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Business English Exercises
 

The Law of Agency

Answers to test questions and links to explanations

Home > Teaching Business English > Business English Lessons, Advanced Level # 108
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the law of agency answer 1
The common law of agency is the body of law applicable to consensual relationships in which one person (the agent) consents to act on behalf of another person (the principal) and subject to that person's control.

Correct answer: (d) consensual

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the law of agency answer 2
Agency doctrine governs the consequences, for the agent and principal, of the agent's interactions with third parties, as well as the consequences of the relationship as between the agent and principal.

Correct answer: (c) governs

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the law of agency answer 3
Agency is a common-law subject of wide scope that intersects with a number of other subjects.

Correct answer: (b) scope

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the law of agency answer 4
Prototypical examples of agency relationships include those between officers and corporations, between employees and employers, and between real-estate and other specialized agents and their clients.

Correct answer: (c) Prototypical

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the law of agency answer 5
Despite the fact that specific rules concerning certain of those agency relationships have evolved, there remains a free-standing law of agency with substantial application across diverse legal contexts.

Correct answer: (a) free-standing

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the law of agency answer 6
The regular appearance of corporate scandals in newspapers—Enron in particular—has emphasized that agency law continues to be relevant in business and employment relationships.

Correct answer: (d) relevant

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the law of agency answer 7
Those scandals are characterized by businesspeople who 'should have known', and who appear to have acted adversely to the organizations for which they worked.

Correct answer: (b) adversely

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the law of agency answer 8
Courts responding to cases relating to the scandals have focused on the legal relationships among principals, agents, and affected third parties.

Correct answer: (a) affected

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the law of agency answer 9
Agency law has retained a structural coherence, despite statutory developments, in part because many statutes make reference to common law or presuppose a background that includes basic common-law doctrines.

Correct answer: (b) presuppose

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the law of agency answer 10
The law of agency is based on the Latin maxim 'Qui facit per alium, facit per se', which means 'he who acts through another is deemed in law to do it himself'.

Correct answer: (c) maxim

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