Question 1

Lather Up Soap Products Company grants its agent Kathy an exclusive territory in which to sell Lather Up products.The firm cannot compete with Kathy in that territory under the principal's duty of

Accepted Answer

A)   avoidance.
B)   cooperation.
C)   indemnification.
D)   reimbursement.

Question 2

An independent contractor is an employer who controls his or her agent's performance.

Accepted Answer

A) True 
 B)False

Question 3

A principal owes an agent a duty of accounting.

Accepted Answer

A) True 
 B)False

Question 4

Delite Candy Company hires Elton to sell Delite's products in a certain area.Delite agrees to pay Elton a salary,plus commission,for a trial period.They also agree that Elton can sell using any methods and during any hours that seem appropriate.The key factor in whether Elton is Delite's employee is

Accepted Answer

A)   the amount of Elton's salary.
B)   the control Delite has over the details of the work.
C)   the length of the trial period.
D)   the title that designates Elton's position.

Question 5

Elle is an agent for Fine Cosmetics,Inc.Elle owes Fine Cosmetics the duty of

Accepted Answer

A)   avoidance.
B)   compensation.
C)   indemnification.
D)   performance.

Question 6

Oscar is Precise Service Company's chief executive officer.On Precise's behalf,Oscar solicits business,hires and fires workers,and handles the finances.Precise pays Oscar varying amounts,depending on his "needs." Oscar is most likely

Accepted Answer

A)   a principal.
B)   an employee.
C)   an employer.
D)   an independent contractor.

Question 7

Bud approves on behalf of Cody-but without authorization-a contract with Dik to build a new silo.Cody does not ratify the contract.Later,Dik tries to enforce the deal.This attempt will be

Accepted Answer

A)   partly successful.
B)   partly unsuccessful.
C)   totally successful.
D)   totally unsuccessful.

Question 8

An agency can terminate once its purpose is achieved.

Accepted Answer

A) True 
 B)False

Question 9

Under the doctrine of respondeat superior,an agent is liable for the principal's negligence.

Accepted Answer

A) True 
 B)False

Question 10

Jim agrees to act on Kit's behalf,subject to Kit's control,and Kit trusts Jim to so act.This describes a relationship between

Accepted Answer

A)   a business and its competitors.
B)   a government and its governed.
C)   a parent and a child.
D)   a principal and an agent.

Question 11

KupaJava hires Lola to manage one of KupaJava's seven drive-through coffee stands.KupaJava agrees to pay Lola a salary,plus commission.KupaJava stipulates the standards that should be observed,the goals that should be attained,and the methods that should be used.Lola is most likely KupaJava's

Accepted Answer

A)   employee.
B)   independent contractor.
C)   principal.
D)   work for hire.

Question 12

If a principal does not ratify an authorized contract,the principal is not bound.

Accepted Answer

A) True 
 B)False

Exam 23: Agency Relationships in Business

An independent contractor is an employer who controls his or her agent's performance.

Correct Answer
verified

Lather Up Soap Products Company grants its agent Kathy an exclusive territory in which to sell Lather Up products.The firm cannot compete with Kathy in that territory under the principal's duty of

Correct Answer
verified

A principal owes an agent a duty of accounting.

Correct Answer
verified

If a principal does not ratify an authorized contract,the principal is not bound.

Correct Answer
verified

Elle is an agent for Fine Cosmetics,Inc.Elle owes Fine Cosmetics the duty of

Correct Answer
verified

Bud approves on behalf of Cody-but without authorization-a contract with Dik to build a new silo.Cody does not ratify the contract.Later,Dik tries to enforce the deal.This attempt will be

Correct Answer
verified

Under the doctrine of respondeat superior,an agent is liable for the principal's negligence.

Correct Answer
verified

Jim agrees to act on Kit's behalf,subject to Kit's control,and Kit trusts Jim to so act.This describes a relationship between

Correct Answer
verified

Oscar is Precise Service Company's chief executive officer.On Precise's behalf,Oscar solicits business,hires and fires workers,and handles the finances.Precise pays Oscar varying amounts,depending on his "needs." Oscar is most likely

Correct Answer
verified

Delite Candy Company hires Elton to sell Delite's products in a certain area.Delite agrees to pay Elton a salary,plus commission,for a trial period.They also agree that Elton can sell using any methods and during any hours that seem appropriate.The key factor in whether Elton is Delite's employee is

Correct Answer
verified

KupaJava hires Lola to manage one of KupaJava's seven drive-through coffee stands.KupaJava agrees to pay Lola a salary,plus commission.KupaJava stipulates the standards that should be observed,the goals that should be attained,and the methods that should be used.Lola is most likely KupaJava's

Correct Answer
verified

An agency can terminate once its purpose is achieved.

Correct Answer
verified

Exam 23: Agency Relationships in Business

An independent contractor is an employer who controls his or her agent's performance.

Correct AnswerverifiedShow Answer

Lather Up Soap Products Company grants its agent Kathy an exclusive territory in which to sell Lather Up products.The firm cannot compete with Kathy in that territory under the principal's duty of

Correct AnswerverifiedShow Answer

A principal owes an agent a duty of accounting.

Correct AnswerverifiedShow Answer

If a principal does not ratify an authorized contract,the principal is not bound.

Correct AnswerverifiedShow Answer

Elle is an agent for Fine Cosmetics,Inc.Elle owes Fine Cosmetics the duty of

Correct AnswerverifiedShow Answer

Bud approves on behalf of Cody-but without authorization-a contract with Dik to build a new silo.Cody does not ratify the contract.Later,Dik tries to enforce the deal.This attempt will be

Correct AnswerverifiedShow Answer

Under the doctrine of respondeat superior,an agent is liable for the principal's negligence.

Correct AnswerverifiedShow Answer

Jim agrees to act on Kit's behalf,subject to Kit's control,and Kit trusts Jim to so act.This describes a relationship between

Correct AnswerverifiedShow Answer

Oscar is Precise Service Company's chief executive officer.On Precise's behalf,Oscar solicits business,hires and fires workers,and handles the finances.Precise pays Oscar varying amounts,depending on his "needs." Oscar is most likely

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

KupaJava hires Lola to manage one of KupaJava's seven drive-through coffee stands.KupaJava agrees to pay Lola a salary,plus commission.KupaJava stipulates the standards that should be observed,the goals that should be attained,and the methods that should be used.Lola is most likely KupaJava's

Correct AnswerverifiedShow Answer

An agency can terminate once its purpose is achieved.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified