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Exam 26: Agency Liability to Third Parties and Termination

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Question 21

True/False

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An agent's implied authority can be implied by custom.

A) True
B) False

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Question 22

Multiple Choice

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Miklos employs Nathalie to handle a list of financial transactions on Miklos's behalf.This power will terminate on

A) any transaction causing a loss to Miklos.
B) Miklos's death or incapacity.
C) Miklos's sixty-fifth birthday.
D) Nathalie's handling of one of each stipulated transaction.

E) A) and D)
F) A) and B)

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Question 23

Multiple Choice

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Based on Esteban's conduct,Floyd reasonably believes that Glynis has the authority to act on Esteban's behalf even though Glynis does not have the actual authority to do so.Floyd makes a payment to Glynis for Esteban.Glynis keeps the money and disappears.Esteban

A principal is always directly responsible for an agent's misrepresentation made within the scope of the agent's authority.

Without authorization,Lars contracts on behalf of Mina to have Nemo paint the interior and exterior of Mina's house.If Mina decides to ratify the contract,she must affirm

A principal's ratification of an agent's unauthorized act must be express.

Orina hires Padget,a real estate broker,to sell her oceanfront house.The house is destroyed in a hurricane before being sold.Padget is

Darwin serves in a representative capacity for Ewan.To accomplish the objectives of this relationship,Darwin's authority can be implied

A partially disclosed principal is only partially liable to a third party for a contract made by an agent.

Nuncio serves in a representative capacity for Obadiah.With respect to binding Obadiah to contracts,Nuncio's authority

An agent's authority to act on behalf of a principal must be apparent to be real.

If either the principal or the agent petitions for bankruptcy,the agency is not usually terminated.

Mirena serves in a representative capacity for Netanya.Orla is injured through Mirena's negligence.Netanya may be liable to Orla if Mirena's conduct occurred

Mikayla,an agent for Nahir,enters into a contract on Nahir's behalf with Onora that must be in writing to be enforceable under the Statute of Frauds.Mikayla's authority to enter into this contract is not in writing.Under the equal dignity rule,this contract is

Reliable Insurance Company employs Stuart as an agent.To terminate Stuart's authority,Reliable Insurance must notify

An agent has the implied authority to do what is reasonably necessary to accomplish the objectives of the agency.

A special power of attorney permits an agent to transact all business for a principal.

Fact Pattern 26-1B (Questions B14-B15 apply) Barney hires Clean Air,Inc.,to install a new air conditioning system in his Dental Clinic,LLP.Barney does not have the right to control the details of Clean Air's performance. -Refer to Fact Pattern 26-1B.While working,Elton,a Clean Air worker,drops a tool on Francine,Barney's patient,causing an injury.Barney is

An employer is charged with the knowledge of any dangerous condition discovered by an employee and pertinent to the employment situation.

Fact Pattern 26-1B (Questions B14-B15 apply) Barney hires Clean Air,Inc.,to install a new air conditioning system in his Dental Clinic,LLP.Barney does not have the right to control the details of Clean Air's performance. -Refer to Fact Pattern 26-1B.The relationship between Barney and Clean Air is