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Exam 34: Liability to Third Parties and Termination

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Question 31

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Which of the following is true regarding notice of termination of an agency relationship?

A) Notice of termination of an agency relationship must be given by actual notice.
B) Depending on the circumstances, notice of termination can be actual or constructive.
C) Notice of termination of an agency must be given in writing.
D) Actual notice of termination of an agency relationship is not needed once 30 days have passed since the termination because at that point notice is presumed.
E) Actual notice of termination of an agency relationship is not needed once 60 days have passed since the termination because at that point notice is presumed.

F) A) and C)
G) A) and E)

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Question 32

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[Club Security] Trevor works security at Night Club and often has to escort rowdy patrons outside of the club. One night Trevor was called to separate a fight that started between Zack and Pat. When Trevor approached the fight, he saw Zack on top of Pat, punching him repeatedly. Trevor approached Zack and yelled, "Stop!" and "Security!" Zack would not stop punching Pat. Trevor removed Zack from Pat and tried to restrain him as he was thrashing around the bar. Zack head-butted Trevor in attempt to get away, causing Trevor to fallback. When Trevor stood back up, he threw a chair toward Zack but hit Pat on accident, resulting in a broken leg. Trevor then observed Zack attempting to fight with other customers and tried to take him down by jumping on his back. Zack was injured and suffered a pelvic fracture. Trevor received help from other bar patrons and Zack was escorted out of the building and detained until the police arrived. -If Zack sues Night Club for his injury based on Trevor's acts, would it be liable?

A) Night Club would not be liable because Trevor was not acting within the scope of his employment.
B) Night Club would not be liable because Trevor's acts toward Zack were not criminal or tortious.
C) Night Club would be liable because it was unnecessary for Trevor to jump on Zack's back.
D) Night Club would be liable because it should have anticipated an injury similar to Zack's based on the type of business it conducts.
E) Night Club would not be liable, only Pat is liable.

F) C) and D)
G) B) and C)

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Question 33

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If an independent contractor is engaged in ________ for the principal, the principal will be responsible for any damages by the independent contractor

A special power of attorney grants the agent express authority over specifically outlined acts.

[Textbook Confusion] Jason needs a business law book. He hears that Gwen has one for sale. Jason asks his girlfriend Sakura to buy it for him from Gwen if Sakura can get it for under $40. Sakura sees Gwen in the hall and asks if she will sell the book for $30, and Gwen agrees. They are between classes, and Sakura does not mention that the book is for Jason, although all the parties were on good terms, and the identity of the buyer should not have affected Sakura's agreement. Later, however, Rima agrees to give Jason her used business law book. Jason tells Sakura that he no longer wants the book. Sakura tells Gwen about the situation with Jason. Gwen replies that she does not care if Jason wants the book or not. Gwen says that she passed up a couple of opportunities to sell the book because she thought she already had it sold and that she wants her money from either Gwen or Jason - she doesn't care who pays. -When Sakura and Gwen enter their agreement, what type of principal is Jason?

Which type of liability applies when engaging in activities that have an inherently dangerous nature?

Fellger hired Saul to work for him in his plant nursery. As Saul was watering plants, he pulled hard on the hose causing Jillian, a customer, to fall and injure herself. When a court considers whether or not Fellger would be liable as an employer, the court will see if Saul ________.

________ usually consists of publication in a generally circulated newspaper in the area where the agency agreement actually existed.

A principal is not liable for an agent's crime if the agent commits a crime in the scope of employment for the principal without the authorization of the principal.

________ holds the principal-employer liable for any harm caused by the agent-employee during the time that the agent-employee is working for the principal.

Lena, who was angry with her business law teacher, Dominick, because of a hard test, angrily watched him come into the restaurant where she worked as a server. She noticed that he had on his new designer suit, the one he wore when he wanted to impress the chancellor. Lena completely lost her temper, threw a drink on Dominick, and then reached across the table and punched him in the eye. The police were called. Dominick says that he wants both Lena and the owner of the restaurant, Aaliyah, arrested. Assuming that Lena committed the crimes of assault and battery, is Aaliyah also criminally responsible? Provide reasoning in support of the conclusion.

Provide the rationale behind the doctrine of respondeat superior and discuss whether ethically you believe this doctrine is an appropriate doctrine for our society.

Which type of liability does a principal have when it authorizes an agent to engage in an act and the agent intentionally or unintentionally falsifies his or her role?

[Furniture Store Woes] Connor was hired by Jun to deliver furniture purchased from Jun's furniture store, Good Furniture. Jun had authorized Connor to drive the delivery truck home from work, but Connor was not authorized to use the truck for any personal errands. Connor decided to help his friend Adriana move, believing that Jun would never find out. Unfortunately, while moving Adriana's furniture to her new home, Connor was speeding and hit Tomás's vehicle in the rear, causing whiplash to Tomás. Tomás is threatening to sue both Jun and Connor. Then, on his way to work in the same truck the next day, Connor again bumped a car, driven by Gina, who is also threatening to sue both Connor and Jun. Jun also has another problem involving Hae, his niece, an aspiring interior designer who Jun hired to provide design services to customers. Both Hae and Jun were aware that customers would likely have no interest in the services of Hae if they knew she had no experience and no training in design. Therefore, they inflated her accomplishments to customers, telling them that she had both training and experience. In reliance on those claims, Beth agreed to have Hae do the interior design work for her new business building while Beth was out of town on an extended business trip. Unfortunately, Hae did a terrible job. Beth was outraged when she returned. She found out from Destiny, a disgruntled employee of Jun, that Hae actually had no training or experience in interior design. Beth wants to sue both Hae and jun. -If Jun pays for the damage to Gina's car, does he have any remedy against Connor?

[The Big Sale] Simone, the owner of ABC department store, needed to hire a number of employees in a hurry because of a big summer sale she was planning. Jamal was hired by Simone to run a cash register and to assist customers with taking large purchases to their cars. Jamal encountered a particularly annoying customer, Ryan. Ryan started complaining the minute he saw Jamal. Ryan complained about having to wait for Jamal to assist him with carrying his television purchase to his car, about the merchandise in the store, and about the quality of the store's employees. Jamal tried to control himself while he carted Ryan's television to the car; however, when Ryan began verbally attacking Jamal's appearance and professional manner, Jamal threw the television to the ground and punched Ryan in the nose. Ryan chose to investigate Jamal's employment history and discovered that Jamal had been fired from his previous three jobs for taking violent action against customers. Two of his former employers were willing to testify that if Simone had called them, they would have disclosed Jamal's tendencies to her. Jamal listed the former employers on his application, but because she was in a hurry to hire employees, Simone did not take the time to check with the former employers. Another problem confronting Simone during the big sale is that Lea, a long-time employee of Simone who had never caused any problems before, accidentally, but negligently, dropped a box on the foot of a customer, Greg. Greg had to have an X-ray and is threatening to sue both Simone and Lea. -Which of the following is true regarding whether Greg has any right of recovery against Lea for his injured foot?

Agent liability not only applies to how an agent treats a customer, they also apply to how the agent treats employees too.

To terminate agency relationships to a third party that have business transactions with the principal, the principal must send written notice by certified mail of the termination.

List and define the two basic types of power of attorney. Also discuss in what way a durable power of attorney is different from a power of attorney not so designated.

A ________ power of attorney grants an agent express authority over specific outlined acts, in contrast to a ________ power of attorney, which grants an agent authority to conduct all business for the principal.

Raquel is an agent for Occasion Photography, owned by Luke. Without disclosing her agency status, Raquel agrees by contract to take Ella's wedding photographs. When Luke finds out, he explains the agency relationship he has with Raquel to Ella and says that he wants to take the photographs because a lady he wants to ask out on a date is expected to be at the wedding. However, despite Luke's explanation, Ella still requests that Raquel take her wedding photographs. Which of the following is true regarding the rights of the parties?