Law Test 4

Under the common law doctrine of___ , employers are free to discharge employees for any reason at any time, and employees are free to quit their jobs for any reason at any time. a. work at will b. work at reasonable compensation c. worker rights d. fair work e. freedom of employment

a

An agent must perform instructions provided by the principal. If the agent fails to do so, he violates: a. the duty of cooperation b. the duty of obedience and performance c. the duty to reimburse d. the duty of loyalty e. the duty of accounting

b

Someone designated to do all acts that can be legally granted to an agent is called a(n): a. special agent b. universal agent c. general agent d. subagent e. gratuitous agent

b

Insuring an agent against losses suffered during the course of authorized transactions is part of the principal's: a. duty of cooperation b. duty of facilitation c. duty to indemnify d. duty to protect e. duty to reimburse

c

Power of attorney: a. is a document that applies only to attorneys in certain capacities b. refers to a category of agents c. is a document that creates an agency d. exists whenever a person has the right to execute a transaction for another e. exists whenever an attorney has the right to execute transactions for a client

c

Under the whistle-blower exception to the general rule of employers having the right to dismiss employees: a. private employers do not have the right to fire employees who report possible violations of the law by their employer b. private employers do not have the right to fire employees who report legal problems that are found to be actual violations of the law once investigated c. private employers are less likely to be subject to whistle-blower exceptions than are public sector employers d. whistle blowers do not have any rights against an employer, but have the right to compensation from a special fund that rewards whistle blowing e. none of the other choices

c

Which of the following is not a category of agents covered in the text: a. gratuitous agent b. special agent c. foreign agent d. general agent e. universal agent

c

Which of the following would not be a factor in determining a ratification: a. the principal can ratify only agreements about which he has knowledge of the material facts b. the agent must have purported to act for of the principal and not on the agent's own behalf c. the third party wishes for the principal to be a party to a contract d. if the original agreement between the agent and third party was required by law to be in writing, ratification must also be in writing e. all of the other choices

c

You post a notice at school that you will sell your laptop computer for $600. A buyer comes by your room to look at it while you are gone and your roommate sells it for $500, thinking you would be happy with that price, which you did not authorize. a. you must accept the deal because your roommate had implied authority b. you must accept the deal because people living together have power of attorney c. you can accept the deal by express or implied ratification d. you can accept the deal by express ratification only, not implied ratification e. the deal cannot be valid because there was no consent

c

A(n)____ is a principal's clear signal to be bound to the otherwise unauthorized agreement. a. implied ratification b. real ratification c. delayed ratification d. express ratification e. explicit ratification

d

An agency through operation of law is established: a. by a written contractual agreement of the parties b. by ratification of the agent's activities by the principal c. by the application of the doctrine of estoppel d. when an emergency exists and the "agent's" actions are in the public interest e. none of the other choices

d

An agent with authority to represent the principal only for a specific transaction, usually for a limited time is a(n): a. universal agent b. gratuitous agent c. agent who has an agency coupled with an interest d. special agent e. none of the other choices

d

In Zambelli Fireworks Manufacturing Co. v. Wood, where Zambelli sued Wood for violating the noncompete agreement in his contract, the appeals court held that: a. the noncompete agreement was void because it violated common law policies b. the noncompete agreement was void because it violated public policy c. Wood's specialized knowledge from working at Zambelli, but not customer goodwill, constituted a legitimate business interest that Zambelli had a right to protect through a reasonable restrictive covenant d. Wood's specialized knowledge from working at Zambelli in addition to customer goodwill constituted legitimate business interests that Zambelli had a right to protect through a reasonable restrictive covenant e. Wood's specialized knowledge from working at Zambelli and established customer goodwill did not constitute legitimate business interests that Zambelli had a right to protect through a reasonable restrictive covenant

d

The agent's ability to transact business on behalf of and for the principal depends on whether the agent possesses: a. actual authority b. apparent authority c. quasi-authority d. actual or apparent authority e. actual or apparent authority or quasi-authority

d

When you go on vacation you give your neighbor authority to pick up your mail and watch for burglars for you. You tell the neighbor not to go into the house or let anyone else in. A fire on the hills threatens your house. The neighbor goes in to carry out valuables before the house burns. This action is: a. a trespass, which is illegal b. breaking and entering, which is a crime c. an agency by estoppel d. an agency through operation of law e. an agency by implied ratification

d

The first federal law that specifically addressed equal employment issues was the: a. Landrum-Griffin Act of 1959 b. Civil Rights Act of 1964 c. National Labor Relations Act of 1935 d. Interstate Commerce Act of 1887 e. Equal Pay Act of 1963

e

Which of the following is not a duty owed by the agent to the principal: a. loyalty b. reasonable care c. accounting d. notification e. all of the other choices are required

e

. If a company manager expressly tells an employee that she could not be fired without good cause, but then fires her for no particular cause, the employee may have a suit for wrongful termination most likely based on the theory of: a. breach of implied contract b. breach of public policy c. breach of employment manual d. breach of a public right e. none of the other choices; the employee has no grounds for suit due to employment at will

a

A woman has a difficult time with her pregnancy. She uses up all her leave time and sick time. She then often comes to work late or leave early due to feeling badly. Under the Pregnancy Discrimination Act, her employer: a. can dismiss her for taking off too much time b. must give her additional time off, with pay, only if there is medical evidence that it is necessary c. must give her additional time off, with pay, by extending her sick time and leave time, as required by law d. must give her additional time off, with pay, if she requests it, so long as she is pregnant e. none of the other choices

a

A(n)_______ is one in which employees agree not to leave and go into competition against the employer or go to work for a competitor for a certain time. a. noncompete agreement b. anti-raiding covenant c. exculpatory agreement d. whistle-blower agreement e. none of the other choices

a

Adam enters into an oral agreement with Tushar that Tushar will sell Adam's house for him. A week later, the house burns down. Adam and Tushar's agency is now: a. terminated by operation of law b. still in place c. illegal in some states d. fraudulent in all states e. temporarily suspended

a

Agreement of the parties, ratification of the agent's activities by the principal, application of the doctrine of estoppel and operation of law are all: a. ways that an agency may be established b. ways that an agency may be sued c. unacceptable ways to begin an agency d. informal and thus non-binding ways of establishing an agency e. none of the other choices are correct

a

An agent must be able to show where money or property comes from and goes to because of his duty: a. to account b. to notify c. of loyalty d. of responsibility e. to profit

a

An exculpatory agreement is one in which: a. one party promises not to sue another in case of an injury caused by a tort or some other event b. an employee agrees not to leave and go into competition against the employer or go to work for a competitor for a certain time c. an employee agrees not to recruit fellow employees for another company when they leave their current place of employment d. an employee agrees not to use illegal substances e. none of the other choices

a

Apparent authority arises when: a. the principal creates an appearance of authority in an agent that leads a third party to conclude reasonably that the agent has authority to act for the principal b. the agent creates an appearance of authority in a principal that leads a third party to conclude reasonably that the agent has authority to act for the principal c. the agent forges documents conferring authority on himself d. the principal gives the agent implied authority e. none of the other choices are correct

a

If an agent competes with his principal without the principal's consent: a. he is violating his duty of loyalty b. he is violating his duty of cooperation c. he is violating his duty to reimburse d. he is violating his duty to play fair e. he is violating his duty of obedience and performance

a

If the EEOC investigates a discrimination claim and finds no reasonable cause: a. it will dismiss the charge b. it will pass the charge on to the Supreme Court c. it will fine the employer, but not send the case to court d. it will issue a right to sue letter e. it will fine the plaintiff

a

Implied authority consists of: a. the power to do whatever is reasonable and customary to carry out the agency purpose b. the power to mingle the funds of the agent and principal c. limits on an agent's actions, so that the agent may only do what the principal orders, in writing or orally d. the power of the agent to withhold services if the principal fails to pay her e. the power of an agent to do whatever is authorized by the Uniform Agency Act

a

In Bearden v. Wardley Corp., where Bearden sued Wardley because one of its agents, Gritton, bought a house from her and then cheated her on the transaction, the court held that: a. both Wardley and Gritton owed Bearden fiduciary duties and so both were liable b. neither Wardley nor Gritton owed Bearden fiduciary duties and so neither was liable c. only Wardley owed Bearden fiduciary duties and so only Warden was liable d. only Gritton owed Bearden fiduciary duties and so only Gritton was liable e. none of the other choices are correct

a

In an agency the principal: a. provides the agent with authority b. provides the agent with legal support c. does not provide the agent with authority d. is given authority by the agent e. none of the other choices are correct

a

The authority given by the principal to an agent, conferring on the agent the power and right to change the principal's legal status is referred to as: a. actual authority b. authority in rem c. authority at law d. general authority e. special authority

a

The duty of an agent not to mix personal funds with the funds of the principal is the duty: a. to account b. of loyalty c. to notify d. to perform e. none of the other choices, unless instructed not to do this

a

When there is an undisclosed principal, the agent is: a. liable to the third party for the principal's nonperformance of the contract b. not liable to the third party for the principal's nonperformance of the contract c. liable to the undisclosed principal for the third party's nonperformance of the contract d. liable for only half of the damages incurred by the principal's nonperformance of the contract e. none of the other choices are correct

a

Which of the following is not a duty owed by the agent to the principal: a. compensation b. reasonable care c. accounting d. notification e. all of the other choices are required

a

____is when an agency is created because the actions of the principal may lead one to reasonably believe that the presumed agent has the authority to act for the principal. a. Agency by estoppel b. Agency by permission c. Agency by ratification d. Agency by demand e. Agency by practicality

a

takes place when the principal behaves as if he has the intent of ratifying an unauthorized agreement. a. implied ratification b. real ratification c. delayed ratification d. express ratification e. explicit ratification

a

. Juan and Marie enter into an oral agreement that Marie will sell Juan's crusty herb garlic bread to gourmet food stores in the area. This works until Juan gets sick and no longer makes his bread. Marie is furious that Juan is unable to supply her with the popular bread and sues him for lost profits. A court is likely to rule: a. Juan cannot abandon the agency relationship he established with Marie b. Marie's authority to act as agent for Juan lapsed and the agency relationship is terminated c. Juan should pay Marie damages for reducing her income d. Marie may not be fired because she and Juan had a contract of employment e. Juan cannot abandon the agency relationship he established with Marie and Juan should pay Marie damages for reducing her income

b

A noncompete agreement is one in which: a. one party promises not to sue another in case of an injury caused by a tort or some other event b. an employee agrees not to leave and then go into competition against the employer or go to work for a competitor for a certain time c. an employee agrees not to recruit fellow employees for another company when they leave their current place of employment d. an employee agrees not to use illegal substances e. none of the other choices are

b

A person who volunteers with no expectation of being paid for her services is a(n): a. exceptional agent b. gratuitous agent c. agent who has an agency coupled with an interest d. one-time agent e. none of the other choices

b

A principal's ratification is: a. an agent's acceptance of responsibility from the principal b. the principal's acceptance of responsibility for an agent's activities c. the principal's rejection of responsibility for an agent's activities d. the principal's acceptance of property from an agent e. an agent's acceptance of property from the principal

b

A(n)____ is one in which employees are required to sign, as a condition of employment, an agreement that they will not recruit fellow employees for another company when they leave their current place of employment. a. noncompete agreement b. anti-raiding covenant c. exculpatory agreement d. whistle-blower agreement e. none of the other choices

b

Actual authority give the agent: a. no real authority b. the power and right to change the principal's legal status c. the power and right to make all decisions for the principal, even on matters where the agent does not have authority d. a 50% ownership share in all the principal's assets e. none of the other choices are correct

b

Agency by estoppel means: a. conduct on the part of the agent that implies an agency relationship must be stopped as soon as the principal implies disagreement b. actions by the principal lead a person to believe that the presumed agent has authority to act on the principal's behalf c. the agent creates an appearance of authority in the principal which leads a third party to reasonably conclude that the agent has the authority to perform certain acts d. conduct by the agent through word or actions is not sufficient to bind the principal to contracts the agent creates e. none of the other choices

b

An agency coupled with an interest is created: a. when the principal provides the agent with a general power-of-attorney b. by an agent who has paid for the right to exercise authority with regard to a business c. when a person volunteers her services out of interest in the business d. when the agent is authorized to delegate any authority to an interested party e. none of the other choices

b

Bill is an attorney in Ohio. Marla hires Bill to create a trust for her children. Bill has not been keeping up with developments in trust law, and so creates an inefficient trust. Under recent Ohio law, he could have created a much more beneficial trust. In this case, Bill: a. has violated a duty of loyalty b. has violated a duty of reasonable care c. has violated a duty of obedience d. has violated a duty to account e. may be out-of-date but has violated no duties

b

Carla agrees to try to sell Frank's prize dog Spike for him. Carla does this as a favor to Frank because she knows many professional dog breeders. Carla may be best described as: a. a universal agent b. a gratuitous agent c. an agent who has an agency coupled with an interest d. a special agent e. none of the other choices

b

Cook instructs Chan, her agent, to buy a van for her business. Chan contracts for a van with a third party, who knows that Chan is an agent. If Cook does not like the van and refuses to pay for it, the seller may sue: a. Chan because she did not have authority to enter into a final contract without permission b. Cook because Chan has actual authority to make a contract on behalf of her principal c. Cook if Chan signed the contract expressly on behalf of Cook; that is, the principal was revealed before the contract was made d. Cook but only if Chan has apparent authority to enter into the contract e. no one; there was no valid contract

b

Employees may be required to sign, as a condition of employment, an agreement that they will not recruit fellow employees for another company if they leave for another place of employment. This is called: a. noncompete agreement b. anti-raiding covenant c. exculpatory agreement d. whistle-blower agreement e. none of the other choices

b

Express ratification creating an agency by the principal occurs when the principal: a. fails to object to an agent's unauthorized activities b. by action shows a clear intent to be bound by unauthorized acts of the agent c. accepts the benefits of an unauthorized agreement with a third party d. all of the other specific choices e. none of the other choices

b

In Cove Management v. AFLAC, Galgano, an independent contractor who solicited insurance business for AFLAC, rented office space from Cove under AFLAC's name. When Galgano defaulted on payments, Cove sued AFLAC contending that Galgano was its agent when he rented the office, so AFLAC was liable. The appeals court held that AFLAC: a. was not obligated to the lease because real estate deals must be in writing with the principal of the company agreeing to the lease b. was not obligated to the lease because Galgano did not have apparent authority to sign a lease that would bind AFLAC c. was obligated on the lease as its employee had apparent authority d. was not obligated on the lease, but its employee who told Galgano it was ok to enter into such a lease was obligated e. all of the other choices are correct

b

In Cove Management v. AFLAC, Galgano, an independent contractor who solicited insurance business for AFLAC, rented office space from Cove under AFLAC's name. When Galgano defaulted on payments, Cove sued AFLAC contending that Galgano was its agent when he rented the office, so AFLAC was liable. The appeals court held that: a. the district court was correct in its ruling that AFLAC was not bound by the contract because Galgano did not have apparent authority b. the district court was correct in its ruling that AFLAC was bound by the contract because Galgano had apparent authority c. the district court was incorrect in its ruling that AFLAC was bound by the contract because Galgano did not, in fact, have apparent authority d. the district court was incorrect in its ruling that AFLAC was not bound by the contract because Galgano had express authority e. none of the other choices are correct

b

Scott is an agent for Lee and his duties require him to fly to Chicago from Cleveland. Scott gets up late and misses his flight to Chicago so he has to buy a second plane ticket. As principal, Lee: a. has a duty to reimburse Scott for the second plane ticket b. does not have a duty to reimburse Scott for the second plane ticket because it was Scott's fault he had to buy it c. has a duty to reimburse Scott for half the plane ticket d. has a duty to reimburse Scott for 1/3 of the plane ticket e. does not have a duty to reimburse Scott for the ticket because he had no duty to reimburse Scott for a plane ticket to Chicago anyway

b

The duty of an agent to perform responsibilities with the degree of care that a reasonable person would exercise under the circumstances is: a. the duty to cooperate b. the duty of reasonable care c. the duty of realistic care d. the duty of obedience e. the duty of reasonable obligation

b

The duty of loyalty: a. requires a principal to place the agent's interests before the principal's personal interests or those of any third party b. requires an agent to place the principal's interests before the agent's personal interests or those of any third party c. requires the agent to work for only one principal at a time d. requires the agent to work without compensation if necessary e. refers to the medieval roots of agency

b

The power of an agent to do whatever is reasonable and customary to carry out the agency purpose is given by: a. express authority b. implied authority c. quasi authority d. false authority e. verbal authority

b

The principal's duty to indemnify the agent means the principal must: a. pay reasonable wages to the agent b. insure the agent against losses suffered during the course of authorized transactions c. pay for expenses incurred by agent that result from negligent behavior d. refrain from providing the agent with inferior goods e. pay reasonable wages to the agent and refrain from providing the agent with inferior goods

b

The principal's duty to reimburse dose not cover expenses: a. incurred during business hours b. incurred due to the agent's misconduct or negligence c. incurred by the agent while conducting business for the principal d. incurred while traveling to do business for the principal e. none of the other choices are correct

b

The whistle blower exception to at will employment is most likely to apply to: a. private sector employees b. public sector employees c. private and public sector employees equally d. small business owners e. none of the other choices are correct

b

Through an agency relationship, the agent becomes a representative of the: a. third party b. principal c. customer or supplier of the principal d. shareholder e. all of the other choices

b

To carry out their duties, universal agents are typically granted: a. powers to act by estoppel b. a general power of attorney c. authority to cancel contracts anticipatorily d. all of the other specific choices e. none of the other choices

b

Under American common law, employees are presumed to: a. work at a certain rate b. work at will c. work for compensation d. work for nothing e. work for agencies

b

When an agency is terminated: a. the agent's authority to act for the principal does not end b. the agent's authority to act for the principal ends c. the agent's authority to act for the principal is reduced to very limited conditions d. the agent may never work with the principal again e. the agent may not work for someone who is in competition with the principal

b

. Barbara, a purchasing agent for UTA, was fired for good reason. Being angry about her dismissal, she calls one of UTA's suppliers and orders 1,000 purple widgets UTA does not need. If UTA, the principal, is held liable for this transaction, it is because Barbara had: a. express authority b. implied authority c. apparent authority d. actual authority e. none of the other choices apply

c

A principal has a_______- the agent for reasonable expenses incurred in carrying out the duties of the agency. a. duty to cooperate with b. duty of loyalty to c. duty to reimburse d. duty of obedience to e. none of the other choices would apply

c

An agency ends without any action by the principal or the agent through: a. termination through action b. termination through inaction c. termination by operation of law d. termination by decision of law e. termination by redefinition

c

An agency relationship normally involves the use of an agent to represent a principal in dealing with which of the following: a. shareholders b. representatives c. third parties d. attorneys e. ratifications

c

An agent has a possession. the funds and property of his principal that have been entrusted to him or have come into his a. duty to compensate for b. duty to reimburse c. duty to account for d. duty to document e. duty to increase

c

An agent is trying to sell a house for $100,000 for her principal. The principal will sell the house for as little as $80,000, but wants to get as much as possible. The agent tells her cousin to offer $81,000. The agent's actions are: a. a legitimate effort to get the deal done that will benefit everyone involved b. a violation of the duty of accounting c. a violation of the duty of loyalty d. a violation of the duty of notification to let the principal know he can counter-offer at a higher price e. unethical, but it does not violate legal duties

c

An anti-raiding covenant is one in which: a. one party promises not to sue another in case of an injury caused by a tort or some other event b. an employee agrees not to leave and go into competition against the employer or go to work for a competitor for a certain time c. an employee agrees not to recruit fellow employees for another company when they leave their current place of employment d. an employee agrees not to use illegal substances e. none of the other choices are correct

c

An employment of an agent for the purpose of representation in establishing relations between a principal and third parties is known as a(n): a. third party relationship b. principal relationship c. agency relationship d. real relationship e. representative relationship

c

An undisclosed principal is: a. known to the agent b. unknown to the agent c. unknown to third parties to contracts entered into with the agent d. known to partners e. known to third parties to contracts entered into with the agent

c

Because of the principal. an agent may not represent another party whose interests are in conflict with those of the a. duty of non-competition b. duty of cooperation c. duty of loyalty d. duty to reimburse e. duty of obedience and performance

c

Employees may be required to sign, as a condition of employment, an agreement that they will not sue the employer in case they are injured on the job. This is called: a. noncompete agreement b. anti-raiding covenant c. exculpatory agreement d. whistle-blower agreement e. none of the other choices

c

Express authority consists of the agent's: a. inability to conduct business for the principal b. ability to mingle his funds with those of the principal c. written or oral instructions from principal to agent d. ability to hold power of attorney for the principal e. ability to withhold services in the event of nonpayment by the principal

c

Implied ratification usually occurs when: a. the principal refuses to accept the benefits of the agreement b. the principal accepts the benefits of the agreement c. the agent accepts the benefits of the agreement d. a court processes the power of attorney e. none of the other choices are correct

c

In Ballalatak v. All Iowa Agriculture Association, where Ballalatak contended that he was fired for inquiring into whether the company was fulfilling its workers' compensation obligation and the general manager claimed he was fired for insubordination, the Iowa state supreme court held that Ballalatak: a. could not sue for wrongful discharge because he was not fired on the same day that he made the inquiry about the injured workers' compensation b. should have been awarded damages of up to $10,000 for wrongful discharge c. could not sue for wrongful discharge because Iowa law does not protect an employee who advocates internally for another employee's workers' compensation claims d. could sue for wrongful discharge because Iowa law protects an employee who advocates internally for another employee's workers' compensation claims e. none of the other choices are correct

c

In Bearden v. Wardley Corp., where Bearden sued Wardley because one of its agents, Gritton, bought a house from her and then cheated her on the transaction, the court held that: a. Gritton was liable for breaching his duty to Bearden, but Wardley had no knowledge of Gritton's actions so was not liable b. Gritton was liable for theft, but not for breach of his duty as an agent to Bearden, since that relationship expired before Gritton cheated Bearden c. Gritton and Wardley violated their fiduciary obligations to Bearden, so both are liable d. neither party was liable to Bearden because the contract was legitimate and her claim that she had been cheated by her agent, Gritton, was unfounded e. none of the other choices

c

Non-union workers left work without permission because there was no heat at work and it below freezing in the plant. The company fired them. With respect to this joint action by the workers, you would expect the courts to hold that the workers were: a. wrong; as non-union workers, the NLRA does not apply to them; they were at-will workers who could be fired b. wrong; they must proceed with grievance procedures if they want to have the protection offered by the NLRA c. right; in case of intolerable working conditions workers have the right to protect themselves without being fired d. right; the NLRA holds management responsible for "fair working conditions" e. none of the other choices

c

Persons appointed by an agent delegated some authority are known as: a. minor agents b. pseudo-agents c. subagents d. delegated agents e. none of the other choices

c

Subagents work for the agent and owe duties to: a. only the agent b. only the principal c. both the agent and the principal d. no one e. none of the other choices are correct

c

The buyer for an electronics store is bribed by a supplier to order more of the brand sold by the supplier. This action violates which of the agent's duties? a. notify b. account c. loyalty d. indemnity e. all of the other choices

c

Which of the following is least likely to be an issue in determining if an employer has hired an employee or an independent contractor: a. the specialization or skill of the occupation b. the length of the employment c. the level of compensation d. the nature of the worker's tasks e. where the work is performed

c

A manager who runs all aspects of a hotel is most likely what kind of agent: a. universal agent b. special agent c. gratuitous agent d. general agent e. none of the other choices

d

A person authorized to execute all regular transactions connected with a business is called a: a. universal agent b. special agent c. gratuitous agent d. general agent e. none of the other choices

d

An at-will employee: a. may not be dismissed for any reason b. may only be dismissed for committing a major crime c. may only be dismissed for certain reasons specified in the employment contract d. may be dismissed at any time without reason or cause e. none of the other choices are correct

d

Anti-raiding covenants are: a. illegal in all states b. enforced by all states c. held to be a violation of public policy in all states d. held to be a violation of public policy in some states and enforced in others e. unenforceable in Texas and California

d

Implied ratification of an agency occurs when the principal: a. fails to object to the unauthorized activities of an agent b. by action shows a clear intent to be bound by unauthorized acts of the agent c. accepts the benefits of an unauthorized agreement with a third party d. fails to object to the unauthorized activities of an agent and accepts the benefits of an unauthorized agreement with a third party e. fails to object to the unauthorized activities of an agent and accepts the benefits of an unauthorized agreement with a third party and by action shows a clear intent to be bound by unauthorized acts of the agent

d

In Bearden v. Wardley Corp., where Gritton's real estate agent cheated her in a deal, the court held that Wardley, Gritton's employer, violated its____ to Bearden: a. duty to inform b. duty of performance c. duty to account d. duty of care e. none of the other choices; Wardley was not responsible

d

Suppose a hurricane is going to hit South Florida; there are two days to prepare for it and the owner of a house is on a raft trip in Brazil and cannot be reached. The next door neighbors spend $800 on plywood and other materials to protect the house from the hurricane. Legally, this expenditure is likely to be: a. is a gift from the neighbors, nothing more b. is the responsibility of the homeowner; there is an agency by estoppel c. is the responsibility of the homeowner; there is implied ratification of the agency d. is the responsibility of the homeowner; there is agency by operation of law e. none of the other choices

d

The principal is under a____ for damages to cover the agent's losses (such as from litigation) suffered while undertaking authorized transactions for the principal. a. duty to cooperate b. duty of loyalty c. duty of obedience d. duty to indemnify e. none of the other choices would apply in such case

d

When a principal creates an impression of authority in an agent that leads a third party to conclude that the agent has authority to act for the principal, the agent is said to have: a. implied authority b. express authority c. actual authority d. apparent authority e. none of the other choices

d

Which of the following would lead to termination by operation of law for an agency: a. the principal dies b. the agent dies c. the subject matter of the agency is destroyed d. all of the other specific choices are correct e. none of the other specific choices are correct

d

A disclosed principal is a principal whose identity is: a. known to the agent b. unknown to the agent c. unknown to third parties to contracts entered into with the agent d. known to partners e. known to third parties to contracts entered into with the agent

e

An agency may be established by: a. operation of the law b. means of the doctrine of estoppel c. ratification d. written agreement e. any of the other choices

e

In Ballalatak v. All Iowa Agriculture Association, where Ballalatak contended that he was fired for inquiring into whether the company was fulfilling its workers' compensation obligation and the general manager claimed he was fired for insubordination, the Iowa state supreme court held that Ballalatak: a. could not sue for wrongful discharge because he was not fired on the same day that he made the inquiry about the injured workers' compensation b. should have been awarded damages of up to $10,000 for wrongful discharge c. could sue for wrongful discharge because Iowa law protects an employee who advocates internally for another employee's workers' compensation claims d. could sue for breach of his rights as a manager to ensure proper compliance with state law inside the company e. none of the other choices are correct

e

In Zambelli Fireworks Manufacturing Co. v. Wood, where Zambelli sued Wood for violating the noncompete agreement in his contract, the appeals court held that: a. the noncompete agreement was void because it violated common law policies b. the noncompete agreement was void because it violated public policy c. Wood's specialized knowledge from working at Zambelli, but not customer goodwill, constituted a legitimate business interest that Zambelli had a right to protect through a reasonable restrictive covenant d. Wood's specialized knowledge from working at Zambelli and established customer goodwill did not constitute legitimate business interests that Zambelli had a right to protect through a reasonable restrictive covenant e. none of the other choices are correct

e

Lois was the agent of Lester, who owned a store in Walton, Iowa. While Lester was away on vacation, the Mississippi River reached record flood. As an agent, Lois only had permission to engage in sales at the store and purchase certain items. Faced with the prospect of losing all goods, Lois shipped Lester's inventory to a storage facility 200 miles away, out of the path of the flood waters. This incurred costs, but saved the inventory. Lois acted in: a. violation of her duty of loyalty b. violation of her duty of obedience c. violation of her duty of accounting d. accordance with her duty of accounting e. accordance with her duty of reasonable care

e

The principal may hold the third party to a contract, in an undisclosed principal situation, except when the: a. undisclosed principal is expressly excluded as a party to the contract between the agent and the third party b. agent's performance is personal to the contract c. contract, when a negotiable instrument, does not include the identity of the principal or existence of the agency relationship d. undisclosed principal is expressly excluded as a party to the contract between the agent and the third party or the agent's performance is personal to the contract e. undisclosed principal is expressly excluded as a party to the contract between the agent and the third party or the agent's performance is personal to the contract or the undisclosed principal is expressly excluded as a party to the contract between the agent and the third party or the agent's performance is personal to the contract

e

Which of the following are public-policy exceptions recognized by most states as limits to the employment-at-will doctrine allowing termination of employees? a. refusing to commit an illegal act b. performing a public duty (reporting for jury duty) c. exercising a right (filing for workers' compensation) d. refusing to commit an illegal act and performing a public duty (reporting for jury duty) e. refusing to commit an illegal act and performing a public duty (reporting for jury duty) and exercising a right (filing for workers' compensation)

e

Which of the following is unlikely to be classified as a public policy exception to employment at will should an employee be fired: a. filing for bankruptcy b. reporting for jury duty c. refusing to sign a false statement by an employer for a government report d. filing a workers' compensation claim against the employer e. all of the other choices would be classified as public policy exceptions

e