Facebook - Quiz Tutors
Agency & Express Authorization- Business Law Quiz
Twitter - Quiz Tutors

Agency, Express Authorizationm, Principal, Agent, Compensation, Business Law Quiz

The key terms in this Business Law course include Business, Principal, Agent, Compensation, Law, Contract, Agency, Express Authorization, Payment, Authorized Agent, Liable, Tort, lawsuit, disparate treatment, Quiz

____ 1. The usual method of creating an agency is by:

a. express authorization.

b. conduct.

c. operation of law.

d. ratification.

____ 2. John’s son was not his agent but contracted to purchase a computer in the name of John. When John learned of this, John sternly rebuked his son but continued to use the computer for several weeks. After losing interest in the computer, John offered to return it, saying that the purchase was unauthorized. John:

a. is not liable on the purchase.

b. expressly ratified the purchase.

c. is liable because all children have the apparent authority to contract for their parents.

d. ratified the purchase by John’s conduct.

____ 3. Payment to an authorized agent is:

a. payment to the principal only if the agent remits the payment.

b. payment to the principal if the third person informs the principal.

c. payment to the principal provided the agent does not misappropriate the payment.

d. payment to the principal.

____ 4. Which of the following is not liable for torts?

a. the employer of an employee who commits a tort in the scope of the work

b. the principal of an agent who commits a tort in the scope of the work

c. the owner of property when the tort is committed by an independent contractor

d. the principal when the principal commits a tort outside the scope of the agent’s work

____ 5. A lawsuit may be brought by a third person against the agent or principal when both are liable:

a. however, only one of the parties may be sued at a time.

b. however, the principal must be sued first.

c. however, the agent must be sued first.

d. none of the above.

____ 6. The rights of an employee to be compensated are governed primarily by the same principles that apply to

a. the compensation of a partner.

b. the compensation of a stockholder.

c. the compensation of an agent.

d. the compensation of a court-appointed trustee.

____ 7. When an employer treats some employees less favorably than others, the legal theory that applies is:

a. disparate impact.

b. affirmative action.

c. reverse discrimination.

d. disparate treatment.