Question 1

Which of the following is true of ratification by the principal?

Accepted Answer

Ratification by the principal is a voluntary act by the principal, where they agree to be bound by the actions of the agent. Therefore, option B is correct. Option A is incorrect because ratification can occur even after the agent has acted. Option C is incorrect because ratification does not discharge the principal of liability for the agent's actions. Option D is incorrect because ratification does not require consideration. Option E is incorrect because ratification can be made orally or through conduct, and does not need to be made in writing.

Question 2

An agent is not liable for torts of other agents unless he is personally at fault.

Accepted Answer

An agent is only responsible for their own torts and not those committed by other agents, unless the agent personally contributed to the tort or was negligent in their supervision of the other agent.

Question 3

As long as an agent has authorization,either express or implied,she may bind the principal legally.

Accepted Answer

This statement is true. As long as the agent has authorization from the principal, either through express or implied means, she can legally bind the principal to contractual obligations or other legal agreements. It is important for principals to clearly communicate their authorization to their agents in order to avoid any confusion or disputes.

Question 4

If a principal directs the agent to commit a tort or knows for a fact that the agent carrying out his instructions could cause someone harm,then the principal is liable.

Accepted Answer

Under the concept of vicarious liability, the principal is responsible for the actions of their agents in the course of their employment. If the principal directs the agent to commit a tort or is aware that the agent carrying out their instructions could harm someone, the principal can be held liable for the resulting harm.

Question 5

Even if the agent possessed no actual authority and there was no apparent authority on which the third party could rely,the principal may still be liable if he ratifies or adopts the agent's acts before the third party withdraws from the contract.

Accepted Answer

Even if the agent had no actual or apparent authority, the principal may still be liable if they ratify or adopt the agent's acts before the third party withdraws from the contract. Ratification occurs when the principal explicitly or implicitly accepts the agent's unauthorized actions, and this ratification makes the principal legally responsible for those actions.

Question 6

An agent directed by the principal to commit a tort does not remain liable for his own conduct and hence,is not obligated to repay the principal.

Accepted Answer

An agent directed by the principal to commit a tort remains liable for his own conduct and can be sued for damages, as well as obligated to repay the principal for any losses resulting from the tort.

Question 7

A principal can be held liable for actions by an agent that the principal had no knowledge of.

Accepted Answer

A principal can be held liable for the actions of their agent, even if the principal had no knowledge of those actions, if the actions were within the scope of the agent's duties or authority. This is known as vicarious liability.

Question 8

When an agency is terminated after lapse of time or completion of work,it is said to be expressly terminated.

Accepted Answer

When an agency is terminated after lapse of time or completion of work, it is expressly terminated as stated in the question.

Question 9

Respondeat superior is the Latin term for the shop rights doctrine.

Accepted Answer

Respondeat superior is not the same as the shop rights doctrine. Respondeat superior is a legal principle that holds an employer liable for the actions of their employees while performing work-related duties. Shop rights doctrine is a legal principle that allows an employer to use an invention created by an employee during employment for the employer's own benefit.

Question 10

Unlike wives,children are not presumed at common law to be agents or extensions of the father.

Accepted Answer

This statement is true. While wives were traditionally viewed as extensions of their husbands under the common law doctrine of coverture, children were not granted this same status. Instead, children were considered separate legal entities with their own rights and responsibilities.

Question 11

The vicarious tort liability is primarily a function of agency status and not employment relationships.

Accepted Answer

Vicarious tort liability can arise in both agency relationships and employment relationships, as it is based on the principle that an employer (or principal) can be held liable for the torts committed by an employee (or agent) within the scope of their employment or agency.

Question 12

The key to determining whether a principal is liable for contracts made by his agent is the amount of compensation paid to the agent.

Accepted Answer

The key to determining whether a principal is liable for contracts made by his agent is not based solely on the amount of compensation paid to the agent. Other factors such as the authority given to the agent and the specific circumstances surrounding the contract must also be considered.

Question 13

Where a third party deals with an agent,but is unaware that he/she is dealing with an agent,the principal would be contractually bound to the third party for any tort.

Accepted Answer

The principal would be contractually bound to the third party for the actions of the agent within the scope of their authority, but tort liability depends on different principles, such as direct involvement or negligence on the part of the principal, not merely on the contractual relationship.

Question 14

A principal is considered to be vicariously responsible for his/her agent's torts if:

Accepted Answer

The answer of A principal is considered to be vicariously...

Question 15

Bob,a professional hockey player,asks Will to be his sports agent and Will accepts.Bob tells Will that Will can review the contracts offered to Bob from the various state hockey teams.Here,Will has _____ authority to review contracts.

Accepted Answer

Express authority is when a principal specifically grants authority to an agent. In this case, Bob specifically asked Will to be his sports agent and gave him the authority to review his contracts.

Question 16

According to the doctrine of _____,a person will not be allowed to deny a promise or assertion he/she previously made where there has been detrimental reliance on that promise or assertion.

Accepted Answer

The doctrine of estoppel prevents a person from denying a promise or assertion that they previously made if someone has relied on that promise or assertion to their detriment. Essentially, if someone makes a promise or assertion and someone else acts based on that promise or assertion, the person who made the promise or assertion cannot later go back on their word and deny the promise or assertion if it would harm the other person.

Question 17

Under the zone of risk test an employer may be held liable for his employee's conduct even when devoted entirely to the employee's own purposes.

Accepted Answer

The zone of risk test is a legal principle used in some jurisdictions to hold employers liable for their employees' actions, even if those actions were taken outside the scope of their work duties, if the activity was within the "zone" of the employee's work responsibilities and created a risk of harm to others. Therefore, an employer may be held liable for their employee's conduct even if it was entirely for the employee's own purposes and not related to their job responsibilities, if it occurred within the zone of risk.

Question 18

Under the family purpose doctrine for the use of automobiles,a family member who negligently injures someone with a car subjects the owner to liability if the family member was furthering family purposes.

Accepted Answer

The family purpose doctrine holds the owner of a car liable for the negligent acts of family members operating the car if the car is being used for family purposes.

Question 19

In agency,_____ authority is a situation in which an agent leads a third party to believe that the agent has authority to bind the principal,even where the agent lacks actual authority to bind the principal.

Accepted Answer

Apparent authority is when the agent leads a third party to believe that they have the authority to bind the principal, even if they don't actually have the authority. This can happen through actions or words of the agent that suggest they have the authority.

Question 20

Vicarious liability is not limited to harm caused in the course of an agency relationship.

Accepted Answer

Vicarious liability can also arise in other types of relationships such as employer-employee, employer-independent contractor, and sometimes even landlord-tenant.

Quiz 15: Liability of Principal and Agent; Termination of Agency