Liability to Third Parties and Termination
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Questions
Pattberg orally asks Austin to sell a ranch that Pattberg owns. Austin finds a buyer and signs a sales contract on behalf of Pattberg. Given that a contract for an interest in real estate must be in writing, can the buyer enforce this contract against Pattberg?
View answer and explanationAn agent has implied authority to do what is reasonably necessary to carry out express authority. If an agent has the authority to solicit orders for goods, what is the general rule regarding their authority to collect payments?
View answer and explanationWhat is the term for a situation where a principal's actions cause a third party to reasonably believe that another person is the principal's agent, even if no actual agency relationship exists?
View answer and explanationWhich of the following is NOT a requirement for a principal to effectively ratify an agent's unauthorized act?
View answer and explanationWhat type of principal is one whose identity is unknown by the third party, but the third party knows that the agent is or may be acting for a principal?
View answer and explanationIf an agent acts within the scope of their authority for a disclosed principal, what is the agent's liability for the principal's nonperformance of the contract?
View answer and explanationAn agent signs a contract for the purchase of a truck but has no authority to do so. The principal does not ratify the contract. On what legal theory is the agent liable to the seller?
View answer and explanationA principal can be held liable for an agent's misrepresentation if the statements were made within the scope of the agent's authority. What type of authority, as discussed in the chapter, can make a principal liable for an agent's fraudulent acts, even when the agent is a junior employee?
View answer and explanationThe doctrine of respondeat superior imposes vicarious liability on a principal-employer for an employee's actions. What is the key determination for applying this doctrine?
View answer and explanationAccording to the distinction made in Joel v. Morison, if a delivery driver, while on his route, decides to visit friends for cocktails in another city and negligently causes an accident, what would this action be considered?
View answer and explanationAn employer leases ground-moving equipment and also hires the services of an employee from the leasing company to operate it. If this 'borrowed servant' is negligent, who is generally presumed to have control and thus liability?
View answer and explanationGenerally, an employer is not liable for the torts of an independent contractor. What is a key exception to this rule?
View answer and explanationAn agency agreement is signed on January 1, 2009, with a stated termination date of December 31, 2010. What happens on December 31, 2010?
View answer and explanationWhat is the term for an agent's act of terminating an agency relationship, and what is the term for the principal's act of terminating it?
View answer and explanationWhat type of agency is created for the agent's benefit and cannot be revoked by the principal?
View answer and explanationWhen an agency relationship is terminated by an act of the parties, what is the principal's duty regarding third parties who have previously dealt with the agent?
View answer and explanationWhich of the following events automatically terminates an ordinary agency relationship by operation of law without the need to notify third persons?
View answer and explanationAn agent's authority is written, but the document does not contain an expiration date. How must the principal normally revoke this authority?
View answer and explanationUnder what circumstance would an agent have the power to act in an emergency, even if it is outside their express or implied authority?
View answer and explanationIf a principal is sued by a third party for an agent's negligent conduct, and the principal has to pay damages, what right does the principal have against the agent?
View answer and explanationIn the case of Ermoian v. Desert Hospital, why was the hospital held potentially liable for the actions of doctors who were independent contractors?
View answer and explanationWhat does the Uniform Electronic Transactions Act (UETA) state regarding the ability of an e-agent to form a contract?
View answer and explanationUnder the UETA, if an e-agent makes a mistake in an order and does not provide an on-screen verification for the user, what can the user do?
View answer and explanationA maintenance employee in an apartment building, Brad, notices a dangerous protruding lead pipe in the courtyard but neglects to fix it or inform his employer. If a person, John, is injured by falling on the pipe, is the employer liable?
View answer and explanationIn the case In re Selheimer & Co., what was the court's reasoning for holding partner Edward Murphy potentially liable for the torts of the managing partner, Perry Selheimer?
View answer and explanationIf an agent is acting on behalf of a partially disclosed principal, what is the agent's liability on the contract in most states?
View answer and explanationOnce an undisclosed principal's identity is revealed to a third party, what option does the third party generally have regarding liability on the contract?
View answer and explanationUnder what circumstance can an undisclosed principal NOT enforce a contract against a third party?
View answer and explanationSelkow directs his agent, Warren, to cut corn on a specific piece of land. Selkow knows he does not have the right to the corn, but Warren is unaware of this fact. Who is liable to the owner of the corn?
View answer and explanationIn the context of 'borrowed servants' as discussed in Galvao v. G. R. Robert Construction Co., what is the second prong of the test to determine if a general employer is vicariously liable for a special employee's negligence, after control has been established?
View answer and explanationAn employer is generally liable for an employee's intentional torts if they are committed within the course and scope of employment. What other situation can make an employer liable for an employee's intentional torts?
View answer and explanationAn agent is hired to sell a house. Before a sale occurs, the house is destroyed by fire. What is the effect on the agency relationship?
View answer and explanationWhat does the equal dignity rule generally require?
View answer and explanationA power of attorney is a written document conferring express authority. What is the title of the agent who holds a power of attorney?
View answer and explanationAn agency is terminated because the purpose has been achieved. What kind of notice must the principal provide to third parties who have heard about the agency but have not yet dealt with the agent?
View answer and explanationWhat are the three classifications of principals based on the extent of the third party's knowledge?
View answer and explanationIf a principal’s identity is totally unknown to a third party at the time of a contract, what must the third party generally do after the principal’s identity is revealed to hold the principal liable?
View answer and explanationAn agent for an undisclosed principal is forced to pay a third party on a contract after the principal fails to perform. What right does the agent have against the principal?
View answer and explanationA principal is always directly responsible for an agent's misrepresentation made within the scope of the agent's authority. This liability is based on which legal concept?
View answer and explanationWhat is the general rule regarding the travel time of traveling salespersons in determining if they are within the scope of employment?
View answer and explanationAn agency relationship is terminated when the specific subject matter of the agency is destroyed. For which category of termination does this fall under?
View answer and explanationIf an employer permits an employee to engage in reckless actions, such as smoking while filling trucks with flammable liquids, and an injury results, what is the employer's liability?
View answer and explanationWhich of the following is NOT one of the eight general factors listed in the text that courts consider when determining if an act occurred within the scope of employment?
View answer and explanationWhen an agency relationship terminates due to changed circumstances, what is the underlying inference that the law makes?
View answer and explanationA principal can be held liable for an agent's torts and crimes in several ways. What are the two main forms of liability for the principal as discussed in the chapter?
View answer and explanationIn the case Galvao v. G. R. Robert Construction Co., what was the court's conclusion regarding the 'control' prong of the test for vicarious liability?
View answer and explanationIf a principal’s country and an agent’s country are at war with each other, how is the agency relationship terminated?
View answer and explanationIf bankruptcy is filed by either the principal or the agent, what is the usual effect on the agency relationship?
View answer and explanationWhich of the following is NOT one of the six requirements for a principal to ratify an agent's unauthorized action?
View answer and explanationHow many main actions available to the principal against an agent who breaches a fiduciary duty are listed in the text?
View answer and explanation