1. Joy, Saras agent, sells a property of $2000 more than what Sarah had anticipated. But, Joy keeps the excess money to him, and lets Sarah know that the property has been sold at the price she anticipated. In such a case, Sarah:

1. Has a right to indemnification.

2. Can enact a constructive trust.

3. Must use right of avoidance.

4. Must demand an accounting.

2. Which of the following is true of the principal’s liability for an independent contractor’s actions?

1. The employer can escape strict liability by hiring an independent contractor to complete the tasks for them.

2. An individual who hires an independent contractor is held liable for the independent contractor’s tortuous actions under the doctrine of respondent superior.

3. The principal will not be held responsible for any damages caused due to extremely hazardous activities undertaken by the independent contractor.

4. The employer cannot escape liability for an independent contractor’s tort if the employer directs the contractor to commit the tort.

3. When the principal is disclosed:

1. The principal is liable for the agreements made with the third party.

2. The agent is the only person who could be liable for the agreement.

3. The agent is the only person who could be liable for the agreement.

4. The agent is partially liable because he or she is a party to the transaction.