Frost's accountant and business manager has the authority to
a. Mortgage Frost's business property.
b. Obtain bank loans for Frost.
c. Insure Frost's property against fire loss.
d. Sell Frost's business.
Answer: c
Learn More :
Agency
- Generally, an agency relationship is terminated by operation of law in all of the following situations EXCEPT the
- Thorp was a purchasing agent for Ogden, a sole proprietor and had the express authority to place purchase order with Ogden's supplier. Thorp placed an order with Datz, Inc. on Ogden's behalf after Ogden was declared incompetent in a judicial proceeding. Thorp was aware of Ogden's incapacity. Which of the following statement is correct concerning Ogden's liability to Datz?
- Which of the following rights will a third party be entitled to after validly contracting with an agent representing an undisclosed principal?
- Easy Corp. is a real estate developer and regularly engages real estate brokers to act on its behalf in acquiring parcels of land. The brokers are authorized to enter into such contracts, but are instructed to do so in their own names without disclosing Easy's identity or relationship to the transaction. If a broker enters into a contract with a seller on Easy's behalf,
- Which of the following generally may ratify a contract that was agreed to by his/her agent without authority from the principal? Fully disclosed principal / Partially disclosed principal / Undisclosed principal
- Ames, claiming to be an agent of Clar Corporation, makes a contract with Trimon in the name of Clar Corporation. Later, Clar Corporation, for the first time, learns what Ames has done and notifies Trimon of the truth that Ames was not an agent of Clar Corporation. Which of the following statement is incorrect?
- Pine, an employee of Global Messenger Co., was hired to deliver highly secret corporate documents for Global's client throughout the world. Unknown to Global, Pine carried a concealed pistol. While Pine was making a delivery, he suspected an attempt was being made to steal the package, drew his gun and shot Kent, an innocent passerby. Kent will NOT recover damages from Global if
- Trent was retained, in writing, to act as Post's agent for the sale of Post's memorabilia collection. Which of the following statements is correct? I. To be an agent, Trent must be at least twenty-one years of age. II. Post would be liable to Trent if the collection was destroyed before Trent found a purchaser.
- Generally, a disclosed principal will be liable to third parties for its agents unauthorized misrepresentations if the agent is an Employee / Independent Contractor
- Which of the following statement(s) concerning agency law is (are) true? I. A contract is needed to have an agency relationship. II. The agent owes a fiduciary duty to the principal. III. The principal owes a fiduciary duty to the agent.