When a principal decides to adopt and be bound on a contract that his agent did not have the authority to form, the principal _______________ the contract.

a.   Indemnifies

b.   Reforms

c.   Ratifies

d.   Restores

Which legal rule will not impose punitive damages on a master for the torts of his servants unless the master himself took some part in the wrongful action?

a.   Vicarious liability rule

b.   Durham rule

c.   Complicity rule

d.   Transferred liability rule

When a servant completely abandons the master’s work to pursue his own interests, the servant is on a ___________.

a.   Detour

b.   Outing

c.   Trespass

d.   Frolic

Which legal principal always imposes punitive damages on a master if the wrongful conduct of the servant justifies punitive damages?

a.   Vicarious liability rule

b.   Complicity rule

c.   Transferred liability rule

d.   Durham rule