Deck 32 Flashcards Preview

Regulation > Deck 32 > Flashcards

Flashcards in Deck 32 Deck (20):
1

Fair Debt Collection Practices Act

Prohibits abuses by collection agencies; can't contact the debtor if the debtor has an attorney

2

For ratification to occur, the agent must have acted without:

Authority

3

Notification to third parties is not required when:

Actually authority of an agency relationship terminates as an operation of law

4

If a principal violates a duty owed the agent, the agent cannot demand

Specific performance from the principal

5

Rules for capacity for agents and principals

Agent does not need to have capacity but a principal does

6

Power of attorney

Written authorization of agency (Agent has power to act on behalf of the principal); normally limited to specific transactions

7

Agency-principal relationship termination

Either party has the power to terminate the relationship at any time. They don't necessarily have the right though. other party can sue if its a wrongful termination

8

A principal cannot terminate an agency coupled with:

Interest (no power or right to terminate)

9

The principal is liable to a third party when the agent has:

1) a grant of actual authority; 2) apparent authority or estoppel; or 3) ratification

10

Apparent authority

Agent has the power (but not the right) to bind the principal; agent is given apparent authority by the principal; can't give yourself apparent authority

11

General agent

Continuity of service (manager, partner, president)

12

Special agent

Someone engaged to perform one or more transactions not involving a continuity of service

13

How do you destroy apparent authority?

Give notice to third parties

14

What kind of principal can ratify?

Disclosed principal

15

Undisclosed party only liable to third party if agent has what kind of authority?

Actual authority

16

When there is a disclosed principal, is the agent liable?

Not liable

17

Undisclosed principal

Third party didn't realize the agent was even working for someone (agent is liable on the contract)

18

No underpayment of tax penalty will be imposed if the total tax for the year is:

Less than $500

19

Derivative action

Action by a stockholder in the name of the corporation to recover damages or to seek some other remedy on behalf of the corporation

20

Stockholders of a corporation have a right to:

Inspect certain corporate records