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Principles of Agency and Responsibilities Quiz

#1

Which of the following is not a fiduciary duty of an agent?

Defamation
Explanation

Defamation is not a fiduciary duty because it involves making false statements about others, not a duty to the principal.

#2

What is the minimum age requirement to be an agent?

18
Explanation

The minimum age requirement to be an agent is 18 years, ensuring legal competence.

#3

In agency law, what does 'ratification' refer to?

The acceptance of an agent's unauthorized act by the principal
Explanation

Ratification refers to the principal's acceptance of an agent's unauthorized act after the fact.

#4

Which of the following is a type of authority that an agent may possess?

Implied Authority
Explanation

Implied authority is authority inferred from the circumstances, not expressly granted.

#5

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

Actual authority is explicitly given by the principal, while apparent authority is inferred based on the agent's actions.
Explanation

Actual authority is expressly granted by the principal, whereas apparent authority is perceived by third parties based on the agent's actions.

#6

What is the doctrine of respondeat superior in agency law?

It holds the principal responsible for the agent's actions performed within the scope of employment.
Explanation

Respondeat superior holds the principal liable for the agent's actions conducted within the scope of employment.

#7

What is the difference between a general agent and a special agent?

A general agent has authority to act on behalf of the principal in a wide range of matters, while a special agent has limited authority for specific tasks.
Explanation

A general agent has broad authority to represent the principal in various matters, whereas a special agent has limited authority for specific tasks or transactions.

#8

What is the doctrine of undisclosed principal in agency law?

It allows the principal to remain anonymous in a contract entered into by the agent.
Explanation

The doctrine of undisclosed principal permits the principal to remain unidentified in contracts made by the agent.

#9

Under agency law, when can an agent bind the principal in a contract?

With any of the above types of authority
Explanation

An agent can bind the principal in a contract with any type of authority they possess, whether actual, apparent, or implied.

#10

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

The agent enters into a contract with a third party, disclosing both the fact of agency and the identity of the principal.
Explanation

A disclosed principal is when the agent reveals both the existence of agency and the principal's identity to the third party.

#11

What is the significance of the duty of obedience in agency law?

It requires the agent to obey the principal's instructions within the scope of their authority.
Explanation

The duty of obedience mandates the agent to comply with the principal's instructions within the boundaries of their authority.

#12

In agency law, what is the purpose of the duty of loyalty?

To require the agent to act in the best interests of the principal, avoiding conflicts of interest.
Explanation

The duty of loyalty obligates the agent to prioritize the principal's interests and avoid conflicts of interest.

#13

What does the principle of vicarious liability state in agency law?

The principal is held responsible for the agent's actions performed within the scope of employment.
Explanation

Vicarious liability holds the principal accountable for the agent's actions conducted within the scope of their employment.

#14

Under agency law, what is the significance of the duty of care?

It mandates the agent to exercise reasonable skill and diligence in performing their duties.
Explanation

The duty of care requires the agent to act with reasonable skill and diligence in fulfilling their responsibilities.

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