Business Law - Quiz 4 multiple choice

Ellen, a salesperson at Fine Tile Company, tells a customer, "Buy your tile here, and I'll install it myself for half of what Fine would charge you." The customer makes the purchase based on Ellen's representation. Ellen installs the tile, charges the customer $500, and keeps the money. Ellen has breached the duty of A.loyalty. B.notification. C.obedience. D.none of the above.

A

Gil is a purchasing agent for H&H Ranch with the authority to buy cattle at a certain auction. After the cattle have been bought, the agency relationship terminates A.automatically. B.following notice to all actual cattle sellers. C.following notice to all potential cattle sellers. D.following published notice in a local newspaper.

A

Jay holds himself out as possessing special accounting skills. As an agent, he must exercise the degree of skill or care expected of A.a person having those skills. B.an average, unskilled person. C.a reasonable person. D.the principal.

A

Julie, who is Hispanic, applies for a job at Macro Manufacturing Company. The interviewer says that Macro hires Hispanics, but does not hire African Americans. This is A.impermissible discrimination on the basis of race. B.not discrimination. C.permissible discrimination at the application stage of employment. D.permissible discrimination at any stage of employment.

A

Max drives a truck as an employee for Interstate Delivery, Inc. Max would probably be considered acting within the scope of his employment if he A.crashed into a car while off duty and dropping a friend at the airport. B.hit a pedestrian in a restaurant parking lot during a three-hour lunch. C.ran over a gas station attendant while stopping to refill the truck. D.smashed into a store-front while intoxicated on duty.

A

Steve is seventeen years old. Under the Fair Labor Standards Act, Steve A.cannot work in a hazardous occupation. B.cannot work during school hours. C.must obtain a permit to work. D.none of the above.

A

Beta Distribution Company grants its agent Cathy an exclusive territory in which to sell Beta products. Beta cannot compete with Cathy in that territory under the principal's duty of A.compensation. B.cooperation. C.indemnification. D.reimbursement.

B

Component Corporation agrees with its employees' union not to buy any non-union-made parts from other firms for use in Component products. This is A.a permissible boycott. B.a prohibited boycott C.a technically legal boycott. D.not a boycott.

B

General Construction, Inc. (GCI), hires A-1 Contractors, Inc., to work at a construction site as an independent contractor. Whether GCI will be held liable for torts committed at the site by A-1 depends on A.whether A-1 submitted a bid for the job. B.whether exceptionally hazardous activities are involved. C.who is paying A-1. D.none of the above.

B

Joe, who works as an employee for Interstate Trucking Corporation, suffers an injury in an accident. Joe will be compensated under state workers' compensation laws A.only if the injury occurred off the job. B.only if the injury occurred on the job. C.whether the injury occurred on or off the job. D.none of the above.

B

Kari is the sole proprietor of Living Earth Garden Shop. As a sole proprietor, on the business's profits, Kari pays A.No income taxes B.only personal income taxes. C.only business income taxes. D.both personal and business income taxes.

B

Carl hires Diane to act as his agent in the purchase of an office building. Carl does not want the seller to know that he is the buyer, so he asks Diane to represent that she is making the purchase for herself. Carl is A.a disclosed principal. B.a non-existent principal. C.an undisclosed principal. D.a partially disclosed principal.

C

Delta Computer Corporation needs to hire a new systems administrator. On the employment application, Delta may ask A.any question that reveals an applicant's personal values. B.any question to which the applicant does not object. C.any question with a reasonable connection to the job D.anything.

C

Donna employs Executive Representatives, Inc., as an agent. They sign an agreement that describes the rights and duties of both parties. This is A.apparent authority. B.equal authority. C.express authority. D.implied authority.

C

Gene is passed over for a promotion and then discharged by his employer, Beta Digital Corporation. Gene files a suit against Beta on the ground of employment discrimination under Title VII. If Gene wins, he may be awarded A.back pay and damages only. B.job reinstatement and a retroactive promotion only. C.back pay, damages, job reinstatement, and a retroactive promotion. D.none of the above.

C

Hudson and Ilka want to market a new line of kayaks and related gear under the brand name Journeys as a corporation—Journeys Inc. To avoid income taxes at the corporate level, they should form A.a C corporation. B.a close corporation. C.an S corporation. D.a private corporation.

C

Joyce works for Kappa Services Corporation as an independent contractor, and not as an employee, if she A.Joyce says that she works as an independent contractor. B.Joyce works on a permanent basis. C.Kappa does not control Joyce's work. D.Kappa withholds taxes from its payments to Joyce.

C

Mary is an employee of Northwest Enterprises, Inc (NEI). When Owen, the president of NEI, learns that Mary is active in union activities, he discharges her. Mary may bring an action against NEI under A.the Fair Labor Standards Act. B.the Labor-Management Relations Act. Answered C.the National Labor Relations Act. D.the National Labor Relations Act.

C

Omega Payroll Corporation handles payrolls and related bookkeeping for small employers. In most circumstances, with exceptions, the law prohibits Omega subjecting its employees to A.drug tests. B.electronic monitoring. C.lie-detector tests. D.searches of their desks, filing cabinets, or offices.

C

Paul works as an employee for Eagle Distributors, Inc. The Federal Unemployment Tax Act created A.a fund to pay the costs associated with Paul's injury on the job. B.a retirement fund for Paul when he reaches age sixty-five. C.a system that provides unemployment compensation to Paul, if he qualifies. D.none of the above

C

Quinn is an employee of Regional Industries, Inc. Quinn is threatened with a discharge when he refuses a transfer to a Regional department in which several employees have suffered serious injuries from exposure to hazardous chemicals. If Quinn acted in good faith, he may be entitled to protection from discharge under A.the Consolidated Omnibus Budget Reconciliation Act. B.the Family and Medical Leave Act. C.the occupational Safety and Health Act. D.the state workers' compensation act.

C

Standard Corporation's employment manual states that workers will be dismissed only for good cause. Tom, an employee, is dismissed because his supervisor does not like his hat. If Tom sues the firm, a court could hold that A.only that there is an implied contract on the terms in the manual. B.only that the supervisor was within his or her rights to discharge Tom. C.that there is an implied contract on the terms in the manual or that the supervisor was within his or her rights to discharge Tom. D.none of the above.

C

Bob works for City Barber Shop as a barber. Sue works for Town Beauty Salon as a beautician. Their jobs are essentially equal. Bob is paid more than Sue. Under the Equal Pay Act of 1963, A.Bob's pay must be reduced to match Sue's pay. B.Sue's pay must be increased to match Bob's pay. C.either a or b. D.none of the above.

D

During a union election campaign at General Construction Corporation, the employer can legally A.ask employees to publicly state their personal views on unionization. B.threaten the employees with a layoff. C.threaten the employees with a reduction in benefits and wages. D.none of the above.

D

Luke and Maya form Northwest Air Express, a general partnership. The essential elements of this partnership do not include A.a sharing of profits and losses. B.a joint ownership of the business. C.an equal right to management of the business. D.goodwill.

D