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BLW 201 10TH ED CHAPTER 32 T/F SELF QUIZ



True/False
Indicate whether the sentence or statement is true or false.
 

 1. 

If a contract is in writing, the agent's authority to perform the same duty must be in writing.
 

 2. 

An agent's authority must be implied for the agent's act to bind a principal.
 

 3. 

An agent's authority to act on behalf of a principal derives exclusively from the agent's express authority.
 

 4. 

A principal may confer authority on an agent only in writing.
 

 5. 

A power of attorney is a written document.
 

 6. 

A power of attorney can be given only by an actual attorney.
 

 7. 

In considering the scope of an agent's implied authority, the test is whether the agent reasonably believed that he or she had the authority.
 

 8. 

Apparent authority exists if a principal causes a third party to believe reasonably that an agent has authority to act.
 

 9. 

The failure of a principal to affirm promptly an unauthorized transaction by an agent is a ratification of the transaction.
 

 10. 

If a principal does not ratify an unauthorized contract, the principal is not bound.
 

 11. 

A disclosed principal is one whose identity is known by a third party with whom a contract is made.
 

 12. 

When an agent enters into a contract on behalf of a principal, the principal must ratify the contract to be bound to it.
 

 13. 

A disclosed principal is not liable to a third party for contracts made by the agent acting outside the scope of his or her authority.
 

 14. 

If an agent acts within the scope of his or her authority, an undisclosed principal is liable to a third party for contracts made by the agent.
 

 15. 

An e-agent is a person.
 

 16. 

A principal is liable for harm caused to a third party by an agent who commits a tort while acting in the scope of his or her employment.
 

 17. 

Under the theory of respondeat superior, liability for the wrongful acts of employees within the scope of their employment is imposed on employers.
 

 18. 

A principal is not liable for an agent's crime simply because it was committed while the agent was acting within the scope of employment.
 

 19. 

Wrongful termination of an agency relationship can subject the canceling party to a suit for damages.
 

 20. 

An agency relationship is not normally affected when the principal's country and the agent's country are at war with each other.
 



 
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