Types of Agents: An Introduction to Agency and Partnership

Question 1

Which of the following is not a type of agent in agency and partnership law?

Accepted Answer

Attorney

Answer

General agent

Answer

Special agent

Answer

Subagent

Question 2

Which of the following accurately describes the authority of general agents?

Accepted Answer

General agents can act on the principal's behalf in all matters.

Answer

General agents can only act on the principal's behalf in specific matters.

Answer

General agents are not responsible to third parties for the principal's actions.

Question 3

Identify the type of agent with comprehensive authority to represent the principal in all matters related to a particular business:

Accepted Answer

General agent

Answer

Limited agent

Answer

Special agent

Answer

Subagent

Question 4

Which fiduciary duty obligates an agent to prioritize the best interests of the principal?

Accepted Answer

Duty of loyalty

Answer

Duty of care

Answer

Duty of obedience

Answer

Duty of disclosure

Question 5

In the event that an agent oversteps their authorized authority, what is the legal consequence for the principal?

Accepted Answer

The principal is not obligated by the agent's actions.

Answer

The principal remains bound by the agent's actions.

Answer

The agent bears sole liability for their actions.

Answer

Both the principal and agent share liability.

Question 6

Distinguish between apparent agency and agency by estoppel based on the source of authority:

Accepted Answer

Apparent agency arises from the principal's conduct, while agency by estoppel originates from the agent's conduct.

Answer

Apparent agency is based on the agent's conduct, while agency by estoppel stems from the principal's conduct.

Answer

There is no meaningful distinction between apparent agency and agency by estoppel.

Answer

Apparent agency requires written documentation, whereas agency by estoppel does not.

Question 7

Identify the disadvantage associated with utilizing agents:

Accepted Answer

Increased liability

Answer

Reduced efficiency

Answer

Limited expertise

Answer

Weaker bargaining position

Question 8

Which type of agent is authorized to represent the principal in a specific, singular transaction?

Accepted Answer

Special agent

Answer

General agent

Answer

Subagent

Answer

Independent contractor

Question 9

Identify the duty where an agent is obligated to act in accordance with the principal's instructions:

Accepted Answer

Duty of obedience

Answer

Duty of care

Answer

Duty of loyalty

Answer

Duty of disclosure

Question 10

What legal principle holds an agent accountable for any wrongful acts committed while acting within the scope of the agency?

Accepted Answer

Respondeat superior

Answer

Ultra vires

Answer

Implied agency

Answer

Agency by necessity

Question 11

Which of the following is NOT a type of agent in agency and partnership law?

Accepted Answer

Independent contractor

Answer

General agent

Answer

Special agent

Answer

Subagent

Question 12

A general agent's authority encompasses:

Accepted Answer

All matters within the scope of their principal's business

Answer

Specific matters authorized by their principal

Answer

Any matter they consider necessary

Answer

Only actions taken on behalf of their principal

Question 13

A subagent is defined as:

Accepted Answer

An agent appointed by another agent

Answer

An agent appointed by a principal

Answer

An independent contractor working for an agent

Answer

An agent without authority to act on behalf of their principal

Question 14

A special agent is appointed to handle:

Accepted Answer

A specific transaction or a series of transactions

Answer

All matters within the scope of their principal's business

Answer

Any matter they deem necessary

Answer

Supervising the work of other agents

Question 15

Regarding agency formation, which statement is accurate?

Accepted Answer

An agency relationship can arise by operation of law

Answer

An agency relationship always requires a written contract

Answer

An agent possesses identical legal rights as their principal

Answer

An agency relationship is permanent and cannot be terminated

Question 16

A subagent is liable to:

Accepted Answer

Both the principal and the agent

Answer

The principal only

Answer

The agent only

Answer

Neither the principal nor the agent

Question 17

Distinguish the characteristic of a general agent that is NOT accurate.

Accepted Answer

Required to adhere strictly to the principal's instructions

Answer

Authority to represent the principal across all matters related to the agency

Answer

Capacity to appoint subagents

Answer

Right to compensation

Question 18

Which of the following statements accurately describes the role of a subagent?

Accepted Answer

An agent appointed by another agent

Answer

Always liable solely to the principal

Answer

Cannot be authorized by a special agent

Answer

Has no fiduciary duty to the principal

Question 19

What is the primary purpose of a power of attorney?

Accepted Answer

Authorize an agent to act on behalf of the principal

Answer

Establish a partnership between the principal and the agent

Answer

Transfer property from the principal to the agent

Answer

Dissolve an agency relationship

Question 20

Explain the concept of 'respondeat superior'.

Accepted Answer

Principals are liable for the torts of their agents

Answer

Employers are liable for the torts of their employees

Answer

Agents are liable for the torts of their principals

Answer

Subagents are liable for the torts of their agents

Question 21

Which element is NOT required for a valid agency relationship to be established?

Accepted Answer

Consideration

Answer

Competency of the principal and agent

Answer

Mutual consent

Answer

Lawful purpose

Question 22

Which of the following is NOT a characteristic of a general agent?

Accepted Answer

Liability for the principal's debts

Answer

Authority to act on behalf of principal in most matters

Answer

Authority to appoint subagents

Answer

Obligation to act within the scope of authority

Question 23

Subagents are appointed by:

Accepted Answer

The general agent

Answer

The principal

Answer

The special agent

Answer

A third party

Question 24

Which of the following is a key difference between a general agent and a special agent?

Accepted Answer

Scope of authority

Answer

Duration of agency

Answer

Authority to delegate

Answer

Liability for the principal's acts

Question 25

The relationship between a principal and a general agent is most similar to which of the following?

Accepted Answer

Employer-employee

Answer

Buyer-seller

Answer

Lessor-lessee

Answer

Principal-subagent

Question 26

Which of the following is **not** a type of agent commonly recognized in the law of agency?

Accepted Answer

Independent contractor

Answer

General agent

Answer

Special agent

Answer

Subagent

Question 27

To whom is a subagent typically liable for their actions?

Accepted Answer

Indirectly liable through the special agent

Answer

Directly liable to the principal

Answer

Not liable to the principal

Answer

Only liable for negligence

Question 28

Which of the following is **not** a potential benefit of utilizing an agent?

Accepted Answer

Elimination of liability

Answer

Increased efficiency

Answer

Specialized expertise

Answer

Reduced costs

Question 29

What is the primary difference between a general agent and a special agent?

Accepted Answer

A general agent has broader authority than a special agent.

Answer

A special agent has broader authority than a general agent.

Answer

General and special agents have the same authority.

Answer

There is no difference between a general agent and a special agent.

Question 30

Which of the following is NOT a recognized method for terminating an agency relationship in the United States?

Accepted Answer

Marriage of the agent

Answer

Mutual agreement by the principal and the agent

Answer

Completion of the purpose for which the agency was created

Answer

Revocation by the principal

Question 31

Which of the following statements accurately describes the broad authority granted to a general agent?

Accepted Answer

A general agent possesses the power to act on behalf of the principal within the scope of the agency, committing the principal to contractual obligations.

Answer

A general agent's authority is strictly limited to performing acts specifically authorized by the principal.

Answer

A general agent lacks the authority to bind the principal to contracts without explicit approval.

Question 32

Which type of agent is appointed to undertake specific, well-defined tasks on behalf of the principal?

Accepted Answer

Special agent

Answer

Subagent

Answer

Broker

Answer

General agent

Question 33

In an agency relationship involving a subagent, who bears the primary responsibility for compensating the subagent for their services?

Accepted Answer

The special agent who appointed the subagent

Answer

The principal

Answer

The subagent

Question 34

What are the potential consequences for an agent who exceeds the scope of their authority?

Accepted Answer

The principal is generally not bound by the agent's unauthorized actions, and the agent may be held personally liable.

Answer

The agency relationship is automatically terminated, and the principal is solely responsible for the agent's actions.

Answer

The agent's unauthorized acts are binding on the principal regardless of their knowledge or consent.

Question 35

Which type of agent is engaged to perform a single, specific task or transaction for the principal?

Accepted Answer

Special agent

Answer

General agent

Answer

Subagent

Answer

Independent contractor

Question 36

In an agency relationship, who has the ultimate liability for the torts committed by a general agent while acting within the scope of their agency?

Accepted Answer

The principal is jointly and severally liable for the wrongful acts of their general agent.

Answer

The general agent is solely liable for their own tortious conduct.

Answer

The principal is not liable for the torts of their general agent unless they specifically authorized the wrongful acts.

Question 37

Which of the following is a defining characteristic of an independent contractor?

Accepted Answer

An independent contractor typically exercises independent judgment and control over the manner and means of performing their work.

Answer

An independent contractor is directly supervised and controlled by the principal.

Answer

An independent contractor is an employee of the principal.

Question 38

What is the legal responsibility of a principal for the contracts entered into by their agent while acting within the scope of their authority?

Accepted Answer

The principal is generally bound by the contracts made by their agent on their behalf.

Answer

The principal is only bound by contracts that they have personally signed.

Answer

The agent is solely responsible for fulfilling the obligations under contracts they enter into.

Question 39

Which type of agent possesses the authority to act on behalf of the principal in all matters pertaining to a particular business or profession?

Accepted Answer

General agent

Answer

Subagent

Answer

Independent contractor

Answer

Special agent

Question 40

Which of the following is NOT a fundamental duty of an agent?

Accepted Answer

To act in the best interests of a third party

Answer

To obey the principal's lawful instructions

Answer

To keep the principal informed

Answer

To exercise reasonable care and skill

Question 41

When a principal appoints one agent to appoint another agent, the second agent is known as a:

Accepted Answer

Subagent

Answer

Universal agent

Answer

General agent

Answer

Special agent

Question 42

Which of the following is NOT a method by which an agency relationship can be terminated?

Accepted Answer

By unilateral act of the agent

Answer

By operation of law

Answer

By unilateral act of the principal

Answer

By mutual agreement of the parties

Question 43

An agent who has the authority to act on behalf of the principal in a particular transaction or matter is known as a:

Accepted Answer

Special agent

Answer

Subagent

Answer

Universal agent

Answer

General agent

Question 44

Which type of agent has the broadest authority to act on behalf of the principal?

Accepted Answer

General agent

Answer

Special agent

Answer

Independent contractor

Answer

Subagent

Question 45

Which type of agent is authorized to perform only specific tasks or acts on behalf of the principal?

Accepted Answer

Special agent

Answer

General agent

Answer

Subagent

Answer

Apparent agent

Question 46

Which type of agent is appointed by a general agent to assist in performing tasks within the scope of the general agent's authority?

Accepted Answer

Subagent

Answer

Independent contractor

Answer

Special agent

Answer

Apparent agent

Question 47

Which type of agent is not considered an employee of the principal?

Accepted Answer

Independent contractor

Answer

Special agent

Answer

General agent

Answer

Subagent

Question 48

Which type of agent is created when an unauthorized person acts for a principal and the principal ratifies the agent's actions?

Accepted Answer

Apparent agent

Answer

Subagent

Answer

General agent

Answer

Special agent

Question 49

Which of the following is a factor that courts consider when determining whether an agency relationship exists?

Accepted Answer

The level of control exercised by the principal over the agent

Answer

The agent's prior experience in the industry

Answer

The length of time the parties have known each other

Question 50

Which of the following is a liability that can arise from an agency relationship?

Accepted Answer

Vicarious liability

Answer

Absolute liability

Answer

Contributory negligence

Answer

Comparative fault