Chapter 35

Question 1

______ is a contract in which an agent is authorized to act on behalf of, and under the control of, a principal

Answer 1

Agency

Question 2

All employees are _____, but not all ______ are employees

Answer 2

Agents

Question 3

Agents may bind a principal on the basis of ______ _______

Answer 3

Apparent authority

Question 4

May be created unintentionally

Answer 4

Agency

Question 5

Certain duties are ___-_______, such as those that are unique

Answer 5

Non-delegable

Question 6

An agents duty of ________ continues after the agency ends

Answer 6

Confidentiality

Question 7

To be considered ______ _______, the authority must be expressed in words orally or in writing

Answer 7

Actual authority

Question 8

Agency is a ________ relationship

Answer 8

Fiduciary

Question 9

Principals have the following duties to agent:

Answer 9

1: duty to compensate
2. Duty to reimburse for reasonable expenses for doing agency business
3. Duty to indemnify the agents for losses suffered due to agency’s business

Question 10

Manuel asked his friend Sunil, a good salesman, to sell his car and Sunil agreed. Does an agency relationship exist?

Answer 10

Yes, Sunil is an agent for Manuel