Question 1 (1 point) When does an agent have a duty to obey the principal's instructions? When the instructions are not in the principal's best interest When the instructions require the agent to perform duties that are not in the agency agreement When the instructions are to perform an illegal act When the instructions are within the scope of the agent's agreement Question 2 (1 point) While Jim is away on active duty, he hired Bob to sell his house. Bob has found a buyer for the house. As Jim's agent, Bob can do which of the following? Create a binding agreement between the buyer and seller Sign a purchasing agreement Bring the parties together to sign a contract 5 Require a commission Question 3 (1 point) Pete hired Mike, a dealer in livestock, to sell his herd of cattle. Mike was to receive a $200 commission on the sale. Before a buyer could be found, the herd had to be destroyed because of an outbreak of mad cow disease. Which statement best describes the status of the agency agreement? The agency was terminated by operation of law. The agency will continue under the same terms when Pete acquires a new herd. The agency was terminated by mutual agreement. The agency was terminated by a unilateral action. Question 4 (1 point) Jim was called to active duty in the military. Knowing that he would be out of the country for a year or more, he gave his sister Peg authority to pay bills in his name, access his bank accounts, buy and sell stock in his brokerage accounts, and incur expenses to maintain his house and car. Because Peg is not compensated for the activities she is performing on her brother's behalf, what does she owe him? O All the fiduciary duties of an agent to a principal Only the duties of loyalty, information, and the duty to account Only the duties of loyalty and information Only the duty of loyalty Question 5 (1 point) The principal and agent have what type of relationship with each other? equitable statuatory arm's length fiduciary