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The Role of Agency in Business Law: Tutoring Solution Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. With what authority does the agent act with in order for a principal to be bound by a contract?

Question 2 2. Paul hires Andy to be his sports agent. Paul hires Andy specifically to negotiate his NFL contract for the upcoming football season. Shortly afterward, Paul breaks his leg and can't play football for several months. What is the state of this agency relationship?

Question 3 3. Maggie hires Monty to be her real estate agent. Monty goes to several open houses and makes a bid on one house. Monty tells the homeowner that he's a real estate agent and that he's working on Maggie's behalf. What is this an example of?

Question 4 4. Most contracts that are made under an agency relationship use which of the following?

Question 5 5. Sally is a contractor and hires Steve to demolish a kitchen so she can start building a new one. Steve completes the work, and later finds out the walls contained asbestos. Sally knew this but didn't tell Steve. Sally has likely breached the duty of:

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Question 6 6. What does the doctrine of respondeat superior allow for?

Question 7 7. Sally is a contractor and hires Steve to demolish a kitchen on her behalf so she can start building a new one. Steve gives Sally an estimate for his work. Sally agrees with the estimate and tells Steve she'll pay him when he finishes the demolition. Steve completes his work, and presents Sally with his bill. Sally then tells Steve she can't pay him until the end of the project, when the homeowners pay her. Sally has likely breached the duty of:

Question 8 8. Sally is a contractor and hires Steve to paint a client's house on her behalf. Sally tells Steve to buy 3 gallons of White House White paint for the house and gives Steve that money. However, it's not enough paint. Steve has to buy one more gallon in order to complete Sally's request. When Steve seeks reimbursement from Sally, she refuses. Sally has likely breached the duty of:

Question 9 9. Which of the following is NOT a reason for a principal to be held directly liable for an agent's acts?

Question 10 10. Leigh hires Jennifer to be her real estate representative. Jennifer will help Leigh find a house to buy and has the authority to place bids for Leigh after Leigh decides to make an offer. In this scenario, Leigh is the:

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Question 11 11. Michelle hires Chris to be her financial broker. She asks him to invest $10,000 in a particular stock. Chris finds out that the stock isn't doing well, and that the company is about to declare bankruptcy. Chris instead invests Michelle's money in another, similar company. Michelle is later surprised when she receives a stockholder letter from that company. Chris has likely breached the duty of:

Question 12 12. Which of the following is NOT a requirement for a principal to be held liable using respondeat superior?

Question 13 13. Bart hires Bernie to be his talent agent. Bart tells Bernie to find work for him as an actor. Bernie then negotiates and makes an acting contract on Bart's behalf. What is this an example of?

Question 14 14. Michelle hires Chris to be her financial broker. She asks Chris to invest $10,000 in a particular stock. Later she finds that Chris invested her money in a different stock. Chris has likely breached the duty of:

Question 15 15. Bart hires Bernie to be his talent agent. Bart tells Bernie to find work for him as an actor and provides Bernie with a full portfolio including his head shots and resume. Bart sends Bernie to meet with potential employers, but tells Bernie not to sign anything until Bart has a chance to review the offer. Bernie proceeds to negotiate and sign an acting contract on Bart's behalf. What is this an example of?

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Question 16 16. Michelle hires Chris to be her financial broker. She gives him $10,000 to invest for her. Chris invests all of Michelle's money in a risky startup company run by his best friend. Michelle loses all of her investment. Chris has likely breached the duty of:

Question 17 17. Sally is a contractor and hires Steve to demolish a kitchen on her behalf so she can start building a new one. Steve gives Sally an estimate for his work. Sally agrees with the estimate and tells Steve she'll pay him at the end of the project, after the homeowners pay her. Steve completes the work, and presents Sally with his bill. Sally pays him, but not until the end of the project. Sally has likely breached the duty of:

Question 18 18. Leigh and Jennifer are friends. Jennifer works in real estate and finds a great house for Leigh, though Leigh never hired Jennifer or asked Jennifer to work on her behalf. After Leigh sees the house, she loves it and moves forward with the negotiations Jennifer started. What is this an example of?

Question 19 19. Maggie hires Monty to be her real estate agent. Monty goes to several open houses and makes a bid on one house. Monty tells the homeowner that he is a real estate agent and that the bid is on behalf of a client, but never mentions that he is working on behalf of Maggie. What is this an example of?

Question 20 20. Paul hires Andy to be his sports agent. Paul hires Andy specifically to negotiate his NFL contract for the upcoming football season. Shortly afterward, Paul meets Angie. Angie has more agent experience. Paul calls Andy and fires him so that he can hire Angie. What is the state of this agency relationship?

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Question 21 21. Leigh hires Jennifer to be her real estate representative. Jennifer will help Leigh find a house to buy and has the authority to place bids for Leigh after Leigh decides to make an offer. Leigh and Jennifer have a written contract. What is this an example of?

Question 22 22. Bart hires Bernie to be his talent agent. Bart asks Bernie to negotiate and make acting contracts on his behalf. What is this an example of?

Question 23 23. Paul hires Andy to be his sports agent. Paul hires Andy specifically to negotiate his NFL contract for the upcoming football season. Shortly afterward, Paul breaks his back and is paralyzed. He can't play football ever again. What is the state of this agency relationship?

Question 24 24. Sally is a contractor and hires Steve to paint a client's house on her behalf. Sally tells Steve to keep track of his expenses and then bill her at the end of the project. Steve gives Sally a bill for $300, but Sally refuses to pay more than $50. Steve spent almost $200 just on paint, and spent three days on the project. Steve wants to be fairly paid for his work. Sally has likely breached the duty of:

Question 25 25. Parker hires Lenny to be a limousine driver for his company. While working one night, Lenny starts a fight with a passenger. Lenny pulls out a knife and threatens to stab the passenger. What is the likely legal result?

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Question 26 26. Leigh and Jennifer are friends. Leigh is looking for a new house, and Jennifer happens to work in real estate. Leigh can't make it to a showing for a house she's interested in and asks Jennifer to go look at the house for her. Leigh never hired Jennifer, but she tells the owners that Jennifer is coming on her behalf. Jennifer sees the house and knows Leigh will love it, so she makes an offer for Leigh. What is this an example of?

Question 27 27. Michelle hires Chris to be her financial broker. She asks Chris to invest $10,000 in a particular stock. The stock is for a startup company run by Michelle's friend. After researching the company, Chris decides it's a great investment and decides to invest $10,000 of his own money, too. Chris has likely breached the duty of:

Question 28 28. Paul hires Andy to be his sports agent. Paul hires Andy specifically to negotiate his NFL contract for the upcoming football season. Shortly afterward, Paul and Andy have a disagreement. Paul tells some of his friends that he no longer wants to work with Andy. What is the state of this agency relationship?

Question 29 29. Bart hires Bernie to be his talent agent. Bart tells Bernie to find work for him as an actor. Bernie then negotiates and makes a contract for Bart to work as a bartender at a local restaurant. What is this an example of?

Question 30 30. Leigh hires Jennifer to be her real estate representative. Jennifer will help Leigh find a house to buy and has the authority to place bids for Leigh after Leigh decides to make an offer. In this scenario, Jennifer is the:

The Role of Agency in Business Law: Tutoring Solution Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next question. You can skip questions if you would like and come back to them later with the "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. You will lose your work if you close or refresh this page. Good luck!

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