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| 1 | |
Julia allows her housekeeper to purchase a variety of household items on Julian's credit account at Home Supply Co. One day the housekeeper purchases all new appliances, charged to Julian's credit account, and after having them loaded on a truck, disappears. What legal doctrine may make Julian liable to Home Supply Co. for this purchase? |
| | A) | Express authority |
| | B) | Implied authority |
| | C) | Apparent authority |
| | D) | Authority by operation of law |
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| 2 | |
Andrew, agent for Carmen, signs her income tax return with her permission. This action is _____. |
| | A) | contrary to public policy. |
| | B) | an allowable exception to the nondelegable acts. |
| | C) | only allowable with judicial approval. |
| | D) | an allowable exception to the commingling rules. |
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| 3 | |
Mark, without pay and as a friend, promises to pay Todd's property taxes when they come due While Todd is out of the country on business. Mark neglects this task, causing late penalties and interest changes to accumulate. Mark _____. |
| | A) | has violated the duty to exercise reasonable skill and judgment |
| | B) | has no liability since this was uncompensated |
| | C) | has violated the duty to account |
| | D) | has no liability since this was a nondelegable duty |
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| 4 | |
Wayne, an agent for Vadra, learns that the submission date for bids on a Titan Co. construction contract Vadra wants to obtain and has received bid information concerning, has been changed from December 1 back to November 15. Wayne fails to tell Vadra, who submits a bid on November 30 which is rejected. What legal rule governs this situation? |
| | A) | Vadra did not know of the change and therefore has submitted the bid on time. |
| | B) | Wayne had no duty to inform Vadra. |
| | C) | Titan Co. had no right to inform Wayne. |
| | D) | Wayne's knowledge is imputed to Vadra. |
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| 5 | |
Phoenix collects illegal bets for Odilia. When Phoenix is arrested, what legal obligation does Odilia have to Phoenix? |
| | A) | A duty to indemnify. |
| | B) | A duty to cooperate and indemnify. |
| | C) | A duty to remain silent. |
| | D) | No duty. |
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| 6 | |
A principal recalls the agent's authority to act by _____. |
| | A) | revocation |
| | B) | renunciation |
| | C) | renewal |
| | D) | recall |
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| 7 | |
Mei-Ling is briefly mentally incapacitated. Authority to represent her by her agent Sanjay is _____. |
| | A) | terminated |
| | B) | subject to recall |
| | C) | suspended |
| | D) | renounced |
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| 8 | |
Global Grain Co. acts as agent for Big Farm Co. in exporting grain abroad. The President orders an embargo of grain exports. Global Grain's _____. |
| | A) | authority continues |
| | B) | authority is terminated |
| | C) | authority is transferred to domestic sales |
| | D) | authority is suspended for at least three years |
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| 9 | |
Nami, agent for Titan Co., informs Titan that she plans to offer customers a ten percent discount to stimulate sales. Titan does not object, but when the discounted orders come in, Titan rejects the orders. |
| | A) | Nami has no authority to offer discounts. |
| | B) | Nami has to obtain written permission to offer discounts. |
| | C) | Nami has express authority. |
| | D) | Nami has to personally pay Titan the ten percent discount. |
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| 10 | |
Hospitals may best prevent granting apparent authority by _____. |
| | A) | posting notices |
| | B) | requiring waivers from patients |
| | C) | obtaining indemnity contracts from physicians |
| | D) | giving verbal warnings to patients |
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