Agency Relationships - CPA Regulation (REG)
Card 1 of 24
Clarett, who owned a retail business, left a note on a desk Clarett thought was occupied by Franklen. The note stated, "Please contract to purchase 20,000 widgets at the best possible price from Eisen Corp. for delivery in March." The desk was actually being used by Saranz, who made a contract for the purchase of the widgets as specified. Saranz had little negotiating experience and contracted for a high price. Which of the following statements is correct regarding the authority held by Saranz?
Clarett, who owned a retail business, left a note on a desk Clarett thought was occupied by Franklen. The note stated, "Please contract to purchase 20,000 widgets at the best possible price from Eisen Corp. for delivery in March." The desk was actually being used by Saranz, who made a contract for the purchase of the widgets as specified. Saranz had little negotiating experience and contracted for a high price. Which of the following statements is correct regarding the authority held by Saranz?
Tap to reveal answer
Since the note did not specify the intended agent (Franklen) and was left on Saranz’s desk, the note granted actual authority to Saranz to act on Clarett’s behalf as an agent. The agent’s skill in negotiating has no bearing on whether the contract is enforceable when actual authority has been given to the agent.
Since the note did not specify the intended agent (Franklen) and was left on Saranz’s desk, the note granted actual authority to Saranz to act on Clarett’s behalf as an agent. The agent’s skill in negotiating has no bearing on whether the contract is enforceable when actual authority has been given to the agent.
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Tim’s Real Estate, Inc., employs David to buy city property for a future apartment complex. Through Construction Co., David’s own corporation, David secretly purchases a city property that David discovered while searching for property for Tim. David later arranges to have Construction Co. sell the property to Tim for more than Construction Co. paid for it. David has breached the duty of:
Tim’s Real Estate, Inc., employs David to buy city property for a future apartment complex. Through Construction Co., David’s own corporation, David secretly purchases a city property that David discovered while searching for property for Tim. David later arranges to have Construction Co. sell the property to Tim for more than Construction Co. paid for it. David has breached the duty of:
Tap to reveal answer
The duty of loyalty requires than an agent not engage in self-dealing or competing against the principal. The only other option that is a defined duty of an agent is care, in which the agent must carry out the agency by avoiding negligence.
The duty of loyalty requires than an agent not engage in self-dealing or competing against the principal. The only other option that is a defined duty of an agent is care, in which the agent must carry out the agency by avoiding negligence.
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Wilson gives Sussex power of attorney. In general, the power of attorney:
Wilson gives Sussex power of attorney. In general, the power of attorney:
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Power of attorney is generally used to provide an agent with authority to perform specific tasks. A power of attorney may be anyone, and only the principal must sign the power of attorney. Power of attorney lapses upon the death of the principal.
Power of attorney is generally used to provide an agent with authority to perform specific tasks. A power of attorney may be anyone, and only the principal must sign the power of attorney. Power of attorney lapses upon the death of the principal.
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What is the doctrine under which a corporation is made liable for the torts of the corporation’s employees when the torts are committed within the scope of employment?
What is the doctrine under which a corporation is made liable for the torts of the corporation’s employees when the torts are committed within the scope of employment?
Tap to reveal answer
Under the doctrine of respondeat superior, a principal, including a corporation can be held liable for an employee’s tort committed within the scope of employment.
Under the doctrine of respondeat superior, a principal, including a corporation can be held liable for an employee’s tort committed within the scope of employment.
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Which of the following conditions must be met to form an agency?
Which of the following conditions must be met to form an agency?
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Formation of an agency relationship requires a principal who has contractual capacity.
Formation of an agency relationship requires a principal who has contractual capacity.
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Usually, an agent will be liable under a contract with a third party when the agent is acting on the behalf of who?
Usually, an agent will be liable under a contract with a third party when the agent is acting on the behalf of who?
Tap to reveal answer
Generally, the agent would not be held liable on the contract that he or she makes on the principal’s behalf if the principal is disclosed however the agent would be personally liable on contracts made when the principal is undisclosed.
Generally, the agent would not be held liable on the contract that he or she makes on the principal’s behalf if the principal is disclosed however the agent would be personally liable on contracts made when the principal is undisclosed.
← Didn't Know|Knew It →
Clarett, who owned a retail business, left a note on a desk Clarett thought was occupied by Franklen. The note stated, "Please contract to purchase 20,000 widgets at the best possible price from Eisen Corp. for delivery in March." The desk was actually being used by Saranz, who made a contract for the purchase of the widgets as specified. Saranz had little negotiating experience and contracted for a high price. Which of the following statements is correct regarding the authority held by Saranz?
Clarett, who owned a retail business, left a note on a desk Clarett thought was occupied by Franklen. The note stated, "Please contract to purchase 20,000 widgets at the best possible price from Eisen Corp. for delivery in March." The desk was actually being used by Saranz, who made a contract for the purchase of the widgets as specified. Saranz had little negotiating experience and contracted for a high price. Which of the following statements is correct regarding the authority held by Saranz?
Tap to reveal answer
Since the note did not specify the intended agent (Franklen) and was left on Saranz’s desk, the note granted actual authority to Saranz to act on Clarett’s behalf as an agent. The agent’s skill in negotiating has no bearing on whether the contract is enforceable when actual authority has been given to the agent.
Since the note did not specify the intended agent (Franklen) and was left on Saranz’s desk, the note granted actual authority to Saranz to act on Clarett’s behalf as an agent. The agent’s skill in negotiating has no bearing on whether the contract is enforceable when actual authority has been given to the agent.
← Didn't Know|Knew It →
Tim’s Real Estate, Inc., employs David to buy city property for a future apartment complex. Through Construction Co., David’s own corporation, David secretly purchases a city property that David discovered while searching for property for Tim. David later arranges to have Construction Co. sell the property to Tim for more than Construction Co. paid for it. David has breached the duty of:
Tim’s Real Estate, Inc., employs David to buy city property for a future apartment complex. Through Construction Co., David’s own corporation, David secretly purchases a city property that David discovered while searching for property for Tim. David later arranges to have Construction Co. sell the property to Tim for more than Construction Co. paid for it. David has breached the duty of:
Tap to reveal answer
The duty of loyalty requires than an agent not engage in self-dealing or competing against the principal. The only other option that is a defined duty of an agent is care, in which the agent must carry out the agency by avoiding negligence.
The duty of loyalty requires than an agent not engage in self-dealing or competing against the principal. The only other option that is a defined duty of an agent is care, in which the agent must carry out the agency by avoiding negligence.
← Didn't Know|Knew It →
Wilson gives Sussex power of attorney. In general, the power of attorney:
Wilson gives Sussex power of attorney. In general, the power of attorney:
Tap to reveal answer
Power of attorney is generally used to provide an agent with authority to perform specific tasks. A power of attorney may be anyone, and only the principal must sign the power of attorney. Power of attorney lapses upon the death of the principal.
Power of attorney is generally used to provide an agent with authority to perform specific tasks. A power of attorney may be anyone, and only the principal must sign the power of attorney. Power of attorney lapses upon the death of the principal.
← Didn't Know|Knew It →
What is the doctrine under which a corporation is made liable for the torts of the corporation’s employees when the torts are committed within the scope of employment?
What is the doctrine under which a corporation is made liable for the torts of the corporation’s employees when the torts are committed within the scope of employment?
Tap to reveal answer
Under the doctrine of respondeat superior, a principal, including a corporation can be held liable for an employee’s tort committed within the scope of employment.
Under the doctrine of respondeat superior, a principal, including a corporation can be held liable for an employee’s tort committed within the scope of employment.
← Didn't Know|Knew It →
Which of the following conditions must be met to form an agency?
Which of the following conditions must be met to form an agency?
Tap to reveal answer
Formation of an agency relationship requires a principal who has contractual capacity.
Formation of an agency relationship requires a principal who has contractual capacity.
← Didn't Know|Knew It →
Usually, an agent will be liable under a contract with a third party when the agent is acting on the behalf of who?
Usually, an agent will be liable under a contract with a third party when the agent is acting on the behalf of who?
Tap to reveal answer
Generally, the agent would not be held liable on the contract that he or she makes on the principal’s behalf if the principal is disclosed however the agent would be personally liable on contracts made when the principal is undisclosed.
Generally, the agent would not be held liable on the contract that he or she makes on the principal’s behalf if the principal is disclosed however the agent would be personally liable on contracts made when the principal is undisclosed.
← Didn't Know|Knew It →
Clarett, who owned a retail business, left a note on a desk Clarett thought was occupied by Franklen. The note stated, "Please contract to purchase 20,000 widgets at the best possible price from Eisen Corp. for delivery in March." The desk was actually being used by Saranz, who made a contract for the purchase of the widgets as specified. Saranz had little negotiating experience and contracted for a high price. Which of the following statements is correct regarding the authority held by Saranz?
Clarett, who owned a retail business, left a note on a desk Clarett thought was occupied by Franklen. The note stated, "Please contract to purchase 20,000 widgets at the best possible price from Eisen Corp. for delivery in March." The desk was actually being used by Saranz, who made a contract for the purchase of the widgets as specified. Saranz had little negotiating experience and contracted for a high price. Which of the following statements is correct regarding the authority held by Saranz?
Tap to reveal answer
Since the note did not specify the intended agent (Franklen) and was left on Saranz’s desk, the note granted actual authority to Saranz to act on Clarett’s behalf as an agent. The agent’s skill in negotiating has no bearing on whether the contract is enforceable when actual authority has been given to the agent.
Since the note did not specify the intended agent (Franklen) and was left on Saranz’s desk, the note granted actual authority to Saranz to act on Clarett’s behalf as an agent. The agent’s skill in negotiating has no bearing on whether the contract is enforceable when actual authority has been given to the agent.
← Didn't Know|Knew It →
Tim’s Real Estate, Inc., employs David to buy city property for a future apartment complex. Through Construction Co., David’s own corporation, David secretly purchases a city property that David discovered while searching for property for Tim. David later arranges to have Construction Co. sell the property to Tim for more than Construction Co. paid for it. David has breached the duty of:
Tim’s Real Estate, Inc., employs David to buy city property for a future apartment complex. Through Construction Co., David’s own corporation, David secretly purchases a city property that David discovered while searching for property for Tim. David later arranges to have Construction Co. sell the property to Tim for more than Construction Co. paid for it. David has breached the duty of:
Tap to reveal answer
The duty of loyalty requires than an agent not engage in self-dealing or competing against the principal. The only other option that is a defined duty of an agent is care, in which the agent must carry out the agency by avoiding negligence.
The duty of loyalty requires than an agent not engage in self-dealing or competing against the principal. The only other option that is a defined duty of an agent is care, in which the agent must carry out the agency by avoiding negligence.
← Didn't Know|Knew It →
Wilson gives Sussex power of attorney. In general, the power of attorney:
Wilson gives Sussex power of attorney. In general, the power of attorney:
Tap to reveal answer
Power of attorney is generally used to provide an agent with authority to perform specific tasks. A power of attorney may be anyone, and only the principal must sign the power of attorney. Power of attorney lapses upon the death of the principal.
Power of attorney is generally used to provide an agent with authority to perform specific tasks. A power of attorney may be anyone, and only the principal must sign the power of attorney. Power of attorney lapses upon the death of the principal.
← Didn't Know|Knew It →
What is the doctrine under which a corporation is made liable for the torts of the corporation’s employees when the torts are committed within the scope of employment?
What is the doctrine under which a corporation is made liable for the torts of the corporation’s employees when the torts are committed within the scope of employment?
Tap to reveal answer
Under the doctrine of respondeat superior, a principal, including a corporation can be held liable for an employee’s tort committed within the scope of employment.
Under the doctrine of respondeat superior, a principal, including a corporation can be held liable for an employee’s tort committed within the scope of employment.
← Didn't Know|Knew It →
Which of the following conditions must be met to form an agency?
Which of the following conditions must be met to form an agency?
Tap to reveal answer
Formation of an agency relationship requires a principal who has contractual capacity.
Formation of an agency relationship requires a principal who has contractual capacity.
← Didn't Know|Knew It →
Usually, an agent will be liable under a contract with a third party when the agent is acting on the behalf of who?
Usually, an agent will be liable under a contract with a third party when the agent is acting on the behalf of who?
Tap to reveal answer
Generally, the agent would not be held liable on the contract that he or she makes on the principal’s behalf if the principal is disclosed however the agent would be personally liable on contracts made when the principal is undisclosed.
Generally, the agent would not be held liable on the contract that he or she makes on the principal’s behalf if the principal is disclosed however the agent would be personally liable on contracts made when the principal is undisclosed.
← Didn't Know|Knew It →
Clarett, who owned a retail business, left a note on a desk Clarett thought was occupied by Franklen. The note stated, "Please contract to purchase 20,000 widgets at the best possible price from Eisen Corp. for delivery in March." The desk was actually being used by Saranz, who made a contract for the purchase of the widgets as specified. Saranz had little negotiating experience and contracted for a high price. Which of the following statements is correct regarding the authority held by Saranz?
Clarett, who owned a retail business, left a note on a desk Clarett thought was occupied by Franklen. The note stated, "Please contract to purchase 20,000 widgets at the best possible price from Eisen Corp. for delivery in March." The desk was actually being used by Saranz, who made a contract for the purchase of the widgets as specified. Saranz had little negotiating experience and contracted for a high price. Which of the following statements is correct regarding the authority held by Saranz?
Tap to reveal answer
Since the note did not specify the intended agent (Franklen) and was left on Saranz’s desk, the note granted actual authority to Saranz to act on Clarett’s behalf as an agent. The agent’s skill in negotiating has no bearing on whether the contract is enforceable when actual authority has been given to the agent.
Since the note did not specify the intended agent (Franklen) and was left on Saranz’s desk, the note granted actual authority to Saranz to act on Clarett’s behalf as an agent. The agent’s skill in negotiating has no bearing on whether the contract is enforceable when actual authority has been given to the agent.
← Didn't Know|Knew It →
Tim’s Real Estate, Inc., employs David to buy city property for a future apartment complex. Through Construction Co., David’s own corporation, David secretly purchases a city property that David discovered while searching for property for Tim. David later arranges to have Construction Co. sell the property to Tim for more than Construction Co. paid for it. David has breached the duty of:
Tim’s Real Estate, Inc., employs David to buy city property for a future apartment complex. Through Construction Co., David’s own corporation, David secretly purchases a city property that David discovered while searching for property for Tim. David later arranges to have Construction Co. sell the property to Tim for more than Construction Co. paid for it. David has breached the duty of:
Tap to reveal answer
The duty of loyalty requires than an agent not engage in self-dealing or competing against the principal. The only other option that is a defined duty of an agent is care, in which the agent must carry out the agency by avoiding negligence.
The duty of loyalty requires than an agent not engage in self-dealing or competing against the principal. The only other option that is a defined duty of an agent is care, in which the agent must carry out the agency by avoiding negligence.
← Didn't Know|Knew It →