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1
Apparent authority exists when a principal's behavior causes a third party to form a reasonable belief that the agent is allowed to act for him.
A)True
B)False
2
Even if the agent possesses no authority whatsoever to enter into a contract for his principal, the principal may nevertheless ratify the contract by accepting performance under the contract.
A)True
B)False
3
A principal is considered "partially disclosed" if the agent fails to communicate to the third party that he is acting on behalf of a principal, but does communicate that principal's identity.
A)True
B)False
4
An employer who fails to properly check the background of an employee prior to hiring may be liable for the employee's negligent conduct even if respondeat superior does not apply.
A)True
B)False
5
As a general rule, a principal is not liable for torts committed by independent contractors.
A)True
B)False
6
Agents are usually not liable for torts they commit provided that they act within the scope of the principal's instructions.
A)True
B)False
7
All of the following are true regarding a principal's ratification of a contract except:
A)The subject matter of the contract must be valid and not illegal.
B)The principal must be legally competent at the time the ratification occurs.
C)The principal must ratify the contract in its entirety.
D)The principal need not have been in existence at the time ratification occurs.
8
Adam worked as a security guard for ABC Company. After working hours, Adam happened to be driving by his place of employment when he saw Don trying to burglarize it. Adam obtained his shotgun from the trunk of his car, aimed it at Don, and shot him. If Don brings an action against ABC Company and Adam for using excessive force:
A)ABC Company is most likely liable since Adam is an agent.
B)Adam is not liable because he is a disclosed agent.
C)Adam is liable because agents are liable for their own torts.
D)Both A and B
E)Both A and C
9
An employee who commits a tort while acting within the scope of his employment:
A)will not be held personally liable for that tort he commits to third parties.
B)may cause his employer to be held liable for any negligent acts he commits to third parties under the doctrine of respondeat superior.
C)may cause his employer to be held liable only if the tort was committed intentionally by the employee under the doctrine of respondeat superior.
D)All of the above
10
A principal may be liable to third parties for its agents actions if:
A)The principal fails to adequately supervise its agent.
B)The principal gives unclear or inadequate instructions to the agent.
C)Fails to properly hire or terminate its agent under the appropriate circumstances.
D)All of the above.





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