Book Opener

Consider the key terms in the list below. Then use these terms tocomplete the following exercises.agencyagentprincipalservantratificationrespondeat superiorgeneral agentspecial agentagency by estoppelindependent contractor1. Caterina Gant wants to be a reporter. Imagine that you would alsolike to be a reporter. Write an article about the creation of anagency and use the terms listed above in your article.2. Exchange your article with another student in the class so thatyou can read and critique each other’s articles.3. Discuss the strong aspects of the article and the aspects thatneed improvement.4. Select one of the articles, and present it to the class.5. As a class, select the best essay and post it somewhere inthe classroom.Self-Check Quiz Visitthe UnderstandingBusiness and PersonalLaw Web site atubpl.glencoe.com andclick on Chapter 18:Creation of an Agency—Self-Check Quizzesto prepare for thechapter exam.Answer the following questions. Refer to the chapter for additionalreinforcement.6. Why is the agency relationship considered powerful?7. Explain vicarious liability.8. What is negligent hiring and negligent retention?9. Define the equal dignities rule.10. How is an agency by estoppel created? What do the circumstancesusually involve?11. What is ratification?12. What happens if a principal refuses to ratify the unauthorized actionsof an agent?13. How does a general agent differ from a special agent?14. How does a servant differ from an independent contractor?15. What are some advantages of working as an independent contractor?Chapter 18: Creation of an Agency 409