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Law
Q:
The Lilly Ledbetter Act said that each illegal pay differential payment renewed a cause of action until the discrimination was reasonably discovered.
Q:
Affirmative action has not been upheld by courts.
Q:
The EEOC has strongly supported mandatory binding arbitration as a condition of employment.
Q:
The Age Discrimination in Employment Act (ADEA) is enforced by the EEOC.
Q:
States are preempted by the federal government from governing such matters as how soon wages must be paid to the employee and the garnishment of wages.
Q:
ERISA does not cover union-sponsored pension plans.
Q:
The first federal safety statute that applied to all types of businesses was the Occupational Safety and Health Act.
Q:
The Employment Retirement Income Security Act requires employers to establish pension plans or to meet specific benefit levels.
Q:
Under the FLSA, an employer may be liable for pay when an employee works voluntarily and for short rest periods when the employee cannot use his time effectively.
Q:
Ralph and Ann engaged Sue, a realtor, to sell their variety store. Sue represented to buyer Mike that "this was a typical general store," selling gas, oil, hardware, beer, and groceries. She reported that the store had an annual gross income of over $1 million. Sue failed to inform Mike that one-third of the store's profit was attributable to an accompanying lawn and garden equipment distributorship that Ralph and Ann were not including in the sale. When Mike visited the business, Sue directed him away from the garage area where the lawn and garden equipment was stored. Throughout all of these negotiations, Ralph and Ann were unaware of Sue's misrepresentations. After purchasing the store, Mike learned of the importance of the equipment sales from Ralph and Ann. Are Ralph and Ann liable for Sue's misrepresentation? If yes, what can they do to avoid liability?
Q:
Wheelz retained Doug, an attorney, to repossess several utility trailers, giving him the authority to take whatever steps were necessary to recover the trailers. Doug hired Randy RepoMan to locate the equipment. After orally reporting to Doug that he had found the trailers in Iowa, Doug instructed RepoMan to have them towed to Nebraska. RepoMan hired Ted's Towing to carry out the request. Ted's stored the trailers on its lot in Omaha, Nebraska, and RepoMan notified Doug of this fact. When Ted's was not paid, it sued Wheelz for its towing and storage services, arguing that RepoMan was a subagent capable of binding Wheelz to the towing and storage contract. Discuss.
Q:
Briefly describe the doctrine of respondeat superior.
Q:
All employees are covered by workers' compensation.
Q:
Employees in certain types of employment, such as farming, charitable organizations, and household service are covered by workers' compensation.
Q:
A person who commits a crime under instructions from her principal:
A. is relieved from liability if committed within the scope of employment.
B. is guilty of the crime because the agent's duty to society overrides the duty to follow the direction of the principal.
C. is guilty of the crime because newly revised criminal codes will almost always impose liability on the third party.
D. is relieved from liability if the crime is committed to accomplish the objectives of the agency.
Q:
A principal's liability under respondeat superior often is called:
A. direct liability.
B. vicarious liability.
C. contributory liability.
D. enterprise liability.
Q:
When the principal is negligent in the hiring and/or supervision of the agent, the principal may be liable under:
A. direct liability.
B. apparent agency.
C. joint liability.
D. vicarious liability.
Q:
After Bart and Veronica were involved in an automobile accident, Bart retained Rhonda as an attorney to negotiate an out-of-court settlement. After a lengthy discussion with Veronica's insurance company, Rhonda settled the case for $5,000. However, Bart personally rejected the $5,000 offer. Veronica filed suit to enforce the settlement, claiming that Rhonda was authorized to accept the settlement on behalf of Bart. Discuss Rhonda's express, implied and apparent authority.
Q:
Explain the concept of apparent authority.
Q:
A large and well-known corporation wants to acquire a plot of ground for a new plant. To avoid the extra cost, purchases the land through several agents, each purporting to be buying personally. In such cases, the corporation is a(n) ______.
A. undisclosed principal
B. disclosed principal
C. partially disclosed principal
D. subagent
Q:
Jacobsen contracted with Orr to purchase some of Orr's property. Jacobsen informed Orr that he (Jacobsen) was purchasing the property on behalf of another person, but Jacobsen did not reveal to Orr the name of the person for whom Jacobsen was making the purchase. The agency here is:
A. disclosed.
B. undisclosed.
C. partially disclosed.
D. illegal.
Q:
Which of the following statements is true for the principle of respondeat superior?
A. When an agent commits a tort or crime while working for the principal, the agent is always personally liable for the consequences of his actions.
B. A principal's liability under respondeat superior often is called direct liability.
C. If the agent was acting within the scope of the agency when the tort occurred, he is liable for his own actions.
D. This theory of liability makes the principal responsible without regard to whether the principal was actually at fault.
Q:
An agent will be relieved from liability for representations in excess of the agent's authority if:
A. the agency is partially disclosed.
B. the third party knows that the agent is acting in excess of his authority.
C. the entity has a legal existence.
D. the act was undertaken with a good intent.
Q:
Which of the following statements is true for a nonexistent or incompetent principal?
A. If the third person is unaware of the lack of capacity of the principal, the agent is protected.
B. A minor is considered a nonexistent principal.
C. The law imposes an apparent warranty by the agent that the principal has the capacity to be bound.
D. A person judged insane is not considered to be nonexistent.
Q:
A person who is induced to enter a contract by the misrepresentation of an agent has the same remedies as if he had contracted with any person who made a _____.
A. misrepresentation
B. duress
C. undue influence
D. fraud
Q:
Which of the following statements is true for a principal's liability for notice and payments to the agent?
A. The agent is not bound to inform the principal of knowledge the agent gains in the course of his or her responsibilities.
B. Payment to the agent of a debt owed to the principal discharges the debt if the agent has authority to receive such payments.
C. An agent who makes over-the-counter sales is viewed as having express authority to collect for the goods.
D. The principal is bound by the information that is passed on by the agent if it relates to the scope of the agent's responsibilities and authority.
Q:
An agent can limit the liability for the acts of a subagent to the principal by using:
A. express authority
B. ministerial actions
C. implied authority
D. exculpatory clause
Q:
Jane appointed Tom as her agent and gave him express authority to retain subagents to do some or all of Tom's work. Tom retained Mike as a subagent. Based on these facts, which of the following statements is true?
A. Only Jane is bound to a third party by Mike's actions.
B. Neither Jane nor Tom is bound to a third party by Mike's actions as subagent.
C. Between Jane and Tom, it is Tom who is ultimately liable for Mike's actions as subagent.
D. Mike is solely bound to third parties for his actions as subagent.
Q:
Liability is imposed on an agent who has exceeded his authority on the basis of an:
A. implied warranty of authority.
B. actual warranty of authority.
C. inherent warranty of authority.
D. apparent warranty of authority.
Q:
The principal is bound by representations:
A. that are reasonably necessary for the agent to make in order to accomplish the purpose of the agency since they would be apparently authorized.
B. that the agent is expressly authorized to make.
C. even if the third person knows that the agent has exceeded his actual authority.
D. that are not customary in the kind of business being transacted by the agent.
Q:
For ratification to be effective:
A. the principal cannot be disclosed to the third person.
B. the agent or purported agent must have acted on behalf of the principal.
C. the principal must have had capacity to do the act only at the time of ratification.
D. it is necessary that the principal fully understand the legal significance of all material facts.
Q:
A principal's intent to ratify a contract:
A. needs to be expressed explicitly.
B. may not be implied by his acts or failure to act.
C. may be inferred by a court from the fact that the principal accepted the benefits of an unauthorized contract.
D. may be inferred from the principal's repudiation of an unauthorized contract after becoming aware of it.
Q:
Which of the following is true for ratification?
A. It releases the principal from liability to the third person.
B. It gives the agent the same right to compensation that he would have had if there had been prior authorization.
C. It requires that the principal to have full understanding of the legal significance of all material facts.
D. It is inferred by a court from the fact that the agent accepted the benefits of an unauthorized contract.
Q:
Which of the following statements is true about apparent authority?
A. Only a general agent can have apparent authority.
B. Only a special agent can have apparent authority.
C. If the agent justifiably believed he had authority, his authority would be apparent.
D. If a third party justifiably believed the agent had authority, the agent's authority would be apparent.
Q:
Jen is a buyer for Autumn's Iowa health food store. While Jen is in California buying tofu, she finds a solar car for sale for just $3,000. Jen contracts to buy the car for Autumn, who has been looking for a solar car for the past three years. Autumn instructs the seller of the car to ship it. Under these circumstances:
A. Autumn has ratified the contract.
B. Autumn is not liable on the contract.
C. Jen is liable on the contract.
D. Jen has ratified the contract.
Q:
Ratification releases:
A. the principal from liability.
B. the agent from liability.
C. the third party from liability for acts of the principal.
D. the principal and the third party from liability.
Q:
Ratification may be inferred by a court:
A. from the fact that the principal accepted the benefits of an unauthorized contract.
B. from the agent's failure to repudiate an unauthorized contract after becoming aware of it.
C. from the third party's extent of knowledge about the contract.
D. from the principal's failure to give express authority to the agent.
Q:
Where an agent has taken an unauthorized action:
A. the principal may not ratify the action even if it would be beneficial to the principal to do so.
B. the principal is free to ratify the beneficial part of the unauthorized action and deny any burdensome part of it.
C. any ratification by the principal must be for the entire action, not merely the beneficial part.
D. the principal may ratify the action only if the principal is a corporation.
Q:
The test of an agent's implied authority is:
A. the justifiable belief of the agent.
B. the specific language the principal used in granting the authority.
C. to determine whether the authority is also apparent.
D. the technical label given to an agent.
Q:
An agent possesses implied authority when:
A. the principal has ratified past actions, leading third persons to believe authority exists.
B. the principal gives greater authority to special agents than general agents.
C. the agent is required to safeguard the property interests of the principal due to an emergency.
D. the agent's powers are specifically described by the principal.
Q:
When Nancy's aunt left for her annual Christmas vacation, she left Nancy in charge of her coffee shop. During this time, there was a devastating snow storm which damaged the roof of the caf. Under such circumstances, Nancy can make necessary repairs if she cannot reach her aunt for further instructions because:
A. she has apparent authority.
B. she has power of attorney.
C. she has express authority.
D. she has inherent agency power.
Q:
General agents:
A. have a limited range of implied authority than special agents.
B. are authorized by the principal to do a specific act.
C. are agents who do not possess the authority to contract on behalf of its principal.
D. act for the principal in a number of transactions over a period of time.
Q:
Apparent authority may exist:
A. only if actual authority has been conferred.
B. if a principal has unintentionally permitted third persons to believe a person is her agent.
C. if the principal specifically describes the extent of the agent's powers in writing or orally and makes him/her a special agent.
D. when the conduct of the principal causes a third person reasonably to believe that another has the authority to act for the principal.
Q:
The test of an agent's express authority is:
A. the justifiable belief of the agent.
B. the specific language the principal used in granting the authority.
C. the technical label given to an agent.
D. the surrounding circumstances such as the words and conduct of the parties.
Q:
Express authority:
A. is created when the principal specifically describes the extent of the agent's powers.
B. arises from the principal's failure to inform third persons that the relationship is not what it appears to be.
C. occurs with respect to an act of an agent who has exceeded the authority given.
D. is created by the conduct of the principal that causes a third person reasonably to believe that another has the authority to act for the principal.
Q:
An attorney-in-fact:
A. is the label given to an agent whose authority is in writing.
B. is the label given to an agent whose authority is implied.
C. is the label given to an agent whose authority is apparent.
D. is the label given to an agent who has the authority to ratify.
Q:
When the principal is undisclosed, the third party who deals with the agent believes the agent is acting personally and accordingly expects the agent to be a party to the contract.
Q:
When an agent commits a tort or crime while working for the principal, the agent is personally liable for the consequences of his actions, unless he is acting at the direction of the principal.
Q:
An agent who commits a criminal act under instruction from her principal is guilty of that crime.
Q:
When the agent colludes with a third party to withhold knowledge or money from the principal, the principal will be liable.
Q:
A sales manager for a corporation would probably have authority to hire sales agents for the corporation and such agents can also act as subagents.
Q:
Between the agent and the principal, it is the principal who is ultimately liable for the acts of the subagent.
Q:
Agents may not delegate to employees acts that involve no judgment or discretion.
Q:
If the agent exceeds his or her authority, liability resultsunless the principal ratifies the act or the third party has knowledge of the unauthorization.
Q:
A person may have apparent authority even though she has never been appointed an agent by the principal.
Q:
Ratification must be expressed and may not be implied from the actions of the agent.
Q:
Ratification does not give the principal full benefit of the contract.
Q:
Generally, notice to the agent is notice to the principal if it relates to the business of the agency.
Q:
Many courts allow a third party to rescind a contract when the person has relied on a misrepresentation by the agent even though the contract contains an exculpatory clause.
Q:
Discuss the purpose of insurance commissions paid to the agents.
Q:
An agent does not possess the implied authority to do whatever is reasonably necessary to accomplish the objectives of the agency.
Q:
An agent's exercise of apparent authority, in the absence of actual authority, is in violation of the agent's duty to the principal.
Q:
Seth runs David's Connecticut farm while David works as a stockbroker in New York City. Twice a year, David asks Seth for an accounting. Explain Seth's duty to provide an accounting.
Q:
To avoid being bound by the acts of the agent after the agency has ended, the principal:
A. should give actual notice to those who have dealt with the former agent.
B. should give constructive notice to those who have dealt with the former agent.
C. should give verbal notice if the termination is due to loss of legal capacity by the principal.
D. should give actual notice if the termination is due to impossibility of performance.
Q:
To avoid being bound by the acts of the agent after the agency has ended, the principal should give constructive notice:
A. to those who have dealt with the former agent.
B. to those who knew of the agency but had never dealt with it before termination.
C. to those who never knew of existence of the agency.
D. to everyone who the principal was in contract with before the termination.
Q:
Consumers Assurance was Lin's insurance agent on a truck that was insured with Casualty Company. Lin later purchased a car from Ted's Toyota Dealership, but, before he was allowed to remove it from the dealership, the dealer's credit manager called Consumers to verify that the new car would be insured. A Consumers' employee indicted that the car was insured by Casualty. Based on these assurances, Lin took delivery of the new car, started driving it, and paid the insurance premiums when they became due. Several months later, Lin wrecked the car and filed an insurance claim. Casualty denied coverage on the grounds that it had never agreed to insure the car. Lin sued Casualty, alleging that the agency relationship between Casualty and Consumers bound the insurer to the assurances made by its agent. Casualty denied that an agency relationship existed. Discuss.
Q:
What does the agent's duty of loyalty mean?
Q:
Discuss an agent's duty to communicate information to the principal and when is this duty considered to be violated?
Q:
An agency coupled with an interest means:
A. either party may terminate the agency at any time.
B. the agency may not be able to recover the debt in the event of the principal's death.
C. the agency is irrevocable without the consent of the agent.
D. each party has the power to terminate without breach of contract if done so within 18 months.
Q:
Lydia borrows $500 for textbooks from Gerry. She gives Gerry the authority to sell her DVD player to satisfy his claim if she does not pay the loan back as promised. She does not pay the loan back as promised. Under these circumstances:
A. a dual agency exists.
B. Lydia can revoke Gerry's power if the books are damaged.
C. if Lydia dies, there is termination of the agency even if the debt remains unpaid.
D. Lydia cannot revoke Gerry's power to sell the DVD player.
Q:
A real estate broker was hired as a rental agent for a house. The house burnt down due to accidental causes. In this circumstance:
A. the agency automatically ends as the subject matter of the agency is destroyed.
B. the agency is automatically transferred to other properties of the principal.
C. the agent is liable to be compensated even if the aim to the agency has not been accomplished.
D. the agency may be terminated only by mutual consent.
Q:
An "agency at will" means that:
A. each party has the power to terminate the agency even if there is no contractual right to do so.
B. only the principal has the right to terminate the agency at his will.
C. both parties may mutually agree to modify their agency contract at will.
D. only the agent can terminate the agency.
Q:
When one party exercises the power to terminate in violation of the right to terminate, the other party:
A. is left without a remedy.
B. may recover monetary damages in a breach of contract suit.
C. may recover specific performance.
D. may recover punitive damages in a breach of fiduciary duty.
Q:
When a principal breaches a duty owed to the agent, the agent:
A. may only bring a lawsuit against the principal for physical injuries suffered.
B. does not have a lien on anything that belongs to the principal which is in the agent's lawful possession.
C. may not terminate the agency until the contract has expired.
D. may claim the principal's property that is in his lawful possession for compensation due him for his performance of the agency responsibilities.
Q:
If no time or event is specified explaining when the agency relationship will end, the agency:
A. will continue indefinitely.
B. will continue for the statutory maximum of 10 years.
C. automatically ends when the result for which the agency was created has been accomplished.
D. automatically ends after a period of 70 days even if the result for which the agency was created has not been accomplished.
Q:
When agents make advances from their own funds in conducting the principal's business, the principal:
A. has no duty to reimburse the agent because the agent has assumed the burden.
B. has a duty to reimburse the agent for expenses incurred for the principal.
C. has a duty to reimburse the agent even if the agent is not acting within the scope of his/her authority.
D. has no duty to reimburse the agent because the agent commingled fungible goods.
Q:
Which of the following is true of real estate commissions?
A. If the seller has not given the broker a specific closing date, the broker can assume a reasonable closing date and can also claim a commission for an incomplete sale.
B. If the seller has not given the broker specific terms on price, the broker can sell the property on his own terms and claim for the commission.
C. If the seller has not given the broker a specific closing date, the law assumes the contract to end 30 days after the creation of the contract, but the broker will not be entitled for a commission.
D. If the seller has not given the broker specific terms of price or closing date then the commission is not earned until the contract of purchase has been made.
Q:
(p. 425; 426) When an agent breaches a duty owed to the principal, the agent:
A. may not be discharged until the contract has expired.
B. may be discharged without liability in spite of an unexpired contract.
C. may be discharged only if the principal can show actual damage.
D. may not be discharged until contractual damages are paid.
Q:
(p. 425; 426) When an agent's breach of duty causes harm to the principal:
A. the principal may deduct the loss from the amount due the agent.
B. the principal can bring an action in court even if compensation is due.
C. the principal is not liable to compensate the agent, even if the breach is serious enough.
D. the principal is liable to show actual damages to avoid having to compensate.
Q:
If an agent indulges in commingling:
A. he probably will not be liable for loss to the principal.
B. he bears the risk of any loss to the principal.
C. he will not be liable for any loss to the principal if the property is not wrongfully used.
D. he is breaching the duty to communicate information.