1. Inferences from other facts and circumstances, including prior habits, are considered authority. a. implied actual O b. express actual C. constructive implied 00 O d. constructive expressed Topic covered in 32.1 Report a problem 2. The authority that a principal leads a third party to believe exists when there is no actual authority is known as authority. a. apparent b. incidental C. constructive O d. absolute Topic covered in 32.1 Report a problem 3. An agent's apparent authority is based on the words and conduct of 0 a. the agent O b. reasonable third parties O c. the principal O d. diligent third parties Topic covered in 32.1 Report a problem 4. When can ratification be effective? O a. When both the principal and agent are capable of contracting O b. When a corporation ratifies contracts before the company has been incorporated 0 C. When a third party ratifies a contract as part of a novation O d. When the principal accepts the benefit of the contract but not the obligations Topic covered in 32.1 Report a problem 5. To whom may a principal may become liable? a. Agents only O b. Third parties only c. Either or both the agent and the third party O d. The business community Topic covered in 32.2 Report a problem 6. When ratification occurs, what happens to the liability of the parties? a. It is dependent on the timing of the ratification. O b. It will not the be same as the liability prior to ratification. c. It is dependent on the principal's actions. O d. It is the same as if the agent's acts were authorized prior to ratification. 7. When does a third party lose the right to withdraw from an unauthorized contract? a. When ordered by a court b. When the agent notifies the third party O c. As soon as the principal indicates that ratification will occur O d. At the third party's discretion Topic covered in 32.2 Report a problem 8. Justin's Cars provides custom detailing for sports cars. Justin is an authorized agent for Porsche, but this relationship is not disclosed and Porsche owners believe they are dealing only with Justin. While working on a vintage Carmen Ghia model Volkswagen, Justin broke the fender and it CANNOT be replaced. Is Justin liable for the damage? o a. Yes, Justin is liable for all work performed in his shop. O b. Yes, Justin is liable because he is the agent of an undisclosed principal. O c. No, Justin has no fiduciary duties to third parties. O d. No, Justin has no liability because he was acting within the scope of this authority as an agent. 9. When are undisclosed principals liable to third parties? . O a. When the principal discloses its identity b. When the agent discloses the principal's identity c. Under strict liability only d. When the agent acted within the scope of actual authority Topic covered in 32.2 Report a problem 10. Which of the following is the liability of an agent or employee? O a. Joint and several O b. Intentional 0 C. Vicarious O d. Strict 11. When two or more persons have an obligation that binds them individually and jointly, the parties are faced with O a. joint and several liability O b. conjoined liability O c. joint and vicarious liability O d. apparent authority Topic covered in 32.3 Report a problem 12. Employers typically do NOT file suit against employees for indemnity for these reasons, EXCEPT in which of the following scenarios? O a. The employee's financial condition does not provide recovery. O b. Employers rarely find damages were caused by the employees. O c. The employer knows the risk of negligence and covers the risk with insurance. O d. Such suits would have a deleterious impact on employee morale. Topic covered in 32.3 Report a problem 13. An agent is NOT liable for the torts of any of the following EXCEPT for that of the O a. Agent b. Principal O C. Employer d. Contractor Topic covered in 32.3 Report a problem 14. Daniel is employed by Bob's Boatyard as a collection agent. Daniel was to repossess a boat owned by Anya for missed payments for a dock rental. In fact, Anya was NOT late, but Bob's bookkeeper made an error in entering payments. Daniel repossessed the boat. Why is it that Daniel and Bob's Boatyard are jointly and severally Hable? a. Both parties have an obligation that binds. b. Daniel is acting as an independent agent. c. Both parties are economically responsible for the tort. O d. Joint and several llability relieves Daniel from his duty. 15. If an employee disobeys an employer, what will disobedience do? o a. Insulate the employee from liability O b. Act as a shield c. Be a deterrent for future behavior O d. Not insulate the employer from liability Topic covered in 32.4 Report problem 16. The principle that an innocent employer can be held liable for an employee's wrongful actions is a. corporate complicity O b. vicarious liability O c. transferred intent O d. ultra vires 17. If an employee is accused of frolicking when a tort occurs, the employer's liability under may be relieved. o a. tortious liability O b. joint and several liability O c. respondeat superior O d. caveat emptor Topic covered in 32.4 Beport a problem 18. If an employee pursues personal business instead of conducting business for the employer, the employer is on O a. an errand O b. A frolic 0 C. A lark Od. A detour Topic covered in 32:4 Report a problem 19. Eric hired Brady to side his house. Since Brady has the power to control the work he performs and is only required to side the house and meet no other requirements, Brady is considered Eric's O a. independent contractor O b. manager o c. employee 0, d. No correct answer Topic covered in current section Report a problem 20. If an employer negligently selects an employee who commits a tort, the tort liability rests with the O a. employee only O b. employer and employee O C. employer only O d. judge