Reference no: EM132224295

1. Beth works for Lane in his small dance supply shop and is authorized to sell inventory, but Beth is not authorized to order new merchandise. Rena, a sales representative for a new line of dance wear, comes into the store, and Beth places an order with her. When Lane learns the details of Beth's purchase, he wants to ratify the contract. Which of the following conditions is not necessary for ratification?

Lane must affirm Beth's order in its entirety.

Rena must withdraw from the transaction before Lane ratifies it.

Lane must know all the material facts about the transaction.

Rena and Lane must have legal capacity to engage in the transaction.

2. Brittany works at home making unique children's clothes. Liam buys Brittany's clothes to sell in his store. With respect to Brittany's legal relationship to Liam, she is probably

an employee.

a principal.

an agent by operation of law.

an independent contractor.

3. Jonathan Kip owns Kip's Construction and Renovation Company. He agrees to renovate Rita Simpson's bathroom. According to Internal Revenue Service (IRS) criteria, Kip is likely to be classified as

an independent contractor.

an employee.

a partially disclosed principal.

a disclosed principal.

4. Grace, who is eighty-seven years old, appoints her niece, Lauren, to act and make decisions for her in the event that Grace becomes incapacitated.

This is known as a restrictive grant of attorney.

This is known as a limited power of attorney.

This is known as a durable power of attorney.

This is known as a registration.