	d.	when the agent's action causes a third party to reasonably believe the agent has authority.

4 points

QUESTION 5

Barry, a salesperson at a Home Depot store, tells Dana, a customer, Buy your flooring here, and you can hire my uncle to install it for less than the store would charge. Dan buys carpeting, which Barry's uncle installs for half the stores price. Barry and his uncle split the money. With respect to the store, Barry has breached

	a.	no duty.
	b.	the duty of obedience.
	c.	the duty of loyalty.
	d.	the duty of performance.

4 points

QUESTION 6

Nora works at O&G Company. She is a sales representative who works with O&G customers to obtain and monitor sales orders. The company closely supervises its sales reps, dictates their schedules, pays them a salary and commissions based on sales volume, and pays their travel expenses. With respect to her dealings with third parties, Nora is most likely

	a.	an O&G employee and an O&G agent.
	b.	an independent contractor and an O&G agent.
	c.	a principal.
	d.	an O&G employee only.

4 points

QUESTION 7

Ingmar asks Jess to contract with Kays Lawn Service to maintain Ingmars lawn. Jess orally agrees to do so. This is an agency by

	a.	operation of law.
	b.	agreement.
	c.	ratification.
	d.	estoppel.