True/False
Indicate whether the sentence or statement is true
or false.
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1.
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An
agency relationship is a fiduciary relationship.
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2.
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An
officer of a corporation cannot possess the power to bind the corporation.
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3.
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An
employee may act in the capacity of an agent.
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4.
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All
employment laws apply to independent contractors.
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5.
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Agency relationships do not exist outside employment relationships.
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6.
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An
independent contractor's physical conduct is controlled, or subject to control, by his or her
employer.
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7.
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Building contractors and subcontractors are not independent contractors.
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8.
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An
agent whose employer does not have the right to control the agent's performance is an independent
contractor.
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9.
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An
agency relationship can be formed only in writing.
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10.
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A
minor can be an agent.
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11.
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There
does not need to be a written agreement between two parties to create an agency
relationship.
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12.
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A
principal may deny the existence of an agency relationship whenever it suits his or her
purpose.
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13.
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An
agent owes his or her principal a duty to act in good faith.
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14.
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A
principal owes his or her agent a duty to act in good faith.
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15.
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An
agent must use reasonable diligence and skill in acting on behalf of his or her
principal.
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16.
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Information acquired through an agency relationship is not considered
confidential.
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17.
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An
agent must maintain separate accounts for the principal's funds and the agent's personal
funds.
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18.
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Generally, a principal has a duty to pay an agent for services rendered.
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19.
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A
principal has a duty to cooperate with the agent.
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20.
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A
principal is required to indemnify an agent for liabilities incurred because of authorized acts by
the agent.
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