Author Question: Mark owns a bar. The bar has a back room where Mark has some slot machines. Mark lets some of his ... (Read 202 times)

gonzo233

  • Hero Member
  • *****
  • Posts: 557
Mark owns a bar. The bar has a back room where Mark has some slot machines. Mark lets some of his patrons play the machines, and Mark keeps any profits.
 
  This type of gambling is illegal where Mark lives. Mark wanted to purchase insurance in case his slot machines were confiscated by the police. Such an insurance contract would not be enforceable. Which requirement needed to form a valid insurance contract is missing?
  A) consideration
  B) offer and acceptance
  C) legal purpose
  D) competent parties

Question 2

Dave is an agent for Easy Pay Insurance. Easy Pay insures only high-quality applicants. Dave wanted to earn more commissions, so he sold some policies to applicants he knew were below-average risks.
 
  When these policyowners started filing claims, Easy Pay tried to deny the claims stating that Dave had not acted appropriately. Which general rule of agency makes Easy Pay responsible for the claims of the higher-than-average risk policyowners?
  A) There is no presumption of an agency relationship.
  B) Agents should be compensated based on the quality of the business they generate.
  C) A principal is responsible for the acts of its agents who are acting within the scope of their authority.
  D) An agent must have authority to represent the principal.



ashely1112

  • Sr. Member
  • ****
  • Posts: 347
Answer to Question 1

Answer: C

Answer to Question 2

Answer: C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

Disorders that may affect pharmacodynamics include genetic mutations, malnutrition, thyrotoxicosis, myasthenia gravis, Parkinson's disease, and certain forms of insulin-resistant diabetes mellitus.

Did you know?

Approximately 25% of all reported medication errors result from some kind of name confusion.

Did you know?

Human stomach acid is strong enough to dissolve small pieces of metal such as razor blades or staples.

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

Did you know?

Famous people who died from poisoning or drug overdose include, Adolf Hitler, Socrates, Juan Ponce de Leon, Marilyn Monroe, Judy Garland, and John Belushi.

For a complete list of videos, visit our video library