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ORELA Business Education: Agency Law 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. 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 2 2. 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 3 3. An agent can completely escape personal liability for a contract made with the authorization of the principal, as long as the principal:

Question 4 4. 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 5 5. 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:

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Question 6 6. 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 7 7. 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 8 8. 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 9 9. 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 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. Leigh and Jennifer have a written contract. What is this an example of?

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Question 11 11. 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 12 12. Which of the following is NOT a reason for a principal to be held directly liable for an agent's acts?

Question 13 13. 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 14 14. 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?

Question 15 15. 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:

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Question 16 16. With what authority does the agent act with in order for a principal to be bound by a contract?

Question 17 17. 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:

Question 18 18. 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 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. In this scenario, Jennifer is the:

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

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Question 21 21. 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?

Question 22 22. Maggie hires Monty to be her real estate agent. Monty goes to several open houses and makes a bid on one house. Monty never tells the homeowner that he is a real estate agent and that he is making the bid on Maggie's behalf. What is this an example of?

Question 23 23. 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 24 24. 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 25 25. 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?

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Question 26 26. 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 27 27. 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 28 28. Most contracts that are made under an agency relationship use which of the following?

Question 29 29. 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 30 30. 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:

ORELA Business Education: Agency Law 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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