Question 1

Karla, a lawyer, hired Jackson to do general clerical work for her. She maintained control over his work, gave him day-to-day instructions regarding his duties, paid him on an hourly basis, and furnished all equipment he needed. For tax purposes, Karla claimed Jackson as an independent contractor. She was audited by the IRS who took the position that Jackson was an employee. Please explain why Jackson is, or is not, an independent contractor. Also explain the effect of the IRS determination of employee or independent contractor.

Accepted Answer

Jackson would be considered an employee ...

Question 2

Which of the following is the term used to describe the duty and responsibilities of the agent as specified in the agency agreement?

Accepted Answer

A)   Duty of action
B)   Duty of contract
C)   Express duty of action
D)   Duty of performance
E)   Duty of obedienceF) None of the above
G) B) and E)

Question 3

What type of relationship has formed when one person has no control over the details of conduct of another person's work?

Accepted Answer

A)   Principal-agent
B)   Employer-employee
C)   Employer-independent contractor
D)   Employer-agent
E)   Principal-independent contractorF) C) and D)
G) A) and E)

Question 4

In the text case Glenn v. Gibbs, Glenn was injured and eventually died from his injuries as a direct result of trimming Gibbs' tree limbs. Glenn's wife sued Gibbs for negligence alleging Gibbs' actions and omissions caused Glenn's death. Which of the following was the result?

Accepted Answer

A)   Gibbs was not liable because Glenn was an employee.
B)   Gibbs was not liable because Glenn was an independent contractor.
C)   Gibbs was liable because Glenn was an employee.
D)   Gibbs was liable because Glenn was an independent contractor.
E)   Gibbs settled the lawsuit out of court and admitted fault.F) C) and D)
G) B) and D)

Question 5

[High Maintenance] Malcolm, who runs a retail jewelry store, went to a wholesale jewelry store with Ashley, to whom he was engaged to be married. Malcolm had no express, written agreement with Ashley by which she was his agent. The wholesaler jeweler, Rebecca, asked Malcolm if Ashley was buying for him. Malcolm did not want to embarrass Ashley so he nodded in agreement. A few minutes later Malcolm whispered to Ashley, outside the hearing of the wholesaler, that she should not make any purchases. Malcolm and Ashley had a big disagreement over money that evening, and Ashley broke off their engagement. The next day Ashley went back to the wholesale jeweler and purchased a string of pearls for $2,000. Ashley also purchased a fur jacket for $3,000 from a store next door to the jewelry store owned by Harry. She told Harry that Malcolm wanted a fur jacket for a model in his store and that Malcolm would be glad to pay Harry for the jacket.
-Which of the following is the most likely result if Harry sues Malcolm for the price of the jacket?

Accepted Answer

A)   Malcolm will win because he did nothing to cause Harry to believe that he would pay for the jacket.
B)   Harry will win because Ashley indicated that she had apparent authority to buy the jacket for Malcolm.
C)   Harry will win only if he can show that through reasonable investigative efforts on his part Ashley cannot be located.
D)   Harry will win only if he can show that Ashley has no assets with which to pay for the necklace.
E)   Harry will win on an implied agency theory.F) C) and E)
G) A) and B)

Question 6

Which of the following is true regarding agency contracts?

Accepted Answer

A)   Agency contracts must clearly define the agent's compensation.
B)   A contract is not required to create an agency but if a contract exists, it must meet all requirements prescribed by contract law.
C)   A contract is required to create a valid agency
D)   An agency contract cannot create an agency agreement longer than two years.
E)   An agency contract only needs to be signed by the principal.F) A) and B)
G) D) and E)

Question 7

A[n] ________ trust is an equitable trust imposed on one who wrongfully obtains or holds legal right to property he or she should not possess.

Accepted Answer

A)   Resolute
B)   Actual
C)   Constructive
D)   Defined
E)   AbsoluteF) C) and D)
G) A) and E)

Question 8

The Case Opener discussed whether FedEx illegally refused to collectively bargain with single-route drivers on the basis that they were independent contractors, not employees. Which of the following is true regarding the result?

Accepted Answer

A)   To determine whether the FedEx drivers should be classified as employees or independent contractors, the court applied federal statutory law.
B)   The court found that FedEx did not exercise the degree of control necessary for the relationship to be considered employer-employee.
C)   The court found that at times the drivers acted as employees and that other times they acted as independent contractors and that they would, therefore, be classified as independent contractors.
D)   The court found that at times the drivers acted as employees and that other times they acted as independent contractors and that they would, therefore, be classified as employees.
E)   The court found that all the rights and duties of employees as agents applied to their relationship with FedEx.F) B) and D)
G) A) and E)

Question 9

Theilan and Llewellyn make an agreement in writing that Theilan will act on behalf of Llewellyn at an auction. This type of agency relationship is a(n)  ________ relationship.

Accepted Answer

A)   expressed agency
B)   implied agency
C)   apparent agency
D)   ratification agency
E)   applied agencyF) A) and B)
G) B) and E)

Question 10

[Cheap Principal] Paolo, who is very knowledgeable regarding computers, agrees to purchase computers for Joe's business. Paolo is retained for that purpose only, he is paid a set rate for the job, and Joe exercised no control over the manner in which Paolo did his work. Paolo purchased computers from AAA Computers without any mention of Joe. The computers worked well and were not defective in any way. Unfortunately, Joe did not pay AAA Computers on a timely basis. Paolo, therefore, paid AAA Computers out of his own pocket because he wanted to be able to do business with AAA Computers in the future and also because his name was on the invoice. Paolo asked Joe for reimbursement, but Joe refused. Joe claimed that if Paolo had only waited, AAA Computers might have agreed to take less.
-Which of the following likely represents Paolo's status in regards to his employment with Joe?

Accepted Answer

A)   He was an independent contractor.
B)   He was an employee.
C)   He had a special status called employee-contractor, a term used to represent a contractor with some responsibilities indicating status as an employee and some responsibilities indicating otherwise.
D)   He was an express contractor.
E)   He was an implied contractor.F) C) and D)
G) A) and B)

Question 11

The law assumes that the principal is aware only of information actually provided to the principal by the agent.

Accepted Answer

A) True 
 B)False

Question 12

[High Maintenance] Malcolm, who runs a retail jewelry store, went to a wholesale jewelry store with Ashley, to whom he was engaged to be married. Malcolm had no express, written agreement with Ashley by which she was his agent. The wholesaler jeweler, Rebecca, asked Malcolm if Ashley was buying for him. Malcolm did not want to embarrass Ashley so he nodded in agreement. A few minutes later Malcolm whispered to Ashley, outside the hearing of the wholesaler, that she should not make any purchases. Malcolm and Ashley had a big disagreement over money that evening, and Ashley broke off their engagement. The next day Ashley went back to the wholesale jeweler and purchased a string of pearls for $2,000. Ashley also purchased a fur jacket for $3,000 from a store next door to the jewelry store owned by Harry. She told Harry that Malcolm wanted a fur jacket for a model in his store and that Malcolm would be glad to pay Harry for the jacket.
-If Rebecca, the wholesaler jeweler, sues Malcolm for the price of the pearls, which of the following is the most likely result?

Accepted Answer

A)   Rebecca will win assuming that she can prove that she reasonably believed, based on Malcolm's conduct that Ashley was acting as his agent.
B)   Rebecca will lose because it was her responsibility to ask Malcolm for written documentation that Ashley was his agent.
C)   Rebecca will lose unless it can be established that Ashley at some time in the past had actual authority to act as Malcolm's agent.
D)   Rebecca will win only if she can show that through reasonable investigative efforts on her part Ashley cannot be located.
E)   Rebecca will win only if she can show that Ashley has no assets with which to pay for the necklace.F) All of the above
G) A) and B)

Question 13

The principal does not owe duties to an agent even though an agent owes duties to a principal.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is true regarding the status of an agent as a fiduciary?

Accepted Answer

A)   Although the principal is a fiduciary, an agent is not a fiduciary.
B)   An agent is a fiduciary only if the principal and agent agreed by written contract that the agent is a fiduciary.
C)   An agent is a fiduciary only if the principal and agent agreed by written or oral contract that the agent is a fiduciary.
D)   An agent is only a fiduciary to the principal only if a transaction in excess of $10,000 is involved.
E)   An agent is a fiduciary to the principal.F) None of the above
G) A) and C)

Question 15

________ relationships are the most common types of agency relationships.

Accepted Answer

A)   Apparent agency
B)   Implied agency
C)   Express agency
D)   Ratification agency
E)   Applied agencyF) D) and E)
G) C) and D)

Question 16

Apparent agency, also known as ________, is when the principal has created by his conduct belief in another individual that a person serves as their agent when in fact they do not have the authority to act for the principal.

Accepted Answer

A)   Exclusive agency
B)   Equitable agency
C)   Agency by law
D)   Agency by estoppel
E)   Legal agencyF) B) and D)
G) B) and E)

Question 17

Sarah hired Karen to manage her campaign for the next six months and promised not to hire anyone else for the position. The parties agreed Karen will work for Sarah until the end of the campaign and can only work for Sarah's campaign. What kind of agency was created?

Accepted Answer

A)   An exclusive agency contract
B)   An agency by ratification
C)   An agency by implied authority
D)   An apparent agency
E)   An agency was not created.F) All of the above
G) B) and E)

Question 18

As set forth in the text, which of the following is false regarding agency law in relation to sports agents?

Accepted Answer

A)   Over half of the states have enacted statutes governing the behavior of sports agents.
B)   Efforts are underway to develop a uniform act addressing regulation of sports agents because none exists at the present time.
C)   Players associations' model contracts describe the nature of the services agents can perform on behalf of their principals and the duties the parties owe to one another.
D)   Some states have established criminal penalties for athletes who violate the state law addressing regulation of sports agents, but most states focus on criminalizing the activity of sports agents.
E)   The Major League Baseball Players Association's Regulations Governing Player Agents expressly state that agents act in a fiduciary capacity vis-à-vis their athlete clients.F) None of the above
G) C) and D)

Question 19

When determining whether a worker is an independent contract or an employee, one of the most important considerations is ________, which is when the employer has the right to substantially control the worker's day-to-day operations.

Accepted Answer

A)   Specific performance
B)   Special performance
C)   Oversight
D)   Employer control
E)   DelegationF) D) and E)
G) B) and E)

Question 20

What type of relationship has formed when one person has the right to control the conduct of another person?

Accepted Answer

A)   Principal-agent
B)   Employer-employee
C)   Employer-independent contractor
D)   Employer-agent
E)   Principal-independent contractorF) B) and C)
G) B) and D)

Exam 33: Agency Formation and Duties

A[n] ________ trust is an equitable trust imposed on one who wrongfully obtains or holds legal right to property he or she should not possess.

Correct Answer
verified

Correct Answer
verified
Jackson would be considered an employee ...
View Answer

What type of relationship has formed when one person has the right to control the conduct of another person?

Correct Answer
verified

Correct Answer
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Sarah hired Karen to manage her campaign for the next six months and promised not to hire anyone else for the position. The parties agreed Karen will work for Sarah until the end of the campaign and can only work for Sarah's campaign. What kind of agency was created?

Correct Answer
verified

Which of the following is true regarding agency contracts?

Correct Answer
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Which of the following is true regarding the status of an agent as a fiduciary?

Correct Answer
verified

The law assumes that the principal is aware only of information actually provided to the principal by the agent.

Correct Answer
verified

The principal does not owe duties to an agent even though an agent owes duties to a principal.

Correct Answer
verified

When determining whether a worker is an independent contract or an employee, one of the most important considerations is ________, which is when the employer has the right to substantially control the worker's day-to-day operations.

Correct Answer
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________ relationships are the most common types of agency relationships.

Correct Answer
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The Case Opener discussed whether FedEx illegally refused to collectively bargain with single-route drivers on the basis that they were independent contractors, not employees. Which of the following is true regarding the result?

Correct Answer
verified

Correct Answer
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Which of the following is the term used to describe the duty and responsibilities of the agent as specified in the agency agreement?

Correct Answer
verified

Correct Answer
verified

In the text case Glenn v. Gibbs, Glenn was injured and eventually died from his injuries as a direct result of trimming Gibbs' tree limbs. Glenn's wife sued Gibbs for negligence alleging Gibbs' actions and omissions caused Glenn's death. Which of the following was the result?

Correct Answer
verified

As set forth in the text, which of the following is false regarding agency law in relation to sports agents?

Correct Answer
verified

Apparent agency, also known as ________, is when the principal has created by his conduct belief in another individual that a person serves as their agent when in fact they do not have the authority to act for the principal.

Correct Answer
verified

Theilan and Llewellyn make an agreement in writing that Theilan will act on behalf of Llewellyn at an auction. This type of agency relationship is a(n) ________ relationship.

Correct Answer
verified

What type of relationship has formed when one person has no control over the details of conduct of another person's work?

Correct Answer
verified

Exam 33: Agency Formation and Duties

A[n] ________ trust is an equitable trust imposed on one who wrongfully obtains or holds legal right to property he or she should not possess.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedJackson would be considered an employee ...View AnswerShow Answer

What type of relationship has formed when one person has the right to control the conduct of another person?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Sarah hired Karen to manage her campaign for the next six months and promised not to hire anyone else for the position. The parties agreed Karen will work for Sarah until the end of the campaign and can only work for Sarah's campaign. What kind of agency was created?

Correct AnswerverifiedShow Answer

Which of the following is true regarding agency contracts?

Correct AnswerverifiedShow Answer

Which of the following is true regarding the status of an agent as a fiduciary?

Correct AnswerverifiedShow Answer

The law assumes that the principal is aware only of information actually provided to the principal by the agent.

Correct AnswerverifiedShow Answer

The principal does not owe duties to an agent even though an agent owes duties to a principal.

Correct AnswerverifiedShow Answer

When determining whether a worker is an independent contract or an employee, one of the most important considerations is ________, which is when the employer has the right to substantially control the worker's day-to-day operations.

Correct AnswerverifiedShow Answer

________ relationships are the most common types of agency relationships.

Correct AnswerverifiedShow Answer

The Case Opener discussed whether FedEx illegally refused to collectively bargain with single-route drivers on the basis that they were independent contractors, not employees. Which of the following is true regarding the result?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is the term used to describe the duty and responsibilities of the agent as specified in the agency agreement?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In the text case Glenn v. Gibbs, Glenn was injured and eventually died from his injuries as a direct result of trimming Gibbs' tree limbs. Glenn's wife sued Gibbs for negligence alleging Gibbs' actions and omissions caused Glenn's death. Which of the following was the result?

Correct AnswerverifiedShow Answer

As set forth in the text, which of the following is false regarding agency law in relation to sports agents?

Correct AnswerverifiedShow Answer

Apparent agency, also known as ________, is when the principal has created by his conduct belief in another individual that a person serves as their agent when in fact they do not have the authority to act for the principal.

Correct AnswerverifiedShow Answer

Theilan and Llewellyn make an agreement in writing that Theilan will act on behalf of Llewellyn at an auction. This type of agency relationship is a(n) ________ relationship.

Correct AnswerverifiedShow Answer

What type of relationship has formed when one person has no control over the details of conduct of another person's work?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
Jackson would be considered an employee ...
View Answer

Correct Answer
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Correct Answer
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