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Management |! 271 |! Exam |! 2 |! with |!
precise |! detailed |! solutions
If |! "property" |! is |! not |! a |! thing, |! what |! is |! it? |! - |! Correct |! answer |! ✔Property |! is |! not |! a |! thing |! it |! is |! a |! right. What |! guarantees |! do |! the |! 5th |! and |! 14th |! Amendments |! extend |! to |! property? |! - |! Correct |! answer |! ✔These |! two |! amendments |! guarantee |! that |! no |! person |! shall |! be |! "deprived |! of... |! property, |! without |! due |! process |! of |! law, |! nor |! shall |! private |! property |! be |! taken |! for |! public |! use |! without |! justification. Define |! "unjust |! enrichment." |! What |! kind |! of |! law |! does |! this |! reflect |! (sound |! in)? |!
- |! Correct |! answer |! ✔It |! is |! a |! contract |! implied |! at |! law |! requiring |! a |! person |! to |! make |! restitution |! to |! the |! extent |! he |! has |! been |! unjustly |! enriched. |! This |! reflects |! the |! Law |! of |! restitution. What |! are |! the |! two |! general |! classes |! of |! property? |! - |! Correct |! answer |! ✔The |! two |! general |! classes |! of |! property |! are, |! real |! property |! and |! personal |! property. What |! is |! real |! property? |! - |! Correct |! answer |! ✔Real |! property: |! Is |! land |! and |! anything |! firmly |! affixed |! to |! it, |! such |! as |! crops, |! trees, |! houses, |! or |! in |! the |! case |! of |! fixtures, |! things |! that |! have |! been |! attached |! to |! real |! property.
What |! is |! personal |! property? |! - |! Correct |! answer |! ✔Personal |! property: |! Is |! everything |! else |! tangible, |! including |! tables, |! books, |! dogs, |! and |! automobiles. |! Patents, |! bonds, |! and |! copyrights |! are |! intangible |! personal |! property. Be |! able |! to |! describe |! the |! difference |! between |! types |! of |! property |! that |! are |! tangible |! and |! intangible. |! - |! Correct |! answer |! ✔The |! distinction |! between |! tangible |! and |! intangible |! property |! is |! important |! mostly |! for |! tax |! and |! estate- planning |! purposes. |! Tangible |! property |! is |! taxed |! where |! it |! is |! located, |! and |! intangible |! property |! is |! taxed |! where |! the |! owner |! lives. Identify |! and |! describe |! the |! highest |! ownership |! interest |! in |! real |! property |! and |! the |! three |! specific |! rights |! it |! entails. |! - |! Correct |! answer |! ✔Fee |! Simple |! absolute |! is |! the |! highest |! interest |! known |! to |! law. |! This |! is |! full |! ownership. |! The |! three |! specific |! right |! it |! entails |! is |! the |! right |! to |! sell, |! give |! as |! a |! gift, |! or |! devise |! (dispose |! of |! by |! will |! upon |! death). What |! is |! a |! Tenancy |! in |! Common? |! - |! Correct |! answer |! ✔This |! is |! the |! term |! referring |! to |! the |! relationship |! created |! when |! two |! or |! more |! people |! simply |! own |! land |! together, |! when |! one |! owner |! dies, |! that |! person's |! interest |! passes |! to |! his |! or |! her |! heirs. What |! is |! a |! Joint |! Tenancy? |! - |! Correct |! answer |! ✔Joint |! tenants |! own |! land |! together |! too, |! but |! when |! one |! dies, |! his |! or |! her |! interest |! passes |! to |! the |! other |! owner. How |! are |! tenancy |! in |! common |! and |! joint |! tenancy |! alike? |! - |! Correct |! answer |! ✔These |! two |! are |! alike |! because |! they |! both |! show |! examples |! of |! two |! different |! people |! only |! having |! a |! relationship |! due |! to |! owning |! land |! together.
Identify |! two |! ways |! property |! is |! transferred |! on |! the |! death |! of |! its |! owner. |! - |! Correct |! answer |! ✔If |! a |! death |! occurs |! property |! is |! either |! transferred |! by |! will, |! or |! if |! there |! is |! no |! will |! the |! property |! is |! passed |! to |! the |! logical |! heirs |! by |! intestacy, |! or |! intestate |! transfer. What |! is |! foreclosure? |! - |! Correct |! answer |! ✔Foreclosure |! occurs |! if |! a |! person |! borrows |! money |! and |! real |! estate |! is |! put |! up |! as |! collateral |! as |! security |! for |! that |! loan; |! that |! person |! has |! mortgaged |! that |! loan. What |! is |! eminent |! domain? |! - |! Correct |! answer |! ✔Eminent |! domain |! is |! the |! power |! of |! the |! government |! to |! take |! private |! property |! for |! public |! use |! (with |! "just |! compensation"). Be |! able |! to |! describe |! what |! property |! right, |! generally |! speaking, |! is |! protected |! from |! unreasonable |! intrusion. |! - |! Correct |! answer |! ✔Generally |! speaking, |! the |! right |! to |! use |! one's |! property |! for |! "quiet |! enjoyment" |! is |! protected |! against |! unreasonable |! intrusion. How |! is |! Trespass |! defined |! in |! the |! text? |! - |! Correct |! answer |! ✔It |! is |! defined |! as |! the |! entering |! upon |! another's |! property |! without |! consent, |! intentionally |! or |! inadvertently, |! trespass |! is |! one |! of |! the |! oldest |! common-law |! actions. How, |! again, |! is |! personal |! property |! defined? |! - |! Correct |! answer |! ✔Personal |! property |! is, |! again, |! everything |! other |! than |! real |! estate |! and |! that |! which |! is |! firmly |! affixed |! to |! real |! estate, |! and |! includes |! both |! tangible |! and |! intangible |! property.
What |! is |! the |! law |! of |! personal |! property |! substantially |! the |! same |! as? |! - |! Correct |! answer |! ✔It |! is |! substantially |! the |! same |! as |! real |! property. What |! is |! the |! subject |! of |! the |! law |! of |! estates |! and |! trusts? |! - |! Correct |! answer |! ✔The |! transmission |! of |! property |! from |! one |! generation |! to |! the |! next |! is |! a |! cherished |! right. What |! do |! prudent |! people |! do |! to |! plan |! for |! their |! property |! when |! they |! die? |! - |! Correct |! answer |! ✔Prudent |! people |! plan |! what |! they |! want |! to |! happen |! to |! their |! property |! when |! they |! die, |! they |! make |! a |! will |! for |! this. What |! does |! it |! mean |! if |! a |! person |! dies |! intestate? |! - |! Correct |! answer |! ✔One |! who |! dies |! without |! a |! will |! is |! said |! to |! die |! intestate. What |! is |! it |! called |! when |! the |! property |! of |! a |! person |! who |! dies |! but |! has |! no |! heirs |! reverts |! to |! the |! State? |! - |! Correct |! answer |! ✔If |! this |! is |! the |! case |! and |! the |! property |! reverts |! to |! the |! state |! it |! is |! known |! as |! escheats. What |! three |! protections |! does |! intellectual |! property |! law |! include? |! - |! Correct |! answer |! ✔Intellectual |! property |! includes |! patent, |! copyright, |! and |! trademark |! protection. What |! part |! of |! the |! US |! Constitution |! gives |! Congress |! power |! over |! intellectual |! property |! law |! and |! how |! is |! it |! worded? |! - |! Correct |! answer |! ✔Article |! I |! section |! 8 |! gives |! the |! Congress |! this |! power |! "to |! promote |! the |! progress |! of |! science |! and |! useful |! arts, |! by |! securing |! for |! limited |! times |! to |! authors |! and |! inventors |! exclusive |! right |! to |! their |! respective |! writings |! and |! discoveries".
When |! does |! patent |! infringement |! occur? |! - |! Correct |! answer |! ✔Patent |! infringement |! occurs |! when |! nonconsensual |! use |! is |! made |! of |! the |! patented |! idea |! (a |! kind |! of |! conversion). What |! are |! patent |! owners |! entitled |! to |! if |! they |! succeed |! in |! proving |! patent |! infringement? |! - |! Correct |! answer |! ✔If |! they |! prove |! infringement |! they |! are |! entitled |! to |! damages |! plus |! court |! costs |! and |! interest; |! treble |! damages |! (three |! times |! the |! amount |! proven) |! and |! injunctive |! relief |! also |! may |! be |! ordered. What |! does |! a |! creative |! work |! need |! to |! be |! in |! order |! to |! be |! copyrightable? |! - |! Correct |! answer |! ✔All |! that |! is |! necessary |! for |! something |! to |! be |! copyrightable |! is |! that |! work |! being |! original. How |! is |! copyrightability |! distinguishable |! from |! patentability? |! - |! Correct |! answer |! ✔The |! two |! are |! distinguishable |! because |! a |! copyright |! does |! not |! need |! to |! be |! "novel" |! like |! a |! patent |! must |! be. Including |! the |! 1976 |! Copyright |! Act, |! what |! types |! of |! works |! are |! given |! legal |! protection |! by |! copyrights? |! - |! Correct |! answer |! ✔Under |! this |! act |! music, |! drama, |! choreography, |! film, |! art, |! sculpture, |! and |! sound |! recordings |! are |! included. Is |! anything |! special |! needed |! to |! secure |! copyrights? |! - |! Correct |! answer |! ✔No |! special |! notations |! or |! formalities |! are |! now |! necessary |! to |! secure |! a |! copyright. What |! remedies |! are |! available |! for |! copyright |! infringement? |! - |! Correct |! answer |! ✔The |! remedies |! available |! for |! infringement |! are |! damages, |! injunctions, |! and |! costs.
Since |! 1998, |! what |! is |! the |! length |! of |! copyright |! for |! works |! created |! by |! identified |! natural |! persons? |! - |! Correct |! answer |! ✔For |! works |! created |! by |! identified |! natural |! persons, |! they |! now |! last |! 70 |! years |! after |! the |! author's |! death. How |! does |! the |! law |! define |! a |! tort? |! - |! Correct |! answer |! ✔Tort |! is |! defined |! as |! a |! (a) |! civil |! (as |! opposed |! to |! a |! criminal) |! wrong, |! and |! (b) |! other |! than |! a |! breach |! of |! contract. What |! type |! of |! law |! has |! much |! overlap |! with |! torts? |! - |! Correct |! answer |! ✔There |! is |! a |! much |! overlap |! between |! crime |! and |! tort. |! Many, |! but |! not |! all, |! crimes |! are |! also |! intentional |! torts, |! but |! not |! all |! torts |! are |! also |! crimes. Describe |! three |! different |! ways |! a |! person |! may |! cause |! injury |! and |! be |! held |! liable. |!
- |! Correct |! answer |! ✔A |! person |! may |! be |! held |! liable |! in |! tort |! for |! an |! injury |! if |! that |! person |! cause |! the |! injury |! intentionally, |! or |! by |! accident, |! or, |! sometimes, |! even |! without |! any |! fault |! at |! all. How |! is |! an |! intentional |! tort |! committed? |! - |! Correct |! answer |! ✔Intentional |! tort |! is |! committed |! "on |! purpose" What |! are |! the |! two |! elements |! of |! an |! intentional |! tort? |! - |! Correct |! answer |! ✔The |! two |! elements |! of |! an |! intentional |! tort |! are: |! (1) |! the |! intention |! to |! commit |! the |! tort, |! and |! (2) |! the |! doing |! of |! it. Be |! able |! to |! identify |! and |! describe |! three |! defenses |! to |! intentional |! torts. |! - |! Correct |! answer |! ✔Three |! Defenses |! of |! intentional |! tort: |! Consent |! (being |! given |!
degree |! of |! care, |! which |! a |! reasonable |! person |! in |! the |! same |! situation |! would |! have |! exercised. As |! it |! relates |! to |! the |! breach |! of |! a |! duty |! of |! care, |! what |! does |! the |! court |! determine |! as |! a |! matter |! of |! law? |! - |! Correct |! answer |! ✔The |! court/judge |! must |! generally |! determine |! as |! a |! matter |! of |! law |! that |! the |! defendant |! had |! a |! duty |! of |! care. What |! is |! the |! jury's |! task |! when |! relating |! to |! breach |! of |! a |! duty |! of |! care? |! - |! Correct |! answer |! ✔The |! jury's |! task |! is |! to |! ascertain |! whether |! the |! defendant |! acted |! reasonably |! or |! not. So |! who |! (or, |! rather, |! what) |! is |! the |! "yardstick" |! used |! to |! determine |! whether |! there |! was |! a |! breach |! of |! a |! duty |! of |! care? |! - |! Correct |! answer |! ✔The |! yardstick |! is |! the |! reasonable |! person, |! and |! they |! are |! used |! to |! determine |! what |! the |! rational |! person |! would |! do |! in |! this |! case. |! "He |! is |! one |! who |! invariably |! looks |! where |! he |! is |! going, |! and |! is |! careful |! to |! examine |! the |! immediate |! foreground |! before |! he |! executes |! a |! leap |! or |! a |! bound". What |! doctrine |! had |! to |! evolve |! as |! a |! matter |! of |! public |! policy |! given |! the |! common |! sense |! dictate |! that |! a |! defendant |! not |! be |! held |! liable |! for |! endless |! injuries? |! - |! Correct |! answer |! ✔The |! doctrine |! created |! for |! this |! situation |! was |! the |! Proximate |! Clause. Describe |! the |! general |! rule |! and |! public |! policy |! implications |! of |! the |! doctrine |! of |! proximate |! cause? |! - |! Correct |! answer |! ✔In |! tort |! law, |! the |! proximate |! clause |! is |! the |! direct |! or |! immediate |! cause |! of |! the |! defendant's |! injuries.
What |! does |! it |! mean |! for |! a |! plaintiff |! to |! establish |! a |! prima |! facie |! case? |! - |! Correct |! answer |! ✔Prima |! facie |! refers |! to |! the |! plaintiff |! succeeding |! in |! establishing |! "all |! the |! elements |! of |! the |! cause |! of |! action". How |! is |! proof |! different |! for |! affirmative |! defenses |! as |! opposed |! to |! just |! defending |! a |! case? |! - |! Correct |! answer |! ✔Proof |! is |! different |! for |! affirmative |! defenses, |! as |! these |! defenses |! generally |! involve |! the |! idea |! that |! the |! plaintiff |! bears |! some |! responsibility |! for |! her |! own |! injuries, |! that |! "but |! for" |! the |! plaintiff's |! own |! negligence, |! even |! granting |! that |! the |! defendant |! was |! negligent |! themselves, |! the |! injury |! would |! not |! have |! occurred. Be |! able |! to |! identify |! and |! describe |! the |! three |! historic |! affirmative |! defenses. |! - |! Correct |! answer |! ✔The |! three |! historic |! affirmative |! defenses |! were |! contributory |! negligence, |! assumption |! of |! risk, |! and |! the |! fellow |! servant |! rule. How |! is |! the |! modern |! defense |! of |! comparative |! negligence |! applied |! and |! how |! is |! it |! distinguishable |! from |! the |! three |! historic |! defenses, |! especially |! contributory |! negligence? |! - |! Correct |! answer |! ✔Comparative |! negligence |! does |! not |! deny |! a |! negligent |! plaintiff |! all |! his |! recovery |! but |! only |! so |! much |! as |! he |! was |! responsible |! for |! causing. |! It |! is |! distinguished |! from |! contributory |! negligence |! because |! in |! that |! case |! any |! negligence |! on |! the |! part |! of |! the |! plaintiff |! will |! bar |! all |! recovery. What |! is |! the |! status |! of |! the |! Fellow |! Servant |! Rule? |! - |! Correct |! answer |! ✔The |! fellow |! servant |! rule |! no |! longer |! is |! the |! law. |! The |! negligence |! of |! a |! fellow |! employee |! will |! not |! preclude |! liability |! on |! the |! part |! of |! the |! employer. Is |! the |! defense |! of |! assumption |! of |! risk |! still |! available |! and, |! if |! so, |! is |! its |! application |! by |! contemporary |! courts |! any |! different |! than |! it |! used |! to |! be? |! - |!
tort |! case |! and |! the |! defendant |! fails |! to |! prove |! any |! defense, |! the |! court |! will |! enter |! judgment |! for |! the |! plaintiff. What |! is |! a |! plaintiff |! entitled |! to |! under |! these |! circumstances? |! - |! Correct |! answer |! ✔The |! plaintiff |! is |! entitled |! to |! "be |! made |! whole," |! to |! be |! put |! in |! a |! situation, |! as |! much |! as |! possible, |! that |! she/he/it |! would |! have |! been |! in |! had |! the |! defendant |! not |! committed |! the |! tort. What |! are |! two |! different |! ways, |! one |! using |! a |! few |! more |! words |! than |! the |! other, |! of |! defining |! what |! a |! contract |! is? |! - |! Correct |! answer |! ✔A |! contract |! is |! an |! enforceable |! promise, |! or, |! to |! use |! a |! few |! more |! words, |! a |! mutually |! binding |! consensual |! agreement |! between |! competent |! parties. Who |! is |! an |! offeror, |! an |! offeree, |! a |! promisor, |! and |! a |! promisee |! and |! how |! are |! their |! relationships |! defined? |! - |! Correct |! answer |! ✔An |! offeror |! is |! one |! who |! makes |! an |! offer. An |! offeree |! is |! one |! to |! whom |! the |! offer |! is |! made. The |! promisor |! makes |! a |! promise. The |! promisee |! is |! one |! to |! whom |! a |! promise |! is |! made. Their |! relationship |! is |! defined |! by |! a |! contract |! that |! they |! made |! involving |! all |! these |! words. Be |! able |! to |! identify |! the |! three |! ways |! contractual |! relationships |! can |! be |! entered |! into. |! - |! Correct |! answer |! ✔They |! can |! be |! entered |! where |! we |! may |! see |! the |! issue, |! of |! course, |! in |! contract |! law, |! also |! in |! warranties, |! in |! agency |! law, |! in |! partnerships |! and |! corporations, |! and |! in |! various |! employment |! law |! situations.
What |! is |! an |! express |! contract? |! - |! Correct |! answer |! ✔An |! express |! contract |! the |! parties |! have |! a |! specific |! understanding |! and |! realize |! that |! they |! are |! entering |! into |! a |! contractual |! relationship. How |! are |! implied |! contracts |! formed? |! - |! Correct |! answer |! ✔Implied |! contracts |! are |! formed |! when |! the |! parties |! do |! not |! have |! a |! contractual |! relationship |! but |! their |! understanding |! does |! not |! cover |! the |! particular |! transaction |! at |! issue. What |! are |! quasi |! contracts? |! - |! Correct |! answer |! ✔In |! a |! quasi |! contract |! the |! parties |! have |! no |! contractual |! relationship |! at |! all, |! but |! the |! court |! imposes |! one |! in |! order |! to |! avoid |! unjust |! enrichment. How |! are |! quasi |! contracts |! imposed? |! - |! Correct |! answer |! ✔The |! court |! imposes |! a |! contract |! on |! the |! parties |! in |! order |! to |! be |! fair. What |! do |! quasi |! contracts |! seek |! to |! avoid? |! - |! Correct |! answer |! ✔They |! seek |! to |! avoid |! unjust |! enrichment. Be |! able |! to |! list |! the |! six |! elements |! a |! person |! must |! prove |! in |! order |! to |! assert |! the |! existence |! of |! a |! contract. |! - |! Correct |! answer |! ✔Six |! Elements: |! (1) |! An |! offer, |! (2) |! an |! acceptance |! of |! the |! offer, |! (3) |! consideration |! of |! the |! offer. |! Even |! if |! those |! elements |! are |! satisfied, |! the |! other |! party |! can |! defend |! by |! proving |! (4) |! a |! lack |! of |! capacity |! to |! enter |! into |! a |! contract |! or |! that |! there |! had |! been |! (5) |! no |! reality |! of |! consent, |! or |! that |! the |! contract |! was |! (6) |! illegal. What |! is |! an |! offer |! a |! proposal |! to |! do? |! - |! Correct |! answer |! ✔An |! offer |! is |! a |! proposal |! to |! perform |! or |! refrain |! from |! performing |! some |! future |! act.
are |! voidable |! at |! the |! election |! of |! the |! minor |! (or |! guardian) |! up |! to |! and |! within |! a |! reasonable |! time |! after |! majority, |! without |! regard |! to |! the |! ability |! of |! the |! minor |! to |! return |! the |! consideration. What |! are |! two |! exceptions |! to |! the |! rule |! regarding |! capacity |! and |! minors |! (or |! infants)? |! - |! Correct |! answer |! ✔Two |! exceptions |! are |! a |! contract |! entered |! into |! by |! a |! minor |! for |! necessities |! is |! enforceable. |! And |! a |! contract |! entered |! into |! by |! a |! minor |! who |! commits |! by |! possibly |! a |! fake |! ID, |! will |! generally |! be |! enforceable |! against |! the |! minor. Be |! able |! to |! describe |! what |! is |! meant |! by |! the |! defense |! of |! a |! lack |! of |! real |! consent |! (or |! lack |! of |! reality |! of |! consent). |! - |! Correct |! answer |! ✔What |! it |! means |! is |! that |! they |! must |! knowingly |! and |! willingly |! have |! agreed |! upon |! the |! same |! thing. What |! are |! the |! two |! general |! categories |! of |! illegality? |! - |! Correct |! answer |! ✔The |! two |! general |! categories |! are |! bargains |! that |! are |! forbidden |! by |! statute |! and |! bargains |! that |! are |! contrary |! to |! public |! policy. What |! is |! the |! result |! if |! a |! court |! determines |! a |! contract |! is |! illegal? |! - |! Correct |! answer |! ✔If |! a |! court |! determines |! a |! contract |! illegal, |! the |! parties |! are |! simply |! left |! where |! they |! are |! found. |! No |! rescission |! is |! allowed, |! an, |! of |! course, |! no |! performance. Are |! oral |! contracts |! ever |! valid? |! - |! Correct |! answer |! ✔For |! the |! most |! part |! oral |! contracts |! are |! valid, |! and |! contracts |! do |! not |! have |! to |! be |! in |! writing |! even |! though |! it |! is |! much |! easier |! to |! prove.
What |! are |! the |! six |! general |! principles |! of |! contract |! interpretation |! and |! how |! would |! they |! be |! applied? |! - |! Correct |! answer |! ✔Six |! general |! principles: |! Interpretation |! in |! General, |! The |! Parol |! Evidence |! Rule, |! No |! Valid |! or |! Enforceable |! Contract, |! Breach |! by |! The |! Other |! Side, |! Conditions, |! Impossibility. What, |! absent |! an |! excuse, |! constitutes |! a |! breach |! of |! contract? |! - |! Correct |! answer |! ✔Any |! failure |! to |! perform |! as |! promised |! that |! is |! not |! excused |! will |! constitute |! a |! breach |! of |! contract. What |! governs |! the |! law |! of |! sales? |! - |! Correct |! answer |! ✔Sales |! are |! governed |! by |! a |! state |! statute, |! the |! Uniform |! Commercial |! Code, |! and |! not |! by |! the |! common |! law What |! is |! the |! general |! purpose |! of |! civil |! remedies? |! - |! Correct |! answer |! ✔The |! general |! purpose |! of |! civil |! remedies |! is |! to |! put |! the |! injured |! party |! in |! as |! good |! a |! position |! as |! he |! would |! have |! been |! in |! had |! there |! been |! no |! breach. Identify |! and |! describe |! the |! two |! categories |! of |! legal |! remedies |! in |! tort. |! - |! Correct |! answer |! ✔In |! tort |! there |! are |! two |! categories |! of |! damages: |! special |! (applied |! to |! economic |! losses) |! and |! general |! (applied |! to |! non-economic |! losses). Identify |! and |! briefly |! describe |! the |! four |! categories |! of |! legal |! remedies |! (damages) |! in |! contract. |! - |! Correct |! answer |! ✔Legal |! Remedies |! in |! Contract: |! Compensatory |! Damages, |! Consequential |! Damages, |! Liquidated |! Damages, |! Punitive |! Damages.
What |! impact |! does |! this |! have |! on |! a |! principal/employer |! if |! the |! answers |! are |! all |! "yes? |! to |! the |! three |! questions" |! - |! Correct |! answer |! ✔If |! the |! answers |! are |! all |! "yes" |! then |! the |! employer |! is |! in |! the |! zone |! of |! risk |! and |! may |! be |! found |! liable. What |! is |! the |! modern |! rule |! regarding |! principal/employer |! liability |! for |! agent/employee |! intentional |! tort |! or |! crime? |! - |! Correct |! answer |! ✔The |! modern |! rule |! is |! that |! the |! employer |! is |! found |! liable |! for |! any |! tort, |! so |! long |! as |! its |! purpose, |! however |! misguided, |! is |! to |! further |! the |! employer's |! interest. |! (So |! long |! as |! the |! tort |! is |! committed |! in |! the |! scope |! of |! employment). What |! is |! the |! general |! rule |! regarding |! contracts |! entered |! into |! by |! an |! authorized |! agent? |! - |! Correct |! answer |! ✔The |! general |! rule |! is |! that |! it |! binds |! the |! principal, |! but |! the |! agent |! is |! not |! liable. What |! is |! determined |! by |! the |! application |! of |! principal |! and |! agent |! theory? |! - |! Correct |! answer |! ✔They |! are |! applied |! to |! determine |! when |! the |! law |! of |! agency |! should |! impose |! liability |! for |! a |! breach |! of |! contract |! upon |! a |! person |! who |! did |! not |! directly |! enter |! into |! the |! contract, |! that |! is, |! should |! vicarious |! liability |! be |! imposed. For |! an |! agent |! or |! employee |! to |! clearly |! avoid |! personal |! liability |! for |! a |! contract, |! what |! must |! there |! actually |! be? |! - |! Correct |! answer |! ✔There |! must |! actually |! be |! a |! principal |! for |! them |! to |! clearly |! avoid |! personal |! liability |! for |! a |! contract. Additionally, |! what |! three |! things |! must |! an |! agent |! or |! employee |! communicate |! to |! a |! third |! party |! in |! order |! to |! avoid |! liability? |! - |! Correct |! answer |! ✔To |! avoid |! liability |! with |! a |! third |! party |! the |! agent |! must |! first |! communicate |! his |! status |! as |! an |! agent |! to |! the |! other |! party; |! then |! the |! agent |! must |! have |! disclosed |! the |!
identity |! of |! the |! principal; |! and |! lastly |! the |! agent |! must |! have |! had |! the |! authority |! to |! enter |! into |! the |! contract. Be |! able |! to |! describe |! each |! of |! the |! three |! ways |! an |! agent's |! or |! employee's |! authority |! to |! act |! on |! behalf |! a |! principal |! or |! employer |! may |! be |! created. |! - |! Correct |! answer |! ✔An |! agent's |! authority |! to |! act |! on |! behalf |! of |! a |! principal |! may |! be |! created |! expressly, |! impliedly, |! or |! apparently. What |! is |! the |! general |! rule |! regarding |! duties |! owed |! by |! an |! agent |! to |! a |! third |! party? |! - |! Correct |! answer |! ✔Generally, |! if |! a |! principal |! agent |! relationship |! exists, |! the |! agent |! has |! no |! contract |! liability |! to |! the |! third |! party, |! only |! the |! principal |! does. Identify |! and |! describe |! the |! three |! ways |! an |! agency |! relationship |! can |! be |! terminated. |! - |! Correct |! answer |! ✔The |! three |! ways |! an |! agency |! relationship |! can |! be |! terminated |! are |! by |! Will |! of |! Parties, |! by |! Contract |! Provision, |! and |! by |! Change |! in |! Circumstances. How |! might |! a |! sole |! proprietorship |! be |! defined? |! - |! Correct |! answer |! ✔A |! business |! owned |! and |! operated |! by |! a |! single |! individual. What |! is |! the |! legal |! distinction |! between |! the |! business |! and |! the |! individual |! who |! owns |! it? |! - |! Correct |! answer |! ✔There |! is |! no |! legal |! distinction |! between |! the |! business |! and |! the |! individual |! who |! owns |! it; |! they |! are |! an |! identity.
