Question

Business Law II Ch. 33- Agency Formation and Duties Professor Shane J. Egan Name Date 1. The relationship between a principal and an agent is generally known as an 2. A person who has a legal to duty to act with trust and confidence for another person's benefit is known as a 3. (True False) Agency relationships can be created only for a lawful purpose and almost anyone can serve as an agent. 4. A document giving an agent authority to sign legal documents on behalf of the principal is known as a 5. An agency formed by making a written or oral agreement which clearly defines the scope of the relationship is known as an 6. (True False) An agency formed by implication through the conduct of the parties is known as an Agency by estoppel 7. (True False) Agency by implied authority can conflict with any express authority. 8. An agency in which an individual misrepresents herself as an agent for another party and the principal later accepts or ratifies the unauthorized act is known as 9. A Power of Attorney (POA) survives a principal's incapacity. 10. When an employer hires someone and exhibits control over the time, place and manner of their performance this type of relationship is created 11. When an employer hires someone to perform a job/project and does not exhibit day-to-day control over their activities this type of relationship is created 12. According to the duty of an agent must follow the lawful instruction of the principal. 13. (True False) The duty of loyalty is a duty an agent owes to a principal. 14. (True False) The principal has a duty to provide safe working conditions for the agent.

Answer 1

1. Agency

2. Agent

3. False. Principal agent relationship is generally termed as "fiduciary relationship" i.e it is completely based on trust. It may or may not be for lawful purpose. Though anyone can act as the agent.

4. Power of Attorney

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