Principles and Elements of Agency Quiz

Test your knowledge on agency law with questions covering fiduciary duty, termination, authority types, and more.

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What is the definition of an agency relationship?

A relationship between two parties where one party agrees to act on behalf of the other party.

A relationship between two parties where both parties agree to act independently.

A relationship between multiple parties where each party acts for themselves only.

A relationship between two parties where one party agrees to act against the other party.

Which of the following is not an essential element of an agency relationship?

Consent

Competence

Compensation

Control

In agency law, what does 'fiduciary duty' refer to?

The duty of the agent to act in the best interest of the principal.

The duty of the principal to act in the best interest of the agent.

The duty of both parties to act against each other.

The duty of the agent to act independently of the principal.

Under what circumstances can an agency relationship be terminated?

By operation of law

By expiration of time

By mutual agreement

All of the above

What is the difference between actual authority and apparent authority in agency law?

Actual authority is expressly granted by the principal, while apparent authority is inferred from the actions of the principal.

Actual authority is inferred from the actions of the principal, while apparent authority is expressly granted by the principal.

Actual authority arises from the conduct of the agent, while apparent authority arises from the conduct of the principal.

Actual authority is not recognized in agency law, while apparent authority is the primary form of authority.

Which of the following is an example of a disclosed principal?

An agent acting on behalf of a known but unnamed principal.

An agent acting on behalf of an undisclosed principal.

An agent acting without authority.

An agent acting for personal gain.

What legal doctrine holds an employer liable for the tortious acts of an employee committed within the scope of employment?

Vicarious liability

Independent contractor doctrine

Respondeat superior

Negligent entrustment

Which of the following is not a type of authority in agency law?

Express authority

Implied authority

Apparent authority

Tortious authority

Which of the following is not a duty of an agent to the principal?

Duty of loyalty

Duty of obedience

Duty of disclosure

Duty of competition

#10

What is ratification in the context of agency law?

The process by which an agent terminates the agency relationship.

The process by which a principal accepts or adopts the unauthorized acts of an agent.

The process by which an agent delegates authority to another party.

The process by which a principal discloses the identity of the agent to a third party.

#11

What is the doctrine of respondeat superior?

The doctrine of vicarious liability, where employers are responsible for the actions of their employees.

The doctrine stating that principals are always responsible for the actions of their agents.

The doctrine allowing agents to act independently of their principals.

The doctrine stating that agents are always responsible for the actions of their principals.

#12

What is the role of estoppel in agency law?

Estoppel prevents the principal from revoking the agent's authority.

Estoppel prevents the agent from acting on behalf of the principal.

Estoppel prevents third parties from relying on the agent's actions.

Estoppel prevents the principal from disclosing the agent's authority.

#13

What is the doctrine of undisclosed principal?

The principal is undisclosed to third parties.

The agent is undisclosed to third parties.

Both the principal and agent are undisclosed to third parties.

Neither the principal nor the agent is undisclosed to third parties.