Bsad C131 Quiz 2

Multiple Choice 50 Points

1. Bill hired Acme Paving to pave his driveway. Acme is Bill’s __________________.

a. Broker

b. Independent contractor

c. Factor

d. Special agent

2. Jim was called to active duty in the military. Knowing that he would be out of the country for a year or more, he gave his sister Peg authority to pay bills in his name, access his bank accounts, buy and sell stock in his brokerage accounts, and incur expenses to maintain his house and car and boat. Peg is Jim’s______________.

e. Independent contractor

f. Broker

g. General agent

h. Special agent

3. Jim was called to active duty in the military. Knowing that he would be out of the country for a year or more, he gave his sister Peg authority to pay bills in his name, access his bank accounts, buy and sell stock in his brokerage accounts, and incur expenses to maintain his house and car and boat. Jim will be out of the country when a piece of land he sold goes to settlement. He wants to give Peg the authority to convey the deed and sign any necessary settlement papers in his name. To do this he should give Peg _______________.

i. Special power of attorney

j. General power of attorney

k. Factors letters of appointment

l. Broker Authority

4. Jim was called to active duty in the military. Knowing that he would be out of the country for a year or more, he gave his sister Peg authority to pay bills in his name, access his bank accounts, buy and sell stock in his brokerage accounts, and incur expenses to maintain his house and car and boat. Because Peg is not compensated for the activities she is performing on her brother’s behalf, she owes him

m. Only the duty of loyalty.

n. Only the duties of loyalty and information.

o. Only the duties of loyalty, information and the duty to account

p. Peg owes Jim all the duties of an agent to a principal....