Blaw Test #4 quizzes and bonus quizzes
In which of the following circumstances would the Agency Relationship be terminated by law?
- The death of the Agent - When the Principal has died but the Agent does not yet have notice of the Principal's death. - When the subject matter of the agency has been destroyed. - None of these answers are correct. - Two of these answers are correct.
A principal owes an agent a duty of:
- reimbursement. - indemnification. - The duties listed in every answer to this question are duties owed by a principal to her agent. - compensation.
Edward works in the office of ABC, Inc. ("ABC"), a women's clothing manufacturer. Over the past year, his direct supervisor, Susan, has constantly called Edward "stupid", screams obscenities at him on a daily basis and generally makes Edward's life at work miserable. On a visit, Bob, Susan's supervisor observes Susan calling Edward "stupid" and cussing at him. Bob pulls Susan aside and tells her to stop this behavior. ABC requires every employee to take anti-harassment training and the compliant harassment reporting procedures are on a poster on the wall next to Edward's desk. Susan continues her harassment of Edward, but no longer harasses him in public or with witnesses. Not being a complainer, Edward never contacts anyone at ABC regarding the continued harassment and toughs out the situation. Later, when asked by Bob (who is appropriately following up on the Susan/Edward situation) about his relationship with Susan and her treatment of Edward, Edward replies "I could not ask for a better boss". ABC, Inc.'s best argument against being held liable Edward under Title VII of the Civil Rights Act of 1964 is:
ABC can asset the defense to Hostile Workplace harassment by proving that ABC took no tangible adverse job action against Edward, ABC exercised reasonable care to prevent and correct the harassment and Edward unreasonably failed to report the harassment.
Anthony is an employee of Waco Water Company and his job is to turn off the water to water customers who are delinquent on their water bill. Waco Water instructs Anthony to turn off the water at Timothy's Plants and Trees because Waco Water mistakenly believes Timothy's is delinquent on paying their water bill. Anthony goes to Timothy's and turns off the water. Timothy's large inventory of plants and trees dies due to the lack of water. Timothy's wants to sue for the value of the plants and trees that died. Which of the following statements is correct regarding this situation.
Anthony will be liable to Timothy's for Anthony's committing an intentional tort. Waco Water Company will also be liable to Timothy's because Waco Water authorized Anthony's commission of the intentional tort.
Match each of the listed agent actions with the correct duty owed by the agent to his principal that was breached by the agent's actions. Agent co-mingles the Principals money with the Agent's personal funds
Duty to account
Match each of the listed agent actions with the correct duty owed by the agent to his principal that was breached by the agent's actions. Registered Agent fails to notify Principal that Principal has been sued.
Duty to inform/notify
The Recreation and Parks Agency of the state government has six employees and is interviewing for a person to teach gymnastics and arts and crafts to 3-5 year old children. Ed, age 71, applies but is told he is too old. Ed has mobility issues and can barely walk and he has never taught gymnastics. If Ed sues under the Age Discrimination in Employment Act (the Act), the Agency's best defense would be that:
Ed is not able to do and has no knowledge of gymnastics.
During which of the following trips would the employee most likely be held to be "within the scope of employment"?
Employee bank president, leaves the bank location to drive to a customer's office. The bank president plans to meet with the customer and then take the customer to lunch. On the way to the customer's office, the bank president negligently runs a red light and smashes into Natalie's car.
Which of the following statements is TRUE concerning either Quid Pro Quo or Hostile Workplace harassment?
One action by an employee can give rise to Quid Pro Quo harassment, but Hostile Workplace requires that the harassment be pervasive and consistent over a time period.
Page Company instructs its employee Ed to deliver merchandise to Page's customers. While driving the company's truck on his way to make a delivery, Ed negligently causes the truck to hit Tim's car, also injuring Tim.
Page is liable to Tim because Ed was acting within the scope of employment.
Similar, but different facts from Question 16. Page and Company hires its employee Ed to deliver merchandise to Page's customers. After making the scheduled deliveries, Ed drives the company's truck to a nearby city to visit his girlfriend. While in the nearby city, Ed negligently causes the truck to hit Tony's car and injure Tony. Which of the following statements is correct regarding this situation?
Page is not liable to Tony because Ed was not acting within the scope of employment.
Avery, a sales employee of Patricia, decides to engage in illegal price fixing (which is a crime) to increase Avery's sales. Which of the following statements is correct regarding this situation. Choose the best and most complete answer.
Patricia will be liable for this crime committed by Avery if Patricia authorized Avery to engage in price fixing or Avery is the Executive Vice President and Head of Sales for Patricia's company.
Peter listed a real estate with Ron, a realtor, pursuant to a listing agreement, which was exclusive to Ron for 90 days. Two months later, Peter decides not to sell the property and revokes Ron's authority. Choose the best answer.
Peter has the power to revoke Ron's authority, but does not have the right to revoke it, so Peter may be liable to Ron for damages for breach of contract.
In which of the following situations did the agent NOT have apparent authority to take action on behalf of their principal?
Peter, an elderly gentleman, hires Allison to run his household. Allison pays Peters bills, buys everything he needs run his household. Peter does not drive and does not own a car. Three months later Peter dies. Allison is immediately aware of Peter's death. The day after Peter's death, Allison buys a car from the local car dealership, telling the dealership that she is buying the car for Peter. The dealership knows that Allison handles quite a few matters for Peter, so they go ahead and sell the car to Allison with no down payment.
Match each of the following factual scenarios with the type of discrimination that best describes the discrimination described in the scenario. Assume each employer is subject to the Civil Rights Act of 1964. Big Health Hospital only hired female nurses from 1970 until 2015. In 2015, Big Health Hospital started hiring male nurses. Big Health promotes nurses based on seniority.
Present effects of Past Discrimination
X Corporation gives written instructions to its agent, Rodney, instructing him to find a buyer for its manufacturing subsidiary. Rodney not only finds a buyer, but enters into a contract on behalf of X Corporation with that buyer to sell the subsidiary. X Corporation finds out about the contract and does not want to sell the subsidiary to that buyer. What type of authority did Rodney have from X Corporation related to the sale of the subsidiary?
Rodney had Actual Express Authority to find a buyer for the manufacturing subsidiary. Rodney had Actual Implied Authority to take all reasonable and necessary actions to find that buyer. Rodney did NOT have Actual Authority (express or implied) to actually enter into the contract to sell the subsidiary.
Assume that S wants to sell his house and B is interested in buying it. If A is an agent who normally handles such transactions, A may represent:
S and B, but only with the informed consent of S and B.
Which one of the following statements is TRUE regarding the Equal Pay Act?
The Equal Pay Act has been interpreted by the courts to require equal pay for men and women based upon the concept of "substantially equal" rather than identical work.
In which of the following circumstances is the Agency Relationship NOT immediately terminated by operation of law?
The Principal dies, but the Agent does not have notice of such death.
Which of the following requirements is NOT a requirement for the ratification of an unauthorized contract by a principal?
The Principal must expressly notify the other party to the unauthorized contract that the Principal desires to ratify.
Which of the following statements is TRUE concerning the factors used to determine the difference between an employee and an independent contractor? Choose the best answer.
The principal's right to control the conduct of the individual is the most significant factor in determining whether the individual is an employee or independent contractor.
The reason an Agent, when that Agent has Actual Authority, is bound to a contract when that Agent is acting for an Unidentified or Undisclosed Principal is because: Choose the correct reason.
The third party does not know who the principal is or that a principal exists. To form a valid contract, the third party needs to know the identity of someone for the other party to the contract, otherwise, the third party would not know who to enforce the contract against.
Match each listed Defense against liability for discrimination under the Civil Rights Act of 1964 to a requirement for the employer to asset that Defense. Bona Fide Occupational Qualification
This defense is usually based on the employer's need for authenticity, privacy needs or safety needs
Match each listed Defense against liability for discrimination under the Civil Rights Act of 1964 to a requirement for the employer to asset that Defense. Business Necessity
This defense only applies in discrimination cases involved alleged disparate impact
Match each listed Defense against liability for discrimination under the Civil Rights Act of 1964 to a requirement for the employer to asset that Defense. Professionally Developed Ability Test
This defense requires a non-Discriminatory test
An agent has apparent authority to bind the principal in any transaction in which: Choose the best answer.
third persons reasonably rely upon the existence of actual authority as indicated by the principal's conduct.
Gladys is a 58-year-old female welder who works on the construction of commercial airplanes. She lost 70% of her hearing in a work-related accident last year due to unsafe working conditions. Gladys was recently fired and wants to sue for discrimination. Which law is NOT implicated by these facts?
- All of these laws are potentially implicated by these facts. - Americans with Disabilities Act - Occupational Safety and Health Act - Title VII of the Civil Rights Act of 1964 - Age Discrimination in Employment Act
Which of the following statements is TRUE regarding an Agency Coupled With an Interest?
- An Agent can renunciate an Agency Coupled with an Interest at any time during the Agency. - An Agency Coupled with an Interest may be terminated by either the Principal or Agent (without the other's consent) at any time during the Agency. - The Principal may revoke an Agency Coupled with an Interest at any time during the Agency. - Two of these answers are TRUE. - Agencies Coupled with an Interest are usually associated with lending transactions where the borrower has pledged collateral to secure a loan.
Which of the following is not a duty owed by an Agent to her Principal?
- Fiduciary Duty (Duty of Loyalty) - Duty to Inform/Notify - Duty of Obedience - The duties listed in every answer to this question are duties owed by an agent to her principal. - Duty to Account
Which of the following will not terminate an agency?
- Revocation of authority - All of the listed answers will terminate an agency. - Lapse of time - Renunciation by the agent
Which of the following situations would most likely result in a violation of the Civil Rights Act of 1964?
A black electrical engineer was denied a job for which she was qualified
Which of the following defenses does not apply to discrimination based on race?
A bona fide occupational qualification.
For which of the following is a principal liable for damages caused by an independent contractor acting on behalf of the principal?
A dynamite explosion
Assume that A, who has actual authority, enters into a contract with T on behalf of A's undisclosed principal, P. If T discovers the existence and identity of P, whom may T hold to performance of the contract?
A or P but not both
Dianna hires Ray to run her business as the general manager. Dianna tells Ray that he can hire and fire employees and that Ray can take whatever prudent actions Ray believes are appropriate to manage Diane's business. Ray's authority is: Choose the best answer.
Actual Express Authority, Actual Implied Authority and Apparent Authority.
Which of the following statements are TRUE?
All Employees are Agents.
Which of the following statements is TRUE?
An employee may be awarded punitive damages from the employer for a violation of the Civil Rights Act of 1964.
The reason an Agent for an Undisclosed Principal CANNOT have Apparent Authority is: Choose the correct reason.
Apparent Authority requires that the Principal's conduct has led the Third Party to reasonably believe that the Agent has Actual Authority. Apparent Authority cannot exist when the Third Party does not know a Principal is involved. The Third Party believes the Agent is acting on the Agent's own behalf.
Josh works in the warehouse of Bear Corporation. Josh dislocated his shoulder while at work, went through surgery, and has been released for all activity related to his job at Bear Corporation. Josh was passed over for a promotion because his employer, despite Josh's doctor's release, was worried that Josh would not be able to meet the physical demands of the job due to his prior injury,. Josh sues Bear under the American with Disabilities Act (ADA) for discrimination. What is the most likely outcome?
Because Bear regarded Josh as having a disability and discriminated against him because of their belief, Josh should be able to recover damages under the ADA against Bear.
On April 1, Aiden as the employee of X Corporation enters into a contract with M&M Mars to buy 2,500 cases of Snickers Bars. Aiden does not have ANY actual or apparent authority to enter into this contract. On April 15, the Snickers Bars arrive at the loading dock and the Senior Vice President questions whether X Corporation ordered the candy bars, but decides that she can use them at the next employee function, so X Corporation keeps the candy. Under the contract, payment was due 30 days after the date of the contract. When must X Corporation pay M&M Mars for the candy?
By May 1.
When an Agent acts on behalf of the Principal, the Principal can be held liable for the following types of liability: Assume the requirements for the type of liability are met.
Contract, Tort and Criminal Liability
Match each of the following factual scenarios with the type of discrimination that best describes the discrimination described in the scenario. Assume each employer is subject to the Civil Rights Act of 1964. Big Health Clinic sets a policy forbidding the use of Spanish in the workplace.
Disparate Impact
Match each of the following factual scenarios with the type of discrimination that best describes the discrimination described in the scenario. Assume each employer is subject to the Civil Rights Act of 1964. In choosing a new CEO, Big Corporation only considers female candidates.
Disparate Treatment
Match each of the listed agent actions with the correct duty owed by the agent to his principal that was breached by the agent's actions. Employee of a brick contractor does a terrible job building a brick wall.
Duty of Good Conduct/Diligent
Match each of the listed agent actions with the correct duty owed by the agent to his principal that was breached by the agent's actions. Agent action has not been actually authorized by the Principal
Duty of Obediance
Match each of the listed agent actions with the correct duty owed by the agent to his principal that was breached by the agent's actions. Agent starts a business in competition with her Principal.
Fiduciary Duty (Duty of Loyalty)
Which of the following statements is TRUE regarding the American with Disabilities Act (ADA)?
If a person cannot perform the essential functions of a job with a reasonable accommodation, the employer will not violate the ADA by not hiring such person.
Which of the following situations most likely describes a relationship between a principal and agent AND an employer and employee?
Mel owns a retail store. Elizabeth is a salesclerk for Mel in the store.
Nancy is a black 25 year old woman. She applies for a job for which she is qualified, but is denied the job. Nancy hears through the grapevine that she was denied the job because of her race and gender. What are Nancy's options?
Nancy should file her charge with EEOC before the expiration of either 180 or 300 days after she was denied the job. She will not be required to prove that the potential employer discriminated against her to prove her prima facie showing.
Which of the following statements regarding the Civil Rights Act of 1964 is TRUE?
The Pregnancy Discrimination Act extended the benefits of Title VII of the Civil Rights Act to pregnant women.
Which of the following statements is not a basic requirement for an Agency Relationship to exist. I use the words Principal and Agent in each answer. Do not assume that the Principal or the Agent is actually a Principal or Agent.
The Principal must hire the Agent to perform a task for the Principal.
Which of the following statements is TRUE?
The following criteria used by an employer making an employment decision are prohibited under Title VII of the Civil Rights Act of 1964: Race, Color, Gender, Religion, National Origin and Sexual Orientation.
Which of the following statements is TRUE regarding the eligibility for an employer to assert a defense to sexual harassment?
To be eligible to assert the defense, the employer cannot have taken a tangible adverse employment action against the harassed employee.
Match each listed Defense against liability for discrimination under the Civil Rights Act of 1964 to a requirement for the employer to asset that Defense. Bona Fide Seniority System
To meet this defense, the employer cannot have discriminated against prior employees resulting in Present effects of past discrimination
Which of the following statements is False? ALERT THIS QUESTION IS ASKING WHICH STATEMENT IS FALSE!!
When one party to a contract exercises control over the other party, the relationship of Principal and Agent automatically exists.
Which of the following signature blocks is the best signature block for an agent to use when signing on behalf of their principal and to avoid the agent having personal liability under the contract. Assume: Jason S. Smith is President of XYZ Corporation and is signing the contract on behalf of XYZ Corporation.
XYZ Corporation By: _______________________________________ Name: Jason S. Smith Title: President
Patrick hires Charles to cut down a large tree in Patrick's yard. Patrick knows that Charles does not have any experience with tree removal, but uses Charles because Charles' rates are very low. Patrick leaves town for 2 months. The next week during the removal process and due to Charles' negligence, the tree falls on Patrick's neighbor's house. Will Patrick be liable to Patrick's neighbor for the damage caused when the tree fell on the neighbor's house? Choose the correct answer and also the correct reasoning.
Yes, because Patrick negligently retained (hired) Charles, Patrick will be liable for the damages caused by Charles' negligence.
Alex is the only purchasing agent for X Corporation. Rita, the receptionist, decides that she wants to order a new chair for the reception desk. She calls Best Chair Company and orders an expensive ergonomic chair, telling them to send the bill to X Corporation. Although Best Chair Company knows that only Alex has the authority to order items for X Corporation, they ship the chair to X Corporation. The chair arrives, it is unpacked at the loading dock and sent up to Rita, who uses the chair. The CEO walks by the reception desk and comments on the nice chair, but does not question Rita. Will X Corporation have to pay for the chair?
Yes, because by accepting the chair, X Corporation has ratified the contract between Rita and Best Chair Company.
An agent may be liable to the principal for exceeding his actual authority when the agent acts within his:
apparent authority.
The doctrine of _______________________ imposes liability on an employer, when that employer's employee commits an unauthorized tort within the employee's scope of employment. Choose the answer that correct completes the blank.
respondent superior
Ann is authorized to sell her principal's property for $10,000. If Ann sells it for $11,000, then:
she has a duty to account to the principal for the additional $1,000.
When an agency is terminated by revocation of authority, the agent's apparent authority continues with respect to third parties with whom the agent had previously dealt until:
the third party receives actual notice of the termination.
Amy, agent for undisclosed principal, Pat enters into a contract with Tom for Tom to purchase 20 items from Pat . Amy does not have actual authority to enter into the contract with Tom on behalf of Pat, but when Pat finds out about the contract, Pat thinks the contract is a good deal. Which of the following statements about this situation is correct?
For the contract to be binding on both Tom and Pat, Pat will have to notify Tom of Pat's ratification of the contract before Tom withdraws from the contract.
Which of the following statements concerning the Equal Employment Opportunity Commission (EEOC) is TRUE?
If an employee wants to file a claim against his employer for discrimination under the American with Disabilities Act, the employee must file a charge with the EEOC on or before the expiration of between 180 or 300 days from the occurrence of the incident giving rise to the claim for discrimination.
Which of the following statements is correct regarding termination of an "at will" employee?
If the employer had no "cause" to terminate the employee but terminated the employee because the employer needs to cut the number of employees for budget reasons, the employer will most likely NOT be liable for wrongful termination.
Connie Hartford sold weapons to various retailers. Rex Louis, who delivered weapons for Hartford, was instructed to collect the purchase price, in cash, on delivery, but in the event of a dispute, he was to call Hartford and not to use force. One day, a purchaser refused to pay on the basis that the wrong type of weapons were delivered. Louis struck the purchaser to obtain payment. Hartford is:
Liable because Louis was acting within the scope of employment and his actions were "reasonably connected" to his employment.
Which of the following statements is TRUE concerning Disparate Treatment discrimination that violates the Civil Rights Act of 1964?
Once a plaintiff has established a prima facie case of discrimination on a disparate treatment theory, and the defendant has articulated a legitimate and non-discriminatory reason for the discrimination, a plaintiff may still win.
Which of the following statements is TRUE regarding the prohibition of retaliation behavior under the Civil Rights Act of 1964?
Retaliation behavior occurring outside and in the workplace is prohibited.
Match each listed Defense against liability for discrimination under the Civil Rights Act of 1964 to a requirement for the employer to asset that Defense. Compensation Based on Performance Results
This defense requires an objective evaluation system
Ally is an employee of X Corporation. Ally quits and goes to work for a competitor. X Corporation does not give notice. Ally continues to call on the customers of X Corporation that were her regular customers when she worked for X Corporation. Ally uses X Corporation's standard form, but Ally intends on switching out X Corporation's name for that of her new employer. Ally finds out that her new employer has decided to NOT carry the product that Ally has sold to her customers because there is a shortage of materials to manufacture this product. Ally then mails in the contracts to X Corporation. They are surprised and also cannot produce the product due to the shortage of materials. Will X Corporation be bound to the customers under these contracts? Choose the correct answer with the correct reasoning.
Yes, X Corporation will be bound by the contracts with the customers. Ally had Apparent Authority to enter into those contracts on behalf of X Corporation. To terminate Ally's Apparent Authority, X Corporation is required to give actual notice to the customers that Ally no longer worked for X Corporation. They did not give this notice.