An employee, without authority from his employer, enters into a contract on behalf of the employer.

1. An employee, without authority from his employer, enters into a contract on behalf of the employer. The deal turns out to benefit the employer and the employer decides to act as if the employee had authority to enter into the contact. What type of agency has occurred?
a. Agency by estoppel.
b. Agency by ratification.
c. Agency by agreement.
d. All of the above.
2. What is the rule called requiring that if the contract being executed is or must be in writing, then the agent’s authority must also be in writing?
a. Express authority rule.
b. Written agency rule.
c. Equal dignity rule.
3. What is true about an undisclosed principal?
a. An undisclosed principal can be liable to a third party for a contract made by an agent who is acting within the scope of his/her authority.
b. An undisclosed principal can be partially liable to a third party for a contract made by an agent who is acting within the scope of his/her authority.
c. An undisclosed principal is not liable to a third party for a contact me by an agent who is acting within the scope of his/her authority.
4. This doctrine hold that a principal may be held liable for wrongful acts committed by agents or employees while acting within the course and scope of their agency or employment.
a. Res ipsa loquitur.
b. Vicarious liability.
c. Respondeat Superior.
d. Detour and Frolic.
5. What is true about a sole proprietorship?
a. The sole proprietor reports business income on his/her personal income tax return.
b. The sole proprietor is legally responsible for all debts and obligations of the business.
c. The sole proprietor is not personally responsible for any business torts.
e. a. and b.







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