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| 1 | |
Eugene ratifies a contract made by Angela with Zena that requires that Eugene deliver fifty cases of doodads in exchange for $5,000. Eugene accepts the $5,000 but refuses to deliver the goods, stating that Zena must request delivery from Angela. Is this correct? |
| | A) | No, ratification accepts both the benefits and the obligations of a contract. |
| | B) | Yes, Angela lacked authority when she entered into the contract and is liable. |
| | C) | No, Eugene received in essence a gift of the $5000. |
| | D) | Yes, ratification does not release the agent. |
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| 2 | |
Cade agrees to "watch" Cassie's house while she backpacks in the Andes. One day a severe hailstorm breaks a number of windows in Cassie's house and Cade contracts with Clear Glass Co. to replace the windows and bill Cassie. Is Cassie required to pay Clear or is Cade? |
| | A) | Cade, since he entered into the contract without authority. |
| | B) | Cassie, since there was an agency by necessity. |
| | C) | Cade, since there were alternatives other than replacing the windows. |
| | D) | Cassie since she owns the house. |
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| 3 | |
Trudy is employed by Pike to sell Pike's house. The contract between Trudy and Pike must be written under what legal rule? |
| | A) | Statute of Frauds |
| | B) | Del Credere agency |
| | C) | Equal Dignities |
| | D) | Equal authority |
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| 4 | |
Charles, Monica and Daisy are partners. Monica employs George to negotiate a purchase of a building for the contract. What is the legal status of this situation? |
| | A) | Charles and Daisy are not bound to the contract. |
| | B) | Monica is bound to the contract only if Charles and Daisy are also bound. |
| | C) | George is the only person bound to the contract. |
| | D) | Charles, Monica and Daisy are bound to the contract. |
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| 5 | |
David and Juanita enter into a contract. Juanita does not know that David represents Henry, but subsequently learns of this agency. What person or persons may Juanita hold to the contract? |
| | A) | David only |
| | B) | Henry only |
| | C) | both David and Henry |
| | D) | either David or Henry but not both |
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| 6 | |
Paris is authorized by Mechanical Enterprises Co. to negotiate the purchase of a new dragline by Mechanical Enterprises. Paris is a(an) _____. |
| | A) | general agent |
| | B) | special agent |
| | C) | del credere agent |
| | D) | factor |
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| 7 | |
Jiro employs Marshall to sell his merchandise to local stores. Marshall kills Hasan, an employee of a competitor of Jiro, to prevent Hasan from making sales to stores that Marshall is visiting. Is Jiro criminally liable for the killing of Hasan? |
| | A) | No, since Marshall acts on his own. |
| | B) | Yes, since this should be foreseeable. |
| | C) | No, since he did not authorize the crime. |
| | D) | Yes, since the crime furthered Jiro's business. |
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| 8 | |
How does the law distinguish between intentional torts that cause physical harm committed by an employee and those that do not result in such harm? |
| | A) | The master is always liable for a physical tort. |
| | B) | The master is never liable for a nonphysical tort. |
| | C) | The master is rarely liable for a physical tort. |
| | D) | The master is only liable for certain types of nonphysical torts. |
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| 9 | |
The "scope of employment" involves _____. |
| | A) | a limited group of activities that the principal is engaged in. |
| | B) | a range of activities for which the servant is engaged. |
| | C) | a technical legal definition. |
| | D) | a list of duties specified in an employment contract. |
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| 10 | |
An agency relationship is: |
| | A) | contractual. |
| | B) | always performed by an independent contractor. |
| | C) | consensual. |
| | D) | an appointment. |
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