Business Law, 8e: Chapter 31

Chapter 31
Agency: Liability For Torts and Crimes:

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1. Generally, servants are not liable for the torts they commit when acting on behalf of a principal.: a. True
b. False

2. If an agent fails to act as instructed, the behavior of the agent can still serve as the basis for holding the employer liable for the conduct on the basis of respondeat superior.: a. True
b. False

3. The theory of respondeat superior is based on the concept that the principal was negligent in selecting his or her agent.: a. True
b. False

4. A principal has no duty to provide her agents with a safe workplace.: a. True
b. False

5. A principal can be liable for breaching its duty to hire competent employees.: a. True
b. False

6. Even though the principal may be liable for the torts of his or her agent due to respondeat superior, the agent is also liable since the agent actually committed the tort.: a. True
b. False

7. The case of Middlebrooks v. Hillcrest Foods involved the issue of whether the manager was liable for criminal acts of his employees.: a. True
b. False

8. Joint and several liability means that either party may be held liable individually or that both parties may be held liable.: a. True
b. False

9. A person does not have to be an employee to collect workers compensation.: a. True
b. False

10. A principal will be liable for a contractor's intentional tort if the tort advances the principal's interests.: a. True
b. False

11. Jason hired a plumber to fix the kitchen sink in his condominium. The plumber negligently caused a car accident on his way to Jason's home. In this situation:: a. Jason can be held liable for the car accident under the doctrine of respondeat superior.
b. Jason can be held liable for the car accident because of the right to indemnification.
c. Jason will not be held liable for the car accident because the plumber was an independent contractor.
d. Jason will not be held liable for the car accident because of the right to indemnification.

12. When a tort or crime is committed by an employee:: a. the principal is always vicariously liable.
b. he principal is not vicariously liable.
c. vicarious liability cannot be imposed on the employer because an employee is not an agent.
d. vicarious liability could be imposed on the employer if the act was committed within the course of employment.

13. Ty is employed by Trips, Inc. as a truck driver. Ty was told specifically not to exceed the posted speed limit. Nevertheless while making a delivery for Trips, Ty exceeded the posted speed limit and negligently crashed into Lillian's car. In this situation:: a. Trips will not be responsible for Lillian's injuries because Ty was specifically told not to exceed the speed limit.
b. Trips will not be responsible for Lillian's injuries because Trips was not responsible for the accident.
c. Trips will not be responsible for Lillian's injuries because of indemnification.
d. Trips will be liable for Lillian's injuries.

14. Jane drives a delivery truck for Beau's Diapers. Jane is assigned a route and she is not supposed to make any deviations. One day she becomes thirsty and stops along her route for a Coke. While pulling out, Jane has an accident. In this case:: a. Jane is within the scope of her employment.
b. Jane is outside the scope of her employment.
c. Jane is an independent contractor.
d. None of the above.

15. An agent who commits a tort or crime is:: a. generally liable for crimes but not torts.
b. generally liable for crimes but not torts if the tort was committed to advance the interest of the principal.
c. liable for both torts and crimes.
d. not liable for torts or crimes committed to advance the interest of the principal.