Book Opener

Consider the key terms in the list below. Then use these terms tocomplete the following exercises.express authorityimplied authorityobediencegood faithduty to accountreimbursementindemnificationcooperationbankruptcyactual noticenotice by publication1. In a small group, create a bulletin board explaining agencyrelationships and their termination. Use as many of the termslisted above as possible.2. As a class, discuss the best qualities of each board, noting legalreferences, creativity, and use of terms.3. Display the bulletin boards in the classroom.4. Write a brief essay explaining how your group could haveimproved its bulletin board.Self-Check Quiz Visitthe UnderstandingBusiness and PersonalLaw Web site atubpl.glencoe.com andclick on Chapter 19:Agency Relationshipsand Their Termination—Self-Check Quizzesto prepare for thechapter exam.Answer the following questions. Refer to the chapter for additional reinforcement.5. What is the difference between an agent’s actual authority and an agent’sapparent authority?6. What duties does a principal owe to an agent?7. Explain good faith as it relates to an agency relationship.8. Is it legal for an agent to keep secret the identity of the principal whom he or sheis representing? Explain your answer.9. What happens if a principal fails to notify third parties that an agency relationshiphas ended?10. Under what circumstance may an agent legally represent competing principals?11. What happens if an agent mingles the principal’s funds with his or herpersonal funds?12. What is a gratuitous agent?13. What is indemnification?14. Under what circumstance might bankruptcy end an agency relationship?Chapter 19: Agency Relationships and Their Termination 429