business associations questions (c) 2014 william h. widen
AGENCY LAW; Warm Up Questions
No feedback is yet provided for these questions. LOOK UP RELEVANT PROVISIONS IN THE RESTATEMENTS!
Take a look at all relevant statutes and applicable Restatement sections!
An agent is a fiduciary for the principal.
TRUE
FALSE
As a general matter, an agent is authorized to act on behalf of of the principal in negotiating and transacting business with third parties as if the third party were negotiating and transacting business with the principal directly.
TRUE
FALSE
An employee, but not an independent contractor, may act in the legal capacity of an agent.
TRUE
FALSE
An independent contractor is always an agent of the employer.
TRUE
FALSE
A determining factor for deciding whether an agent is an employee is whether or not the principal controls the actions (or has the power to control the actions) of the agent.
TRUE
FALSE
The Restatement (Third) of Agency makes a distinction between employees and independent contractors.
TRUE
FALSE
A person designated as an "independent contract" is always, in the eyes of the law, an agent for the party who hired the independent contractor.
TRUE
FALSE
The statute of frauds requires that an agency relationship be created in a signed writing that bears the signature of the principal but need not contain the signature of the agent.
TRUE
FALSE
Sloppy, a thirty five year old artist, purported to appoint his 17 year old neice as his agent for selling his paintings. Such an arrangement is perfectly fine under the principles of agency law.
TRUE
FALSE
Sloppy introduced his neice, Adriana, to several art galleries in the Miami Design district, indicating that she would be acting for him in connection with the display of paintings for sale (including delivery of paintings and approval of the spacing, hanging and lighting for his works). Sloppy did not give Adriana authority to approve of sale prices--but he did not mention this to any galleries. Adriana neverthless has what kind of authority, if any, to bind Sloppy?
Adriana does not have any authority to bind Sloppy.
Adriana has apparent authority to bind Sloppy.
Adriana has inherent authority to bind Sloppy.
Adrian has implicit authority to bind Sloppy.
Sloppy introduced his neice, Adriana, to several art galleries in the Miami Design district, indicating that she would be acting for him in connection with the display of paintings for sale (including delivery of paintings and approval of the spacing, hanging and lighting for his works). Sloppy did not give Adriana authority to approve of sale prices--but he did not mention this to any galleries. If Adriana sets the prices for a collection of paintings with a gallery, Sloppy will be estopped from denying that the prices are enforceable.
TRUE
FALSE
Sloppy introduced his neice, Adriana, to several art galleries in the Miami Design district, indicating that she would be acting for him in connection with the display of paintings for sale (including delivery of paintings and approval of the spacing, hanging and lighting for his works). Sloppy did not give Adriana authority to approve of sale prices--but he did not mention this to any galleries. Adriana set the prices for a collection of paintings with a gallery, Sloppy was angry, but the prices seemed OK. He called the gallery to confirm the deal, saying Adriana had no authority. The gallery on these facts is free to affirm or reject the deal made without actual authority.
TRUE
FALSE
Sloppy introduced his neice, Adriana, to several art galleries in the Miami Design district, indicating that she would be acting for him in connection with the display of paintings for sale (including delivery of paintings and approval of the spacing, hanging and lighting for his works). Sloppy did not give Adriana authority to approve of sale prices--but he did not mention this to any galleries. Adriana set the prices for a collection of paintings with a gallery, Sloppy was angry, but the prices seemed OK except for one masterpiece--Aristotle contemplating the bust of Homer Simpson. He called the gallery to confirm the deal but for the price on the masterpiece, saying Adriana had no authority. The gallery on these facts is free to affirm or reject the deal made without actual authority.
TRUE
FALSE
Sloppy introduced his neice, Adriana, to several art galleries in the Miami Design district, indicating that she would be acting for him in connection with the display of paintings for sale (including delivery of paintings and approval of the spacing, hanging and lighting for his works). Sloppy did not give Adriana authority to approve of sale prices--but he did not mention this to any galleries. Adriana set the prices for a collection of paintings with a gallery, Sloppy was angry and yelled at Adriana, but the prices seemed OK. Adriana told the manager of the gallery that she had exceeded her authority. The gallery called Sloppy to say "the deal is OFF!" to which Sloppy said "no dice--I ratify it." On these facts a binding contract exists for the sale of the paintings.
TRUE
FALSE
Sloppy introduced his neice, Adriana, to several art galleries in the Miami Design district, indicating that she would be acting for him in connection with the display of paintings for sale (including delivery of paintings and approval of the spacing, hanging and lighting for his works). No authority was expressly given to set prices, but in the art business in Miami arrangers like Adriana typically set the prices. If Adriana sets the prices for the paintings on these facts, what is the strongest authority Adrian may have? HINT: R3d of Agency.