Question $3$

$3\mathrm{.}33$

Points

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 customer to sell a brand$-$new automobile for $$3,000$ below the list price. When Connor takes the customer to the Ponce office to seal the deal, Ponce can:

either ratify Connor$$s actions and accept the deal or reject the deal.

ratify the deal only, because Connor appeared to the customer to be working for Ponce.

reject the deal only, because Connor was not a Ponce employee and had no authority to enter into a deal with the customer.

do nothing; the deal was complete when Connor and the customer came to an agreement.

Question $4$

$3\mathrm{.}33$

Points

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

agent

client

employer

principal

Question $5$

$3\mathrm{.}33$

Points

Roya works for Capitol City Travel. Roya books cruises for several very wealthy clients. At Christmas, one of the clients, who is particularly pleased with Roya$$s services, gives Roya a diamond necklace as a thank you for a job well done. Roya is a bit overwhelmed by the gift $-$ most clients give tins of cookies or bags of pecans for Christmas, just as a token gift. Roya should:

notify her employer as a courtesy, but Roya can keep the gift.

notify her employer and switch the client to another travel agent because of the inappropriate gift.

notify her employer about the diamond necklace because it actually belongs to the employer.

keep the diamond necklace because it was a personal gift, and she does not have to notify her employer.

Question $6$

$3\mathrm{.}33$

Points

Isaiah wants to build a new shopping complex. Isaiah is afraid that once news gets out about his plans, the price of the land where he wants to build the shopping complex will increase in price. Isaiah, therefore, hires Landon to purchase the parcels of land for him and to keep the fact that Landon is working for Isaiah a secret. Landon enters into a written contract for the sale of the land with Miriam and does not tell Miriam that he is an agent for anyone else on the deal. Isaiah later refuses to buy the property from Miriam. Is Isaiah obligated to perform the contract that Landon entered into with Miriam?

Yes, he is because Isaiah is a partially$-$disclosed principal.

No$,$ he is not because there was no agency relationship between Isaiah and Landon.

No$,$ he is not because undisclosed principals are not obligated to perform contracts entered into by their agents.

Yes, he is because Landon was acting within the scope of his authority.

Question $7$

$3\mathrm{.}43$

Points

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:

neither Bernadette nor Lyle.

both Bernadette and Lyle.

Lyle only.

Bernadette only.

Question $8$

$3\mathrm{.}33$

Points

What is the primary factor that determines whether or not a principal is liable for the unauthorized torts of an agent?

whether the agent is an employee or an independent contractor

whether the agent was being paid for the work that led to the tortious action

whether the principal was notified of the agent$$s tortious actions

whether the agent was $$on the clock$$ for the principal at the time of the tortious action

Question $9$

$3\mathrm{.}33$

Points

Angel is making food deliveries for her employer, Byte Squad, using the vehicle Byte Squad provides for employee use. Angel pulls into a McDonald$$s to order her own lunch, and as she is pulling out of the drive$-$through lane, she accidentally hits a car driven by Elsa. Who can Elsa sue for her damages?

Elsa can sue only Angel because Angel was picking up her own lunch when she hit Elsa and, therefore, was not working within the scope of her employment.

Elsa can sue both Angel and Byte Squad.

Elsa can sue only Byte Squad because the vehicle belonged to Byte Squad.

Elsa can sue neither Byte Squad nor Elsa because it was a mere accident; Angel did not intentionally run into Elsa.

Question $10$

$3\mathrm{.}33$

Points

Leah asks Mason to sell Leah$$s antique coin collection. Mason advertises the antique coin collection in a magazine for coin collectors. Clara sees the advertisement and makes an offer on the coins, which Mason accepts. Mason ships the coins to Clara, but makes an error in the address and the coins are shipped to the wron