Question $22$

What type of authority does a power of attorney confer?

apparent authority

oral express authority

written express authority

implied authority

Question $23$

Bernadette asks Lyle to find a buyer for Bernadette$$s car. She tells Lyle that the car is two years old and has only $30,000$ miles on it$.$ What Bernadette does not tell Lyle is that she has altered the odometer and that the car really has $130,000$ miles on it$.$ Lyle sells the car to Hilda. When Hilda discovers the fraudulent odometer reading, she sues both Lyle and Bernadette. The person$($s$)$ ultimately responsible for any damages for fraud to Hilda will be:

both Bernadette and Lyle.

neither Bernadette nor Lyle.

Bernadette only.

Lyle only.

Question $24$

Greg manages the produce department for Harvest Foods. Greenfield Farms delivers a load of lettuce to Harvest Foods, and Greg refuses the shipment because most of the lettuce is wilted. To quickly remedy the situation, Greg orders a shipment of lettuce from Hansen$$s Farms, and Hansen$$s Farms say they can deliver the same day. When the bill comes in from Hansen$$s Farms, Harvest Foods refuses to pay, stating that Greg has no authority to order produce on behalf of Harvest Foods. Can Hansen$$s Farms enforce the contract for the load of lettuce?

No$,$ they can$$t$,$ unless Harvest Foods ratifies the contract.

No$,$ they can$$t$,$ because Greg had not been expressly granted authority to order the lettuce.

No$,$ they can$$t$,$ unless the duty of ordering produce is written into Greg$$s job description.

Yes, they can, because Greg had implied authority to order the lettuce.

Question $25$

What is the term for a person who appoints another person to act on her behalf and in her best interest?

client

employer

agent

principal

Question $26$

Heather is an artist and has several watercolors she would like to sell. Heather orally asks Rylee to sell the paintings for her and directs Rylee that each painting should be sold for at least $$100.$ Rylee schedules a showing in her art gallery to display Heather$$s paintings. On the day of the showing, a customer offers to buy one of the paintings for $$100,$ and Rylee accepts. When Heather finds out the price the painting sold for, she tries to get the painting back from the customer. Heather claims that she and Rylee did not have a written agency agreement, and, therefore, an agency relationship did not exist between them. Is Heather correct?

No$,$ most agency agreements do not have to be in writing to be effective.

Yes, most agency agreements must be in writing to be effective.

No$.$ Agency agreements are never in writing.

Yes. Allowing this agency agreement to stand would violate the statute of frauds.

Question $27$

Randolph owns a twenty$-$acre farm. Randolph enters into a written contract with Makenna for Makenna to sell ten acres of the farmland. Makenna is successful in finding a buyer $-$ so successful, in fact, that the buyer wants to purchase all twenty acres, not just ten. Makenna telephones Randolph and asks him about selling the other ten acres, and Randolph agrees. Randolph later backs out of the deal to sell the additional ten acres. When Makenna tries to charge Randolph a commission on the sale of all twenty acres:

Randolph must pay a commission on all twenty acres because of the duty of loyalty.

Randolph is only responsible for paying a commission on the original ten acres that he contracted with Makenna to sell under the equal dignities rule.

Randolph must pay a commission on all twenty acres because Makenna had the implied authority to sell all twenty acres.

Randolph must pay a commission on all twenty acres because Randolph has a duty to compensate his agent Makenna.

Question $28$

How does a principal become liable to third parties on contracts?

The principal$$s agent has the authority to bind the principal in a contract with a third party.

The principal directly signs a contract with a third party.

A principal is not liable to third parties on contracts.

The agent ratifies the contract.

Question $29$

Which of the following is the best rule for determining if an employee is acting in the scope of their employment?

The employee is on property owned by the business or where the business is located.

The action takes place during regularly scheduled work hours.

The employee is using company tools or a company vehicle while performing the act in question.

The employee is performing work assigned by the employer or engaging in a course of conduct subject to the employer$$s control.

Question $30$

Connor has always wanted to work for Ponce Auto Sales. Connor decides that, in order to show Ponce what an excellent salesman he is$,$ he will just go out on the car lot and sell some cars. Ponce will have to hire him then! Connor goes to the car lot and starts talking to customers. The Ponce employees on the lot think Connor is just shopping around for a new car, so they do nothing about the situation. Connor strikes a deal with one cu