chap 16 test 3 genb

Which of the following statements is true of worker's compensation? Most workers' compensation acts provide 80 percent of the cost of a worker's hospitalization and medical care necessary to cure the injury. In most states, workers' compensation systems create a tax on employers with which they are required to buy insurance. They do not provide for payment of lost wages and death benefits. An employee who is able to work is not eligible to receive compensation. The employer is held responsible for torts committed by one employee against another.

In most states, workers' compensation systems create a tax on employers with which they are required to buy insurance.

The principal has a number of contractually related obligations toward his agent. Which of the following statements is true? The principal cannot compete with his agent in any circumstances. The principal is not obligated to provide workers' compensation for injuries sustained on the job. It is not the principal's duty to warn the agent of hazards associated with the job. The principal must indemnify or reimburse the agent. A principal is the agent's fiduciary.

The principal must indemnify or reimburse the agent.

One who has authority to act only in a specifically designated instance or in a specifically designated set of transactions is called

a special agent

An agency in which the agent has an interest in the property regarding which he or she is acting on the principal's behalf

agency coupled with an interest

An agency relationship may be created by.. contract operation of law an oral agreement all of the above

all of the above

Which of the following is a fiduciary responsibility of an agent? If the agent has actual notice or reason to know of relevant information, he has a duty to inform the principal. The agent must keep accurate financial records An agent may not lawfully profit from a conflict between his personal interest in a transaction and his principal's interest in that same transaction. The agent should not continue to expend the principal's funds in attempting the impossible or impracticable. The agent must obey reasonable directions concerning the manner of performance.

an agent may not lawfully profit from a afflict between his personal interest in his transaction and his principal's interest in that same transaction..

A person whose work is not subject to the control of the principal, but who arranges to perform a job for him is called

an independent contractor

It is now mandatory in all states to provide insurance for household workers. t or f

false

The principal is considered the agent's fiduciary. t or f

false

The duty of an agent to act always in the best interest of the principal, to avoid self-dealing.

fiduciary duty

Someone authorized to transact every kind of business for the principal.

general agent

n a partnership each partner is considered a(n) _____.

general agent

An agency where the agent receives no compensation.

gratuitous agency

_____ is a form of agency where the agent receives no compensation.

gratuitous agency

Dennis is an agent for an actor. He primarily has to ensure that the actor gets good roles and remuneration in films and also ensures that the actor is paid. In return, Dennis gets a percentage of the actor's earnings from these films. Dennis is therefore said to _____.

have an agency coupled with an interest

A(n) _____ agency is one that the courts have declared to exist in the absence of an agreement, especially in areas of social need.

implied

A person who is hired to accomplish a result but is not subject to specific control by the one hiring.

independent contractor

Which of the following statements is true of agencies created by agreement? Agencies created by consent must be contractual. It is a requirement under the law that oral agency contracts be reduced to writing. Contracts that agents make with third parties are not in writing. A contract is not void or voidable even when one of the parties lacks capacity to make one. It is not necessary that a party gives consideration.

it is not necessary that a party gives consideration

In which two states of the United States, are the workers' compensation laws not compulsory?

new jersey and texas

The person who holds another's power of attorney is considered to be a(n) _____

personal general agent

The _____ doctrine states that a company has the rights to exploit the inventions made by its employees on the company time and resources.

shop rights

The rights of a company to exploit inventions made by employees on company time and resources.

shop rights doctrine

An agent hired by contract to carry out specifically stated activities.

special agent

For legal purposes, _____ are agents of both the principal and the principal's general agent.

subagents

Identify the correct statement with regard to an agent's fiduciary duty. The agent's responsibilities do not go beyond the border of the contract. The agent's responsibility is to subordinate his self-interest to that of his principal. Fiduciary duty does not prohibit an agent's profiting from a conflict between his personal interest in a transaction and his principal's interest in that same transaction. The agent's fiduciary responsibility is not imposed by law. The absence of any clause in the contract detailing the agent's fiduciary duty relieves him of it.

the agents responsibility is to subordinate his self-interest to that of his principal

An agent's duty to the principal includes the duty to indemnify the duty to warn of special dangers the duty to avoid self dealing all of the above

the duty to avoid self dealing

Worker's compensation laws cut off the employee's right to sue the employer. Which situation is considered an exception to this? The injury has been caused by a fellow employee. There has been a situation, involving contributory negligence. There has been an assumption of risk by a co-worker. The employer does not insure through a state fund established for the purpose. The employer deliberately injures an employee.

the employer deliberately injures an employee

An employer's liability for employees' on-the-job injuries is generally governed by.. tort law the workers' compensation system Social Security none of the above

the worker's comp system

Which of the following is true of general agents? They can alter the principal's legal relationships with third parties. They are appointed for business purposes but not personal purposes. They cannot appoint subagents to carry out the principal's business. They are also known as independent contractors. They have authority to act only in a specifically designated instance.

they can alter the principal's legal relationships with third parties

The general rules of contract law govern the law of agency. t or f

true

The penalty for breach of fiduciary duty is loss of compensation and profit and possible damages for breach of trust. t or f

true

oral agency contracts are legally binding.. t or f

true

Laws imposing strict employer liability for injuries sustained by employees in the scope of employment.

workers compensation