Business Law Test 3 Set 3

54. In Repetti v. Sysco, where Repetti was fired after complaining about accounting practices he believed were fraudulent and could violate the Sarbanes-Oxley Act, he sued for wrongful dismissal. The appeals court held that Repetti has: a. no suit as an at-will employee b. a suit based on breach of public policy c. a suit based on breach of duty of an employer as principal to cooperate d. a suit based on breach of implied covenant e. none of the other choices

a

68. The details of an agency's structure and how it operates internally are covered in: a. procedural rules b. agency rules c. structural rules d. formal rules e. interpretative rules

a

56. In Guz v. Bechtel National the supreme court of California held that Guz, an employee who had been fired and sued for wrongful dismissal had: a. no cause of action because his performance had been poor b. no cause of action for breach of implied contract; his best hope was a violation of personnel policies that constituted a contract c. no cause of action for violation of personnel policies, because the company followed proper procedure, but may have a cause of action for breach of implied contract d. a cause of action for breach of an implied covenant of fair dealing e. a cause of action for breach of California's employment code

b

64. Congress grants to an agency the power to perform regulatory functions. A statute delegating power to an agency is called: a. an administrative statute b. an enabling statute c. a regulatory statute d. a permanence statute e. a public interest statute

b

74. Which of these is not a procedural requirement for judicial review of an agency decision: a. ripeness b. discretion c. exhaustion d. jurisdiction e. standing

b

52. 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

63. Congress created the first regulatory agency in 1887. It was called the: a. Federal Trade Commission b. Federal Power Commission c. Interstate Commerce Commission d. Federal Communications Commission e. none of the other choices

c

65. Administrative laws with the same force of law as statutes enacted by Congress are: a. procedural rules b. enforcement rules c. substantive rules d. observational rules e. interpretive rules

c

67. Procedural rules issued by administrative agencies are: a. statements that provide the agency staff and public with guidance regarding what the agency believes a certain statute or regulation means b. administrative statutes with the same force of law as statutes passed by Congress c. rules that describe an agency's organization, method of operation, and internal practices d. statements that may only rephrase the language of a statute passed by Congress e. none of the other choices

c

62. An administrative agency is usually: a. an international authority created by treaty b. an arm of the federal prison system c. a part of the federal judiciary d. a authority of government that administers a particular law e. created by the Supreme Court to interpret the effect of federal laws

d

75. Which of these is not a procedural requirement for judicial review of an agency decision: a. ripeness b. exhaustion c. jurisdiction d. standing e. all of the other choices are requirements

e

57. Carter, who had been convicted of violent crimes, was hired as an independent contractor to sell vacuum cleaners door-to-door. He assaulted a customer in her home who sued the vacuum cleaner company. You would expect the Texas high court to hold that company: a. was liable for negligence in hiring b. was not liable because employers are not liable for acts of independent contractors c. was not liable because Carter's actions were in violation of his instructions d. was not liable because it had no control over Carter's actions when he was selling e. none of the other choices

a

71. In Dow Chemical Co. v. U.S., where the EPA took aerial photographs of a Dow plant to see if the plant produced too much pollution, the Supreme Court held that: a. the plant was located in an industrial park, not on property owned by Dow, this kind of inspection was legal b. anyone was allowed entry the plant grounds, the EPA had the right to use "entry" by air c. although entry to the plant was prohibited to the public, aerial photos did not violate the 4th Amendment d. the plant was closed to the public, a warrant had to be obtained to view the plant from the air or the ground e. none of the other choices

c

70. Administrative agencies enforce regulations by doing which of the following: a. requiring businesses to self-report b. direct observation by agency personnel c. direct observation by Congressional staff d. requiring businesses to self-report and direct observation by agency personnel e. requiring businesses to self-report and direct observation by agency personnel and direct observation by Congressional staff

d

Congress creates the Federal Authority on Homelessness (FAH) and gave it broad powers to issue regulations, conduct searches, investigate areas where homelessness is a particular problem, and bring actions against those who discriminate against the homeless, or fail to follow FAH regulations. In March 2006, FAH issued a rule that businesses with 15 or more employees cannot discriminate against the homeless in employment. The regulation states that businesses must take steps to recruit homeless people as employees and must provide homeless employees with adequate shelter. No public hearings are held and the final rule was published in the Federal Register in June, 2006. In October, 2006 FAH inspectors arrive at Elroy's Tackle Shop in Eureka, California. Elroy employs 18 people, including clerks, cashiers, and fishing guides. The inspectors ask Elroy what steps he has taken to hire a homeless person. He tells the inspectors that he has taken no steps, they fine him $5000 and inform him that he had better take such steps soon. Elroy did not know FAH existed or that he had a duty to try to hire homeless people. He calls his attorney, Maia, and asks her what to do. She suggests that he file a complaint stating that FAH failed to follow proper procedures when it issued the rule. Please answer the following question(s) with reference to these facts. ____ 58. Refer to Fact Pattern 15-1. When Congress wants to create the FAH, what action must it undertake? a. it will need to get Supreme Court approval to create it b. it will need to submit a bill to the U.S. Court of Appeals for the District of Columbia to rule on whether or not the agency is constitutional c. it must abolish the Dept. of Housing and Urban Development (HUD) because FAH will preempt HUD authority d. it will need to pass an enabling statute creating FAH e. it must adopt a legislative veto in order to create FAH

d

51. 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

53. An independent contractor: a. by law may not serve as an agent for the same employer b. is not liable for torts committed in the course of employment c. may not make contracts on behalf of an employer d. may not work more than one month in any year for one employer e. none of the other choices

e

55. In Guz v. Bechtel National, Guz was fired by Bechtel after 22 years of service. The company eliminated his position despite his good performance and no financial problems in the company. The California high court held that Guz could: a. sue on the basis of breach of an implied contract to be terminated only for good cause b. sue for breach of the implied covenant of good faith and fair dealing c. sue for managerial negligence d. sue for breach of his annual employment contract letter e. none of the other choices

e

59. Refer to Fact Pattern 15-1. Assume for this question that the rule is a substantive rule. What must FAH do before it issues a final substantive rule? a. it must provide public notice of the rule b. it must receive Presidential approval of the rule c. it must provide for a public comment period d. it must provide public notice of the rule and it must receive Presidential approval of the rule e. it must provide public notice of the rule and it must provide for a public comment period

e

60. Refer to Fact Pattern 15-1. Before Elroy can take his case to court, which of the following procedural requirements must he meet? a. he must have exhausted all administrative channels b. he must have a hypothetical controversy c. he must take the case to the correct court d. all of the other specific choices e. he must have exhausted all administrative channels and he must take the case to the correct court

e

61. Administrative agencies are generally created by: a. a Supreme Court order b. federal courts to help in areas difficult to regulate by litigation c. executive orders of the President d. a Supreme Court order or an executive order of the President e. none of the other choices

e

66. In Assn. of Washington Business v. State of Washington, Dept. of Revenue, where a business group challenged an interpretive regulation about a tax matter as being adopted by the agency without proper public notice and process, the Washington high court held that the: a. interpretive rules must go out for public review before adoption, just like legislative rules, so the rule must be reviewed by the public before it is finalized b. the rule stands because on tax matters the legislature gave the agency the power to issue tax regulations without notice c. the rule was called interpretive but is legislative, so must go through formal adoption and review process before being finalized d. the rule was unconstitutional as it granted the agency power that went beyond its authority as set by the legislature e. none of the other choices

e

69. The Environmental Protection Agency has rules about the amount of chemicals that may be emitted into the air. If a factory emits a chemical and the EPA wants to know if the emissions are within legal limits, the EPA may: a. demand the factory measure the pollution and report if it is violating the law or not b. have EPA employees measure the air at the factory to see if it is violating the law or not c. get a subpoena from a court to force the company to produce documents concerning pollution from the factory d. have EPA employees measure the air at the factory to see if it is violating the law or not and get a subpoena from a court to force the company to produce documents concerning pollution from the factory e. have EPA employees measure the air at the factory to see if it is violating the law or not and get a subpoena from a court to force the company to produce documents concerning pollution from the factory and demand the factory measure the pollution and report if it is violating the law or not

e

72. In a hearing at an administrative agency, to determine if the law has been violated: a. defendants have the right to a jury trial b. there may be no witnesses c. the procedure is the same as in a court trial d. lawyers may not be present e. none of the other choices

e

73. In a hearing at an administrative agency, to determine if the law has been violated: a. defendants have the right to a jury trial b. defendants may have a jury trial if the agency agrees to one c. there is no right to jury trials except in cases involving agency common law d. there is no right to jury trials in regulatory cases unless there is a possibility of a death sentence e. none of the other choices

e