BUL EXAM 3
Which of the following statement(s) about the good cause exception to the employment at will doctrine is false? (select all options that correctly answer the question)
- An employee who wins a suit for wrongful termination under the good cause exception is entitled to back wages, damages for pain and suffering, and punitive damages. - The good cause exception is established after 10 years of continuous employment
Under the National Labor Relations Act, businesses may not: (select all the answer option(s) that are correct)
- Discriminate against workers for joining a union - Prevent workers from forming a union
Which of the following category of workers is NOT covered by the National Labor Relations Act? (select all the answer option(s) that are correct)
- Employees of the federal government - Employees of state governments - Independent contractors - All public and private employees
Which of the following statements about unemployment compensation is true?
- Employees who quit without good cause are ineligible for benefits. - An employee must have worked for a minimum amount of time to qualify - Employees who were fired for cause are ineligible for benefits
Employers are subject to the Age Discrimination in Employment Act only if they: (select all the correct answers)
- Engage in interstate commerce - Have at least 20 employees
Exceptions to the employment at will doctrine have been created by (select all the answers that are correct).
- Federal statutes - State courts - State statutes
Bona Fide Occupational Qualification can be used as a defense to employment discrimination if the discrimination is based on: (select all the correct answers)
- Gender - Religion
Which of the following industries are subject to particular FTC scrutiny? (select all the correct answers)
- Home insulation providers - Funeral homes
Employers who dismiss an employee in a public and demeaning way may be liable to the employee in tort for: (select all option(s) that are correct)
- Intentional infliction of emotional distress - Invasion of privacy
A private employer may institute a voluntary minority racial preference plan without violating Title VII so long as the plan: (select all the correct answers)
- Is for a limited time. - Does not eliminate or unnecessarily restrict the hiring of non-minority candidates - Opens employment opportunities to racial minorities in jobs from which they were traditionally excluded.
An employer will not be liable for sexual harassment of an employee by a supervisor if: (select all the correct answers)
- It was hostile workplace harassment and the employer had exercised reasonable care to establish and enforce anti-harassment policies. - It was hostile workplace harassment and the employee waited too long to report the incident.
John, who is employed by a private business, was injured on the job. How will OSHA learn of the job safety violation that caused his injury? (select all answer option(s) that are correct)
- John's employer must report his injury to OSHA - OSHA may conduct an inspection of John's worksite - John may report his injury directly to OSHA - John's fellow employee may report it to OSHA
Bona fide occupational qualification is a defense narrowly interpreted by the courts to apply to cases of employment discrimination based on: (select all the correct answers)
- National Origin - Gender
What must a worker do to be eligible for unemployment compensation? (select all options that are correct)
- She must have been employed for a specified period of time - She must be actively looking for another job - She must not have been fired for egregious behavior in the workplace.
To collect workers compensation, an employee must: (select all the answer option(s) that are correct)
- Suffer an injury that arose out of his employment - Be included in the category of workers entitled to workers compensation
Big Corp is a defendant in a disparate treatment case brought by Pam who is charging that she was denied a promotion because of gender discrimination. Big Corp will likely win if it can establish as a defense that: (select all correct answers)
- The denial of the promotion for legitimate non-discriminatory reasons - Pam was denied the promotion for legitimate non-discriminatory reasons
Employees who are hired under an at-will employment contract still may not be terminated if: (Select all answer options that are true/correct)
- The employee is being dismissed for whistle blowing - The employer created a work environment that led to the creation of a "good cause" exception - The termination violates a public policy
To defeat the defense in a disparate impact case that the discriminatory practice is "job related and consistent with business necessity," plaintiff must prove that: (select all answer options that are correct)
- The employment practice is a pretext for discrimination - Another, non-discriminatory, practice exists that achieves the same business result.
Assume that the defendant in disparate impact case claims as an affirmative defense that the employment practice complained of is "job related and consistent with business necessity." Plaintiff can defeat this defense by showing (select all answers that are correct)
- There is another, non-discriminatory employment practice that fills the same function - The practice is a pretext for discrimination
An employer whose termination of an at-will employee violates a public policy is liable to the employee for: (select all the answers that are true/correct)
- Unpaid back pay and benefits - Punitive damages - Damages for pain and suffering
Mary was employed as a salesperson under an employment at will contract. When she was called for jury duty, her employer told her that she would be fired if she missed more than 2 days of work. Marry served on a trial that lasted for 8 days and her employer terminated her contract. Mary sued her employer in tort and won. What damages were available to Mary in this case? (select all the answers that are correct)
- Unpaid back wages and benefits - Damages for pain and suffering - Punitive damages
Creditors may petition the bankruptcy court to convert a Chapter _________bankruptcy in to a Chapter __________bankruptcy.
11 into 7
To be entitled to the protections of the Family and Medical Leave Act, the employee must have worked for the employer _____months and the employer must have __________employees.
12--------------------50
If a debtor has 12 or more unsecured creditors, at least _________ of these creditors with aggregate claims of $13, 475 must sign the petition to force the debtor into an involuntary bankruptcy.
3
In door to door sales, customers have a "cooling off period" during which they can cancel their orders. The cooling off period is for ______________days.
3
Before a binding vote is held in which workers choose to unionize or not unionize, enough workers must sign authorization cards indicating that they are interested in joining the union. The percentage of the work unit who must sign these cards is
30
An employee must be at least _______years of age to be protected from discrimination under the Age Discrimination in Employment Act.
40
Only employers who have ________or more employees are subject to the Family and Medical Leave Act.
50
Under Regulation Z, when a credit card is lost or stolen, the credit card holder's liability for unauthorized charges is limited to_____________.
50
A prima facie claim of disparate impact discrimination is established if the selection rate for members in a protected class is less than ___________ of the selection rate for members in the majority class.
80
To determine if a preferential transfer has taken place, the debtor is presumed to be insolvent for a period of __________days prior to filing the bankruptcy petition.
90
Which of the following activities is permitted by the Taft-Hartley Act?
A business may require that a worker join a union after he has worked for a certain period of time.
Which of the following employers is not subject to Title VII's antidiscrimination provisions?
A business that has 12 employees
Pat hired Mike to manage his deli, but the agency agreement did not state how much Mike is to be paid. In this situation,
A court will read in a reasonable salary based on comparable positions in the business community.
Tom telephoned Mike's Boat Marina and Yacht Club about purchasing a boat. The person on the telephone told Tom to contact George, the Harbor Master at the Yacht Club, when he arrived if he wanted to view the boats for sale. George's duties at the club included renting slips, pumping fuel, keeping the grass and grounds cleaned, and hauling boats in and out of the water. Upon arriving at the marina, Tom and George inspected the first boat that was for sale without incident. They then proceeded to the second boat for sale docked at the Marina, the "Lovie Dovie." When they reached the "Lovie Dovie," they discovered the interior cabin of the boat was locked. George told Tom he would break into the boat to allow them to inspect the internal cabin, to which Tom protested. George, who lived in a vessel docked in the slip next to the "Lovie Dovie," assured Tom it was okay to break into the boat because "they don't have a problem with us doing this." After entering and inspecting the inside cabin, George removed the hatch cover so Tom could inspect the bottom of the boat. Tom then accidentally stepped into the hole where the hatch cover was located and sustained physical injury after falling through the opening. Tom filed a negligence action against Mike's Marina and Yacht Club. How would a court rule?
A court would find that no reasonably prudent person would believe George had the authority to break into the "Lovie Dovie," irrespective of George's statements to the contrary, which are irrelevant for purposes of the apparaent authority inquiry.
A proprietor will not be liable for damages caused by an independent contractor if the work the independent contractor was hired to do was
A duty an employee could have performed
Which of the following is not an example of a trade secret?
A list customers that was published in an ad a trade trade journal
Under the BAPCPA, Congress instituted a mechanism to reduce the ____ of Chapter 7 bankruptcy filings.
Abuse
The Fair Debt Collection Practices Act prohibits debt collectors from participating in _______.
Abusive and deceptive behaviors
Which of the following unsecured creditors has first priority when the assets are distributed in a Chapter 7 bankruptcy?
Alimony, child support and other domestic support claims
Which of the following workers is covered by the Fair Labor Standards Act's wage and hour requirements?
An assembly line worker in a Ford Motor Company plant
In a liquidation proceeding, a debtor surrenders all _______, from which creditors are paid as much as possible.
Assets
A private employer is able to fire an employee for which of the following actions of the employee?
Attending a political rally
A person who is given power of attorney is called an______________.
Attorney in Fact
The filing of the petition by a debtor triggers an ________, which has the effect of suspending almost all actions by creditors against the debtor.
Automatic stay
The _______ consists of all legal or equitable interests of the debtor in property.
Bankruptcy estate
The Fair Packaging and Labeling Act mandates that _______ be included in the labeling and packaging of most products.
Basic information
To be subject to the Age Discrimination in Employment Act, an employer must
Be engaged in interstate commerce and have at least 20 employees.
A creditor's right to payment in a bankruptcy case is a _______.
Claim
In a ______ credit transaction, the amount of the loan is set.
Closed-end
The source of the employment at will doctrine is
Common law
An employee who quits a job because the employer created an intolerable work environment has a cause of action under Title VII for
Constructive Discharge
When an employer creates a work environment so hostile and intolerable that a reasonable employee would quit, the employer has created a condition of _______________.
Constructive discharge
A _______ maintains and distributes to potential creditors information regarding the creditworthiness of potential debtors.
Credit bureau
The Fair Credit Billing Act provides a mechanism for consumers to remedy errors received on ______.
Credit card bills
Jill hired Ace Paving Company to pave her driveway. Ace's driver, Tom, carelessly dropped a load of hot tar on the lawn and prized rose bushes of Jill's neighbor, Dan. From whom can Dan seek damages?
Dan can only sue Ace and Tom and joint and several liability.
The Fair Debt Collection Practices Act was enacted by Congress to control the behavior of _______.
Debt Collectors
The purpose of the Telemarketing and Consumer Fraud and Abuse Prevention Act is to prohibit _______ telemarketing practices.
Deceptive
A material misrepresentation or omission likely to mislead a potential customer and would mislead a reasonable consumer is _________.
Deceptive advertising
Which of the following is not part of plaintiff's prima facie case for showing disparate treatment?
Defendant has eliminated the position
A ______ is an order by the bankruptcy judge that a debtor is relieved of paying specific debts.
Discharge
In order to ratify an agent's contract, the principal must have been __________at the time the contract was formed.
Disclosed
The type of employment discrimination that occurs when employment practices have the effect of disqualify a large portion of a protected class is ___________discrimination.
Disparate impact
The type of employment discrimination that requires a plaintiff to show that the discrimination is intentional is _____________________discrimination.
Disparate treatment
Rhonda Realtor was hired to find Client an undeveloped lot that met the following requirements: the lot must be in the mountains, on a pristine lake, consist of at least 10 acres, and be available for no more than $500,000. Rhonda found a property that met all these requirements for only $425,000. Enchanted, she bought the property for herself. She did not tell Client about her find and is still diligently seeking another property that meets Client's needs. Which of the following duties did Rhonda not violate?
Duty of prescription
Which of the following statements about the Employee Retirement Income Security Act (ERISA) is true?
ERISA sets standards for employer sponsored pension plans and requires periodic and detailed disclosures about the pension's funding and investments.
The ________ regulates the process banks use to transfer consumer funds through electronic means.
Electronic Funds Transfer Act
Workers compensation laws benefit employers because
Employees cannot sue their employers for negligence even if the employer's negligence caused the injuries.
The Family and Medical Leave Act requires that
Employers are entitles to 12 weeks of medical leave during a 12 month period
An act of Congress that forbids creditors from discriminating against potential debtors on the basis of selected attributes is the ________.
Equal Credit Opportunity Act
The federal agency that investigates and enforces anti-discrimination portions of Title VII is the
Equal Employment Opportunities Commission
The agency created by Congress to administer the provisions of Title VII dealing with discrimination in the workplace is the
Equal Employment Opportunity Commission
The federal statute that prohibits employers from paying employees of one gender less than employees of another gender for doing substantially equal work is the
Equal Pay Act
Doctors, lawyers, executives and others who are not covered by laws regulating overtime pay are classified as ________employees.
Exempt
Whether or not a principal has, through his actions, ratified a contract is a question of _________to be decided by the _________.
Fact; Jury
An Act of Congress that controls the gathering, preservation and reporting of credit-related information is the ________.
Fair Credit Reporting act
Under Chapter 11, a hearing is held on the confirmation of a debtor's proposed reorganization plan, to determine if it is _________.
Fair and equitable
"Union shops" are illegal under the Taft-Hartley Act.
False
A consumer's liability for an unauthorized electronic transfer of funds is limited to $150.
False
A debtor's intangible property will not become part of the bankruptcy estate.
False
A factor is an agent with the special limited authority of procuring a customer so that the principal can affect a sale or exchange of property.
False
A store manager is an example of a special agent.
False
Agency agreements must always be in writing.
False
All businesses have a right to liquidation proceedings.
False
All debtors who are eligible to file under Chapter 7 will receive a discharge.
False
An agent operating under a written power of attorney is called an attorney-at-law.
False
An employer is responsible for the torts committed by an employee while the employee is on a frolic, but not for those torts committed while the employee is on a detour.
False
An employer may be liable under respondeat superior if a customer repeatedly and publicly sexually harasses an employee.
False
An employer may have liability for the negligent hiring of a servant, but not for the negligent hiring of an independent contractor.
False
An independent contractor may file a complaint under Title VII if he or she was not hired by a customer because of gender discrimination.
False
Congress has not yet been active in generating laws aimed at labeling and packaging.
False
Debt collection agencies may publish in newspapers and on a special Web site "bad debt" lists with consumers' names and addresses.
False
Debt collectors may make harmless misleading statements, such as "I am a lawyer", but may not threaten the debtor.
False
ERISA requires that all employers with more than 15 employees provide health insurance for the employees.
False
Employees who are not covered by the Fair Labor Standards Act are called "classified employees."
False
If a bankruptcy trustee assigns a contract to a third party and the third party later breaches the contract, the trustee will be liable for the contract.
False
It is the duty of an agent to notify third parties when his agency is terminated.
False
Legal actions to collect back child support and alimony are among those subject to the automatic stay.
False
Legally speaking, there is no significant distinction between puffery and deceptive advertising.
False
Sid's Sub Shop hired Ted to manage the shop from January 1, 2007 to December 31, 2007. This is an employment at will contract.
False
The Equal Pay Act is the source of the federal requirement that an employer reasonably accommodate the religious practices of its employees.
False
The Fair Credit Reporting Act requires the person who is the target of a credit inquiry to consent to the disclosure of his or her credit information.
False
The Fair Debt Collection Practices Act applies both to third party collectors (like collection agencies) and to the original creditor.
False
The Fair Labor Standards Act makes it illegal for employers to require that employees undergo mandatory alcohol and drug testing.
False
The Family and Medical Leave Act guarantees that an employee will be paid one-half his or her salary for up to 6 months of leave, so long as the leave was for a "serious health condition."
False
The Family and Medical Leave Act requires, that employees who are out of work for a "serious health condition" be paid for the time they are out of work.
False
The bankruptcy judge is the person who handles the assets and obligations of the debtor during the bankruptcy proceeding.
False
The debts of partnerships, limited liability companies, and corporations that go through liquidation proceedings are usually discharged.
False
The legal test to determine whether someone is a general agent or a special agent is whether or not the agent is paid for his services.
False
The standards of "reasonable accommodations" for disabilities are the same standards as "reasonable accommodations" for religious practices.
False
There is no evidence that information included on labels and packaging influences consumers' purchase decisions.
False
Title VII caps the amount of damages a plaintiff may collect from a defendant with 100 or fewer employees at $10,000.
False
Title VII does not allow a victim to sue for same sex sexual harassment.
False
Title VII does not apply to sole proprietorships, regardless of the number of people a business employs.
False
Title VII protections against discrimination based on gender apply only to female employees and not to make employees.
False
To prove disparate impact discrimination in employment, plaintiffs must show in their prima facie case that the selection rate for minorities is less than 50% of the selection rate for non-minorities.
False
To prove disparate impact discrimination, a plaintiff must show that the practices complained of were "designed and intended" to disadvantage him or her.
False
Under Chapter 11, holders of claims or interests in the debtor's property are not permitted to participate in the approval process of a proposed plan of reorganization.
False
Under Section 7 of the National Labor Relations Act, workers who are members of a union retain the right to negotiate individual employment contracts with their employers.
False
Under certain circumstances, a consumer may be incarcerated for nonpayment of a debt.
False
Under the Electronic Funds Transfer Act, a banking institution has 5 days after determining that an electronic transfer had been erroneously made to a customer's account to correct the error.
False
Under the Equal Credit Opportunity Act, a creditor is permitted to ask whether an applicant is married when considering the applicant's creditworthiness.
False
Under the National Labor Relations Act employers must re-hire workers who went on strike for higher wages or increased benefits.
False
What constitutes a hostile work environment is a matter of law and does not vary from workplace to workplace.
False
When ratifying a contract, a principal may select which provisions of the contract to accept and which to reject.
False
Workers Compensation Insurance is a comprehensive program that covers all job related injuries, including those that were intentionally inflicted.
False
State "right to work" laws are designed to
Forbid employers from requiring that workers be members of a union as a condition of employment
Under federal bankruptcy law, a ________ is a transfer within two years of the filing of the petition, with the intent to hinder, delay or defraud creditors.
Fraudulent conveyance
The Equal Pay Act prohibits discrimination in pay scales and compensation based on
Gender
Ann Agent was hired by Buyer to locate a piece of property suitable for building an office complex. Ann and her cousin jointly owned a piece of property that suited Buyer's needs. Without telling Buyer of her ownership interest, Ann negotiated the purchase on Buyer's behalf. The price for the property was its fair market value. What options are available to Buyer when he learns that Ann was the seller?
He may rescind the contract because Ann violated her duty of loyalty.
The exemption that allows debtors to exempt a certain portion of the equity in their homes is called the ________________exemption.
Homestead
Which of the following would not constitute a disability under the Americans with Disabilities Act?
Homosexuality
A principal is obligated to pay any judgments against an agent who incurred liability to a third party while carrying out the principal's orders. This duty to hold the agent "harmless" is the duty to___________.
Indemnify
Tucker hired SoClean, a house washing service, to power wash his house and deck. SoClean's status of that of a (n) ________________________.
Independent contractor
A debtor is presumed to be _____ during the ninety-day period prior to the filing of the petition.
Insolvent
The final vote in which workers decide whether or not to unionize must be conducted without undue influence from either union or management. The term for these voting conditions is __________________conditions.
Laboratory
What is the term used to describe the voting conditions necessary for a binding "representation election'' in which the workers in a company vote whether or not to unionize?
Laboratory
Under the Fair Credit Reporting Act, the reports generated by consumer credit reporting agencies may be furnished to any entity that possesses an _______ for the information.
Legitimate need
The process of winding up the affairs of a corporation or firm for the purpose of paying its debts and disposing of its assets is known as ________.
Liquidation
Assume that all the owners of the professional sports teams within a league wanted to pressure the players during contract negotiations to make wage and benefit concessions. Assume also that the owners refused to schedule games for the upcoming season, and denied the players access to playbooks, the coaching staff and the training facilities. These activities by the owners constitute a
Lock out
An employer who prevents employees from coming to work in an effort to accelerate contract negotiations between management and union leadership engages in an_______.
Lockout
Neda, an attorney, has engaged in the following representations this past year. Which one is least likely to violate her duty of loyalty to her clients?
Neda represented a local restaurant, which she patronizes frequently, in an employment discrimination suit.
An employer may be liable for a customer's repeated and public sexual harassment of an employee based on the theory of
Negligence
An employer may be liable for harassment by a non-supervisory co-worker based on a theory of
Negligence
Andrew owned a house painting business with 100 employees. Andrew fired Bob because Bob skipped work to attend a political rally. If Bob sues Andrew for wrongful termination, will he win?
No, Bob will not win the lawsuit.
Raines Realty, a property management firm, hired Al Agent to manage an office complex. One of Al's duties was to collect the rents. Raines fired Al for negligence, but did not notify the tenants before the next rent payment was due. Al collected the rents as usual and left town with the money. Are the tenants required to pay that month's rent again to Raines?
No, because Al still had apparent authority to collect the rents until Raines told the tenants otherwise.
FTC regulations provide that for mail-order sales, if the merchant cannot meet the stated date of shipping, the customer must be _______.
Notified
An ______ is entered by the bankruptcy judge when he or she finds that the debtor is entitled to the protection of the bankruptcy law.
Order of relief
Apparent authority is also known as _____________authority.
Ostensible
Allan, an agent, is working on behalf of Paul (the principal) to sell Paul's office building. Allan is also the agent for Bob who is interested in buying Paul's building. Allan does not tell Paul or Bob that he represents the other person. Allan acted for the best interests of Paul and the contract was as favorable as could be obtained anywhere. After Paul signs the contract to sell the property to Bob, he finds out that Allan also represented Bob. What remedies may Paul seek?
Paul may refuse to pay Allan his commission
Jim was called to active duty in the military. Knowing that he would be out of the country for a year or more, he gave his sister Peg authority to pay bills in his name, access his bank accounts, buy and sell stock in his brokerage accounts, and incur expenses to maintain his house and car and boat. Because Peg is not compensated for the activities she is performing on her brother's behalf, she owes him
Peg owes Jim all the duties of an agent to a principal.
A _______ exists where an insolvent debtor pays some creditors a greater percentage of the debts than the creditors 4in the same class.
Preference
In a bankruptcy proceeding, creditors' claims are subject to payment according to the _______ established by the bankruptcy law.
Priority
Creditors are required to file _______ if they are to share in the debtor's estate.
Proof of their claims
Beth went to Elegant Cakes to select a cake for her wedding. The owner gave her piece to sample and said: "If you live to be 200, this is the best cake you will ever eat in your whole life." Owner's statement is an example of
Puffery
Promotional statements made by a business about a product or service that are not intended to be taken literally are known as ________.
Puffery
A supervisor offering an employee a promotion or extra vacation time in exchange for sexual favors is an example of ______________harassment.
Quid pro quo
Which of the following statements about minority racial preference plans under Title VII is false?
Racial preference plans are, without exception, forbidden under Title VII.
When a principal decides to adopt and be bound on a contract that his agent did not have the authority to form, the principal _______________ the contract.
Ratifies
The most important regulation associated with the Truth in Lending Act is _______, which mandates certain disclosures be made for credit arrangements.
Regulation Z
The legal doctrine that holds the master liable for the torts committed by a servant while acting within the scope of this employment is
Respondeat superior
The well-established legal principal that employers are liable for the torts committed by employees while acting within the scope of their employment is _____________________.
Respondeat superior
When an employer punishes an employee for reporting illegal employment practices to the EEOC, the employer engages in ______________.
Retaliation
Rush contracts to build a boat for Sky King at a cost of $40,000.00. The contract allows Sky King to inspect, stop the work, make suggestions or recommendations about details of the work, or prescribe alterations or deviations to the contract.
Rush and Sky King's contractual relationship is that of employer and independent contractor.
A bankruptcy trustee may do all of the following except
Sell collateral without adequate protection for the secured creditor.
A person who is employed to perform services for another and who is under the other's control and subject to the other's direction is a(n) _____________.
Servant/employee
A claim for discrimination cannot be brought under Title VII if the discrimination is based on
Sexual orientation
Title VII does not provide protection from workplace discrimination if the discrimination was based on the employee's
Sexual orientation
Conan, an outstanding college pitcher, hired Masters to represent him in negotiations with a major league team. Masters may only negotiate a contract for Conan; he has no authority to make investments or purchase property on Conan's behalf. Masters would be classified as a (n) __________.
Special Agent
The clause in OSHA that details the requirements that different kinds of equipment, such as scaffolding, must meet in various occupations is the _______________clause.
Specific duty
Mary, a retail appliance dealer, instructs Susan to repossess a TV set from Tom, who had purchased it on an installment contract. Mary informs Susan that Tom is in arrears on his payments. Actually, Mary had made a bookkeeping error, and Tom is current in his payments. Despite Tom's protests, Susan repossesses the TV set pursuant to Mary's instructions. Susan has committed the torts of trespass and wrongful conversion. What are Susan's options if Tom elects to bring an action for tort damages against her?
Susan can demand that Mary indemnify her and satisfy Tom's tort claims.
Which federal statute regulates minimum wages, overtime and the employment of minors?
The Fair Labor Standards Act
The principal federal law regulating union-management relations is the
The National Labor Relations Act
Which federal statute requires that employers provide safe working conditions for their employees?
The Occupational Safety and Health Act
The federal statute that makes it illegal for unions to organized secondary boycotts, promote featherbedding, and refuse to bargain with employers is the
The Taft Harley Act
What is the status of an agency agreement when a principal files for Chapter 7 bankruptcy?
The agency terminates by operation of law when the court grants the order for relief.
Bakery company is held liable for damages to an injured child who was struck by a company delivery truck as the result of the employee-driver's negligence. After the Bakery pays the total damages to the injured party. The Bakery company may do which of the following?
The bakery may sue the employee for breach of the duty not to be negligent.
Which agency has broad powers to conduct research on the safety of consumer products, set safety standards for products, and recall products that are unsafe?
The consumer product safety commission
Which of the following statements about a discharge under Chapter 7 is false?
The discharge is available to corporations and partnerships.
Which federal statute sets standards for employee pension and benefits plans?
The employee retirement income security act.
A principal will not have a duty to reimburse an agent if
The expenses were the result of the agent's negligence
Which of the following is not a requirement for advertising to be deceptive?
The misrepresentation or omission must be made with the intent to defraud.
Which of the following statements is false about a principal's ratification of an authorized contract?
The principal must have been either disclosed or partially disclosed at the time the contract was formed.
Which of the following is not a right guaranteed to workers by the National Labor Relations Act of 1935?
The right to lock out management
Creditors may not force a debtor into an involuntary Chapter 13 bankruptcy because it would violate the debtor's __________Amendment right against involuntary servitude.
Thirteenth
Regarding door-to-door sales, federal regulations mandate that consumers must be told that they have _______ within which to cancel any door-to-door sale.
Three days
"Featherbedding" is an illegal activity in which unions force employers to hire more employees that necessary.
True
A bona fide occupational qualification cannot be used as a defense in claims of discrimination based on race or color.
True
A consumer who does not complete the required consumer credit counseling course will not be given a discharge under Chapter 13.
True
A join bankruptcy filing concerning a husband and wife requires a filing of only one petition.
True
A principal has the duty to notify third parties when an agency terminates.
True
A third party must use reasonable care and diligence to make sure that an agent is acting within the scope of his or her employment.
True
A transfer of property may be fraudulent under either federal or state law.
True
A trustee may not assume an executory contract in a bankruptcy preceding that requires the other party to make a loan, deliver equipment or issue a security to the debtor.
True
Agents are personally liable to third parties on contracts when the principal was undisclosed.
True
All bankruptcy trustees must post a bond in favor of the United States.
True
An agent is a fiduciary of the principal.
True
An agent who comingles the principal's funds with his or her own violates the duty to account.
True
An agent will not be indemnified for injuries caused to third parties if the agent's negligence caused the injury.
True
An agent's duty to protect confidential information continues even after the agency relationship ends.
True
An employee cannot be terminated under an employment at will contract for refusing to commit an illegal act.
True
An employee must first file a complaint with the EEOC and get a "right to sue" letter before pursuing a private right of action against his employer for Title VII violations.
True
An employee who wins a disparate treatment discrimination case may be awarded both compensatory and punitive damages.
True
An employer is strictly liable when quid pro quo sexual harassment results in the termination or demotion of an employee.
True
An employer who fires an, at will employee in a public and humiliating manner may be liable to the employee for intentional infliction of emotional distress.
True
Both physical and mental impairments are included under the Americans with Disabilities Act's definition of a disability.
True
Congress has enacted legislation designed to prevent debt collectors from acting in an unconscionable fashion when attempting to collect a debt.
True
Consumers have the right to dispute information that is contained in their credit reports.
True
Employers have a duty under Title VII to reasonably accommodate the religious practices of their employees.
True
Employers who violate OSHA regulations are subject to fines and, if the violations are willful, imprisonment.
True
Following a complaint to the EEOC, Morgan was denied a promotion for which he was qualified. The denial is an example of retaliation that is prohibited by Title VII.
True
If a principal wishes to ratify a contract that an agent was not authorized to negotiate, he must do so before the third party withdraws from the contract.
True
If an agent gets a monthly advance against future commissions, the advances are treated as a minimum salary and need not be returned if the commissions on sales are not earned.
True
If the agent dies, the agency agreement terminates by operation of law.
True
If the principal dies, the agency agreement terminates by operation of law.
True
In Chapter 7 bankruptcy cases, certain debts of the debtor will not be discharged.
True
In a Chapter 13 proceeding, the rights of a bank which holds a home mortgage may not be modified.
True
In a multiple listing agreement, real estate is listed with several brokers who divide the commission on the sale.
True
It is illegal to retaliate against an employee for filing a complaint with the EEOC.
True
It is only within the last eighty years or so that the federal government and the states have enacted laws protecting employment rights and workplace safety.
True
Most states allow employers to require that job applicants and employees undergo alcohol and drug tests.
True
Much consumer protection legislation is designed to give consumers as much information as is practicable about the products they buy and the sales and credit transactions they enter into.
True
No federal law addresses workplace bullying as a form of discrimination.
True
Once bankruptcy proceedings are commenced, creditors are prohibited from attempting to collect their debts.
True
One typical example of a closed-end credit transaction is where a purchaser obtains a loan of money from a bank to purchase a car.
True
Only contract damages are available to a successful plaintiff who proves wrongful termination based on the good cause exception to the employment at will doctrine.
True
Only someone in a supervisory capacity can be liable for quid pro quo sexual harassment.
True
Property held in trust for the benefit of the debtor under a spendthrift trust does not become a part of the bankruptcy estate.
True
Property inherited by the debtor within 180 days of the bankruptcy petition date becomes property of the bankruptcy estate.
True
The Americans With Disabilities Act applies only to employers who have 15 or more employees.
True
The Americans with Disabilities Act prevents employers from requiring that job applicants or employees undergo medical tests as a condition of employment.
True
The FTC regulates deceptive advertising on Web pages as well as on television and in the print media.
True
The Fair Labor Standards Act applies to all companies with two or more employees that are engaged in interstate commerce.
True
The Occupational Safety and Health Act imposes on employers both a general duty to provide a safe work place and specific duties that are tailored to the employers' particular industries.
True
The Poison Product Packaging Act of 1970 requires that certain products have child proof caps and packaging.
True
The basic purpose of bankruptcy is to allow a debtor in a difficult financial situation a fresh financial start.
True
The bona fide occupational qualification defense may be used in claims arising under the Age Discrimination Employment Act.
True
The courts allow sexual harassment claims for both same sex and opposite sex harassment.
True
The general manager of a business will have the implied actual authority to perform duties that are not expressly authorized in the employment agreement.
True
The good cause exception to employment at will arises during the course of a worker's employment based on the way the employer evaluates rewards and disciplines the employee.
True
The good cause exception to employment at will is based on the conduct of the parties, especially on the conduct of the employer, during the years of employment.
True
The law governing harassment in the private sector workplace has developed on a case by case basis in the Supreme Court and the lower courts.
True
The principal is a fiduciary of the agent.
True
The secret formula for a soft drink is an example of a trade secret.
True
To be protected by the public policy exception to employment at will, the public policy that the employee acts to advance must be tied to a constitutional, statutory or administrative law.
True
To collect state unemployment insurance, a worker must be actively seeking a replacement job that is appropriate for someone with his skills, education and work history.
True
To collect workers compensation an employee's injury must have occurred in the workplace or in a work-related situation.
True
To ratify a contract, the principal must have been disclosed at the time the contract was formed
True
Under Chapter 11, a debtor's plan of reorganization must provide a means for its execution.
True
Under the Equal Credit Opportunity Act, creditors are forbidden from making statements to applicants that would discourage them from applying for credit.
True
Under the Fair Credit and Reporting Act, information is obsolete after 7 years and must be purged from the files of credit reporting agencies.
True
Under the Fair Debt Collection Practices Act, debt collectors are prohibited threatening to arrest a debtor for failure to pay a debt.
True
Under the Fair Labor Standards Act, covered workers are entitled to one and a half times their hourly wages for overtime.
True
Under the Fair and Accurate Credit Transaction Act, victims of identity theft may file a fraud alter with consumer credit reporting companies, which would appear on their credit report.
True
Under the Pregnancy Discrimination Act, pregnancies must be treated by the employer like any other medical condition that may affect an employee's status.
True
Under the family-car doctrine, any family member becomes an agent of the parent-owner while the family member is using the car.
True
When a principal files for Chapter 7 bankruptcy, all agency appointments end when the court grants an order of relief.
True
When workers strike for higher wages, management may hire replacement workers and refuse to rehire the striking workers when the strike is over.
True
In a bankruptcy proceeding, the ______ is the person responsible for managing the debtor's assets and for satisfying the creditor's claims to the extent possible.
Trustee
The ________ imposes duties on creditors who wish to extend credit, primarily in the area of making disclosures to potential debtors.
Truth in Lending Act
If a third party does not know that he is dealing with an agent and believes that the agent is acting on his own behalf and will perform on the contract, the principal in this situation is ______________.
Undisclosed
The general legal doctrine that holds one person responsible for the torts committed by another because of the relationship they have to each other is _______________
Vicarious Liability
Which legal principal always imposes punitive damages on a master if the wrongful conduct of the servant justifies punitive damages ?
Vicarious liability rule
Which of the following is not a factor in determining if a servant was acting within the scope of his employment?
Was the servant disobeying the instruction of the master when the tort was committed?
The last semester of his senior year, Marc had an unpaid internship in the sales department of a local TV station. When Marc left, he took a copy of the station's client list with him, reasoning that it would prove useful in the future when he graduated and got a permanent job at some other company in sales. Has Marc violated any agency duties?
Yes, Marc violated a duty to protect confidential information.
Mel was employed by a restaurant under an employment at will contract. Mel's employer ordered him to lie during a state health inspection about on-going problems with the restaurant's main refrigeration unit. Mel answered the inspector's questions honestly and was fired. May Mel sue the restaurant for wrongful termination?
Yes, Mel may sue the restaurant under the public policy exception to the employment at will doctrine.
Parker is a dealer in Oriental antiques and rugs. A sign in his store recommends that customers bring in their rugs to him for cleaning and repair. In fact, Parker does none of the cleaning or repair work himself. He sends the rugs to Local Cleaners, for whom he works as an agent making a 20 commission. Due to a mishap at Local's plant, the rug belonging to Parker's customer was damaged. Is Parker liable to the customer for the damage?
Yes, Parker is liable because he is the agent of an undisclosed principal.
Rita knew that one of her customers regularly subjected an employee to lewd public sexual advances. The employee complained of this to Rita who took no action because the customer placed many large orders with her store. Does Rita have any liability for her customer's behavior?
Yes, Rita is liable in negligence
In a disparate treatment case, the plaintiff can defeat the defendant's claim that the discriminatory employment decision was taken for a "legitimate non-discriminatory reason" by proving that the reason offered was
a pretext
Whether or not a servant was acting in the scope of his employment when he injured a third party is a question of __________ to be decided by the ______.
fact.jury
Whether or not a principal has ratified a contract is a question of law to be decided by the judge at trial.
false
Jim was called to active duty in the military. Knowing that he would be out of the country for a year or more, he gave his sister Peg authority to pay bills in his name, access his bank accounts, buy and sell stock in his brokerage accounts, and incur expenses to maintain his house and car and boat. Peg is Jim's______________.
general agent
The type of sexual harassment that occurs when a promotion or other benefit is made conditional on the employee granting a sexual favor is _______________harassment.
quid pro quo
A person who breaches a duty that is neither a contractual duty nor a crime commits a ____________.
tort
A person who enters into a contract with an independent contractor is called a proprietor.
true
A plaintiff who sues the employer and the employee in joint and several liability is limited to only one recovery.
true
A proprietor will be liable for the torts of an independent contractor if the duties that the contractor is hired to perform are inherently dangerous to the public.
true
Agents of undisclosed principals are entitled to be indemnified if held personally liable on contracts that were within the scope of their authority.
true
If a principal ratifies the unauthorized act of an agent, he releases the agent from any liability for the unauthorized act.
true
Masters and servants have only joint liability for torts committed by the servant in the course of his employment.
true
Respondeat superior is a firm of vicarious liability.
true
Title VII protections against discrimination in employment do not apply to independent contractors.
true
Jim was called to active duty in the military. Knowing that he would be out of the country for a year or more, he gave his sister Peg authority to pay bills in his name, access his bank accounts, buy and sell stock in his brokerage accounts, and incur expenses to maintain his house and car and boat. Jim received several dividend checks from his stock broker while he was gone. Peg deposited the checks in her own bank account because her funds were low. Several weeks later she made out a personal check for the amount of the dividends and deposited it into Jim's account. Has Peg breached any agency duties?
yes, she breached her duty to account.
