Question 1

Heather applied for a promotion, but her manager promoted a co-worker because the manager knew Heather was pregnant. The manager did not want to promote someone who would probably be taking time off of work for childbirth and child care. The manager has acted legally to protect the company\'s interests.

Accepted Answer

False

Question 2

It is currently legal for a private employer to use lie dector tests as part of its usual hiring process.

Accepted Answer

False

Question 3

Some Courts have held that employee handbooks create binding contract terms.

Accepted Answer

True

Question 4

Whistleblowers are employees who disclose illegal behavior on the part of their employers.

Accepted Answer

True

Question 5

If an employee is an employee at will, the traditional rule was the employer could fire the employee for a good reason, a bad reason, or no reason at all.

Accepted Answer

True

Question 6

Rob agrees to act as an agent for Diane in selling her car. Diane has a duty of loyalty to Rob.

Accepted Answer

False

Question 7

Jolene hired Lacy to find a buyer for her house. Adam was interested in buying the house. If both Jolene and Adam agree, Lacy, a real estate agent, may represent both parties.

Accepted Answer

True

Question 8

Victoria is the director of marketing for Big Corporation. Victoria needed to negotiate an out-of-town contract on behalf on Big. Big has legal duty to reimburse Victoria for the hotel expenses she incurs negotiating the contract.

Accepted Answer

True

Question 9

Kaiya is a sales representative of TriColor. Kaiya owes a fiduciary duty to TriColor.

Accepted Answer

True

Question 10

It does not create an agency relationship between Minott Mills and Douthett Co. for Minott Mills to contract to sell 500 yards of fabric to Douthett Co.

Accepted Answer

True

Question 11

Esday, Inc. hired Mark to be a financial analyst. Because of the equal dignities rule, the employment contract between Esday and Mark must be in writing.

Accepted Answer

False

Question 12

If ambiguity is present as to the principal\'s intent, the court will look to the principal\'s subjective intent.

Accepted Answer

False

Question 13

If someone acts without authority, a \"principal\" can decide later to be bound by the actions as long as the \"agent\" indicates to the third party that he is acting for a principal, the \"principal\" knows all the material facts of the transaction, and the \"principal\" accepts the benefit of at least part of the transaction.

Accepted Answer

False

Question 14

Erica\'s supervisor told her to arrange for a conference room at the Kelly Inn. Erica has express authority to contract for the room.

Accepted Answer

True

Question 15

An employer is generally liable for the intentional wrongful acts of his or her employees

Accepted Answer

False

Question 16

If estoppel applies, the principal would be prevented from asserting that no agency relationship existed.

Accepted Answer

True

Question 17

Maylin has the authority to delegate her tasks as agent for Brian unless he has expressly restricted her from doing so.

Accepted Answer

False

Question 18

Corporations have perpetual existence.

Accepted Answer

True

Question 19

The most common form of business ownership is the corporation.

Accepted Answer

False

Question 20

A partnership is a separate, taxable entity.

Accepted Answer

False

Question 21

Limited liability is a major advantage of a partnership as compared to a corporation.

Accepted Answer

False

Question 22

Generally, a joint venture is a partnership created for one limited  purpose

Accepted Answer

True

Question 23

Mark was refused employment at a Christian Bookstore because he was not a \"born-again Christian.\" If Mark brings a Title VII action against the bookstore, the bookstore\'s best defense would be:

Accepted Answer

being a \"born-again Christian\" is a bona fide occupational qualification.

Question 24

Which of the following is the most likely to be a legitimate, nondiscriminatory criterion for selection of an employee under Title VII?

Accepted Answer

Education Level

Question 25

Which of the following would probably not be required of employers to reasonably accommodate for religious beliefs?

Accepted Answer

Closing the business on Sundays.

Question 26

Which of the following statements is correct?

Accepted Answer

Generally speaking, in most states, it is easier for a private employer than the government to test an employee for drugs or alcohol.

Question 27

Megan was employed by a large company. Her supervisor told her to falsify government reports. She refused and was fired. She sued for wrongful discharge. Her employer claimed that, since Megan was an at-will employee, she had no legal right to claim the company was liable for damages. Is the employer right?

Accepted Answer

No. Though at-will employees do not have extensive rights relative to job security, they may not be legally fired for refusing to perform an illegal act

Question 28

Wrongful discharge claims are generally based upon all EXCEPT:

Accepted Answer

Criminal Law

Question 29

Sharon had a heart attack while she was under stress at work. Can she collect workers\' compensation for the time she had to be away from work as she recovered?

Accepted Answer

Yes, since the heart attack occured while she was at work.

Question 30

Laura intends to file a Title VII lawsuit against her employer. Which of the following is true?

Accepted Answer

Laura is required to first submit her claim to the Equal Employment Opportunity Commission.

Question 31

An agency relationship can be created:

Accepted Answer

by the conduct of the parties.

Question 32

Can a person work as an agent for two different people with conflicting interests?

Accepted Answer

Yes, provided the agent discloses to both principals that she is representing both persons and the principals agree to the dual relationship

Question 33

Nathan agrees to act as an agent for Cheyenne. Which of the following is true?

Accepted Answer

Cheyenne may compete with Nathan in matters within the scope of the agency business.

Question 34

Ron is the business agent for Kansas Sunshine, a rock band. He is also the agent for another popular Midwestern rock group, City Sand. Ron negotiates a deal with a Kansas City promoter to have City Sand play after a professional football game. The promoter was willing to pay $250,000 for both groups to play after the game; however, Ron talked her into booking just City Sand for $175,000. Given his contract with City Sand, Ron made more money under this arrangement. Has Ron violated his fiduciary duty to Kansas Sunshine?

Accepted Answer

Yes. It appears that Ron put his own interests ahead of his principal\'s interests.

Question 35

Nikki was an tax accountant with HBR Accounting. Nikki decided to do some tax consulting in the evenings and on weekends. HBR is unaware of Nikki\'s consulting work. Which statement is correct?

Accepted Answer

Nikki has breached a fiduciary duty to HBR since she is competing with HBR.

Question 36

Cameron, editor of the local newspaper, assigned to Jim the writing of a story about pollution of a nearby stream. Although Jim used reasonable care in gathering and checking his information, unknown to Jim, the story contained a defamatory statement about Maureen. Maureen reads the story and sues Jim for libel. Cameron, who read and published the story:

Accepted Answer

must indemnify Jim for Maureen\'s claim.

Question 37

An agent may not engage in inappropriate behavior that reflects badly on the principal. This rule applies to conduct:

Accepted Answer

during both working hours and off-duty time.

Question 38

Pamela hired Lena to sell her business. Lena

Accepted Answer

can buy the business only with Pamela\'s permission.

Question 39

The death of the agent

Accepted Answer

automatically terminates the agency relationship.

Question 40

If the agent is disloyal to the principal:

Accepted Answer

the agency agreement automatically terminates and the principal may rescind the transaction, the principal has the right to collect any actual damages sustained as a result of the agent\'s disloyalty, the principal has a right to recover any profits earned as a result of his agent\'s disloyal conduct.

Question 41

John hired Tim to sell his house. Which statement is correct?

Accepted Answer

John is Tim\'s principal.

Question 42

HBR Accounting hired Denise, a CPA, to prepare tax returns. Which statement is correct?

Accepted Answer

Denise, as a CPA, is an agent with special skills. She is held to a higher duty than ordinary negligence.

Question 43

Jenny is a salesperson in a hardware store. As such, she:

Accepted Answer

is an agent of the store. has express authority to conduct sales transactions. has implied authority to conduct sales transactions

Question 44

The doctrine of estoppel would most often apply in situations of:

Accepted Answer

apparent authority.

Question 45

Express authority can be created by:

Accepted Answer

words spoken directly to the agent. Conduct. Written words given to one person to give to another person, the agent.

Question 46

Paula appointed Al to be her agent via a contract in writing that spelled out the scope of Al\'s authority. The contract provided that Al was not to disclose that he was acting on behalf of Paula. In entering into a contract for Paula, Al did not disclose to the third party that he was acting as an agent. In this case, the principal was:

Accepted Answer

Undisclosed

Question 47

When a principal is partially disclosed:

Accepted Answer

the agent and principal will be jointly and severally liable on the contract.

Question 48

Mike worked for Frank\'s Pizza as a driver. His duties consisted of making deliveries along a designated route. One day Mike decided to see his girlfriend, Jackie, who lived 50 miles out of his pizza route. While driving to his girlfriend\'s, Mike injured a pedestrian, Chuck. The accident was caused because of Mike\'s negligent operation of the delivery truck. Chuck is now suing both Mike and Frank\'s for personal injuries. Under the circumstances:

Accepted Answer

Frank\'s is probably not liable because Mike\'s excursion was not within the scope of his employment

Question 49

Judy was the manager of an apartment complex. She hired Rick to mow the lawns. One afternoon while Rick is mowing the lawn, his negligence caused damage to Terri\'s car. If Judy had been negligent in hiring Rick, who is liable to Terri?

Accepted Answer

The landlord, Judy, and Rick.

Question 50

Jackie is an employee for Hardware Store, Inc. When attempting to open a can of bright orange paint, she accidentally spills paint on Maggie, a customer in the store. Maggie claims that her $800 business suit is ruined. The legal liability here can best be described as:

Accepted Answer

Both the store and Jackie are liable to Maggie.

Question 51

The National Relations Labor Act of 1935 is also known as the:

Accepted Answer

Wagner Act

Question 52

Maxine lost her job as an electrical engineer with a large company which had provided health insurance benefits for Maxine and her family. She now:

Accepted Answer

is protected under COBRA, which allows her continued health insurance coverage for 18 months as long as she pays the cost.

Question 53

All the business forms listed below have limited liability except the:

Accepted Answer

General Partnership

Question 54

Rachel and Cyndi started a retail business called Zebra Toy Company. The business is operated as a partnership. Under partnership law:

Accepted Answer

Rachel is personally liable for any negligent act committed by Cyndi in the scope of the business activity. Rachel is personally liable for any business debts, regardless of whether she or Cyndi created the obligation. Rachel is personally liable for any business contracts entered into by Cyndi.

Question 55

The business form that is taxed as a partnership and gives all owners limited liability, is:

Accepted Answer

A Limited liability company

Question 56

Murray was a partner in a large firm. He died unexpectedly. His son, Frank, wanted to take over for his father in the partnership and was well qualified to do the work his father had done. Which statement best describes Frank\'s rights in the partnership if he inherits the interest?

Accepted Answer

Frank is entitled to the value in the partnership, but not to become a full partner.

Question 57

The advantage of a corporation over a partnership is:

Accepted Answer

shares are easily transferable to another person. perpetual existence. it is easier to raise funds.

Question 58

LLCs have become popular for all except which of the following reasons:

Accepted Answer

Uniformity of Law

Question 59

The term \"S Corporation\" comes from:

Accepted Answer

the Internal Revenue Code

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