Chapter 33 - Liability to Third Parties & Termination

Sonia manages a Tasty Pastry store for United Food Company. To manage the business, Sonia's authority can be implied by

an inference from the position Sonia occupies

Cory employs Daily Delivery Agency as an agent under a written agreement that describes the rights and duties of both parties. This is

express authority

Commercial Development Corporation (CDC) hires Delta Construction Company to work at a site as an independent contractor. Whether CDC will be liable for torts committed at the site by Delta depends on

whether unusually hazardous activities are involved

A principal may be liable for the tort of an agent committed within the scope of the agency or employment.

true

A power of attorney confers express authority.

true

Apparent authority is authority declared in clear, direct, definite terms.

false

Security Armored Car Corporation employs Theo as an agent. Without Security's knowledge but otherwise acting within the scope of employment, Theo commits a crime. The state can successfully prosecute

theo only

Jaclyn, an agent for Kilpatrick, enters into a contract on Kilpatrick's behalf with Leif that must be in writing to be enforceable under the Statute of Frauds. Under the equal dignity rule, Jaclyn's authority to enter into this contract

must be written

A principal who authorizes an agent to commit a tort is not liable to persons or property injured thereby.

false

Trey, an agent for Uno Music Corporation, executes an unauthorized contract with Variety Recording, Inc., that is highly advantageous to Uno. Variety withdraws from the deal before Uno ratifies the contract. The contract is

void

An agent has the implied authority to do what is reasonably necessary to carry out express authority.

true

Omar hires Petra, a real estate broker, to act as his agent to sell his land for $150,000. Oil is discovered beneath the land, causing its market value to increase considerably. The agency agreement is likely

terminated by operation of law

An agency relationship may be terminated by an act of the parties or by operation of law.

true

Ratification occurs when a principal accepts responsibility for an agent's unauthorized act.

true

A power of attorney can be special or general.

true

Based on Nan's conduct, Odel reasonably believes that Poppy has the authority to act on Nan's behalf even though Poppy does not have the actual authority to do so. In this circumstance, Poppy has

apparent authority

Under the doctrine of respondeat superior, an agent is liable for any harm caused to a principal by a third party.

false

Clive is a purchasing agent for Double D Ranch with the authority to buy cattle at a certain auction. After the cattle are bought, the agency relationship terminates

automatically

Elin, an agent for First Credit Corporation (FC), enters into an unauthorized contract with Great Expectations, Inc. (GE), purportedly on FC's behalf. This contract will be enforceable if it is ratified by

FC

An agent's authority to act on behalf of a principal must be actual and apparent.

false

Vicarious liability is direct liability.

false

Meals n' More, Inc., a catering company, requires its customers to pay by check. Lyra, a Meals n' More driver, tells customers that they can pay her with cash. When Meals n' More learns of Lyra's collections, it takes no action to stop it. Lyra steals some of the cash. Meals n' More may suffer the loss under the doctrine of

apparent authority

Rupert, an agent for Star Productions, Inc., enters into an unauthorized contract with Theatrical Transport Corporation purportedly on behalf of Star, which refuses to perform. Rupert is liable

for misrepresentation to Theatrical Transport only

Frida hires Gert, a real estate broker, to act as her agent to sell her house. The house burns down before being sold. The agency agreement is likely

terminated by operation of law