UGBA 175 CH 19-20 Exam Questions And Answers | Updated 2026 | Guaranteed Success

UGBA 175 CH 19-20 Exam Questions And Answers | Updated 2026 | Guaranteed Success Q: What is agency? - answer-A: A consensual relationship in which one person (agent) acts on behalf of another (principal) and is subject to the principal's control. Q: What acts may a principal delegate to an agent? - answer-A: Any act the principal could lawfully perform personally. Q: What acts may NOT be delegated to an agent? - answer-A: Illegal acts Crimes Purely personal services (e.g., painting a portrait) Q: Are all employees agents? - answer-A: Yes. Q: Are all agents employees? - answer-A: No. Q: Does an unpaid agent have authority equal to a paid agent? - answer-A: Yes — unpaid agents can bind principals and create liability. Q: What is agency by estoppel? - answer-A: Liability imposed when a principal creates the appearance of authority for an agent and a third party reasonably relies on it. Q: Elements of agency by estoppel (EXAM LIST)? - answer-A:Principal causes belief of authority (intentionally or carelessly) Principal knows or should know and fails to correct Third party reasonably and in good faith relies Third party changes position detrimentally Q: Liability consequence if agency by estoppel exists? - answer-A: Principal is liable for losses caused by the third party's reliance. Q: What defines an independent contractor? - answer-A: Hired to achieve a result, but not controlled as to manner and means. Q: When is a writing required to create agency? - answer-A: Agency lasting more than one year Authority to sell land (in many states) Equal-dignity statutes Q: What is a power of attorney? - answer-A: A written document stating the agent's authority. Q: What happens if the principal lacks capacity? - answer-A: Agency is voidable; contracts with third parties may be voidable. Q: What type of relationship exists between agent and principal? - answer-A: Fiduciary. Q: Consequence of exceeding authority? - answer-A: Agent is liable for resulting losses and may lose compensation. Is the principle liable for torts committed by an agent? - answer-only if they are in scope of employment. Ordinarily not liable for torts committed by an individual contractor