4 Agency Online Quiz Questions

True

False

The retailer is necessarily the supplier’s agent because it buys the supplier’s goods.

The retailer typically acts for itself when buying goods for resale.

The supplier is necessarily the retailer’s agent because it sells goods to the retailer.

A buyer–seller relationship can never create an agency relationship.

No, because hiring a carrier always requires separate express permission.

No, because an agent cannot take steps that are not stated word for word.

Yes, hiring an ordinary carrier may be implied authority needed to arrange the delivery.

Yes, because any act by an agent automatically binds the principal.

True

False

A principal with knowledge of the material facts may affirm an act done or purportedly done on the principal’s behalf.

Ratification is possible only if the agent had actual authority when acting.

In appropriate circumstances, a principal’s acceptance of transaction benefits without timely rejection may affirm the act.

A principal can ratify an act without knowing its material facts.

The agent can never be a party if acting for a principal.

The agent is ordinarily also a party, and the undisclosed principal may be bound if the agent had actual authority, subject to relevant defenses and contract terms.

The undisclosed principal is always bound, even if the agent lacked actual authority.

The contract is automatically void because the principal’s identity was not disclosed.

The agent may be personally liable for falsely representing that the agent had authority.

The agent is never liable because only a principal can be a party to a contract.

The principal is automatically bound even if the agent lacked authority and the principal never ratified the act.

The third party can recover only if the agent acted intentionally.

Reimburse the agent for authorized expenses, as required by the agreement and applicable law.

Reimburse every expense the agent chooses to incur, whether authorized or not.

Pay the agent even when no compensation was agreed and none is required by applicable law.

Take over the agent’s responsibility for the agent’s own torts.

An agent remains personally responsible for the agent’s own torts.

A principal may be liable for its own wrongdoing, such as negligent selection or supervision.

An employer or other principal is generally vicariously liable for an employee-agent’s tort within the scope of employment, subject to applicable rules.

Calling a worker an independent contractor conclusively resolves whether the principal can be liable.

Care, because the agent should use reasonable competence and diligence.

Loyalty, because the agent must avoid undisclosed self-dealing and secret profits.

Obedience, because the agent must follow lawful instructions within the agreed scope.

Information and accounting, because the agent must disclose relevant information and account for property.

True

False

The shop owner pays the worker and signs a written document naming the worker as an agent.

The shop owner asks a worker to buy supplies for the shop, and the worker agrees, although they sign no document and discuss no payment.

A retailer buys goods from a supplier to resell them, without agreeing to act on the supplier’s behalf.

A shop owner tells a worker to act on the shop’s behalf, but the worker refuses.

The agent may hire any carrier, regardless of cost or suitability, because the principal authorized a delivery.

The agent may hire a carrier only if the principal separately gives express permission to do so.

The agent may have implied authority to hire an ordinary carrier as reasonably necessary to arrange the delivery.

The agent has apparent authority to hire a carrier solely because the agent claims to have permission.