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1. Based on Nan’s conduct, Odel reasonably believes that Poppy has the authority to act on Nan’s behalf even though Poppy does not have the actual authority to do so. In this circumstance, Poppy has

A. Express authority

B. No authority

C. Implied authority

D. Apparent authority

2. Bayou Development Corporation (BDC) hires Gulfview Brokerage Associates to sell the condominiums in a building at BDC’s coastal resort. The agency will terminate

A. When BDC pays Gulfview its first commission

B. After the condos have been sold

C. Once BDC obtains insurance to cover the property

D. If the prices of the condos must be reduced to sell them

3. Bernard is an expert on exotic flowers. Fine Floral Fixtures, Inc. (FFF) hires Bernard to order exotic flowers from various greenhouses. Bernard does not bother to examine the quality of the flowers he purchases on behalf of FFF. Bernard has breached

A. The duty of loyalty

B. No duty

C. The duty of notification

D. The duty of performance

4. Bob, a salesperson at a Carpets Galore store, tells Dita, a customer, “Buy your carpet here, and I’ll install it for half of what the store would charge.” Dita buys the carpet, which Bob in-stalls for half the store’s price. Bob keeps the money. Bob has breached

A. The duty of notification

B. No duty

C. The duty of obedience

D. The duty of loyalty

5. Brad is an employee of Custodial Service, Inc. In deciding whether Brad acts within the scope of his employment when he commits a tort against Didi, a court will not con-sider whether

A. Custodial was personally at fault

B. Brad was acting within the scope of his employment

C. Brad was acting within the scope of the agency

D. Custodial authorized the act

6. Bud approves on behalf of Cody-but without authorization-a contract with Dik to build a new silo. Cody does not ratify the contract. Later, Dik tries to enforce the deal. This attempt will be

A. Partly unsuccessful

B. Partly successful

C. Totally unsuccessful

D. Totally successful

7. Carol is married to Andy. Carol buys food for their children’s lunches and charges the cost to Andy’s account. This is

A. An agency by ratification

B. An agency by operation of law

C. Not the creation of an agency relationship

D. An agency by estoppel

8. Clara is a salesperson in The Corner Store. When Carla makes a sale to Jenny, the sale is

A. Not binding on anyone

B. Binding on Carla

C. Binding on The Corner Store only if the owner of The Corner Store is present when the sale is made

D. Binding on The Corner Store

9. Cory employs Daily Delivery Agency as an agent under a writ-ten agreement that describes the rights and duties of both parties. This is

A. Implied authority

B. Equal authority

C. Apparent authority

D. Express authority

10. Gayla asks Jessie to contract with Jessie’s high school classmates to babysit for Gayla’s new baby. Jessie orally agrees to do so. This is

A. An agency by ratification

B. An agency by agreement

C. Not the creation of an agency relationship

D. An agency by estoppel

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92277769

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