QUESTION 2

Employees who conduct business with third parties are agents of their employers.

1. True
2. False

QUESTION 3

Agency relationships do not exist outside of employment relationships.

1. True
2. False

QUESTION 4

An independent contractor can act in the capacity of an agent.

1. True
2. False

QUESTION 5

An independent contractor always acts in the capacity of an agent.

1. True
2. False

QUESTION 6

An agency relationship can only be formed in writing.

1. True
2. False

QUESTION 7

An agent owes its principal an obligation to act in good faith at all times.

1. True
2. False

QUESTION 8

If an agent acts within the scope of their authority a disclosed principal is liable on the contract made by the agent.

1. True
2. False

QUESTION 9

If an agent acts within the scope of their authority for a partially disclosed principal, the principal is liable on the contract made.

1. True
2. False

QUESTION 10

If an agent acts within the scope of their authority for an undisclosed principal, the principal is liable to the third part for the contract.

1. True
2. False

QUESTION 11

If an agent acts within the scope of their authority for an undisclosed principal, the agent is liable to the third part for the contract, as is the principal.

1. True
2. False

QUESTION 12

If an agent acts within the scope of their authority for a disclosed principal, the agent is also liable to the third part for the contract.

1. True
2. False

QUESTION 13

A principal is required to indemnify an agent for liabilities incurred during the performance of an authorized act of the agent.

1. True
2. False

QUESTION 14

Apparent authority exists if a principal causes a third party to believe reasonably that the agent had authority.

1. True
2. False

QUESTION 15

Information acquired by the agent through the agency relationship is not considered confidential.

1. True
2. False

QUESTION 16

An employer is liable for the unintentional torts committed by its employees performed during the course of their employment.

1. True
2. False

QUESTION 17

An employer is always liable for the unintentional torts of an independent contractor occurring during the performance of their duties.

1. True
2. False

QUESTION 18

All contracts executed by agents require a ratification by an officer of the company.

1. True
2. False

QUESTION 19

Frolic and detour refer to terms of endearment for the agent by the principal.

1. True
2. False

QUESTION 20

A principal owes to its agent a duty of cooperation.

1. True
2. False