chapter 37-44

A __________ of states have a statutory equal dignity rule that sets out formalities for certain principal-agent transactions

majority

The person from whom an agent has received instruction and authorization and to whose benefit the agent is expected to perform and make decisions pursuant to an agency relationship is called the

principal

Even if an individual does not meet the definitional requirements of disability under the ADA, employees still may be protected by the ADA under an alternative theory of the act known as the

regarded-as test

Under the Fair and Accurate Credit Transactions Act (FACTA), consumers are entitled to request a free copy of their credit reports once every

12 months

To be eligible for FMLA benefits, an employee must have worked for the company for at least 12 months and have worked __________ hours during the past 12 months.

1250

Section __________ of the Exchange Act requires public companies to file regular reports with the SEC in order to maintain their registration and to provide the public with ongoing disclosures via annual, quarterly, and special reports.

13

The Americans with Disabilities Act applies to employers with __________ employees.

15 or more

The FLSA outlaws the once-common practice of sending school-age children to work instead of to school by imposing restrictions on hiring workers under __________ years of age.

18

The Fair Labor Standards Act imposes restrictions on hiring workers under

18 years old

The Industrial Revolution is described as the time period during the __________ centuries that saw great advances in science and technology.

19th and 20th

A tortfeasor may assert the defense of assumption of the risk so long as:

the activities were considered to be "inherently dangerous", voluntary participation by the injured party, knowledge of the risk by the injured party

If an employee is killed on the job, the Occupational Safety and Health Act requires that the employer notify the administration as soon as possible but no later than __________ after the accident.

8 business hours

The Labor Management Relations Act gives the president of the United States the right to suspend a strike for up to __________ in times of national emergency.

80 days

The Uniform Guidelines on Employee Selection Criteria says that discrimination is likely if the pass rate of any protected class is less than __________ of the pass rate of the most successful race, sex, or other protected class tested.

80 percent

An injured worker is not entitled to workers' compensation if the injury was intentionally self-inflicted or resulted from certain behavior except:

the employee's track record of attendance

Under the term employment discrimination, what is/are considered workplace-related discrimination?

the hiring process only, treatment of employees and their work schedules, disciplinary action

An agency relationship is terminated by expiration in all of the following situations except when

the principal dies.

The merchant's privilege with regard to shoplifters requires each of the following except

the shopkeeper must have an eyewitness or video evidence of the theft.

__________ states and the District of Columbia have created statutes that provide an incentive to report fraud involving state-funded programs.

thirty

Agents are classified into one of __________ broad categories.

three

One who commits a tort is called the

tortfeasor.

Victims of odometer tampering may receive

triple damages

Which of the following is a neutral requirement that is likely to result in disparate impact?

A physical-strength test must be passed.

In which of the following situations would res ipsa loquitur likely apply?

A train derailed, and the cause of the accident can't be proved.

Many states have adopted the __________ test in their agency law as a standard for determining agency status

ABC

Which piece of legislation prohibits denying an applicant credit on the basis of discrimination?

Equal Credit Opportunity Act.

What, if any, federal statute(s) give specific anti-retaliation protections for employees who disclose conduct that violates that law?

Fair Labor Standards Act and Sarbanes-Oxley Act

Which agency has oversight over making expressly false statements in an advertisement about a product's quality, ingredients, or effectiveness?

Federal Trade Commission.

Which of the following must be approved by the FDA before it can be sold to the general public?

Food ingredients.

Management is permitted to voice objections to the formation of a union under the

Labor Management Relations Act.

The following act was passed specifically to monitor and prevent corruption in major trade unions:

Labor-Management Reporting and Disclosure Act.

Which of the following is not a situation in which strict liability applies?

T.J. manufactures cheap clothing that falls apart after minimal use.

Viro and Winona are both tenured associate professors in a school's English Department. Winona is constantly asking Viro out on dates, which he always refuses. He has asked her to stop. Furthermore, Winona is always making provocative comments to him, telling dirty jokes, and asking him about his preferences in women, which embarrasses him and has caused him to lose sleep. If Viro sues the school for permitting her behavior,

Viro would win if he had previously complained to the school and it had done nothing to stop the harassment.

Which of the following is not a factor considered when classifying an employee as covered or exempt?

Whether the employee uses the employer's tools or his or her own.

The IRS has developed a three-prong test to determine an agent's status. Which of the following is not a prong in this test?

Whether the working relationship is written or oral.

Federal employees are protected from retaliation for whistleblowing by the

Whistleblower Protection Act of 1989

An agent's power to bind a principal in contract is derived from the agent's authority, which may arise from __________ authority.

actual, apparent, ratification

The court in Jasper v. H. Nizam, Inc., 764 N.W.2d 751 (Iowa 2009) held that __________ regulations are a reliable source of public policy.

administrative

There is a large body of __________ law that regulates credit transactions.

administrative.

Collective bargaining agreements (CBAs), are negotiated by a/an __________ union on behalf of a group of employees.

agent

In an undisclosed agency relationship, the __________ is fully liable to perform the contract.

agent

Principals often create agency relationships to give __________ the power to enter into contracts with third parties that are legally binding on the principal.

agents

The National Highway Traffic Safety Administration is __________ of the U.S. Department of Transportation.

an agency

Nestro has admired Monica for a long time and has wanted to date her but is too shy around girls to ask. He is a football player with a reputation of being the toughest player on the team. Monica is scared of Nestro because of his size and reputation. One day Nestro summons the courage and approaches Monica, who has her back to him and doesn't know he's there. He puts his arms around her and gives her a gentle kiss before letting go. He can't believe what he did, apologizes, and runs away. Monica is slightly shaken but physically unharmed. Nestro has committed

battery.

Eligible workers who take leave under the Family and Medical Leave Act

are not entitled to be paid their salary, but the employer must continue providing medical benefits.

The Truth in Lending Act applies to credit extensions made to

consumers.

As agents, they may under certain circumstances create liability to the principal in __________ and tort.

contract

The Restatements define the creation of an agency relationship in terms of consent and

control

In Palmer v. Champion Mortgage, Palmer received a debt-consolidation loan from Champion. When she signed the loan agreement, she also received the required TILA disclosures. Several days later Palmer received copies of the documents and a notice of her right to cancel under TILA, which permitted her to cancel within three business days of three different dates stated in the document. Over a year later, Palmer filed to cancel the transaction, claiming that the time frames given to her in the TILA disclosures were too confusing. The court held that Palmer

could not cancel her loan because the TILA disclosures would not confuse an objectively reasonable consumer.

In Diaz v. Pan Am World Airways, Inc., the plaintiff was denied a job as a flight attendant because the airline had a policy of hiring only women as flight attendants. The court held that

customer preference did not make gender a bona fide qualification for the position.

Lemon laws consider the nature of the problem with the vehicle, the number of __________ that the vehicle is unavailable to the consumer for service of the same mechanical issue, and the number of repair attempts made.

days

Strict liability is recognized in the Restatements for:

defective products

A proposed federal bill forbidding employers from requesting user names and passwords, called the Password Protection Act, was introduced in 2015, it then

died in committee

The business necessity defense is a defense to

disparate impact cases.

Your school's police/security force requires that all officers be over 6 feet and over 200 pounds. This requirement creates

disparate impact regarding women.

Which of the following is a valid defense in a strict products liability case?

assumption of risk

In bait-and-switch schemes, a seller advertises an item for sale:

at a very good price, on favorable terms

An __________ agent who enters into a contract with a third party binds the principal because the third party may legally enforce the contract against the principal.

authorized

The Electronic Communications Privacy Act prohibits employers from monitoring each of the following, unless consent to monitor is granted, except

employee e-mail.

In the local paper, a car dealership advertises a small used car for a great price and a low interest rate loan. When Patrice comes in to look at that car, the salesman steers her away from the advertised car. Instead, the salesman tries to convince her to buy a different used car with a much higher interest rate loan. What unfair sales practice might this be an example of?

bait and switch

When the third party entering into the contract is aware of the principal's identity and knows that the agent is acting on behalf of the principal in the transaction, then the agency relationship is a/an __________ agency.

fully disclosed

Typically, an employment contract will provide that employers may terminate the employee only for __________.

good cause

The covenant of __________ and fair dealing, adopted by a minority of states, represents a significantly different approach to the traditional notions of an employment-at-will relationship.

good faith

More often than not, the parties in an agency relationship will have agreed to a fixed term for the representation. In that case, the agency relationship may be terminated by

expiration

Tom has been injured on the job, so his employer hires Harry to fill in for him. The agreement with Harry is that he will work until Tom is ready to return. When Tom is indeed ready to return, Harry's position is terminated by an express act defined as

expiration

A standard that is applied to all employees or candidates for employment equally but nevertheless is shown to be discriminatory is called a __________ standard.

facially neutral

The False Claims Act is a __________ statute that contains an anti-retaliation provision that protects employees who disclose that their firm has committed fraud in dealing with contracts with the federal government.

federal

Agency is described as a __________ relationship that results when a principal manifests consent to an agent to act on the principal's behalf subject to the principal's control.

fiduciary

In Ricci v. DeStefano, Ricci, a white firefighter, took and passed the City of New Haven firefighter's test, required of all applicants for promotion in the city's fire department. The test was thrown out when it was discovered that minorities scored poorly and the city feared a disparate impact-based lawsuit. How did the court rule?

An employer may not simply disregard a test based on unwanted results unless the test is shown to be biased or deficient.

Amanda is driving toward a busy intersection. As she approaches the intersection, she looks down and reaches to adjust the radio in her car. She runs a red light and hits another car, which then crashes into a utility pole, knocking it down and causing a power loss in a 3-mile radius. It takes the utility company 48 hours to restore electricity to the area because of a strike by the utility union. Kimberly sues Amanda because all the food in her refrigerator and freezer spoiled due to the power outage. What will the result be?

Amanda will not be liable to Kimberly because her conduct was not the proximate cause of Kimberly's damages.

Angelina hires Brad to drive a truck to a depot 200 miles away. She specifies the route that he is to take and tells him to be sure to arrive by 5 p.m. On the way, Brad finds himself feeling light-headed due to hunger. He checks the time and finds that he has plenty of time to make the 5p.m. deadline, so he decides to stop at a diner that he is familiar with. The diner is three-quarters of a mile off the route that Angelina had specified. Brad does not call Angelina to ask for permission. On the way to the diner, Brad has a collision with Billy Bob. Billy Bob sues Angelina.

Angelina is liable because Brad was on a detour, so she is liable.

Karl is a driver for Arnold's Appliance Store and delivers appliances to customers. One day, Karl negligently secures a washer and dryer in the back of his truck, and while he is driving, the washer falls out of the truck. Jan, driving behind the truck, sees the appliance flying at her and swerves into a telephone pole. Which of the following is correct?

Both Karl and Arnold's are liable.

Which of the following is not exempt from the Do Not Call Registry?

Businesses seeking commercial contracts.

The FDA is led by the __________ of Food and Drugs, who is appointed by the president with the advice and consent of the Senate.

Commissioner

Employers must provide continuing health care coverage to any employee, for a fee, even if terminated, under the

Consolidated Omnibus Budget Reconciliation Act.

What is the name of the legislation enacted in response to injuries and deaths from products being sold to consumers?

Consumer Product Safety Act.

The Happy Days Day Care is hiring a child care worker. On the employment application, Happy Days specifically asks if the applicant has ever been arrested. Tina applies for a job at Happy Days and answers no to that question. She also answers no to the question that asks if there is any reason that she would not be qualified to work with children. Soon after Tina is hired, she severely shakes a baby to stop it from crying, causing the baby injuries. It is discovered at trial that Tina has been fired from numerous day cares for baby shaking and various other offenses. If the baby's parents sue Happy Days:

Happy Days is liable for negligent hiring.

Protection of employee medical information is addressed by the

Health Insurance Portability and Accountability Act.

The Food and Drug Administration (FDA) is a federal agency of the United States Department of __________, one of the many cabinet-level executive departments of the federal government.

Health and Human Services

Which of the following is not true of strict liability?

Injury need not occur or be proved

Joyce contracted with Mega Drug Corporation to buy vitamins on behalf of Howard, a personal trainer. Howard told Joyce to use her own name and not to disclose that she was working for Howard. If Joyce signs the contract in her name only and Howard will not honor it,

Joyce is liable but may sue Howard based on indemnification.

Unsafe workplace conditions are monitored and regulated under

OSHA

Aranda works in an office environment with 50 employees. Once or twice a week, her boss Alden tells her she has great legs and that she should wear shorter skirts. He also tells her to let loose and open another button on her blouse once in a while. She asks him to stop and continues to wear knee-length skirts and keep her blouse buttoned to the neck. He never touches her and he never makes these comments when someone else can hear. When she gets her performance appraisal from Alden, he gives her an excellent evaluation and a raise. After listening to Alden for six months, she files a complaint with the EEOC.

She may have a valid hostile environment claim.

Which act regulates the leasing relationship in which the consumer has possession of a motor vehicle in exchange for monthly payments?

Truth in Lending Act.

In Enriquez v. West Jersey Health Systems, the plaintiff began an external transformation from male to female. When her contract was not renewed, she brought suit claiming discrimination.

The plaintiff was not entitled to protection under federal law at that time but was protected by New Jersey state law.

Which of the following is an example of terminating the agency relationship by an express act?

The principal calls the agent and tells her to stop working.

Who is typically empowered by the states to protect consumers from deceptive trade practices?

The state attorney general.

In Samson v. Federal Express Corporation, Samson sued Federal Express under the ADA, claiming his job offer as a technician was withdrawn solely because he had failed his DOT medical examination because he had diabetes - a disqualifier for operating a motor vehicle in interstate commerce. What was the appellate court's ruling?

The trial court's ruling in favor of the employer was reversed because there was a genuine issue of fact as to whether test-driving was truly "essential" to the job of technician and remanded the case to a jury trial.

Courts will consider the public policy objective to be explicit and well established if it is related to:

an existing statute, the state constitution, previously established policy

Suppose that Aubrey, an at-will employee at Costco, injures her arm on the job. Costco's manager tells Aubrey that the company frowns on employees who file claims under the workers' compensation law. Aubrey files the claim and is fired one week later without being given a reason. Under what theory(ies) would Aubrey be able to sue Costco for illegal termination?

an existing statute, the state constitution, previously established policy

Sanchez borrowed money from Fifth National Bank to buy a car. She defaulted on the loan. Fifth National hired Rex's Recovery Service to repossess the car for a set fee. Rex's was simply told to locate and seize the car. Rex's would be classified as

an independent contractor.

With regard to negligent hiring, courts would require the least amount of scrutiny regarding

an office worker.

Young has just fired Kathy, who was her agent. Young places an ad in the classified section of the local newspapers that states, "Kathy no longer works for or represents Young in any way." Young placed this ad to eliminate any possible liability resulting from

apparent authority.

__________ damages could be in the form of back pay for the aggrieved employee.

compensatory

A gratuitous agent

breaches the duty of care when grossly negligent.

Under the Pennsylvania Whistleblower Act, the __________ shifted from McQueary to Penn State to prove that the termination was for "separate and legitimate reasons" from any whistleblowing activity.

burden

To obtain a license, one typically must apply in the office of __________ of any state in which the work will be performed.

business regulation

The fact that the actual negligent act must directly cause the injury is called the

cause in fact.

In cases in which the injured party's conduct has played a factor in the harm suffered, the Restatements allow the tortfeasor to assert the defense of __________ negligence.

comparative

A victim of fraud must show __________ misrepresentation by the tortfeasor of a material fact, reliance on that fact, and damages resulting from that reliance.

intentional

An __________ is one in which the tortfeasor is willful in bringing about a particular event that causes harm to another party.

intentional tort

A principal may face __________ liability for an agent's tort, most commonly the tort of negligence, even though the principal has not engaged in any wrongful conduct.

joint-and-several

One may defend against a false imprisonment claim by:

legal arrest, shopkeepers privilege, restraining a minor

Perhaps the broadest defense to employment discrimination is when a business can justify discrimination on the basis that it is __________ necessary to the business operations of the company.

legitimately

The National Highway Traffic Safety Administration:

licenses vehicle manufacturers and importers, allows or blocks the import of vehicles and safety-regulated vehicle parts, provides automobile insurance cost information

The False Claims Act allows the reporting party to file a lawsuit against the organization that is accused of the fraud and to

receive a portion of any monetary recovery

The public policy exception is a __________ applied common law rule that places the public welfare ahead of the rights of an employer.

narrowly

All computer use ordinarily is subject to employer monitoring, including the employer has the right to do all of the following except:

never limit the amount of time an employee may spend at a specific website.

While some employment agreements are contracts between managers and a business entity, some contracts give rights to __________ employees as well.

nonmanagement

Robert is a wealthy businessman who wishes to purchase a particular property. Realizing that the price might become inflated if his name is made known, he asks Faye to negotiate the purchase of the property on his behalf. Faye is the general manager of Robert's east coast operations. Faye reports directly to Robert and is supervised in all respects. Faye is told to tell Philip, the property owner, that she represents someone, but she is told not to specify who she works for. The agency would be described as

partially disclosed.

An agency transaction ends when the agency is terminated by the

parties

Who(m) may be excluded from a prohibition on mandatory retirement policies?

pilots, federal law enforcement officers, fire fighters

The parties must have an understanding that the __________ is in control of the agency relationship.

principal

In a products liability case, the plaintiff may pursue legal remedies against the seller under any of the following categories except

product disparagement.

The point at which liability for negligence stops is called

proximate cause.

A __________ is a device used by a shareholder to grant another shareholder the right to vote on his or her behalf.

proxy

Which of the following is not a defense to defamation?

publication

The Americans with Disabilities Act defines a __________ individual as someone who, with or without reasonable accommodation, can perform the "essential functions" of the employment position that such individual holds or desires.

qualified

An employment-at-will relationship may be converted to a contract relationship if the employer acted in a manner that would lead a __________ person to believe that the employer intended to offer an employee protection from termination without cause.

reasonable

Tort law and products liability law set out certain conduct and standards of __________ and provide legal recourse when a violation of those standards results in an injury causing losses.

reasonableness

As the narrow interpretation of ADA solidified in federal courts, Congress passed an amendment to the ADA that effectively __________ the Supreme Court's efforts to read the disabilities category as a narrow class of ailments.

reversed

In Riley v. Standard Oil Co. of New York, 231 N.Y. 301 (N.Y. 1921), the high court:

reversed the appellate court and ordered for a new trial

In Avanti Press v. Employment Department Tax Section, 274 P. 3d 190 (Or. Ct. App. 2012), the Oregon Court of Appeals:

reversed the findings of the ALJ and ruled in favor of Avanti

The doctrine of respondeat superior is limited by a requirement that in order for a principal (employer) to be liable for the employee's tort, the act must have occurred within the employee's employment.

scope of

Who would most likely not be a key employee?

security guard

Employers may terminate employees who are whistleblowers if they can show that the termination was for reasons that are __________ and independent of any whistleblowing.

separate from

The consequences of a business owner or manager misclassifying an employee may be

severe

__________ states have extended protection of at-will employees beyond the traditional statutory protection provided by antidiscrimination and false claims laws.

some

__________ states only cover whistleblowing by government employees or employees of government contractors.

some

Generally, tort law is governed by

state common law.

Agency law primarily exists on the

state level

Most C-level executives are referred to as __________ agents.

subordinate

Courts apply the __________ analysis to determine the classification of an agent.

substance-over-form

A CEO could be referred to as a/an __________ agent.

superior

In what court was the following case decided in: Jasper v. H. Nizam, Inc., 764 N.W.2d 751 (Iowa 2009)?

supreme

The FDA was empowered by Congress to enforce the Food, Drug, and Cosmetic Act to regulate the __________ of foods, medications (including over-the-counter medications and prescription drugs), medical devices, and cosmetics.

testing, manufacture, distribution

In California, courts determine independent contractor status by considering each of the following except

what the parties agreed to.

A __________ is a person who reports illegal conduct committed by employees, directors, and executives of a company.

whistleblower

Which of the following is not covered under the Fair Labor Standards Act?

working conditions