Exam 33: Agency Formation and Duties

A) Building contractor
B) Stockbroker
C) Elementary school teacher
D) Lawyer
E) Doctor

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A) It will be assumed that the agent agreed to work for free on a gratuitous basis.
B) The agent will be allowed to set the price which will be enforced unless it is unconscionable.
C) The principal will be allowed to set the price which will be enforced unless it is unconscionable.
D) The court will appoint a magistrate to set the price.
E) Compensation will be calculated according to the customary fee in the situation.

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A) Specific performance
B) Specific recoupment
C) Adequate performance
D) Reformation
E) Recognition

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A) That company executives are liable for wages, but not for benefits, and only if the company is bankrupt.
B) That company executives are liable for benefits, but not for wages, and only if the company is bankrupt.
C) That only if the company is bankrupt, company executives are liable for wages and benefits in an amount up to $5,000 per employee.
D) That only if the company is bankrupt, company executives are liable for wages and benefits in an amount up to $50,000 per executive to be allocated equally among employees.

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A) Employers are generally liable in tort for the actions of their employees, while they are generally not liable for the actions of independent contractors.
B) Employers are generally liable in tort for the actions of independent contractors, while they are generally not liable for the actions of employees.
C) Employers are not generally liable in tort for the actions of independent contractors or the actions of employees.
D) Employers are generally liable in tort for the actions of independent contractors and for the actions of employees.
E) Employers are generally liable in tort for the actions of independent contractors and for the actions of employees, but only if the employer has agreed to be liable in a written contract with the employee or independent contractor.

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A) That the agreement entered into by plaintiffs' attorney would not be enforced because the plaintiffs had not lead the opposing defense attorneys reasonably to believe that the plaintiffs' attorney had full and final authority to settle the litigation.
B) That the agreement entered into by plaintiffs' attorney would not be enforced because the plaintiffs had not signed it.
C) That the agreement entered into by plaintiffs' attorney would not be enforced because the plaintiffs had not given the attorney express authority to enter into the agreement.
D) That the agreement would be enforced because the plaintiffs' attorney had express authority to enter into the agreement.
E) That the agreement would be enforced because the plaintiffs' attorney had apparent authority to enter into the agreement.

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A) In civil law countries, a power of attorney authorizes the agent only to conduct a series of transactions under instruction from the principal.
B) In Luxembourg, the person on whose behalf the power of attorney is created is called a donor, instead of a principal.
C) One type of power of attorney in Luxembourg is a power of attorney that is valid until death.
D) One type of power of attorney in Luxembourg is a power of attorney that has unlimited validity even after death.
E) The law in Luxembourg requires that the power of attorney be authenticated by a public authority or a public notary.

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While foreign countries offer fresh mark...

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The requirements for agency by ratificat...

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A) The classification as an employee or independent contractor is also important in determining who owns the output of a work project.
B) When an employee completes work at the request of the employer, the product is considered a "work for hire."
C) The employer owns the copyright to a work for hire completed by an employee.
D) Federal law does not address the issue of when a work is a "work for hire" because such issues are left to state legislatures.
E) Only by an agreement of both parties that a specific work is a work for hire may an employer gain copyright ownership of the work of an independent contractor.

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A) The principal owes a duty of cooperation to the agent.
B) The principal must assist the agent in the performance of his or her duties.
C) The principal can do nothing to interfere with the reasonable conduct of an agent.
D) The principal has a duty to provide safe working conditions for an agent.
E) The duty of reimbursement applies to employees only, not to independent contractors.

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A) Simplified agency
B) Equitable agency
C) Agency by law
D) Agency by estoppel
E) Approved agency

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A) Whether the worker is engaged in a distinct occupation or an independently established business.
B) The employer supplying the tools.
C) How the worker is paid.
D) The amount of time the worker has been involved in the trade or area at issue.
E) The length of time for which the worker is employed.

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A) The employee is subject to the control of the employer.
B) Generally, all employees are considered to be agents of the employer.
C) Employees who are not legally authorized to enter into contracts binding their employer are nevertheless generally considered agents of the employer.
D) In an employer-employee relationship, the employee is subject to the employer's control.
E) Independent contractors fall under the employer-employee relationship.

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A) Over half of the states have enacted statutes governing the behavior of sports agents.
B) Efforts are underway to develop a uniform act addressing regulation of sports agents because none exists at the present time.
C) Players associations' model contracts describe the nature of the services agents can perform on behalf of their principals and the duties the parties owe to one another.
D) Some states have established criminal penalties for athletes who violate the state law addressing regulation of sports agents, but most states focus on criminalizing the activity of sports agents.
E) The Major League Baseball Players Association's Regulations Governing Player Agents expressly state that agents act in a fiduciary capacity vis-à-vis their athlete clients.

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