2026 ANSWER KEY COMPREHENSIVE
◉ A person who volunteers with no expectation of being paid for her
services is a(n):
(A) exceptional agent
(B) gratuitous agent
(C) agent who has an agency coupled with an interest
(D) one-time agent
(E) none of the other choices.
Answer: (B) gratuitous agent
◉ Carla agrees to try to sell Frank's prize dog Spike for him. Carla
does this as a favor to Frank because she knows many professional
dog breeders. Carla may be best described as:
(A) a universal agent
(B) a gratuitous agent
(C) an agent who has an agency coupled with an interest
(D) a special agent
(E) none of the other choices.
Answer: (B) a gratuitous agent
,◉ Persons appointed by an agent delegated some authority are
known as:
(A) minor agents
(B) pseudo-agents
(C) subagents
(D) delegated agents
(E) none of the other choices.
Answer: (C) subagents
◉ Subagents work for the agent and owe duties to:
(A) only the agent
(B) only the principal
(C) both the agent and the principal
(D) no one
(E) none of the other choices are correct.
Answer: (C) both the agent and the principal
◉ To establish an agency relationship:
(A) the procedure in state statutes must be followed
(B) there must be a written contract between the parties
(C) the principal and agent must agree to form an agency
(D) all of the other specific choices
,(E) none of the other choices.
Answer: (C) the principal and agent must agree to form an agency
◉ An agency may be established by:
(A) operation of law
(B) oral agreement of the parties
(C) written agreement of the parties
(D) operation of law or by oral agreement of the parties
(E) operation of law or by oral agreement of the parties or by
written agreement of the parties.
Answer: (E) operation of law or by oral agreement of the parties or
by written agreement of the parties
◉ Agreement of the parties, ratification of the agent's activities by
the principal, application of
the doctrine of estoppel and operation of law are all:
(A) ways that an agency may be established
(B) ways that an agency may be sued
(C) unacceptable ways to begin an agency
(D) informal and thus non-binding ways of establishing an agency
(E) none of the other choices are correct.
Answer: (A) ways that an agency may be established
, ◉ Many states require agencies that will exist for ____ to be
established in writing.
(A) more than one year
(B) less than one year
(C) less than five years
(D) more than six months
(E) none of the other choices are correct.
Answer: (A) more than one year
◉ Many states require agencies for ____ to be established in writing.
(A) sale of boats
(B) sale of businesses
(C) sale of land
(D) sale of livestock
(E) sale of books.
Answer: (C) sale of land
◉ A legal document that establishes some agency relationships is
known as:
(A) articles of incorporation
(B) power of attorney