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Homework answers / question archive / Chapter 37 AGENCY TRUE/FALSE 1) By virtue of an agency, one person can make contracts at numerous places with many different parties at the same time 2 An agent is authorized to make contracts for, and is under the control of, the principal
Chapter 37 AGENCY
TRUE/FALSE
1) By virtue of an agency, one person can make contracts at numerous places with many different parties at the same time
2 An agent is authorized to make contracts for, and is under the control of, the principal.
3 Agency is a relationship by which the principal is authorized to act on behalf of an agent in negotiating and making contracts with third persons.
4 An agent is distinguished from an ordinary employee in that employees are hired to represent the employer in dealings with third persons.
5 The employer of an independent contractor does not have control over the performance of the work by the independent contractor.
6 A “right to control” test determines whether an individual is an agent, an employee, or an independent contractor.
7 A special agent is authorized by the principal to transact all affairs in connection with a particular type of business or trade or to transact all business at a certain place.
8 A special agent is authorized by the principal to handle a definite business transaction or do a specific act.
9 A general agent is authorized by the principal to do all acts that can be delegated lawfully to a representative.
10 An agency may arise by appointment, conduct, ratification, or operation of law
$2,500, Baker returned the desk to Carter. Baker told Carter that Ames had exceeded his authority in purchasing the desk, and she demanded that Carter refund the $3,000 that Ames had paid for the desk. Will Carter have to do so?