1. Is a principal liable for the tortious actions of the principals agent?

A. Yes, but only if the principal authorized the tortious conduct.

B. No, unless the principal authorized the tortious conduct.

C. No, only the agent is liable for the agents torts.

D. Yes, but the agent must reimburse the principal.

2. Who is liable to third parties for damage caused by an agents tortious conduct if the principal had directed the agent to take that action?

A. only the principal

B. neither the agent nor the principal if the principal has insurance coverage

C. both the agent and the principal

D. only the agent

3. If harm is done by an agent, and it is discovered that this agent has been convicted of the same harm before at a previous job, what might a principal be liable for?

A. breach of fiduciary duty

B. negligent hiring

C. negligent retention

D. gratuitous hiring

4. Is a principal under a duty to compensate an agent who works on the principals behalf?

A. No, an agent is never paid.

B. No, if a salary has not been agreed on.

C. Yes, if the contract requires compensation.

D. Yes, if the agent does a really good job above and beyond what is expected.