#1
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.
ExplanationAgency relationship involves one party acting on behalf of another.
#2
Which of the following is not an essential element of an agency relationship?
Compensation
ExplanationCompensation is not essential in an agency relationship.
#3
In agency law, what does 'fiduciary duty' refer to?
The duty of the agent to act in the best interest of the principal.
ExplanationFiduciary duty: agent must act in principal's best interest.
#4
Under what circumstances can an agency relationship be terminated?
All of the above
ExplanationVarious circumstances can lead to termination of an agency relationship.
#5
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.
ExplanationActual authority is explicit, apparent authority is inferred.
#6
Which of the following is an example of a disclosed principal?
An agent acting on behalf of a known but unnamed principal.
ExplanationDisclosed principal: known but unnamed.
#7
What legal doctrine holds an employer liable for the tortious acts of an employee committed within the scope of employment?
Respondeat superior
ExplanationRespondeat superior: employer's liability for employee's actions.
#8
Which of the following is not a type of authority in agency law?
Tortious authority
ExplanationTortious authority is not recognized in agency law.
#9
Which of the following is not a duty of an agent to the principal?
Duty of competition
ExplanationDuty of competition is not a duty of an agent.
#10
What is ratification in the context of agency law?
The process by which a principal accepts or adopts the unauthorized acts of an agent.
ExplanationRatification: principal accepts unauthorized acts.
#11
What is the doctrine of respondeat superior?
The doctrine of vicarious liability, where employers are responsible for the actions of their employees.
ExplanationRespondeat superior: employer's vicarious liability.
#12
What is the role of estoppel in agency law?
Estoppel prevents the principal from revoking the agent's authority.
ExplanationEstoppel prevents revocation of agent's authority.
#13
What is the doctrine of undisclosed principal?
The principal is undisclosed to third parties.
ExplanationUndisclosed principal: principal's identity is concealed.