UESTION 1

1. A contractor's work can be so controlled by the hiring party that the contractor is regarded as an employee of the hiring person.
2. True
3. False

5 points

QUESTION 2

1. A person who has knowledge of a limitation on an agent's authority cannot disregard that limitation.
2. True
3. False

5 points

QUESTION 3

1. A universal agent is authorized by the principal to transact all affairs in connection with a particular type of business or trade or to transact all business at a certain place.
2. True
3. False

5 points

QUESTION 4

1. An agent has an interest in the authority when consideration has been given or paid for the right to exercise the authority.
2. True
3. False

5 points

QUESTION 5

1. An employer does not have control over the performance of the work done by an independent contractor.
2. True
3. False

5 points

QUESTION 6

1. For ratification to occur, the agent must have purported to act on behalf of, or as agent for, the identified principal.
2. True
3. False

5 points

QUESTION 7

1. The acts of the agent obligate the principal to third persons and give the principal rights against third persons.
2. True
3. False

5 points

QUESTION 8

1. The "right to control" test determines whether an individual is an agent, an employee, or an independent contractor.
2. True
3. False

5 points

QUESTION 9

1. In performing agency duties, the agent must exercise the care that a reasonably prudent person would exercise under the same circumstances.
2. True
3. False

5 points

QUESTION 10

1. The intention to ratify an unauthorized act may be expressed by words or conduct.
2. True
3. False

5 points

QUESTION 11

1. A written authorization of agency is called a power of attorney.
2. True
3. False

5 points (Extra Credit)

QUESTION 12

1. A customer who has given a purchase order to a salesperson is not bound by any contract until the employer of the salesperson accepts the order.
2. True
3. False

5 points

QUESTION 13

1. An agent should never sign a contract using "by" or "per" and then his or her name.
2. True
3. False

5 points

QUESTION 14

1. Hiring an individual with a criminal record is conclusive proof that the employer is liable for the tort of negligent hiring.
2. True
3. False

5 points

QUESTION 15

1. In general, a principal is liable for crimes of the agent committed while acting within the scope of the agency, even if the principal did not authorize commission of the crimes.
2. True
3. False

5 points

QUESTION 16

1. The principal is bound by knowledge but not by notice of any fact that is acquired by an agent while acting within the scope of actual or apparent authority.
2. True
3. False

5 points

QUESTION 17

1. The fact that a tort or crime is committed by an employee imposes vicarious liability on an employer.
2. True
3. False

5 points

QUESTION 18

1. When a third person makes payment to an authorized agent, such payment is deemed made to the principal at the time the agent remits the payment to the principal.
2. True
3. False

5 points

QUESTION 19

1. If an agent's act causes loss to the third person, that third person may generally hold the agent liable for the loss.
2. True
3. False

5 points

QUESTION 20

1. Agents may intentionally make themselves contractually liable to third persons.
2. True
3. False

5 points

QUESTION 21

1. A principal is not bound by statements made by an agent during the transaction of business that is within the scope of the agent's authority.
2. True
3. False

QUESTION 22

1. An implied warranty arises when a person purports to act as an agent for a principal.
2. True
3. False