True/False
Indicate whether the
statement is true or false.
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1.
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The equal dignity rule does not apply to a corporate officer who, in an ordinary
business situation, acts on behalf of his or her firm.
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2.
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A power of attorney may be created orally.
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3.
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A power of attorney can be given only to an actual attorney.
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4.
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A principal's liability in a contract with a third party may arise from the
authority given to the agent to enter into the contract.
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5.
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An agent's authority must be express for the agent's act to bind a
principal.
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6.
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An agent's implied authority may be conferred by contradiction.
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7.
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An agent's authority to act on behalf of a principal derives exclusively
from the agent's express or implied authority.
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8.
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A partially disclosed principal is one whose first, but not last, name is known
by a third party with whom an agent contracts on the principal's behalf.
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9.
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If a principal does not ratify an authorized contract, the principal is
not bound.
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10.
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Before a principal can ratify a contract, the principal must know all of the
material facts involved in the deal.
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11.
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A principal whose existence--but not specific identity--is known by a third
party with whom an agent contracts on the principal's behalf is an implied
principal.
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12.
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An disclosed principal is liable to a third party for contracts made by
the agent acting outside the scope of his or her authority.
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13.
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An partially disclosed principal is liable to a third party for
contracts made by the agent acting within the scope of his or her authority.
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14.
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An undisclosed principal is liable to a third party for contracts made by
the agent acting within the scope of his or her authority.
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15.
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A principal is not liable to a third party for any contract made by the
agent acting outside the scope of his or her authority.
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16.
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Under the doctrine of respondeat superior, a principal has a superior
duty of caring for the agent.
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17.
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A principal is responsible for all intentional torts committed by an
agent.
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18.
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Both parties to an agency may have the power to terminate the relationship but
they may not have the right.
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19.
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An agency is terminated if the principal demands an accounting.
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20.
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Even after an agency relationship has terminated, there are circumstances under
which a principal may be bound by his or her agent's act.
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