#1
What legal relationship does a subagent have with the principal?
Fiduciary relationship
ExplanationA subagent has a fiduciary relationship with the principal.
#2
Which of the following is NOT a type of agency relationship?
Bilateral agency
ExplanationBilateral agency is not a type of agency relationship.
#3
Which of the following best describes the concept of agency in law?
A legal relationship where one party acts on behalf of another, with the authority to create legal obligations for the other party.
ExplanationAgency in law involves one party acting on behalf of another, creating legal obligations for the latter.
#4
Which of the following is NOT a characteristic of an agency relationship?
Equal authority between the principal and the agent
ExplanationAn agency relationship doesn't entail equal authority between the principal and the agent.
#5
Which of the following is NOT a way in which an agency relationship can be terminated?
Change in the law
ExplanationAn agency relationship cannot be terminated solely by a change in the law.
#6
In agency law, what is ostensible authority?
Authority that is apparent to third parties, based on the actions of the principal.
ExplanationOstensible authority in agency law refers to authority apparent to third parties due to the principal's actions.
#7
What doctrine holds the principal liable for the authorized acts of the agent?
Respondeat superior
ExplanationRespondeat superior doctrine holds the principal responsible for the agent's authorized acts.
#8
What is the difference between actual authority and apparent authority in agency law?
Actual authority is expressly granted, while apparent authority is implied by the actions of the principal.
ExplanationActual authority is explicitly given, whereas apparent authority is inferred from the principal's actions.