Q&A Hero

Q: To make a case based on a(n) ____, the employee must demonstrate that the employer or a representative of the employer promised the employee job security despite the apparent at-will nature of the employment relationship. A. promissory estoppel B. implied-in-fact contract C. quasi-contract D. in pari delicto

Q: An employment relationship that would have been considered at-will, had the employer not said or done something that implied otherwise, is known as: A. a collective bargaining agreement. B. an implied contract. C. an explicit contract. D. good faith and fair dealing.

Q: In effect, a _____ states that, regardless of policies in the employee handbook and regardless of any oral promises to the contrary, an employment-at-will situation still exists between the employer and its employees. A. quasi-contract B. disclaimer C. relinquishment D. waiver

Q: The ADA forbids discrimination on the basis of a disability if the disabled individual can do the essential functions of the job with "reasonable accommodations."

Q: A contract negotiated by the employer and the labor union that covers all issues related to employment is a(n): A. option contract. B. implied contract. C. collective bargaining agreement. D. confidentiality agreement.

Q: Under this federal statute, employers with more than 100 full-time employees must give written notice to a union official 60 days before any plant closing or mass layoff. A. Federal Employees' Compensation Act B. Fair Labor Standards Act C. Worker Economic Opportunity Act D. Worker Adjustment and Retraining Notification Act

Q: Blyth Enterprises' female secretaries are paid $12 per hour, but male clerks are paid $10 per hour. If the jobs are substantially equal, Blyth must pay the male clerks $12 per hour.

Q: The level of effort, ability, accountability and a comparable work environment are the factors that determine whether a work done by a woman is substantially equal to the work done by a man or not.

Q: Reverse discrimination refers to a practice that is designed to eliminate discrimination against the members of a protected class and that has affirmative effect on other members of that class or on the members of another protected class.

Q: An employer can rightfully refuse employee benefits to a pregnant woman on the grounds that she is unable to discharge her duties properly.

Q: American businesses do not have a legal obligation to give U.S. citizens working abroad the same protection against discrimination that they give to workers in the United States.

Q: An employee who currently uses illegal drugs and is addicted to illegal drugs could be protected by the ADA.

Q: The FLSA specifies that employees cannot work for more than 40 hours per week unless they are paid double for all overtime.

Q: Under FICA, the amount that an employee is assessed is based on the employee's monthly wage base.

Q: Joseph is instructed by his employer, Helen, to go to the local donut shop during his lunch break and purchase six-dozen donuts for the department's tea party. If Joseph has a traffic accident on the way to the donut shop, he is not entitled to workers' compensation.

Q: After Sarah works three years for Global Industries Inc., her pension benefits provided by Global are vested by law.

Q: Under the FMLA, a worker should have been employed by a firm for at least one year and worked for 1,250 hours over a 12-month period before leave is requested, to qualify for leave time.

Q: If Big Co. wrongfully discharges Max but later discovers that Max has been stealing petty cash, Big Co. can use this as after-acquired evidence defense. TRUE

Q: Small Co. can insist on a search warrant if OSHA inspectors want to enter Small's factory.

Q: Silitron Co. employs more than 100 full-time employees. It is closing one plant which has only 60 employees and is therefore not required to give 60 days advance notice to a union official.

Q: To make a case based on promissory estoppel, Thomas must demonstrate that his employer promised him job security despite the apparent at-will nature of the employment relationship.

Q: The arguments of promissory estoppel and implied contract are one and the same.

Q: Earth Enterprises hires Jason by promising him "long-term employment" but fires him a month later and files for bankruptcy. Jason may sue for fraud.

Q: All jurisdictions that have recognized the implied contract exception do not allow employers to preserve an employment-at-will arrangement by using a disclaimer.

Q: Simon sells illegal drugs for JY Laboratories with the understanding that JY Laboratories will receive fifty percent of the gross profits. JY Laboratories fails to honor this agreement. Discuss whether Simon may sue JY Laboratories to enforce the agreement.

Q: Cassey is an agent of Green Motors and sells and delivers antique cars. Cassey spends her own money to ship a car from Ohio to Florida. There is no express agreement between Cassey and Green concerning expenses. Discuss the legal rules that apply to this situation.

Q: Cars and Cars sells rebuilt parts to repair shops. Allan is Cars and Cars' agent in Smallville. He is paid a commission, but also has a quota to meet. Cars and Cars appoints a second agent, Amanda, in Smallville. This makes it difficult for Allan to meet his quota and also reduces his commissions. Discuss if Cars and Cars has violated any duty it owes Allan.

Q: Xavier hired Sam to sell Xavier's private Lear jet. Before any sale could be made, the jet was destroyed by a crash. The destruction of the jet terminated the agency by operation of law. Whom must Xavier inform of the termination?

Q: Grandpa has a stroke and becomes mentally incapacitated. Discuss the legal status of any agency relationships that he may have granted and how Grandpa should have planned in advance for this possibility.

Q: The rationale for the employment-at-will doctrine is that both the employer and the employee must be free to terminate the employment relationship at any time.

Q: Jackson is a car purchasing agent for Highway Motors, a used car dealer. Jackson attends wholesale auto auctions and notices that some autos have consistently greater demand and higher prices. Jackson forms a car purchasing partnership with Viva Inc. to buy these cars from "for sale by owner" advertisements and then sell them in Viva's name at the auto auctions where Jackson purchases them for Highway. Discuss if Jackson has violated any duty he owes Highway Motors.

Q: Allison is an attorney representing Big Co. in trademark litigation. Allison fails to conduct market research in advance of the trial to determine the extent to which consumers identify with the trademark associated with Big Co. Big Co. loses the litigation under a finding that the trademark is generic and not uniquely associated with it. Has Allison violated any duty she owed Big Co.? Discuss.

Q: Tom is a real estate agent for Great Housing Co., who plans to purchase and build on a plot of land near Leadville. Tom learns that the building site may have been polluted with lead, but does not inform Great Housing Co., who purchases the land and discovers the pollution when construction starts. Great Housing Co. asserts that it did not know of the lead pollution and should not be required to pay the clean-up cost. Discuss Great Housing's assertion.

Q: Nolen worked as delivery person for the Super Soap Suds Company. In this capacity, he would frequently collect money from customers for Super Soap Suds. One week he carelessly allowed his son to deposit the money on his behalf. His son deposited the money in Nolen's personal account. When Nolen tried to retrieve the money, he did not know how much belonged to Super Soap Suds. What legal remedy does Super Soap Suds have against Nolen? Explain.

Q: Tom, owner of the Rico Apartment Complex, appoints Alice as "General Manager" of the Rico Apartment Complex. Alice enters into several contracts in Tom's name: (1) maintenance agreement with Alpha Enterprises; (2) purchase of cable TV service from Star Ethics for Rico; (3) purchase of a new Corvette for Alice to drive while on Rico business. Discuss which of these contracts bind Tom?

Q: Bill employs real estate agent Charles to sell his house. The house is destroyed by fire. What is the status of the agency relationship? A. The relationship is applied to the next property Bill sells. B. It requires Bill to compensate Charles for what he would have received for selling the house. C. The relationship is terminated. D. It depends on what is considered reasonable.

Q: Morgan, an agent was instructed to sell Drew's property at a specified price. A month later the value of the property increased substantially because of zoning changes. What is the status of the agency relationship? A. It stands terminated. B. It depends on what is considered reasonable. C. It continues and is unaffected by any change what so ever. D. It requires the agent to compensate the principal with additional compensation.

Q: The only exception to the rule that says that either the principal or the agent may terminate an agency relationship at any time arises in the situation of: A. an agency by estoppel. B. an agency by mutual agreement. C. an agency coupled with an interest. D. a notice of reimbursement.

Q: Betty purchases a variety of merchandise on credit on behalf of The Great Retail Store. When Betty quits, what notice must The Great Retail Store provide? A. The Great Retail Store can send a notice to all businesses in Betty's area. B. A classified advertisement notice in a newspaper of general circulation. C. Actual notice to parties Betty has done credit business with and an advertised notice in a newspaper of general circulation to the rest of the public. D. The Great Retail Store is not required to provide a notice to anyone.

Q: Which of the following statements holds true for the Uniform Electronic Transactions Act (UETA)? A. It refers to the physical alteration of network components. B. It refers to the establishment of the nature of an electronic agent. C. It refers to the banning of electronic agents for business transaction. D. It refers to the legitimization of the use of electronic agents.

Q: Jamie authorizes Amy to sell his house, but does not clarify about the compensation payable to Amy. What amount should be paid to Amy when she sells Jamie's house? A. Nothing, since agency relationships are assumed to be gratuitous unless an agreement specifies compensation. B. An amount to be determined by arbitration. C. A fair value for the service performed. D. Ten percent of the sales price.

Q: Desmond is sued by Harry when Desmond, obeying the instructions of his employer Bigger Company, sells Harry a computer system that is not capable of being expanded. Harry asserts fraud but Desmond argues that Harry did not request an expandable system. What responsibility if any, does Bigger Company owe Desmond? A. Bigger has no responsibilities since Desmond has a defense to fraud. B. Desmond as an agent is entitled to indemnification. C. Only to cooperate while Desmond defends against the lawsuit. D. Their responsibility is to support Harry's lawsuit against Desmond.

Q: Gordon employs Josh as an agent to sell Gordon's house. When does this agency end if the agreement is silent? A. When the house is sold. B. When Josh locates a possible buyer. C. When Josh decides to look for other employment. D. When Gordon decides to look for another agent.

Q: Iris represents Drew, an eccentric billionaire who lives alone on a Pacific Island. Although Drew passes away on May 1st, this fact is not revealed until June 1st. On May 15th, Iris enters into a contract with Peggy on behalf of Drew. What is the legal liability, if any, of Iris to Peggy? A. Iris is liable for a breach of actual warranty of authority. B. Iris is liable for a breach of implied warranty of authority. C. Peggy may enforce the contract since Drew's death was unknown, thus Iris has no liability. D. Peggy may enforce the contract against Iris since she represented a nonexistent principal.

Q: Henry owns a movie production house which is represented by a law firm. He also owns a shipping agency which is represented by Chase. The agency relationship between Henry and Chase will be terminated by the bankruptcy of which of the parties? A. The bankruptcy of Henry will terminate the agency relationship. B. The bankruptcy of the law firm will terminate the agency relationship. C. Both Henry and Chase must be bankrupt to terminate the agency. D. The bankruptcy of the movie production house will terminate the agency relationship.

Q: Corazon employs Josefina, a C.P.A., to represent her in tax liability negotiations with the IRS. Josefina is busy with other clients and delegates the negotiation to Lillian, a non-C.P.A. member of her office. Should Corazon object to this delegation? A. Yes, Corazon is relying on Josefina's skill and integrity. B. No, Lillian is a member of Josefina's office. C. Yes, Corazon must approve in writing any delegation of authority. D. No, delegations within offices happen regularly.

Q: In which of the following situations can an agent legally appoint a subagent? A. When the case involves co-agents. B. When the appointment is implied from the nature of the employment. C. When the situation involves a nondelegable duty. D. When the co-agent demands such an appointment.

Q: Carlos instructs his sales agent, Edgar, not to sell on credit to Andrew because Carlos has experienced problems collecting from Andrew for prior purchases. Edgar sells on credit to Andrew, who pays properly. Has Edgar violated any obligation to Carlos? A. He has not violated any obligation since Andrew paid properly. B. He has violated the duty to exercise reasonable judgment. C. He has not violated any obligation since Edgar did not evaluate Andrew's credit worthiness correctly. D. He has violated the duty to obey all instructions of the principal.

Q: The agent's duty of loyalty means that the agent cannot act: A. for two principals. B. for two principals in the same transaction. C. for more than one year for the same principal. D. for an undisclosed principal.

Q: Agent Greta receives money from clients of her principal Wayne on the fifteenth of each month. In the absence of an agreement, how frequently must Greta account to Wayne for the money she receives? A. Typically during the financial year end. B. Immediately upon receiving the money. C. Within a year of receiving the money. D. Within a reasonable period of time after the money is received.

Q: Agent Smith buys and sells used computer equipment on behalf of New Life Technologies, Inc. In the absence of an agreement, Smith may delegate which of the following tasks, if any, to Elizabeth? A. The authority to buy and sell used computer equipment. B. Keeping a record of transactions Smith undertakes on behalf of New Life. C. The authority to estimate the fair market value of used computer equipment. D. The authority to fix the selling price of used computer equipment.

Q: Geoffrey is an agent of Smith's Meat Products Limited. While delivering products, the company's van breaks down. What legal theory, if any, would allow Geoffrey to contract a garage for the repair of the principal's van? A. Express authority B. Actual authority C. Apparent authority D. Incidental authority

Q: Charlena gives Megan the post of Vice-President of Procurement to express appreciation for Megan's hard work in stocking the shelves at Charlena's store, Thrift City. Megan uses her business card with the title on it to purchase a new truck in Thrift City's name from Highway Auto. What authority, if any, has Charlena given Megan? A. Express authority B. Implied authority C. Apparent authority D. Operation of law authority

Q: Repair Garage rents tools and stalls to auto mechanics, who are independent contractors, to repair cars. Repair Garage allows Joe to print business cards reading "Repair Garage - Joe, certified mechanic." A customer is unhappy with the repairs Joe made to her car and sues Repair Garage. What legal theory, if any, would allow Repair to be sued by the customer? A. Express authority B. Implied authority C. Apparent authority D. Incidental authority

Q: The insanity of the agent, but not of the principal, will terminate the authority of the agent.

Q: A durable power of attorney preserves the authority of an agent when the principal becomes incapacitated.

Q: An agency coupled with an interest may not be revoked without the consent of the agent.

Q: The best way to give notice of an agency termination is by certified mail.

Q: Thomas is named "office manager" by Bigger Co., but his precise duties are not described. What type of authority would authorize Thomas to purchase office supplies? A. Express authority B. Implied authority C. Apparent authority D. Operation of law authority

Q: Brink Hospital employs independent contractor emergency room physicians but may be liable for their torts under the doctrine of apparent authority.

Q: If Jake puts his business funds and client funds in the same account it is called commingling, and and Jake may be held personally liable for any resulting losses.

Q: An agent may not recover compensation for illegal services unless they were rendered at the request of the principal.

Q: An agent may terminate an agency relationship by revocation.

Q: When the purpose for which the agency was created is achieved, the agency is terminated.

Q: The principal or employer is ordinarily liable for an agent's or employee's crimes, even if the principal or employer does not actually aid or participate in their commission.

Q: The courts have created a test, called the control test, to uncover the true nature of the employment relationship for cases falling under statutory liability. FALSE Consequently, the courts have created a test, called the economic reality test, to uncover the true nature of the employment relationship for cases falling under statutory liability.

Q: If Ray fails to notify customers that Brice no longer represents Ray, Brice has lingering apparent authority.

Q: The means test requires that one looks at the degree of control, or right to control, that the hiring person exercises over the hired person.

Q: The scope of employment involves the range of activities for which the servant is engaged.

Q: Most of the time, vicarious liability is applied to negligence cases, because workers are not usually hired to commit intentional torts.

Q: Non-agent-employees have the authority to, and usually do, deal with third parties on behalf of the principal.

Q: An independent contractor has no power to bind the proprietor to a contract, unless expressly authorized to do so.

Q: Vicarious liability is based on the principle of respondeat superior.

Q: In 1978, Chapters 11 and 13 of the Bankruptcy Code were created which: A. made it easier for creditors to obtain bankruptcy relief. B. allowed businesses and individuals to reorganize and keep going. C. made it more difficult to declare bankruptcy. D. allowed creditors to keep all of the debtor's assets.

Q: A system in which debtors are forced to sell most of their property and use the cash to pay their creditors a portion of the amount owed each one. A. Family Farmer or Fishing Business Debt Adjustment B. Reorganization C. Liquidation D. Individual Debt Adjustment

Q: Under the 2005 Bankruptcy Act, debtors require to fulfil which of the following conditions file for Chapter 7 bankruptcy? A. They must provide a federal income tax return for the most recent tax year. B. Their income should be more than the state median income. C. They should be involved in a fishing or farming business. D. They should be commodity brokers or stock brokers.

Q: Agency is a legal relationship in which one party, the agent, transacts business for and under the control of the second, the principal.

Q: Membership on a creditors' committee normally consists of the creditors who hold the seven largest secured claims against the debtor.

Q: The disclosure statement must be approved by the court before there can be a vote by creditors on the reorganization plan.

Q: The creditors' committee holds a hearing on the confirmation of the reorganization plan after which the debtor is discharged from any debts that arose before the date of confirmation.