Questions and All Correct Answers
2025-2026 Updated.
What are the four forms of authority? - Answer Actual Express: P tells A directly that A can
do a task
Actual Implied: A reasonably believes P has given A the authority
Inherent: P, a pizza shop owner, tells A to deliver a pizza to X. A has the inherent authority to
take the pizza from the pizzeria (it is not tresspass), because it is a necessary task to complete
the delivery.
Apparent: A third party relies on the appearance of agency when dealing with A
What consent is needed to create an agency relationship? - Answer Both the principal and
the agent must consent
What are the three ingredients of an agency relationship? - Answer Assent, Benefit, and
Control
What is ratification? - Answer When P ratifies an unauthorized transaction by A, P becomes
bound
When is an agent liable in contract? - Answer When the principal is undisclosed, either
partially or fully. Partially: existence is known, but identity is not.
What is the difference between an "exclusive" and a "nonexclusive" broker's contract - Answer
Exclusive: if anyone (including owner) produces a buyer who is ready, willing, and able to buy,
broker gets commission
Nonexclusive: if the broker produces a buyer who is ready, willing, and able to buy
Can a non-licensed broker enforce a claim for commission? - Answer No
When is a principal liable for the torts of its agent? - Answer Employer-Employee
Relationship
,AND
Conduct is within scope of the employment
What are the two exceptions for tort liability of a principal when there is no employment
relationship? - Answer (1) Inherently dangerous activities
OR
(2) nondelegable duties
-construction workers
-owners of land
-common carriers
What is the difference between a frolic and a detour? - Answer Frolic: substantial departure
from employment
(2) Detour: small side trip that does not erase liability
When is an employer liable for intentional torts? - Answer (1) Force is authorized (bouncer)
(2) Promotion of employer's business (hires thugs to beatup picketers)
(3) friction is inherent (bill collection)
What if an employee trip has both a personal and a business purpose? - Answer The
business purpose is sufficient. Multi-purpose trips are still within the scope of employment
Is commuting within the scope of employment? - Answer No
What are the Neumeier Principles? - Answer Harm occurs in State Y
(1) P and D are from same place, apply that place's law
(2) One party is from Y, and the law in Y would be beneficial to their side. Apply Y.
(3) any other case: Apply Y unless
-forum has an interest
-would not impair "multi-state system"
-would not produce "great uncertainty" for litigants (public policy exception)
,What is the classical choice of law approach? - Answer Lex Loci Delicti. Apply the law where
the transaction took place.
What is the difference between "conduct" laws and "damages" laws? - Answer (1) Damages,
apply Neumeier (eg guest statute)
(2) Conduct, apply the place of the harm always (eg speed limit)
What is interest analysis? - Answer The choice of law method that applies the state law from
the state that has "the greatest interest" in the outcome.
Step #1: Is there a false or true conflict?
False conflict: only one state has an interest
True conflict: both states have an interest
Step #2:
False conflict: apply the law from the state that has an interest
True conflict: if the forum has an interest, it will apply its own law
Does NY have a dram shop law? - Answer Yes, NY has a dram shop law. This means a
bartender may be liable for overserving a patron in the form of vicarious liability for the patron's
harms.
In a conflict of laws situation, NY courts should not apply dram shop liability to an out of state
defendant from a state where there is no dramshop law. It is unlikely that the out-of-state
bartender would adjust his conduct in conformance with the dramshop law in this case.
A NY plaintiff purchases a ticket and then boards an aircraft from NY to MA. The plane crashed
in Massachusetts. The plaintiff's family brings a wrongful death action.
NY has an unlimited recovery for wrongful death
MA has a $15,000 damages cap for wrongful death
What law applies? - Answer Here, while the vested rights approach would point to MA law
as the situs of the injury, this approach is no longer followed in NY.
NY would apply interest analysis governed by Neumeier principles.
, Here, while MA arguably has an interest, NY also has a legitimate interest in ensuring its
domicilliaries can get a substantial wrongful death recovery. Therefore NY law applies
What are the three exceptions to an express choice of law provision in a contract? - Answer
(1) Public policy of an interested state is contrary to the choice presented, and that choice of
law has no interest
(2) No reasonable basis for choice: "no substantional relationship to parties of transaction"
(3) Lack of "true consent" by one party
What are the $ minimums for the NY General Obligations Law? - Answer $250,000 means
that a NY choice of law clause is valid regardless of any connection to NY.
What law governs automobile insurance policies? - Answer The law of the state where the
policy was written
NY unlicensed real estate broker alleges an oral "finder's fee" agreement from a NJ corporation.
NJ corporation has many NY contacts. The oral agreement was alleged to have taken place in NJ.
The broker sues in NY court to enforce the fee. NY law does not allow oral contracts on these
facts; NJ law does. What choice of law? - Answer NY. NY has a strong interest in ensuring
that, as an international center of commerce, principals can count on the fact that they will not
be held accountable for fraudulent or unfounded claims.
What are three fallback exceptions to applying the law of a foreign jurisdiction? - Answer (1)
contrary to public policy (rare)
(2) foreign law is merely procedural
(3) foreign law is a penal or tax law
What is the choice of law for real estate? - Answer The law of the situs (vested rights)
What is the choice of law for inter vivos transactions of personal property? - Answer Law of
situs (vested rights)
What choice of law for personal property passed via death? - Answer Law of the decedent's
domicile at the time of his death