Agent Authority and Principal Liability Quiz
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Questions and Answers

Which factor is the most important in determining if an employee is an agent of the employer?

  • The employee's work schedule
  • The employee's hourly wage
  • The amount of direction and control the employer has over the employee (correct)
  • Whether the employee has additional jobs outside the company

If Jessica loses her job at ABC Corporation and attempts to collect unemployment, would she be considered an employee of ABC Corporation?

  • Yes, because she was paid $15 per hour by ABC Corporation
  • No, because her work schedule at ABC Corporation was irregular
  • No, because she also teaches piano lessons outside of ABC Corporation (correct)
  • Yes, because she worked 40 hours per week for ABC Corporation

Which of the following statements about at-will employees is correct?

  • At-will employees can never make decisions that bind the employer-company (correct)
  • At-will employees can make decisions that bind the employer-company, as long as they are acting within the scope of their authority
  • At-will employees are not bound by the decisions they make on behalf of the employer-company
  • At-will employees can make decisions that bind the employer-company, but only with their supervisor's permission

Which of the following statements about an employee entering into a contract without their supervisor's permission is correct?

<p>The employee can bind the employer to the contract, as long as they were acting within the scope of their authority (D)</p> Signup and view all the answers

Which of the following statements about a principal's liability for an agent's actions is correct?

<p>A principal is not bound by contracts made by an agent who does not have express authority (B)</p> Signup and view all the answers

Which of the following statements about an agent's duties to a principal is correct?

<p>An agent always owes a duty to notify the principal of any and all information they learn concerning the agency (A)</p> Signup and view all the answers

Who is liable for the tortious conduct of an agent acting within the scope of their authority?

<p>Principal (B)</p> Signup and view all the answers

In a land sale transaction, who performs the role of the principal?

<p>Wilhelm (B)</p> Signup and view all the answers

What type of commercial relationship exists between Martin and Wilhelm?

<p>Agent-principal relationship (B)</p> Signup and view all the answers

When an employer hires an employee and gives them authority to act on their behalf, what kind of relationship is formed?

<p>Principal-agent relationship (C)</p> Signup and view all the answers

What type of agency contract did Marlon and Nita enter into for the real estate sale?

<p>Express agency (D)</p> Signup and view all the answers
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