Please confirm if the answers are correct and if not please provide the correction.

1.A principal/Agency relationship requires

a		Written Agreement
b		Power of Attorney
c		Meeting of the minds and consent to act
d		All the above

C

2. Blue,a used car dealer, appointed Gage as an agent, to sell Blue's cars. Gage appointed Montas a sub-agent. To whom does Mont owe a fiduciary duty?

a		Gage Only
b		Blue Only
c		Neither Gage or Blue.
d		Both Gage and Blue.

D

3. Frost has an accountant and business manager to whom he has given implied authority.Under that authority,Frost's accountant and business manager have the authority to:

a		Obtain insurance on behalf of Frost.
b		Sell Frost's home.
c		Execute a Last Will and Testament on behalf of Frost.
d		All the above.

A

4. North hired Sutter as a purchasing agent and gave him written authorization tomakepurchaseswithoutlimit. Sutter did purchase from Orr. Considering the foregoing, is North liable to Orr?

a		Yes because he gaveSutterwritten authorization without limit.
b		No because Sutter actually made the purchase and not North.
c		Yes but he is jointly liable with Sutterto Orr.
d		Neither North nor Sutterare liable to Orr.

A

5. Pell is the agent and Astor is the principalin an agency coupled with an interest. Who has the right to terminate the agency in an agency coupled with interest?

a		Pell
b		Astor
c		Both Pell and Astor.
d		Neither Pellnor Astor.

D

6. Young, hired Wilson for 6months at $5000a month plus 6%of sales. Which of the following statement is correct?

a		Young does not have the power to dismiss Wilson during the six month period.
b		Wilson must work only for Young during the six month period.
c		The agreement between Young and Wilson is unenforceable.
d		The agreement between Young and Wilson is enforceable.

D

7. Place corporation orally contracted with Alto to work as Place's agent on customer service calls. Alto was authorized to customize Place's software to the customer's needs on a commission basis but NOT to sell Place's hardware computers.On 9/15 Alto made a service call on Teal to repair Teal's computer. In the past, Alto called on Teal , repaired computers and collected cash for the repairs. During the call,Alto sold Teal a computer from Place at a reduced cost but Teal had no knowledge that he was getting the computer at a reduced cost.Teal paid $1000.00towards the purchase of the computer.Alto pocketed the money and left town. Place refused to honor the deal. Referring to the above scenario,is Place responsible to deliver the computer?

True

False

F

8. Place corporation orally contracted with Alto to work as Place's agent on customer service calls. Alto was authorized to customize Place's software to the customer's needs on a commission basis but NOT to sell Place's hardware computers. On 9/15 Alto made a service call on Teal to repair Teal's computer. In the past, Alto called on Teal , repaired computers and collected cash for the repairs. During the call, Alto sold Teal a computer from Place at a reduced cost but Teal had no knowledge that he was getting the computer at a reduced cost. Teal paid $1000.00 towards the purchase of the computer. Alto pocketed the money and left town. Place refused to honor the deal. Referring to the above scenario, Place's agreement with Alto empowered Alto to act as Place's agent for the sale of the computer.

True

False

T

9. Place corporation orally contracted with Alto to work as Place's agent on customer service calls. Alto was authorized to customize Place's software to the customer's needs on a commission basis but NOT to sell Place's hardware computers.On 9/15 Alto made a service call on Teal to repair Teal's computer. In the past, Alto called on Teal , repaired computers and collected cash for the repairs. During the call,Alto sold Teal a computer from Place at a reduced cost but Teal had no knowledge that he was getting the computer at a reduced cost.Teal paid $1000.00towards the purchase of the computer.Alto pocketed the money and left town. Place refused to honor the deal. Referring to the above scenario,Place is not bound by the agreement made by Alto to Teal.

True

False

F

10. Place corporation orally contracted with Alto to work as Place's agent on customer service calls. Alto was authorized to customize Place's software to the customer's needs on a commission basis but NOT to sell Place's hardware computers.On 9/15 Alto made a service call on Teal to repair Teal's computer. In the past, Alto called on Teal , repaired computers and collected cash for the repairs. During the call,Alto sold Teal a computer from Place at a reduced cost but Teal had no knowledge that he was getting the computer at a reduced cost.Teal paid $1000.00towards the purchase of the computer.Alto pocketed the money and left town. Place refused to honor the deal. Referring to the above scenario, both place and Alto are contractually liable to Teal.

True

False

T