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Generally, an agency relationship is terminated by operation of law in all of th

ID: 367712 • Letter: G

Question

Generally, an agency relationship is terminated by operation of law in all of the following situations except:

Changes in the value of the agency property or subject matter.

Principal's incapacity.

Agent's death.

Agent's renunciation of the agency.

Principal's death.

Anne worked as Amanda's assistant. Amanda told Anne to buy Amanda coffee every morning (using Anne's own money) and to buy Amanda the latest fashion accessory (scarf, purse, hat, watch, etc.) from Nordstrom on Friday of each week (using Amanda's store account with Nordstrom). Anne has done so for the past year. This past Friday, Anne bought Amanda coffee using Anne's own money, and bought a scarf for Amanda and a purse for herself from Nordstrom (both of which she charged to Amanda's store account). A court is most likely to find that Anne had _______ authority to buy the coffee and scarf; that Anne had _______ authority to buy the purse; and that Amanda has a duty to _______ Anne for the coffee.

apparent; actual; compensate

apparent; actual; reimburse

actual; apparent; compensate

actual; apparent; reimburse

actual; implied; reimburse

Explanation / Answer

1) The right answer is - Agent's renunciation of the agency

Generally, an agency relationship is terminated by operation of law in all of the following situations except - Agent's renuciration of the agency.

2) The right answer is - actual; apparent; reimburse

A court is most likely to find that Anne had actual authority to buy the coffee and scarf; that Anne had apparent authority to buy the purse; and that Amanda has a duty to reimburse Anne for the coffee