True/False
Indicate whether the
statement is true or false.
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1.
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A corporate officer is not an agent for the corporation.
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2.
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An agent is authorized to act on behalf of a principal in doing business with
third parties.
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3.
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A fiduciary relationship involves trust and confidence.
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4.
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An agency relationship does not exist outside employer-employee
relationships.
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5.
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Employees who deal with third parties are agents of their employers.
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6.
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An employee may not act in the capacity of an agent.
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7.
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An independent contractor may act in the capacity of an agent.
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8.
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An independent contractor always acts in the capacity of an agent.
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9.
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A minor cannot be appointed as an agent.
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10.
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An agency relationship cannot exist in the absence of a formal agreement.
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11.
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An agency relationship may be created for any legal purpose.
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12.
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A licensed professional can employ an unlicensed agent to perform professional
actions.
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13.
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An agency relationship may be created for any illegal purpose.
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14.
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A principal can ratify an agreement made without authorization on his or her
behalf by one who is not his or her agent.
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15.
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A principal who causes a third person to believe that another person is the
principal's agent can be estopped from denying the agency relationship.
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16.
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An agency relationship may not occur by operation of law in a family.
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17.
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An agent can take advantage of an agency relationship to make a
"secret" profit.
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18.
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A principal owes an agent a duty of accounting.
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19.
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If an agency relationship is contractual, the agent may have a right to specific
performance.
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20.
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If an agent breaches the agency agreement, the principal may avoid the
contract.
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