#1
In the context of agency law, what does 'principal' refer to?
The person granting authority to the agent
ExplanationPrincipal refers to the person giving authority to the agent.
#2
What is the duty of loyalty in the context of agency relationships?
The duty to act in the best interest of the principal
ExplanationThe duty of loyalty requires acting in the principal's best interest.
#3
What is the significance of the term 'respondeat superior' in agency law?
The doctrine that holds the principal liable for the agent's torts committed within the scope of employment
Explanation'Respondeat superior' holds principal liable for agent's torts within employment scope.
#4
What is the primary purpose of the agent's duty of obedience in an agency relationship?
To follow the principal's instructions within legal and ethical boundaries
ExplanationThe duty of obedience requires following principal's instructions within legal and ethical bounds.
#5
What is the primary purpose of the agent's duty of loyalty in an agency relationship?
To act in the best interest of the principal
ExplanationThe duty of loyalty requires acting in the principal's best interest.
#6
Which of the following is NOT a key element of agency relationships?
Consideration
ExplanationConsideration is not a key element in agency relationships.
#7
What is ostensible authority in agency law?
Authority created by the agent's conduct and the principal's manifestations
ExplanationOstensible authority is authority created by the agent's actions and the principal's representations.
#8
Which type of authority arises when a principal gives explicit, written authorization to an agent to perform specific acts on their behalf?
Express authority
ExplanationExpress authority arises from explicit written authorization by the principal.
#9
What is the legal concept that allows a principal to be bound by the actions of an agent even if the agent exceeded their actual authority?
Estoppel
ExplanationEstoppel binds a principal to actions of an agent despite exceeding actual authority.
#10
Which of the following is a requirement for an agency relationship to be created?
Mutual assent and the principal's control
ExplanationAn agency relationship requires mutual assent and principal's control.
#11
What is the primary purpose of the agent's duty to account in agency relationships?
To ensure proper compensation and reimbursement
ExplanationThe duty to account ensures proper compensation and reimbursement.
#12
In agency law, what does 'vicarious liability' refer to?
The principal's liability for the agent's actions within the scope of employment
ExplanationVicarious liability is the principal's liability for agent's actions within employment scope.
#13
Which of the following is an example of a disclosed principal in agency relationships?
The principal's identity is fully disclosed
ExplanationA disclosed principal's identity is fully revealed.
#14
In agency law, what does 'apparent authority' mean?
Authority created by the agent's conduct and the principal's manifestations
ExplanationApparent authority is authority resulting from agent's actions and principal's representations.
#15
What is the term for the situation when a principal accepts and affirms the actions of an agent that were initially unauthorized?
Ratification
ExplanationRatification occurs when a principal approves initially unauthorized actions of an agent.
#16
What is the term for the termination of an agency relationship by operation of law due to the death or incapacity of either the principal or the agent?
Termination by operation of law
ExplanationTermination by operation of law occurs due to the death or incapacity of the principal or agent.
#17
In agency law, what does the term 'ratification' refer to?
The formal approval of the agent's actions by the principal
ExplanationRatification is the formal approval by the principal of the agent's actions.
#18
Under what circumstances can an agency relationship be terminated by operation of law?
Death or incapacity of the principal or agent
ExplanationAn agency relationship terminates by operation of law upon death or incapacity of principal or agent.
#19
What is the term for a situation where an agent secretly competes with the principal in violation of the duty of loyalty?
Self-dealing
ExplanationSelf-dealing is when an agent competes with the principal in violation of loyalty.
#20
What type of authority arises when the principal, through their actions, leads third parties to believe that the agent has authority to act on their behalf?
Apparent authority
ExplanationApparent authority arises when the principal leads third parties to believe the agent has authority.
#21
In agency law, what does the term 'duress' refer to?
Coercion or threat that induces improper actions by the agent
ExplanationDuress refers to coercion or threat leading to improper agent actions.
#22
What is the term for an agency relationship where the principal is not disclosed to the third party, and the third party is unaware that an agency relationship exists?
Undisclosed principal
ExplanationAn undisclosed principal is one whose existence is unknown to third parties.
#23
What legal doctrine allows a principal to be bound by the unauthorized acts of an agent under certain circumstances?
Estoppel
ExplanationEstoppel binds a principal to agent's unauthorized acts under specific conditions.
#24
Under agency law, what is the agent's duty to disclose information to the principal?
Duty of disclosure
ExplanationThe agent's duty of disclosure requires informing the principal of relevant information.
#25
What is the term for an agent acting on behalf of a nonexistent or undisclosed principal?
Fictitious principal
ExplanationA fictitious principal is one that doesn't exist or is undisclosed.