LSEB CH 17 QUESTIONS AND ANSWERS 100% VERIFIED

HBR Accounting hired Denise, a CPA, to prepare tax returns. Which of the following

statements is CORRECT? ANSWER Denise, because she is a CPA, is a specialized

agent. She is held to a higher standard than ordinary negligence.

Jim agreed to show Donna's car to a potential buyer. Donna was not able to be home

since she had to attend a meeting. After showing the car, Jim left the keys in it and the

car was stolen. Which statement is correct? - ANSWER Since Jim is a gratuitous agent,

he will only be liable for the loss of the car if his conduct constitutes gross negligence.

if a person accepts the benefits of an unauthorized transaction or fails to repudiate it

then he is bound by the act as if he had originally authorized it. (T of F) - ANSWER True

Means the principle of liability that an employer is liable for a physical tort committed by

an employee acting within the scope of employment and a nonphysical tort of an

employee acting with authority called - ANSWER respondeat superior

Circus Pizza hired Art to operate its birthday parties. He was to supervise the children

and to conduct the games. Circus did not check on the background of Art, who had a

history of child assaults. While a birthday party was in operation, Art attacked a

7-year-old girl in the kitchen of the restaurant. Circus Pizza: - ANSWER may be liable

based upon negligent hiring

Larry wanted to move to Germany. Larry engaged the services of Happy Homes, Inc. to

locate a buyer and enter into a contract for the sale of his house in the U.S. The agency

relationship between Larry and Happy Homes must be in writing. (T of F) - ANSWER

True

John engaged the services of Tim to sell his house. Which of the following is true? -

ANSWER John is Tim's principal