1)Kayla represents to Ed, that she has authority to act on behalf of Paul. However, Paul has not given Kayla any such authority. If Ed reasonably believes that Kayla does has the authority, courts would likely determine that Kayla has:

Group of answer choices

A) express authority

B) no authority

C) apparent authority

D) implied authority

2) A principal is never liable to a third party for any contract made by the agent acting outside the scope of his authority.

A)True

B)False

3)If Sansburn Insurance Agency procures insurance for its customer, Clare, it may still be liable for failure to procure insurance if Sansburn failed to properly advise Clare of the policy's exclusions.

A)True

B) False

4)Questions of imputed knowledge often arise when insurance agents possess knowledge that would have caused the insurer to:

A) Issue a policy without the insured's signature on the application.

B) Bind coverage on an ineligible exposure.

C) Prevent the agent from collecting the premium.

D) Decline coverage had the insurer been aware of all the material, relevant information.

5) Vanderbilt Insurance Company, an insurer, tells Mason Insurance Agency that Mason has the power to sell Vanderbilt policies. This power is best described as:

a) actual authority

b) implied authority

c) apparent authority

d) third party authority

6) All employers are legally required to offer employees FMLA benefits.

a) True

b) False

7) Partnership is a default business structure.

A) True

B) False

8) Which legal system does the following describe: "Law founded on the premise that the greater societal good outweighs the rights of individuals. Law generally does not limit the exercise of governmental power."

A) civil law

B) common law

C) socialist law

D) Islamic law