ACCT 315 Test 4, Unit 7: Agency, Test 4, BLaw, BLAW Test 4 Practice

No, because an agent must not intermingle principal's and personal funds

A certified public accountant (CPA) works as an independent contractor for different companies. During tax season, the CPA was so busy it was almost impossible to keep track of the different accounts. The CPA decided it would be easier to use a personal account and once tax season was over, they would separate and organize each account appropriately. After tax season, the CPA organized each separate account. Were the CPA's actions acceptable? Yes, because it was impossible to keep track of the different accounts Yes, because after the tax season was over each account was organized No, because it is inappropriate to have more than one contract at the same time No, because an agent must not intermingle principal's and personal funds

Each party owes the other the duty to act with the utmost faith.

A principal-agent relationship is fiduciary. What does fiduciary mean in this context? : The principal acts on behalf of the agent. The agent consents to the principal acting and representing on its behalf. Each party owes the other the duty to act with the utmost faith. Each party acts in its own interests.

The salesperson is an agent of the store owner, and the sale is binding on the store owner.

A salesperson in a shoe store offers a customer a 50% discount on an open item returned pair of shoes. Promotions and discounts are generally set by the store owner. The store is not having any promotional events offering discounts, but the store policy permits sales personnel to offer discounts on a per-transaction basis. What is the agency status between the salesperson and the store owner? The salesperson is an agent of the store owner, but the sale is not binding on the store owner because the discount was not authorized by the store owner. The salesperson did not act as an agent of the store owner in this particular sale transaction because offering discounts is not part of a salesperson's duties. The salesperson is an agent of the store owner, and the sale is binding on the store owner. The salesperson's discount offering is beyond the scope of the normal duties, so the sale is not binding on the store owner.

a principal and an agent.

Aiden hires Buck to manage Aiden's Cattle Ranch. Buck agrees to act on Aiden's behalf, subject to Aiden's control, and Aiden trusts Buck to so act. Their relationship is an employee only. an employee and an agent. a principal and an agent. an employer and an independent contractor.

required

Air Power Corporation wants to build a wind plant on private land, for which a federal permit is required. For this action, an environmental impact statement is

a per se violation.

American Oil Company joins a cartel that includes foreign participants to set the price of oil. The cartel has a substantial effect on U.S. commerce. With respect to the foreign participants, under U.S. antitrust laws, this is most likely

Loyalty duty

An accountant was performing a contract for a local fast-food restaurant. While looking for some files, the accountant found the local restaurant's secret recipe. The accountant took a photo of the secret recipe to cook it at home. Which duty has the accountant breached? Obedience duty Accounting duty Notification duty Loyalty duty

Yes, because the state board of accountancy may subject to disciplinary action a member that violates the accounting duty

An accountant works as an agent for different companies. However, the accountant has found that it is more efficient to manage one account and keep detailed documentation about each separate account. The account consists of the principal's funds and the accountant's personal funds. The accountant has not had any problems with this system, but the state board of accountancy took disciplinary actions against the accountant for this practice. Do the state board's actions have merits? Yes, because the state board of accountancy has unlimited discretion to discipline a member No, because the accountant found an effective and efficient way to manage all the accounts No, because the accountant kept all the detailed documentation about each separate account and did not have a problem with this system Yes, because the state board of accountancy may subject to disciplinary action a member that violates the accounting duty

does not attempt to remedy past discrimination.

An affirmative action plan may be found to be unconstitutional because it

be likely to succeed.

An antitrust action is brought against Carrier Freight Company, alleging that a certain act constitutes the offense of attempted monopolization. To qualify, the act must

Principal - independent contractor, agency relationship

An apartment complex owner contracted with a management company for the maintenance of the building. A maintenance worker that was attending to a repair call in one of the apartment units in the building gets into a physical fight with the tenant and causes severe injuries to the tenant. The tenant sues the owner of the apartment complex for damages. Which agency relationship should exist between the owner and the management company for the courts to rule in the tenant's favor? Principal - independent contractor, non-agency relationship Employer - employee, agency relationship Principal - independent contractor, agency relationship Employer - employee, non-agency relationship

gift.

Angie voluntarily transfers her prize-winning horse Beaux to Cady without consideration. Provided all of the requirements are met, this is acquisition of property by

disparate-impact discrimination.

Beal, a member of a protected class, applies for a job with Coffee Brew Corporation, but fails the company's employment test and is not hired. Beal believes that the test has an unintentionally discriminatory effect. If so, this is

community property.

Beck and Carli are married. Carli purchases a condominium near Downhill Ski Resort. Beck and Carli each technically own an undivided one-half interest in the condo. This is

the coat and the phone.

Before entering the dining room in Café Peru, Diego checks his coat in the lobby with a valet employed by the restaurant. In the coat's pocket is an iPhone. A bailment may exist between the restaurant and its customer for

under no circumstances.

Berry Fields, Inc., employs hundreds of seasonal and permanent workers, both skilled and unskilled, in three states. Under federal immigration law, Berry Fields can hire illegal immigrants​

must be in writing.

Beto wants to lease a duplex for two years from Country Living Inc. In most states, the lease agreement

a partially disclosed principal.

Bey indicates that he is acting as an agent on behalf of an unidentified client—Cuisine LLC—when he enters into a contract with Diners Bistro. Cuisine is a partially disclosed principal. a disclosed principal. an apparent agent. an undisclosed principal.

a per se violation of the Sherman Act.

Bio Med Corporation makes and sells Curative, the most prescribed name-brand pain-relief medication. Drugs Inc. has the potential to make a generic version of the same drug. Bio Med agrees to pay Drugs not to make or sell the generic. This agreement is most likely

before beginning operations.

Blue Water Power Corporation wants to begin operations that include the discharge of waste into navigable waters. Under the Clean Water Act, Blue Power must install certain equipment

the backpack.

Buto buys a bus ticket at a window in the City Bus Depot before checking his backpack and boarding a bus. In this situation, the subject to a bailment is

a nonpossessory interest.

Cal has an easement that allows him to drive across Dale's land to get to Cal's house. With respect to Dale's land, Cal's right is

federal and state regulatory agencies.

Clean Wash, Inc., operates a chain of car washes throughout the United States. The government entity that is most likely to be involved in regulating the chain's environmental impact is

all of the choices.

Closed meetings of the U.S. Forest and Wildlife Service and other federal administrative agencies are permitted when​

the tile floor.

Colleen owns a house. In the house, on a tile floor is a throw rug and a heavy decorative urn. Most likely to meet the definition of a fixture is

a group boycott.

Components Inc., a maker of vehicle parts, refuses to sell to DIY Repair Inc., a national vehicle service firm. The maker convinces Engine Parts Company, a competitor, to do the same. This is

race.

Consumer Finance Corporation (CFC) extends credit to consumers. CFC applies several criteria to decide customers' "suitability" for credit. Under the Equal Credit Opportunity Act, CFC cannot base its decision on a customer's

none of the choices.

Consumer Staples Inc. includes in its advertising obvious exaggerations, vague generalities, and puffery about its products. The firm may be subject to sanctions for

cooperation

Curly Fries Inc. grants its agent Diane an exclusive territory in which to sell its products. The company cannot compete with Diane in that territory under the duty of reimbursement. cooperation. compensation. indemnification.

remove the tool from the market.

Cutting Edge Inc. makes and sells tools. One of the tools is believed to be hazardous. The firm may be required to

any legal purpose.

Denny, a certified public accountant and an investor, and Ethel, an insurance salesperson and a realtor, may create an agency relationship for a business purpose only. any legal purpose. no purpose. any purpose.

a fee simple absolute.

Derek deeds a parcel of timberland to Elaine as a gift. Derek has given Elaine

ship orders within the time promised in its ads.

Direct Sales Corporation sells products to consumers over the phone, through the mail, and online. Under the Federal Trade Commission's Mail or Telephone Order Merchandise Rule, the firm may be liable for failing to

liable.

Disposal Company operates a hazardous waste storage facility. Concerned that there may be a release of chemicals from the site, the company sells the property to Eager Developers Inc. If there is a release, the seller is most likely

possession.

Earl buys a fishing license and goes fishing. He catches a trout, cleans it, cooks it, and eats it. Earl's acquisition of the trout is by

liable for failing to comply.

Edibles Inc. and Food Stuff Corporation are competitors. Each firm has capital, surplus, and undivided profits in excess of $40 million and competitive sales of more than $5 million. Gina and Hal serve as directors on both firms' boards. Under the Clayton Act's restriction concerning interlocking directorates, Gina and Hal are

a fixed-term tenancy.

Ellen conveys to Floyd an apartment with the right to possess and use the premises for a period of time specified in their express contract. This is

it did not know of the harassment. (THIS IS INCORRECT) it knew of the harassment and did not take steps to prevent it?

Emylee, an employee of Farm Supplies, Inc., files a sexual-harassment suit against her employer, alleging a pattern of sexual harassment by her supervisor Gowan. Farm Supplies may be liable for hostile environment harassment if

the duty of loyalty.

Energy Company employs Fred to negotiate the purchase of mineral rights for future mining projects. Fred secretly buys some of the property and sells it to Energy at a profit. Fred has breached the duty of loyalty. the duty of notification. no duty. the duty of performance.

Flight Services only.

Erin indicates that she is acting as an agent on behalf of an identified client—Flight Services Inc.—when she enters into a contract with Go Airlines. Liability to Go for nonperformance of the contract may be imposed on Erin only. Flight Services only. Erin and Flight Services. Go only.

​subagencies of congressional committees.( THIS IS INCORRECT) outside the major departments of the governments executive branch (THIS IS INCORRECT)

Federal executive agencies such as the Occupational Safety and Health Administration are​

subject to analysis under the rule of reason.

Fertile Acres Inc., Growers Farm Co-op, and Harvest Orchards agree to exchange information, conduct an advertising campaign, and set certain regulatory standards to govern their operations. This association is

a bona fide occupational qualification defense.

Fitness Club employs only female staff to assist its female-only members in the club. Greg, a forty-one-year-old male, applies for a staff job, but is not hired. In his suit against the club under the Civil Rights Act, the club most likely has

the market shares of the firms in their market.

Four grocery stores account for 80 percent of the retail food sales in Metro City. Two of the stores want to merge. In determining whether the merger violates the Clayton Act, the most crucial factor is

The duty to follow all lawful and clearly stated instructions of the principal

Generally, the agent owes the principal the five following duties: performance, notification, loyalty, obedience, and accounting. Which statement describes obedience? The duty to follow all lawful and clearly stated instructions of the principal The duty to inform the principal of all matters that come to their attention concerning the subject matter of the agency The duty to act solely for the benefit of their principal and not in the interest of the agent or a third party The duty to keep and make available to the principal an account of all property and funds received and paid out on the principal's behalf

a life estate.

Ghani owns Hillside Vineyard. Ghani conveys some of the land "to Iona for her life." Ghani has given Iona

merit.

Gil and Hera are employees of IT Solutions Inc. Under the Equal Pay Act, IT Solutions can legitimately pay different wages to male and female employees on the basis of

the Equal Employment Opportunity Commission.

Gina believes that she is a victim of employment discrimination that falls under Title VII of the Civil Rights Act. Compliance with Title VII is monitored by

Industrial Mining.

Grey owns the surface rights for High Desert Ranch, which includes a house, a bunkhouse, and two barns. Industrial Mining Inc. owns the subsurface rights. When the company drills for and extracts the oil beneath the ranch, the surface subsides and the structures collapse. Most likely responsible for the damage is

bait-and-switch advertising.

Hearth & Home Furniture store advertises bedroom suites at a "Special Low Price of $599." When Ilene tries to buy one of the suites, Jill, the salesperson, tells her that they are all sold and no more are obtainable. Jill adds that Hearth & Home has other bedroom suites available for as low as $2,599. If done systematically, this is​

seniority system.

Holly files an employment discrimination suit against Industrial Corporation under Title VII of the Civil Rights Act on a disparate-impact theory. To succeed, the plaintiff must show that as a member of a protected class, she was adversely affected by any of the following except the employer's

mislead a reasonable consumer.

In its ads, Crunchy Inc. makes various claims about its snack products. Crunchy's advertising claims would most likely be deemed deceptive if the claims​

the federal government.

Interstate Storage & Trucking, Inc., keeps a file of I-9 verifications forms, which are required by the Immigration Reform and Control Act. To monitor compliance with the act, random audits and enforcement actions are conducted by

in the course and scope of Ira's employment.

Ira serves in a representative capacity for Jett. Key is injured through Ira's negligence. Jett may be liable to Key if Ira's conduct occurred during normal working hours. outside the parties' employment relationship. due to a propensity Jett was not and could not have been aware of. in the course and scope of Ira's employment.

indemnification

Jon contracts with Kino to buy a certain number of sheep for Kino's Animal Farm. Jon makes a deal with Lila for the sheep, but neither Jon nor Kino pays the price. Lila sues Jon for breach. Jon's right to hold Kino liable for any damages is the right to reimbursement. cooperation. compensation. indemnification.

each new hire

Jorge, Kim, and Lucy apply to work for Meat Packing, Inc. The employer must verify the identity and eligibility to work of​

passes to Kristen's heirs as personal property.

Kristen signs a one-year lease for a mobile home owned by Lamont. If Kristen dies during the lease term, the lease interest

Lomax must be forty years of age or older.

Kyla replaces Lomax in his job at Motor Corporation. Lomax believes that he has been discriminated against on the basis of his age. For the Age Discrimination in Employment Act to apply

the duty of obedience.

Larry is an agent for Mary. She gives him clear instructions to enter into contracts on her behalf only on Mondays, Wednesdays, or Fridays. He enters into a contract on her behalf on Tuesday. Larry has breached the duty of loyalty. the duty of obedience. no duty. the duty of performance. Close Explanation Explanation:

a constructive discharge.

Laura is the only female employee in the maintenance department of Motor Service Inc. Her supervisor teases and plays tricks on her so relentlessly that she feels compelled to quit. This is most likely

back pay, retroactive promotions, and damages.

Lisa brings a successful suit against her employer Metal Mold Corporation for employment discrimination. Lisa may be awarded

a profit.

Logging Corporation has a right to go onto Mount Timber Company's land and harvest select trees. Logging's right is

compensation.

Lorene, an attorney, contracts with Milos to incorporate the client's business. Their contract stipulates the amount of the fee. On completion of the work, the attorney's right to be paid this amount arises from the client's duty of compensation. reimbursement. no duty. indemnification.

an undisclosed principal.

Luis hires Mieko to act as his agent to buy Ngoc's Southeast Asian Café. Luis tells Mieko to reveal only that she is buying the restaurant on behalf of a third party, without telling Ngoc's seller who that third party is. When Mieko negotiates with Ngoc, she does not say anything about Luis or any third party. Luis is an undisclosed principal. a partially disclosed principal. not a principal. a disclosed principal.

​disparate-treatment discrimination.

Mary applies for a job with Northern States Oil Company. Northern States does not hire her because of her ethnicity, or national origin. This is​

hostile-environment harassment.

Mena, a female, and Neil, a male, are employees of Operational Processes Corporation. Mena regularly e-mails sexually explicit images to Neal via Operational's network. Neil finds this offensive. This is

Miklo's' death or incapacity.

Miklos employs Nathalie to handle a list of financial transactions on Miklos's behalf. This power will terminate on Miklo's' death or incapacity. any transaction causing a loss to Miklos. Miklos's sixty-fifth birthday. Nathalie's handling of one of each stipulated transaction.

an agent.

Motor Parts Sales Inc. hires Nolly to work on its shipping dock, accepting deliveries, and dispatching trucks, and dealing with customers and drivers. With respect to Motor Parts, Nolly is most likely an independent contractor. an agent and a principal. a principal. an agent.

disparate-impact discrimination.

Nell, a member of a protected class, applies for a job with Origami Paper Corporation, but fails the company's employment test and is not hired. Nell believes that the test has an unintentionally discriminatory effect. If so, this is

an employee and agent.

Nora works at Oil & Gas Inc. She is a sales representative who works with Oil & Gas customers. The company closely supervises its sales reps, and dictates their schedules. With respect to third parties, Nora is an employee only. a principal. an independent contractor. an employee and agent.

conduct an inspection of the maker's plant.

Noxious Inc. makes and sells pesticides. If a substance is identified as harmful and the harm is imminent, the Environmental Protection Agency can

an administrative law judge.

Nursing Home Company is charged with violating a rule of the Social Security Administration. Most likely, Nursing Home will be required to appear at a hearing presided over by​

exempt from antitrust enforcement.

Oil Industries Inc. and Petro Corporation are competing refineries situated on the Gulf coast. The two firms cooperate to obtain federal funds to build a levee that could protect their facilities from rising sea levels. With respect to antitrust law, this effort is

quid pro quo harassment.

Olive is a supervisor for Pasta!, a restaurant. Qua is a Pasta! employee. The owner announces that some employees will be discharged. Olive tells Qua that for sexual favors, she will give him an excellent performance review and recommend a raise. This is

keep the car and place a lien on it until Demi pays.

On Demi's authorization, Engine Work Inc. repairs her car. She refuses to pay for the job. Engine Work can

the duty of notification.

Perez, an artist, is about to negotiate a contract to sell a series of paintings to Barber's Art Gallery for $25,000. Perez's agent learns that Barber is insolvent and will be unable to pay for the paintings. The agent owes Perez the duty of performance. the duty of notification. the duty of loyalty. no duty.

a business necessity defense.

Pipeline Corporation requires its employees to have a high school diploma. In a suit against Pipeline under the Civil Rights Act, the employer shows a connection between a high school education and job performance. Most likely, this is

qualified for the position.

Resort Company replaces Sharon, a forty-five-year-old employee, with Terry. Sharon files a suit against the employer under the Age Discrimination in Employment Act. To establish a prima facie case, she must show, among other things, that she is

an agency by estoppel.

Rosa introduces Sal to her friend Trey as "my associate." Sal purports to act as Rosa's agent in a business transaction with Trey. If Rosa is liable for Sal's actions, it will be because their relationship is an agency by agreement. an agency by estoppel. an agency by operation of law. not an agency relationship.

an independent contractor.

Rosario is a chef and caterer who hires out on a per-project basis to companies with on-location work sites, as well as to the hosts of banquets and other events. In this capacity, Rosario is an agent. an employee. a principal. an independent contractor.

in a hazardous occupation

Selena is seventeen years old. Under the Fair Labor Standards Act, she cannot work​

an involuntary bailment

Sheila finds Tim's briefcase in her office after Tim leaves following their meeting. This is

the federal, state, and local governments.

Sources of consumer and environmental protection, and the public means to implement and enforce those provisions, exist at the level of

reimbursement

Suva is an agent for Tax Accountants, Inc. On the firm's behalf and at its request, Suva pays Uzo for specially coded software. Suva's right to obtain the amount of the payment from Tax Accountants arises under the duty of compensation. reimbursement. indemnification. cooperation.

the public is asked to comment on a proposed rule.

The Bureau of Land Management uses notice-and-comment rulemaking. This involves a period during which​

obtain information to reveal regulatory violations.

The Federal Trade Commission (FTC) orders Retail Empire Inc. to reveal certain information. Retail Empire complains to a court, arguing that the order is an abuse of the FTC's discretion. Like other agencies, the FTC can use a subpoena to​

agreed to work together to control the price of domestic steel.

The chief executive officers of the major U.S. steel makers would most likely be prosecuted under the antitrust laws if they

the rights and liabilities of both parties.

The identify of the party who receives a benefit from an ordinary bailment dictates

in the Federal Register.

To notify the public of a proposed rule, the Federal Emergency Management Agency, like other federal agencies, publishes the proposal​

a toxic tort.

Ultrahazard Corporation transports radioactive materials. Vince, an Ultrahazard employee, is diagnosed with radiation sickness after exposure to the materials. Vince's suit against Ultrahazard to recover for the injury is

if its effect is to substantially lessen competition.

Under a contract, Oil Shale Corporation forbids Petro Inc., a wholesale buyer of Oil Shale's products, to purchase products from the seller's competitors. This is prohibited

all of the choices.

Under the Equal Pay Act, an employer can legitimately pay different wages to male and female employees on the basis of

an accounting.

Watercraft Inc. employs Vern as a sales agent for a trial period. At the end of the period, Watercraft and Vern disagree on the amount of the commissions Vern is due for sales that he made. Vern may demand an accounting. a constructive trust. nothing. specific performance.

The conduct of a principal leading a third party to believe to its detriment that an agent has authority to act, thereby the principal is prevented from denying that the agent had authority.

What is the doctrine of agency by estoppel? The conduct of a principal leading a third party to believe to its detriment that an agent has authority to act, thereby the principal is prevented from denying that the agent had authority. The conduct of an agent leading a third party to believe that the agent had the authority to act, thereby the agent is prevented from denying the existence of authority. The conduct of an agent whose actions are outside the scope of authority leading a third party to believe that the agent had the authority to act, thereby the agent is prevented from denying the existence of authority. The conduct of a principal who lacks the legal capacity to be a principal leading a third party to believe that the agent had the authority to act, thereby the principal is prevented from denying the existence of the authority.

Liability for breach of contract

What results when an agent fails to perform their duties? Liability for breach of warranty Liability for breach of statutory duty Liability for breach of contract Liability for breach of confidentiality

Principal

When certain actions by the parties to a contract in an agency relationship are outside the scope of authority, such actions should be ratified for the contract to be enforceable. Who has the authority to ratify the contract in these situations? Third parties Agent Notary public Principal

none of the choices.

While hiking on Mountain Trail, Ness's camera falls from his pocket. He fails to notice its loss for a mile, and is then unable to find it. Ole finds the camera. Pau tries to take it from Ole. The party who can assert the best title to the camera is

abandoned property.

While moving to a new apartment, Vance discards a sofa near the entrance to his old residence, with no intention of recovering it. The sofa is

sell or dispose of it, and prevent trespass onto it.

With respect to property, the law defines the right to

a violation.

Without a permit from the U.S. Army Corps of Engineers, Condos Corporation fills a wetlands area that it owns in preparation for the construction of a housing complex. Under the Clean Water Act, this is most likely