11. An agent has not breached the duty of ________ if the principal gives unlawful or unethical instructions.

a. loyalty

b. performance

c. obedience

d. compensation

12. John, a real estate agent, buys for himself a property that his principal, Arthur, wanted to buy. If John is aware that Arthur wanted to buy the property, then the court will most likely take which of the following actions?

a. The court will grant Arthur the legal rights for the property.

b. The court will grant John the legal rights for the property.

c. The court will grant legal rights for the property to the party who is willing to pay the most.

d. The court will sell the property to a third party.

13. A principal has a right to ________blank if a breach of contract occurs due to an agent's negligence.

a. reimbursement

b. an accounting

c. settlement

d. indemnification

14. Under the duty of ________blank, the law assumes that the principal is aware of all information revealed to the agent, regardless of whether the agent shares it with the principal.

a. accounting

b. loyalty

c. obedience

d. notification

15. If an agency contract is for personal services, the agent does not have the right to pursue ________ as a remedy if the principal does not perform as agreed.

a. indemnification

b. specific performance

c. reimbursement

d. damages

16. In an agency relationship, the ________blank is authorized to act for and on behalf of the ________blank, who hires the ________blank to represent him or her.

a. principal; agent; principal

b. agent; principal; agent

c. obligor; oblige; obligor

d. oblige; obligor; oblige

17. Agency contracts do not need to be in writing unless an agent has been given power of authority or if the agent will be entering into a contract that the ________blank requires to be in writing.

a. expressed authority

b. statute of frauds

c. ratification agreement

d. implied covenant

18. An agent who is not paid for his or her services is known as a ________blank agent.

a. gratuitous

b. financial

c. donor

d. considered

19. If a principal ________blank, a durable power of attorney given by the principal to an agent is not affected.

a. dies

b. dies without a will

c. becomes incapacitated

d. dies intestate

20. The ________blank is/are considered when a court determines whether an apparent agency relationship exists.

a. acts of the purported agent

b. written terms of the agency agreement between the parties

c. acts of the principal

d. estoppel agreement