View
- Term
- Definition
- Both Sides
Study
- All (50)
Shortcut Show
Next
Prev
Flip
ACCT 324: Test 2
Starr is an agent of a disclosed principal, Maple. On May 1, Starr entered into an agreement with King Corp. on behalf of Maple that exceeded Starr's authority as Maple's agent. On May 5, King learned of Starr's lack of authority and immediately notified Maple and Starr that it was withdrawing from the May 1 agreement. On May 7, Maple ratified the May 1 agreement in its entirety. If King refuses to honor the agreement and Maple brings an action for breach of contract, Maple will
|
lose. King notified Starr and Maple of its withdrawal prior to Maple's
ratification.
|
The school band hired Anna, an experienced seller, to sell their cookbooks to raise band money. While Anna has sold a substantial number of books for the band, she has also incurred many airplane and travel expenses. The band terminates Anna.
|
The band could cause Anna's apparent authority to cease by publishing notice of
her termination in the newspapers.
|
When an agent acts under emergency authority, courts recognize the agent's act as
|
agency by operation of law.
|
Jones is in the construction business. Jones has been hired to build an office building in a heavily wooded area. Jones hires Barnes Bulldozing to clear the land. The business relationship between Jones and Barnes is
|
employer and independent contractor.
|
Where the principal is undisclosed
|
the agent can require the principal to indemnify the agent if the agent is forced to
pay the third party.
|
A real estate company may never
|
be liable for breach of a fiduciary duty unless it knowingly acted improperly.
|
In cases brought by employees alleging that their privacy has been invaded by e-mail monitoring
|
the courts have tended to hold for the employers.
|
Easy Corp. is a real estate developer and regularly engages real estate brokers to act on its behalf in acquiring parcels of land. The brokers are authorized to enter into such contracts, but are instructed to do so in their own names without disclosing Easy's identity or relationship to the transaction. If a broker enters into a contract with a seller on Easy's behalf
|
the broker will have the same actual authority as if Easy's identity had been disclosed.
|
Limited partners
|
may assign their interest in a business to another person without dissolving the
limited partnership.
|
Abe is Pat's agent. Pat has instructed Abe to be at all meetings that Pat calls. Abe always comes to these meetings, but he has never been asked to participate in any of these meetings. Abe fails to attend one of these meetings. Pat fires Abe for disobeying his instructions
|
Pat was justified in terminating Abe.
|
Assume that Mike hires Candy, a real estate broker, to sell his house. If the house burns down before being sold, then
|
the agency relationship will be terminated.
|
Suppose that Arnold Agent contracts without authorization on behalf of Peter Principal to have the renowned house painter El Flecko paint both the interior and exterior of Peter's house. Peter is delighted with the idea that one as talented as El Flecko will be painting his house but he wishes to have El Flecko paint on the interior of the house due to El Flecko's extremely high fee. Peter's attempt to ratify that part of the contract relating to the interior of the house will be
|
successful.
|
When someone is a whistleblower, what does he do?
|
He tells government officials, upper management, or the press that his employer is
engaged in an unsafe or illegal activity.
|
According to a recent survey by the American Management Association, more than ________ of employers engage in some form of surveillance of their employees.
|
two-thirds.
|
The term "employment at will" means that
|
either party (employer or employee) may terminate the employment relationship
at any time and for any reason or not reason, so long as the termination does not
violate a statutory law or an employment contract.
|
Marie is considering forms of business organization for her law firm. One advantage of the limited liability partnership form is that it allows partners to avoid personal liability for
|
the malpractice of their partners.
|
Kim, Lynn, and Mike agree to be partners in Northwest Tours, a travel agency. Kim contributes 75 percent of the capital. The partners agree to split the profits equally. When Northwest is dissolved, its liabilities are greater than its assets. The losses are paid
|
all of the partners in proportion to their shares of the profits.
|
Ellen, a salesperson at Top Tile Company, tells a customer, "Buy your tile here, and I'll install it myself for half of what Top would charge you." The customer makes the purchase based on Ellen's representation. Ellen installs the tile, charges the customer $500, and keeps the money. Ellen has breached the duty of
|
loyalty.
|
Workers' compensation laws are
|
state statutory law.
|
In the phrase, joint and several liability, the term several means
|
separate, or individual.
|
Quality Mines, Inc., employs Ron as an agent. Ron enters into a contract with Gems International, Ltd., within the scope of Ron's authority but without disclosing that he is an agent acting for Quality Mines. Quality Mines does not perform. Gems can recover from
|
Quality Mines or Ron.
|
Quick Pizza is operated as a partnership. For tax purposes, Quick Pizza
|
is required to file an information return but is not a tax-paying entity
|
National Computer Corporation (NCC) employs Cynthia as an agent. NCC gives her an exclusive territory in which to sell NCC products. NCC cannot compete with her in that territory under the duty of
|
cooperation.
|
Melanie, a waitress, is harassed by her boss, her coworkers, and even by customers. For which of these incidents may her employer be held liable?
|
The boss' harassment, the coworkers' harassment, the customers' harassment
|
Computer Networks, LLC, is a limited liability company. Unless indicated otherwise on Computer Networks' federal tax form, the firm will be taxed as
|
a partnership.
|
Implied authority
|
usually arises from the position the agent occupies, or customer, or necessity to
carry out express authority of the agent.
|
Apparent authority
|
depends upon what a third party is reasonable in believing, cannot be created by statement of the agent alone and may be limited by an express statement of limitation of authority if known to the
third party.
|
Riche, a well-known millionaire, hired Ball to buy an autograph of President George Washington from Carey, an autograph dealer. Riche instructed Ball to purchase the autograph in Ball's name from Carey at the price not to exceed $5,000. Ball entered into such a contract for $4,500 in his own name. Before the contract was performed, Carey discovered Riche's identity and refused to perform, hoping to obtain a higher price from Riche. Select the more correct answer.
|
Riche may enforce the contract made by Ball and Carey even though his name does not appear in the contract.
|
When an agency relationship is wrongfully terminated by the principal
|
actual authority terminates, but apparent authority may continue to exist.
|
The duty to mitigate damages means that the party claiming a breach must
|
lessen the impact of the breach by pursuing another job or tenant, or by cover.
|
Ted's Tavern hired Bruiser as a bouncer. Klem, a customer, insulted Bruiser, who reacted by pushing Klem. Klem sued both Ted and Bruiser for his injuries. Select the correct statement.
|
Both Ted and Bruiser could be liable but only if Bruiser was acting within the scope of his employment.
|
Jim agreed to sell cars for Bill for a two-year period beginning January 2, 2986. During February 1987, Jim decided he no longer wished to work for Bill, so he quit. Select the
correct statement.
|
Jim lacks the right, but has the power, to terminate this employment contract.
|
Before ratification can occur the
|
agent must have acted as thought the contract was for the principal.
|
The Medlock Company wrongfully dismissed Kathy from employment. She sued Medlock for damages. Prior to the final judgment in her favor, she was able to earn $10,000 through part-time work. Kathy is entitled to
|
back pay less $10,000.
|
Koos owns a large furniture store. One afternoon he left it unattended to take care of other business. Slick stopped in to look at furniture, but was mistaken as a sales man by Hoddeson, another prospective customer. Slick shrugged his shoulders and "sold" Hoddeson a chair for $250.00. Slick took Hoddeson's money and disappeared. Hoddeson took the chair home. Hoddeson was sued by Koos for another $250. Hoddeson's best argument would be
|
Slick had apparent authority to collect.
|
Farley Farms, Inc., shipped 100 bales of hops to Burton Brewing Corporation. The agreement specified that the hops were to be of a certain grade. Upon examining the hops, Burton claimed that they were not of that grade. Farley's general sales agent who made the sale to Burton agreed to relieve Burton of liability and to have the hops shipped elsewhere. This was done, and the hops were sold at a price less than Burton was to have paid. Farley refused to accede to the agent's acts and sued Burton for the amount of its loss. Choose the correct statement.
|
Farley is bound because its agent expressly, impliedly, or apparently had the authority to make such an adjustment.
|
The Marine Insurance Company hired Janice as a saleslady. She was instructed not to insure any boat over 3 years old unless the insurance was less than $1,500. If a customer wished to insure an older boat for more than $1,500, Janice had to get the prior approval of her boss. Contrary to these instructions, Janice insured David's ten-year-old boat for $10,000. If David's boat is damaged, David
|
can recover from Marine Insurance Company since it is stopped from setting up the specific instructions to Janice as a defense unless these instructions were known to David before he contracted with Janice.
|
Michael, a minor, works on his father's farm. His father instructs him to drive to town and to purchase some feed from the Farmers' Coop. Michael charges the feed, as instructed by his father, and returns home. When the feed bill is presented, Dad refuses to pay and alleges that since Michael was a minor when he charged the feed that the feed bill is voidable or void.
|
Dad must pay for the feed
|
Son, a minor, buys Father a lottery ticket (assume that lotteries are not illegal), using Father's money without approval, even though he knows his Father objects to such things. Father's objections to lottery tickets ends when he wins $1,000 a week for life. Which of the following was created when Father cashed in the ticket?
|
Agency by ratification.
|
Ben ordered a new desk from Office Supply Company for his principal's office. Ben signed the order, "Ben Jones." Select the incorrect statement.
|
If Ben exceeded his actual authority, he is liable to his principal.
|
Tom, a third party, knows Abe is an agent, but Tom does not know the identity of Abe's principal. The principal for whom Abe acts is
|
a partially disclosed principal.
|
Suppose that Alex, acting as an agent for Paul, signs an agreement to bind Paul but neglects to tell Paul that the agreement requires the payment of certain taxes to the federal government. If the government later prosecutes Paul for failing to pay the taxes due, Paul will
|
not prevail because Alex's knowledge will be imputed to Paul.
|
If Oscar introduces Vinny to his golfing buddies at the local country club as "my business associate", then the fact that an agency relationship is later found by a court to exist between the two after Vinny purport to act as Oscar's agent in completing several business deals with those very same persons, will be due to an application by the court of
|
the doctrine of estoppel.
|
The requirement that an agency agreement must be evidence by a writing whenever the subject matter of any contract procured by the agent is required to be in writing is known
|
the equal dignity rule.
|
Assume that Wetzel hired Moe and Curley to paint his barn one time only. Because the roof of the barn is three stories above the ground, Moe decided it would be easier to pain the top of the barn by climbing up a nearby tree and jumping onto the roof. If Moe falls out of the tree and breaks his leg, then Wetzel will be liable for
|
nothing.
|
A "person who contracts with another to do something for him [or her] but who is not controlled by the other nor subject to the other's right to control with respect to his physical conduct in the performance of the undertaking" is a(n)
|
independent contractor.
|
Owen and Paula agree to operate an espresso stand. They purchase their supplies and split the costs equally. They agree to share profits equally, and decide that each of them will have an equal say in how the stand will operate. Nothing is put in writing. Owen and Paula have formed
|
a partnership.
|
Assume that Redbone is the authorized agent for Falsetta, a famous opera singer. If Redbone negotiates a deal that provides that Falsetta will sing exclusively in New York at the Metropolitan Opera for the next five years, then who, at minimum, must sign the contract on behalf of Falsetta in order for it to be binding?
|
Redbone only.
|
Ratification by the principal of an act committed by his agent
|
does not cure the defect of lack of authority.
|
The president of a local company called Appleby into his office and told him that he was being demoted from the position of purchasing agent to clerk effective immediately. One hour later, Appleby was still sitting at his same desk when Stu, a supplier, stopped to talk to Appleby. Knowing the company needed certain supplies, Appleby placed an order with Stu just like he had many times before. Stu was unaware of Appleby's demotion. Select the correct statement.
|
The company is liable to accept and pay for the goods since Appleby had apparent
|