Agency Relationships 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. 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?

Question 2 2. 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 3 3. Paul hires Andy to be his sports agent. Paul hires Andy specifically to negotiate his NFL contract for the upcoming football season. Andy tries, but there aren't any NFL teams currently interested in Andy and recruiting season is now over. What is the state of this agency relationship?

Question 4 4. Which of the following is NOT a reason for a principal to be held directly liable for an agent's acts?

Question 5 5. Michelle hires Chris to be her financial broker. A year later, Michelle asks for a report detailing her investments. Chris tells her he doesn't have that information. Chris has likely breached the duty of:

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Question 6 6. 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 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. 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 9 9. 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:

Question 10 10. 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 11 11. Pat hires Bob to be a bouncer at his nightclub. A patron starts a fight one night while Bob is working, and Bob tosses the patron out the door. Unfortunately, the patron landed on his head and died. What is the likely legal result?

Question 12 12. 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 13 13. 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:

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. 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:

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Question 16 16. Which of the following is NOT a requirement for a principal to be held liable using respondeat superior?

Question 17 17. 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:

Question 18 18. 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 19 19. 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 20 20. What does the doctrine of respondeat superior allow for?

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Question 21 21. The attorney-in-fact who is appointed by general power of attorney and authorized to act for the principal is the ____.

Question 22 22. 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 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 leg and can't play football for several months. What is the state of this agency relationship?

Question 24 24. 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 25 25. Which of the following best describes a special agent?

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Question 26 26. 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 27 27. Which of the following is authorized under a general power of attorney to act in the absence of the principal on a real estate matter.

Question 28 28. Which of the following is the agent authorized to act and bind the principal in all matters within the scope of real estate practice?

Question 29 29. What type of agency relationship is created when a principal delegates authority that the agent accepts?

Question 30 30. 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:

Agency Relationships Chapter 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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