biz law 2

22. Which of the following statements is correct? a. An employer is liable for the intentional misconduct of his employee if that employee was motivated, at least in part, by a desire to serve the employer. b. A nonnegligent principal is liable for the intentional misconduct of his independent contractor if that misconduct was committed within the scope of the agency relationship. c. Both of the above are correct. d. Neither of the above is correct.

A

If Judy had been negligent in hiring Rick, who is liable to Terri? a. The landlord, Judy, and Rick. b. The landlord and Rick, but not Judy. c. Judy and Rick. d. Only Rick.

A

If Zebra Toy Company purchases the equipment: a. it will be doing what it had to do, since Rosa had the apparent authority to buy the equipment. b. it will be estopping Rosa's unauthorized act. c. it would be a partially disclosed principal. d. All of the above.

A

Joan agrees to try to negotiate the purchase of an acre of land for a prospective office building on behalf of Cheryl, who does not want to be identified to the seller. Joan tells the seller, "My friend is interested in purchasing this land." If the seller contracts with Joan, Cheryl is: a. an unidentified principal, and in case of a breach of contract Joan and Cheryl are jointly and severally liable. b. an undisclosed principal, so in case of a breach of contract only Joan will be liable. c. a partially disclosed principal, and only she will have liability if the contract is breached. d. not really a principal; the contract will be only between Joan and the seller.

A

Renee works for a restaurant. One Saturday morning, she and several other employees participate in a "fun run" to benefit a charitable cause. She is not paid for this activity but she and her co-workers wear clothing bearing the company's name. While running through a street, Renee accidentally trips a fellow runner. The runner claims that both Renee and her company are liable for his injuries. Most likely: a. the court would consider whether Renee was acting within the scope of her employment during the fun run. b. only the charitable group to benefit from the fun run would be liable. c. the injured runner would bear full responsibility and liability for his injuries. d. neither Renee nor her employer could be held liable since this was an accident.

A

When a principal is partially disclosed: a. the agent and principal will be jointly and severally liable on the contract. b. the agent and principal will be only jointly liable on the contract. c. only the principal can be liable. d. only the agent is liable.

A

If Rick is an employee, who is liable to Terri? a. The landlord, Judy, and Rick. b. The landlord and Rick. c. Judy and Rick. d. Only Rick.

B

The doctrine of estoppel would most often apply in situations of: a. implied authority. b. apparent authority. c. transaction authority. d. actual authority.

B

The doctrine of respondeat superior: a. applies to both employees and independent contractors. b. applies to employees but not independent contractors. c. applies to independent contractors but not employees. d. does not apply to either employees or independent contractors.

B

Thomas, the manager of an apartment complex, rented an apartment to Donna. A few weeks later, Donna complained that the hot water did not work. Thomas hired Hometown Plumbers to fix the hot water, but the job was not successful. A few days later Donna moved out since she had no hot water. She sued the landlord and Thomas for breach of contract. a. Thomas is personally liable for this breach of contract. b. The landlord is liable, but not Thomas. c. Thomas is liable, but not the landlord. d. Neither Thomas nor the landlord is liable to Donna.

B

Chance is a traveling marketing representative for a publishing company. He is an independent contractor. One afternoon while driving to a meeting, he negligently runs a stop sign and causes an accident. Judy is injured. Judy can: a. hold both Chance and his company liable for her injury. b. hold the company but not Chance liable. c. hold Chance but not the company liable. d. not hold Chance or his company liable for her injury.

C

Circus Pizza contracted with Art to run its birthday parties. Art's responsibilities included supervising the children and organizing the games. Circus did not investigate Art's background, which included a history of assaulting children. Art assaulted a 7-year-old girl in the restaurant's kitchen during a birthday party. Circus Pizza: a. cannot be liable for the damages because Art committed an unforeseeable intentional tort. b. cannot be held liable for the damages because Art's conduct was not in the scope of employment. c. may be held liable on the basis of negligent hiring. d. may be held liable only if Circus actually knew of Art's background.

C

In the Dickinson v. Charter Oaks case, the court found: a. a presumption of agency between a husband and wife arises based merely upon their marital relationship. b. Hal Dickinson had actual authority to approve landscaping work on the property where he lived. c. a reasonable inference could be made that Carol Dickinson knowingly permitted her husband to act as having apparent authority. d. Carol Dickinson accepted the benefit of an unauthorized transaction, so she was bound by it as if she had originally authorized it.

C

Jackie is an employee for Hardware Store, Inc. When attempting to open a can of bright orange paint, she accidentally spills paint on Maggie, a customer in the store. Maggie claims that her $800 business suit is ruined. The legal liability here can best be described as: a. the store is liable to Maggie, but Jackie is not. b. Jackie is liable to Maggie, but the store is not. c. Both the store and Jackie are liable to Maggie. d. Neither Jackie nor the store is liable to Maggie as the incident was just an accident.

C

Rosa was authorized to purchase computer equipment for her company, Zebra Toy Company. Her employer required her to obtain written approval from the vice president if she wanted to buy more than $100,000 of equipment. One day Rosa purchased $225,000 of computer equipment from Computer Sales Company, without written approval. 13. Which of the following is correct? a. Zebra Toy is not bound on the contract with Computer Sales. b. Zebra Toy has the option of either honoring or not honoring the contract made by its agent, Rosa. c. Zebra Toy must honor the contract if Computer Sales reasonably believed Rosa had the authority to purchase the equipment. d. Zebra Toy must honor the contract regardless of whether Computer Sales reasonably believed Rosa had authority to purchase the equipment.

C

While at work one evening, Joe was confronted by Tim. Tim had come into the store and accused Joe of trying to steal his girlfriend. Joe told Tim he was crazy but Tim persisted in yelling at Joe. Joe, now angered, stepped around the cash register and hit Tim in the jaw. Tim was seriously injured and sued Joe and his employer for his damages. a. Both Joe and his employer are probably liable to Tim. b. Joe's employer, but not Joe, is probably liable to Tim. c. Joe, but not his employer, is probably liable to Tim. d. Neither Joe nor his employer is probably liable to Tim.

C

An employer can be liable for: a. the negligent torts of his employee that cause physical harm to property. b. the misrepresentation of his employee. c. his employee's defamatory statements. d. All the above.

D

Express authority can be created by: a. words spoken directly to the agent. b. conduct. c. written words given to one person to give to another person, the agent. d. All the above.

D

Factors influencing whether a servant is acting within the scope of employment include all but which of the following? a. The act is similar to the one the principal authorized. b. The act is not seriously criminal. c. The act took place during hours that the servant is generally employed. d. All of the answer choices are factors in determining if an act is "within the scope of employment."

D

If Rick is an independent contractor, who is liable to Terri? a. The landlord, Judy, and Rick. b. The landlord and Rick, but not Judy. c. Judy and Rick. d. Only Rick.

D

If an employer and employee are jointly and severally liable, the third party: a. may only collect from the employer. b. may only collect from the employee, not from the employer. c. can only collect from both equally. d. can collect the full award from either the employee or employer.

D

Jenny is a salesperson in a hardware store. As such, she: a. is an agent of the store. b. has express authority to conduct sales transactions. c. has implied authority to conduct sales transactions. d. All the above are correct.

D

Kirk is bound by the acts of his agent, Tyra, if: a. Tyra has express, implied, or apparent authority for the acts. b. for reasons of fairness, Kirk is estopped from denying that Tyra had authority for the acts. c. Kirk fails to repudiate an unauthorized transaction after knowing all the material facts of the transaction. d. All of the above.

D

Mike worked for Frank's Pizza as a driver. His duties consisted of making deliveries along a designated route. One day Mike decided to see his girlfriend, Jackie, who lived 50 miles out of his pizza route. While driving to his girlfriend's, Mike injured a pedestrian, Chuck. The accident was caused because of Mike's negligent operation of the delivery truck. Chuck is now suing both Mike and Frank's for personal injuries. Under the circumstances: a. Frank's is probably liable under the doctrine of respondeat superior. b. Frank's is not liable for the negligent torts of its agents. c. Chuck can probably recover damages from both Frank's and Mike. d. Frank's is probably not liable because Mike's excursion was not within the scope of his employment.

D

An act is not "within the scope of employment" if it is expressly forbidden, even if it is of the same general nature as an authorized act.

F

An employer is generally liable for the intentional wrongful acts of his or her employees.

F

As a general rule, an agent is liable on contracts entered into on behalf of a fully disclosed principal.

F

If ambiguity is present as to the principal's intent, the court will look to the principal's subjective intent.

F

If someone acts without authority, a "principal" can decide later to be bound by the actions as long as the "agent" indicates to the third party that he is acting for a principal, the "principal" knows all the material facts of the transaction, and the "principal" accepts the benefit of at least part of the transaction.

F

Maylin has the authority to delegate her tasks as agent for Brian unless he has expressly restricted her from doing so.

F

The implied authority of an agent is the same an agent's apparent authority.

F

An agent is always liable for his or her own torts committed within the scope of the agency relationship.

T

Erica's supervisor told her to arrange for a conference room at the Kelly Inn. Erica has express authority to contract for the room.

T

If Denise is hired to work as a cashier, she has the implied authority to do acts reasonably necessary to carry out her job.

T

If a principal accepts the benefits of a whole unauthorized contract, the principal is deemed to have ratified the contract and is bound as if the act had been originally authorized.

T

If apparent authority is present, the principal is liable for even the unauthorized acts of the agent.

T

If estoppel applies, the principal would be prevented from asserting that no agency relationship existed.

T

Respondeat superior means "let the master answer."

T

The issue in apparent authority is what the principal has done to make the third party believe that the agent actually has authority.

T

Paula appointed Al to be her agent via a contract in writing that spelled out the scope of Al's authority. The contract provided that Al was not to disclose that he was acting on behalf of Paula. In entering into a contract for Paula, Al did not disclose to the third party that he was acting as an agent. In this case, the principal was: a. disclosed. b. partially disclosed. c. undisclosed. d. apparent

c