Chapter 3 Self-test questions

. The person on whose behalf an agent acts is known as the ____.

. The word 'agent' in a person's job title provides conclusive proof that that person will legally be regarded as an agent.

True

False

. An agent who is vested with authority to act on behalf of the principal in relation to a single subject matter or transaction is known as a __________.

. What is the difference between a factor and a broker?

A broker will usually never have control or possession of the goods in question, whereas a factor will usually control or possess the goods.

A broker will have authority to act on behalf of his principal in all areas of the principal's business, whereas a factor will only have authority to act for a specific purpose or transaction.

A broker can only be appointed by deed, whereas a factor can be appointed without a deed.

A broker has authority only to negotiate on behalf of his principal, whereas a factor can negotiate and enter into contracts on behalf of his principal.

. An agent who will also act as guarantor for the obligations of a third party is known as a ____________.

. The definition of a commercial agent can be found in _______ of the Commercial Agents (Council Directive) Regulations 1993.

. An agent who is an agent by virtue of his employment will not be a commercial agent.

True

False

. What did the European Court of Justice decide in Case C-3/04 Poseidon Chartering BV v Marianne Zeeschip VOF [2007] Bus LR 446?

The European Court of Justice held that an agent engaged for a fixed period would not constitute a commercial agent.

The European Court of Justice held that an agent not engaged by contract would not constitute a commercial agent.

The European Court of Justice held that a commercial agent must be engaged via a deed.

The European Court of Justice held that an agent engaged to effect a one-off transaction would not constitute a commercial agent.

. In order to constitute a commercial agent, the agent must have continuing authority to negotiate and/or conclude the sale or purchase of _______.

. An agent who has authority to merely introduce a principal to a third party will not constitute a commercial agent.

True

False

. Which of the following will not constitute a commercial agent within reg 2(1) of the Commercial Agents (Council Directive) Regulations 1993? Please select all that apply.

A company director

A partner of a partnership

An insolvency practitioner

An unpaid agent

Agents who operate on commodity exchanges

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