Types of principals include all but which of the following?

a.	Disclosed principal

b.	Partially disclosed principal

c.	Undisclosed principal

d.	Implied principal

2.

A(n) ________ principal is one whose existence and identity is known to the third party, and the agent usually is not a party to a contract made with a third person on theprincipal'sbehalf.

a.	undisclosed

b.	partially undisclosed

c.

disclosed

d.	nonexistent principal

3.

________ authority is based upon the acts or conduct of the principal that lead a third person to believe that the agent, or supposed agent, has actual authority, upon which belief the third person relies.

a.	Actual implied

b.

Actual

c.	Actual express

d.

Apparent

4.

Which of the following is true about ratification?

a.	It can only occur after the third party withdraws from the transaction and gives notice of such withdrawal.

b.	It can be done by a corporation in most states.

c.	It relieves the agent of liability.

d.	It is effective even if the principal does not manifest an intent to ratify with knowledge of all material facts concerning the transaction.

5.

Which of the following is true about the tort liability of principal?

a.	An undisclosed principal employer is not liable for the torts committed by her employee within the scope of employment.

b.	The liability of the principal underrespondeatsuperior is vicarious or derivative and hence, does not depend upon the proof of wrongdoing by the employee within the scope of his employment.

c.	Tort may arise directly or indirectly from authorized or unauthorized acts of an agent.

d.	A principal is generally not liable in damages for harm resulting from his directing an agent to commit a tort.

6.

A principal who is held liable for her employee's tort has a(n) _____ against the employee, or the right to be reimbursed for the amount that she was required to pay as a result of the employee's wrongful act.

a.	provision for penalty

b.	duty to ratify

c.	right of indemnification

d.	insurable interest

7.

Which of the following is true with regard to contract liability of an agent?

a.	An agent who makes a contract for a disclosed principal whose contracts are voidable for lack of contractual capacity is liable to the third party.

b.	The principal is unidentified if, when an agent and a third party interact, the third party has no notice that the agent is acting for the principal.

c.	Even if a third party knows that the representation is false, the agent is liable.

d.	Whether the particular transaction is authorized or not, an agent for an unidentified principal is liable to the third party.

8.

Which of the following is true regarding an agent who is acting for an undisclosed principal?

a.	The agent will personally bind himself on most contracts for an undisclosed principal.

b.	The third party will never be bound in a contract with the principal.

c.	An undisclosed principal will bind only himself and not the agent.

d.	Failure to disclose the name of the principal is a form of fraud.

9.

An agent is normally not a party to a contract made with a third person on behalf of a(n):

a.	disclosed principal or a partially disclosed principal.

b.	disclosed principal only.

c.	undisclosed principal.

d.	nonexistent principal.

10.

An agent is personally liable for making representations that he knows to be fraudulent to a third person who in reliance sustains a loss. This is an example of:

a.	tort of liability of agents.

b.	contract liability of agents.

c.	express warranty of authority

d.	implied warranty of authority