Bl CH 7, BL Ch 8, BLAW Exam 2 Study Questions, chapter 28, Bus Law Ch. 29, unemployment

Under the common law, an employer could terminate an employee's 'at will'

both a and b

The doctrine of ________ is the basis for an employer's liability for an unauthorized tort committed by an employee within the scope of employment.

respondeat superior

Who supervises union elections under the NLRA? a. Union officers b. Employer representatives c. NLRB employees d. The Justice Department

c. NLRB employees

4. Rick's driveway has potholes. He has been thrown from his bike several times because of them. If Rick invites his biking friends for a barbecue, what must he do to escape liability for any harm to them? a. Repair the potholes. b. Post signs saying "slow to 15 mph." c. Telephone his friends to warn them about the potholes. d. None of the above

c. Telephone his friends to warn them about the potholes.

Which of the following is prohibited under federal labor laws? a. Union shops b. Open shops c. Yellow dog contracts d. Collective bargaining contracts

c. Yellow dog contracts

16. William, who is a waiter, is injured when an unopened bottle of cola explodes in his hand while he is putting it into the restaurant's cooler. If William wants to sue the bottling company for his injuries: a. he will lose, because it will be impossible for him to prove that the bottle was overpressurized by the bottler. b. he will lose, because the bottling company has no duty to him. c. he will probably win if the court allows him to use the res ipsa loquitur doctrine. d. he will win based on the last clear chance rule.

c. he will probably win if the court allows him to use the res ipsa loquitur doctrine.

2. By law, all apartment buildings in Mary's state must have smoke alarms in the ceilings. If Mary suffers smoke inhalation because the smoke alarm in her apartment building was not yet installed and Mary sues the owner for negligence, Mary would have to prove: a. a duty existed toward her. b. a breach of that duty. c. injury and causation. d. All of the above.

c. injury and causation.

The Equal Employment Opportunity Commission (EEOC) is empowered to: a. only file legal actions in its own name. b. try to resolve alleged violations through informal means, but not bring suit in federal or state courts. c. investigate all charges of discrimination. d. issue binding orders on employers who unfairly discriminate.

c. investigate all charges of discrimination.

The ____ is responsible for enforcing federal anti-discrimination laws. a. OSHA b. Social Security Administration c. EEOC d. NLRB

c. EEOC

Which of the following is correct with regard to the capacity of an agent? a. The incapacity of the agent disqualifies him from making a contract that is binding on his principal. b. No mental capacity is necessary for an agent. c. If an incompetent person who is not under guardianship appoints an agent, contracts made by that agent are voidable. d. A corporation has no capacity to act as an agent.

c. If an incompetent person who is not under guardianship appoints an agent, contracts made by that agent are voidable.

An agent is NOT required to keep which of the following information confidential? a. Unique business methods. b. Customer lists. c. Information that his or her principal is engaged in criminal activity. d. Business plans.

c. Information that his or her principal is engaged in criminal activity.

41. Business torts consist of: a. interference with contractual relations. b. disparagement. c. fraudulent misrepresentation. d. All of the above

d. All of the above

Under the Age Discrimination in Employment Act (ADEA), which of these defenses are available? a. A bona fide occupational qualification b. A bona fide seniority system c. Any reasonable action d. All of the above e. (a) and (b), but not (c)

d. All of the above

Invasion of privacy consists of: a. appropriation. b. intrusion. c. public disclosure of private facts. d. All of the above are invasions of privacy.

d. All of the above are invasions of privacy.

34. In an article about a prominent judge, a newspaper indicates the possibility that the judge had organized crime connections. The judge sues. The judge will have a cause of action: a. if the suit is for defamation and the newspaper responsibly checked its sources. b. if the suit is a suit for intrusion. c. whether or not the newspaper checked its sources as long as the information printed is ultimately found to be untrue. d. if the information is untrue and the newspaper did not check its sources.

d. if the information is untrue and the newspaper did not check its sources.

Which of the following is false with respect to a written agency agreement by an agent to act as the principal's exclusive agent for five years? a. Such an agency is capable of being revoked. b. If either party revokes the contract within five years, he will be liable for breach of contract. c. The agent has the power to renounce the agreement. d. This is an agency coupled with an interest.

d. This is an agency coupled with an interest.

In a disparate treatment case, a. if the plaintiff meets the burden of proving a prima facie case, the burden of proof shifts to the employer. b. an employer will not prevail in the face of a plaintiff's prima facie case unless it can articulate legitimate, non-discriminatory reasons for its actions. c. if a plaintiff can show that a defendant's allegedly legitimate reason for not hiring plaintiff is merely a pretext for discrimination, the plaintiff wins. d. all of the above

d. all of the above

T/F: A gratuitous agency is not a true agency because it is not formed by contract.

false

T/F: Jones, an agent of Rossi, is authorized to sell Rossi's ownership of wheat on the commodities market on Monday. On Monday, however, the market opens with the lowest prices for wheat in two decades. Jones must go ahead and sell Rossi's wheat on Monday.

false

An employee is not disabled under the ADA if:

she has a disability which does not substantially limit a major life activity.

Allie is authorized to sell her principal's property for $10,000. If Allie sells it for $11,000, then:

she has a duty to account to the principal for the additional $1,000

The duty of a possessor of land to persons who come on the land usually depends on whether those persons are:

invitees, trespassers, or licenses

A gratuitous agent:

is subject to the same duty of loyalty as other agents.

Violation of a statute designed to protest underage, unlicensed drivers, as well as innocent third parties, from the consequences of juvenile car theft and "joy riding," by prohibiting car owners from leaving the keys in their car if the car is unattended, is likely to be characterized as:

negligence per se

The Civil Rights Act of 1964 would scrutinize which of the following situations?

A woman engineer was denied a job for which she was qualified.

Which of the following are activities that give rise to strict liability?

All are correct: Performing abnormally dangerous activities Selling defective, unreasonably dangerous products Keeping animals

The ________ is responsible for enforcing federal anti-discrimination laws.

EEOC

T/F: The fiduciary duty of an agent has no bearing upon his ability to act on behalf of a competitor of his principal.

False

Mark is out sailing in his boat one evening when he hears a young girl crying for help in the lake. Which of the following is true?

Mark does not have any duty to help the girl unless he begins to rescue her and increases her danger.

Under the Equal Pay Act:

NOT an employer cannot discriminate in pay for substantially equal pay work on the basis of religion, sex, or national origin OR All of these are correct

Unless otherwise agreed, authority to manage a business would include authority to do all but which one of the following? a. Make repairs to the broken front door. b. Hire employees to help run the shop. c. Open a new branch office. d. Receive money due to the business.

Open a new branch office.

Jack was fired by Pedro but decided to try to win back his job as agent by getting a big new contract. He approached Sharon, a new client, and made a pitch to sell Pedro's product. Sharon agreed to buy 100. Jack tells Pedro. What are the legal consequences? a. Pedro has to hire Jack again and then make the deal. b. Pedro would have to ratify the deal to get the benefit of the contract. c. Pedro would have to negotiate the deal with Sharon himself. d. Jack would forfeit his commission if Pedro took the contract.

Pedro would have to ratify the deal to get the benefit of the contract.

42. Fraudulent or intentional misrepresentation is covered under Section ____ of the Restatement. a. 525 b. 537 c. 538(a) d. None of the above

a. 525

38. Which of the following statements is true? a. A plaintiff must prove that the defendant's negligent conduct proximately caused harm to a legally protected interest. b. A defendant has the burden of proof that his negligent conduct did not proximately cause harm. c. Negligent conduct that is the proximate cause of offensive physical contact results in liability based on social policy. d. Both (a) and (c).

a. A plaintiff must prove that the defendant's negligent conduct proximately caused harm to a legally protected interest.

The Fair Labor Standards Act would concern which of the following? a. Working hours for a fourteen-year-old b. Overtime pay for managers c. Attorney fees d. Both (a) and (b) above are correct.

a. Working hours for a fourteen-year-old

A(n) __________ is a person in a position of trust and confidence who has a duty of utmost loyalty and good faith. a. fiduciary b. servant c. independent contractor d. principal

a. fiduciary

Agency is governed primarily by: a. state common law. b. the UCC. c. federal statutes. d. administrative law.

a. state common law.

Disregard current temporary Corona Virus legislation regarding the FMLA for this question! The Family and Medical Leave Act:

applies to private employers with 50 or more employees and governmental employers.

One of your employees claims he is injured on the job but you don't think you have liability under the workers' compensation laws. A defense available to you in an action for workers' compensation is that:

the employee's injury happened before he came to work.

The doctrine of respondeat superior is most often applied in situations involving: a. torts of the agent. b. negligence of the principal. c. contracts negotiated by the agent. d. crimes committed by the agent.

torts of the agent.

An agent acts for a(n) __________ principal when the agent appears to be acting on her own behalf and the third person with whom she is dealing has no knowledge that she is an agent.

undisclosed

An agent acts for a(n) __________ principal when the agent appears to be acting on her own behalf and the third person with whom she is dealing has no knowledge that she is an agent. a. partially disclosed b. undisclosed c. unauthorized d. disclosed

undisclosed

Prentice and Mercedes are partners in a catering business. The law of agency:

would give each of them the authority to represent and bind the business in all usual transactions of that partnership.

Your company has been charged with violation the Civil Rights Act of 1964. Which of the following is NOT a potential defense?

A documented customer preference

Under the Second Restatement, except in cases of death or incapacity, or where the performance of an authorized act becomes impossible, actual notice of termination of agency is required to the third party if she is one: a. with whom the agent has dealt on credit. b. to whom the agent has been specially accredited. c. with whom the agent has begun to deal, as the principal should know. d. All of the above.

All of the above.

Regarding employment of individuals with disabilities, which statement is false?

All of the statements are true.

In a disparate treatment case:

All of these

The contractual duties owed by a principal to an agent are the duties of:

All of these: compensation, reimbursement, indemnification

Judicial limitations on the employment-at-will doctrine have been based on:

All of these: contract law, tort law, and public policy

Which of the following is true with regard to contractual relations between the principal and a third party? a. There is no liability on the part of the principal if the agent acts with implied authority. b. An undisclosed principal and the third party are contractually bound if the agent acts within her actual authority, unless the contract specifies otherwise. c. A principal cannot be bound if the agent acts without any authority. d. An unidentified principal is bound only if the agent acts within the scope of actual authority.

An undisclosed principal and the third party are contractually bound if the agent acts within her actual authority, unless the contract specifies otherwise.

Assume Frank violates a statute which is intended to protect restaurant patrons from food poisoning by requiring restaurant owners to install special refrigeration equipment. Frank may be sued under a standard of care based upon this statute if:

Barry, a patron, becomes violently ill after eating tainted (bad) chicken salad

Bob owns a business delivering coffee and donuts within the downtown area of the city. Smith Co. calls him to deliver a large quantity of his products to their local office. While taking a coffee urn through the Smith Co.'s office, Bob drops it on Lester, scalding him. Who is liable?

Bob alone is liable.

For a ratification to be effective, the principal: a. must have knowledge of all material facts concerning the transaction. b. must communicate her intent to ratify to the third party. c. must have been in existence when the act was done. d. Both (a) and (c).

Both (a) and (c).

Respondeat superior: a. imposes vicarious liability on the principal. b. makes a principal liable for the acts of independent contractors. c. makes a principal liable for the acts of employees committed within the scope of employment. d. Both (a) and (c).

Both (a) and (c).

Which of the following is correct with regard to the doctrine of respondeat superior? a. It is a form of liability without fault. b. It holds an employer liable for the acts of both employees and independent contractors. c. The liability of the principal under the doctrine is vicarious and depends upon proof of wrongdoing by the employee within the course of his employment. d. Both (a) and (c).

Both (a) and (c).

Gaines delivers a chair for Jasper Furniture and, before he goes back to the store, he goes 15 miles out of the way to visit a friend. On the way, he negligently runs a stop sign and hits Rick. Who can be held liable for the accident, and why? a. Jasper Furniture under the doctrine of respondeat superior. b. Gaines since his negligence caused the accident. c. Gaines, but not Jasper Furniture, since Gaines had deviated from the purpose of his employment. d. Both (b) and (c).

Both (b) and (c).

Cal sprayed pesticide on his crops in a very careful manner on a windless day. Nevertheless, some of the pesticide spray fell on his neighbor's side of the fence and contaminated the feed for the chickens. The chickens died, and the neighbor sues. What is the likely result?

Cal is liable because spraying pesticides is an abnormally dangerous activity.

An agent for a disclosed principal may agree to become liable on a contract between a principal and a third party in all but which of the following ways? a. Making the contract in the agent's own name. b. Co-making the contract with the principal. c. Disclosing the principal's name and the agency relationship. d. Guaranteeing that the principal will perform the contract between the third party and the principal.

Disclosing the principal's name and the agency relationship.

Which of the following is/are considered in determining the application of the reasonable person standard?

Each of these are considered: Physical disability, superior skill or knowledge, and emergency circumstances

Edward is hired to manage Fred's business. Which of the following is FALSE regarding Edward's authority?

Edward can hire employees, but he cannot fire them without Fred's consent.

Edward is hired to manage Fred's business. Which of the following is NOT true regarding Edward's authority? a. Edward has authority to sell a used cash register when he buys a new computerized checkout system for the store. b. Edward has authority to send bills to customers and to accept payments on behalf of Fred. c. Edward can hire employees, but he cannot fire them without Fred's consent. d. Edward can enter into contracts with wholesalers for merchandise in the store.

Edward can hire employees, but he cannot fire them without Fred's consent.

Sam is George's agent. George decides to fire Sam. Mel is an old customer of George's and he has dealt with Sam for over 20 years. Mel orders goods from Sam after Sam has been fired but Mel has no knowledge of the firing. Which of the following statements would apply to this scenario?

George will be liable for the contract with Mel because he did not give Mel notice that Sam had been terminated.

Henry was burning leaves in his backyard. One of the burning leaves was lifted by the wind into Bob's yard next door. It landed on the lawn mower which exploded, setting fire to the wooden lawn furniture. Henry's best argument against liability to Bob would be:

It was not foreseeable that the lawnmower would explode.

An undisclosed principal may result in which of the following? a. Liability of the agent for any contract made on behalf of such a principal. b. The agent's being declared incompetent by a court of law. c. A declaration order by the court for the principal to show a guarantee. d. All of the above.

Liability of the agent for any contract made on behalf of such a principal

Claims of unequal pay for jobs that are different or work that is different, but deemed to be of 'comparable worth' to the employer may be brought under:

NOT The Equal Pay Act OR All of the above

Active recruitment of minority applicants to meet hiring goals is termed:

affirmative action

Which of the following is NOT a major duty, which the agent owes to the principal? a. Duty to obey instructions. b. Duty to act in good faith and with loyalty. c. Duty to indemnify. d. Duty to exercise care.

c. Duty to indemnify.

The agent may be subject to liability to her principal for breach of the duty of obedience if she: a. entered into an authorized contract and the principal has changed her mind. b. delegates her authority in any way and under any circumstances. c. committed a tort for which the principal is now liable. d. All of the above.

c. committed a tort for which the principal is now liable.

A __________ is a formal appointment of an agent. a. fiduciary b. revocation c. power of attorney d. rescission

c. power of attorney

Mark, who is 16 years old, appoints Joe, age 21, as his agent to purchase a Blu-Ray player from VideoWorld. The transaction is: a. void because Mark is a minor. b. voidable by VideoWorld because Mark is a minor. c. voidable by Mark because he is a minor. d. not voidable because Joe is not a minor.

c. voidable by Mark because he is a minor.

Employee privacy: a. is protected by the common law "invasion of privacy" torts. b. relates to drug and alcohol testing. c. relates to polygraph testing. d. All of the above are true.

d. All of the above are true.

10. Defenses to intentional torts include: a. self-defense and consent. b. defense of others and consent. c. self-defense and defense of property. d. All of the above are valid defenses.

d. All of the above are valid defenses.

Under the Equal Pay Act, once an employee has demonstrated that the employer pays unequal wages for equal work done by members of the opposite sex, the employer may attempt to establish that he is not in violation of the act by reason of: a. a valid seniority system. b. a system which measures earnings by quantity of production. c. any factor except sex. d. All of the above can be used as defenses.

d. All of the above can be used as defenses.

Well-established defenses that were available to the employer for a negligence suit filed by injured employees at common law included: a. the fellow servant rule. b. contributory negligence. c. voluntary assumption of the risk. d. All of the above were common employer defenses.

d. All of the above were common employer defenses.

13. Which of the following is ordinarily held liable for their intentional torts? a. A person who has not reached the age of majority b. An incompetent c. An employer, for the acts of employees in the course of employment d. All of the above.

d. All of the above.

12. Acting with reckless disregard for the falsity of the matter, Anita included Joe's name and photograph in a list of the FBI's top ten criminals. Joe has never been convicted of a crime and is horrified by the thought of being considered a criminal. a. This is defamation. b. This is false light. c. This is nuisance. d. This could be either defamation or false light.

d. This could be either defamation or false light.

3. Which of the following is correct with respect to the reasonable person standard? a. It makes allowance for mental deficiency. b. It makes allowance for physical disability. c. It applies an individualized test to children that takes into consideration the child's age, background, and experience. d. Two of the above, (b) and (c). e. All of the above

d. Two of the above, (b) and (c).

A "closed shop" is: a. the same as a "runaway" shop. b. one in which a union once existed but has since been voted out. c. one in which a union is barred. d. outlawed by the Taft-Hartley Act.

d. outlawed by the Taft-Hartley Act.

27. A photographer taking photos of a movie star with a telephoto lens would NOT be guilty of intrusion if: a. the photographer never entered onto the movie star's property. b. the pictures were not published. c. the movie star was in bed at the time. d. the movie star was in a public building at the time.

d. the movie star was in a public building at the time.

28. Defenses to an action in strict liability include: a. contributory negligence only. b. contributory negligence and comparative negligence. c. comparative negligence only. d. voluntary assumption of risk and, in some states, comparative negligence.

d. voluntary assumption of risk and, in some states, comparative negligence.

All of the following except which one is a duty of an agent? a. Account for money received on behalf of his principal. b. Inform his principal of any information relevant to his agency. c. Refrain from competing with his principal. d. After the agency is terminated, refrain from using any information gained while an agent.

d. After the agency is terminated, refrain from using any information gained while an agent.

Jeff is acting as an agent for Tyler. Tyler's liability if Jeff makes an unauthorized tortious misrepresentation: a. depends primarily on whether Jeff is an employee or independent contractor. b. exists only if Jeff is an employee and was acting outside the scope of employment. c. exists only if Jeff is an independent contractor and Tyler did not intend the misrepresentation. d. exists regardless of whether Jeff is an employee or independent contractor and regardless of whether Tyler intended the result of Jeff's misrepresentation.

depends primarily on whether Jeff is an employee or independent contractor.

A wrongful discharge from non-contract employment based on public policy includes dismissal for: a. refusing to violate a statute. b. exercising a statutory right. c. performing a statutory obligation. d. reporting an alleged violation of a statute that is of public interest. e. All of the above.

e. all of the above

A(n) _________ is a sudden, unexpected event calling for immediate action, that is considered when determining whether conduct was reasonable in a negligence lawsuit.

emergency

Richard writes a letter to Sarah authorizing her to sell his car and sends a copy of the letter to Saxton, a prospective purchaser. The next day, Richard sends a letter to Sarah revoking her authority, but he fails to notify Saxton. Sarah:

has apparent authority with respect to Saxton to sell the car.

Ratification: a. can only occur after the third person withdraws from the transaction and gives notice of such withdrawal. b. cannot be effective against a corporation. c. is equivalent to prior authority. d. Both (a) and (b).

is equivalent to prior authority.

The Federal Employee Polygraph Protection Act:

prohibits private employers (with some exceptions) from using lie detector tests or test results as grounds for adverse employment decisions.

The doctrine of __________ is the basis for an employer's liability for an unauthorized tort committed by his employee in the course of his employment. a. indemnification b. respondeat superior c. apparent authority d. direct liability

respondeat superior

T/F: A fiduciary duty, arising out of a relationship of trust and confidence, is one of utmost loyalty and good faith.

true

T/F: A principal may generally revoke the authority of an agent at any time.

true

T/F: A principal owes to any agent the same duties under tort law that the principal owes to all parties.

true

T/F: Actual authority conferred upon an agent for a specified time does not continue after the specified time.

true

T/F: Agency is a consensual relationship that the principal and agent may form by contract or agreement.

true

T/F: Agency law is basic to almost every other branch of business law.

true

T/F: All employees are agents, but not all agents are employees.

true

T/F: An agency contract appointing the agent for a period of more than one year must be in writing.

true

T/F: An agent must act solely in the interest of his principal in all acts that would affect the principal's business.

true

T/F: As a general rule, whatever business activity a person may accomplish personally, he may do through an agent.

true

T/F: Because the authority given to an agent by a principal is strictly personal, the agent's death terminates the agency.

true

T/F: By the operation of law, the occurrence of certain events will automatically terminate an agency relationship.

true

T/F: The principal has a duty to indemnify the agent for losses incurred or suffered while acting as directed by the principal in a transaction which is not illegal or wrongful

true

Ruby, who was driving too fast for conditions, collided with a truck carrying explosives. The truck was unmarked, so Ruby had no way of knowing what it contained. The collision caused an explosion, which shattered glass in a building a block away. The glass injured Ida, who was working inside the building. John, who was walking down the street near the site of the collision, was seriously burned as a result of the explosion. In this case:

Ruby's negligent driving is the proximate cause of John's injury

Which of the following is not correct regarding the relationship between an independent contractor and a principal? a. The contractor is liable under respondeat superior. b. The contractor generally contracts to perform services but is not controlled by the principal. c. The right of control is the essential and often decisive factor in determining whether someone is an independent contractor or an employee. d. Under some circumstances, a principal will be vicariously liable for torts committed by a carefully selected independent contractor.

The contractor is liable under respondeat superior.

A pandemic has forced your electronics business to reduce its work force dramatically. You go to your Human Resources department and tell the manager to 'cut payroll by 40% immediately.' Not wanting to hurt your friends -- all recent college graduates -- you decide to simply terminate everyone over age 50. Which statement is correct?

This would be a violation of the ADEA.

Peter lives in Waco but offered a new job in Dallas. He listed his home (real estate) with Ron, a realtor to sell it on his behalf and the listing agreement was valid for 90 days. However, two months later, Peter decided the new job was not for him and since Ron had not found a buyer yet, decided to NOT sell the home and to move back to Waco. Thus, Peter contacts Ron and revokes his authority. Which statement(s) is correct?

Two of the answers are correct

The court in the Schoenberger v. Chicago Transit Authority case held that: a. the actual authority of an agent may be founded on the acts or words of the agent. b. implied authority is such authority as the principal knowingly permits the agent to assume. c. actual authority is such authority as a reasonable, prudent person, exercising diligence and discretion, in view of the principal's conduct, would naturally suppose the agent to possess. d. ZuChristian had neither actual nor apparent authority to make an offer of a specific salary or to make a promise of additional compensation.

ZuChristian had neither actual nor apparent authority to make an offer of a specific salary or to make a promise of additional compensation.

____ requires an employer to provide sixty days' advance notice of a plant closing or mass layoff. a. The Worker Adjustment and Retraining Notification Act b. The Occupational Safety and Health Act c. The Fair Labor Standards Act d. The National Labor Relations Act

a. The Worker Adjustment and Retraining Notification Act

ABC Company sells nursery products. It hires only women as sales representatives because it thinks that its customers relate better to women. Which of the following is true? a. This is a violation of Title VII of the 1964 Civil Rights Act. b. This is an example of a bona fide occupational qualification. c. This is a violation of the Equal Pay Act. d. None of the above.

a. This is a violation of Title VII of the 1964 Civil Rights Act.

Claims of unequal pay for jobs of comparable worth may be brought under: a. Title VII. b. The Equal Pay Act. c. OSHA. d. Such claims may be brought under all of the above.

a. Title VII.

23. Seventeen-year-old Todd has just received his driver's license. He is driving a little too fast one day and slams into the back of another car, which has just stopped for a stop sign. a. Todd is engaging in an adult activity and will be held to the same standard as an adult in most of the states. b. Todd is a minor and will have no responsibility for his torts. c. Todd's parents are responsible for any torts he commits. d. Both (b) and (c).

a. Todd is engaging in an adult activity and will be held to the same standard as an adult in most of the states.

The Landrum-Griffin Act would protect against: a. a union officer keeping a member from giving his opinion at a union meeting. b. an employer forbidding union workers from meeting. c. an NLRB representative influencing elections. d. an employer requiring all its employees to be union members.

a. a union officer keeping a member from giving his opinion at a union meeting.

8. An action for negligence consists of five elements, each of which the plaintiff must prove. These elements include: a. harm. b. res ipsa loquitur. c. a reasonable person. d. All of the above.

a. harm.

Sexual harassment: a. includes unwelcome sexual advances or requests for sexual favors when submission is implicitly a condition of employment. b. is less serious than and may not constitute illegal sexual discrimination in violation of Title VII. c. may not be charged against an employer who has no knowledge of or reason to know of a supervisor's harassing action against a subordinate employee. d. All of the above.

a. includes unwelcome sexual advances or requests for sexual favors when submission is implicitly a condition of employment.

39. The duty of a possessor of land to persons who come on the land usually depends on whether those persons are: a. invitees, trespassers, or licensees. b. reasonable persons. c. fiduciaries. d. involved in abnormally dangerous activities.

a. invitees, trespassers, or licensees.

25. Violation of a statute designed to protect underage, unlicensed drivers, as well as innocent third parties, from the consequences of juvenile car theft and "joy riding" by prohibiting car owners from leaving the keys in their cars if the cars are unattended, is likely to be characterized as: a. negligence per se. b. res ipsa loquitur. c. contributory negligence. d. assumption of risk.

a. negligence per se.

All of the following are true concerning the Occupational Safety and Health Act EXCEPT: a. penalties for violations are civil only. b. OSHA develops standards, conducts inspections, monitors compliance with standards, and institutes enforcement actions against those not in compliance. c. a stated purpose of the Act is to encourage state participation in regulating safety and health. d. the Act prohibits an employer from discharging an employee who exercises rights under the Act.

a. penalties for violations are civil only.

The Federal Employee Polygraph Protection Act: a. prohibits private employers (with some exceptions) from using lie detector tests or test results as grounds for adverse employment decisions. b. only prohibits the federal government's use of polygraphs for making employment decisions. c. allows polygraphs of employees only to determine illegal drug use by them. d. completely prohibits all use of polygraphs by employers.

a. prohibits private employers (with some exceptions) from using lie detector tests or test results as grounds for adverse employment decisions.

26. Mary's car was parked just outside the east door of the Civic Center. When she tried to exit, three ominous-looking gang members were blocking that door. She called the police who arrested the three for loitering. If Mary brings suit against them for false imprisonment: a. she will lose if there was another exit she could have used. b. she will lose because she was not harmed by the confinement. c. she will win even if there was another way out because she was, in effect, being confined to the Civic Center. d. she will win because they were blocking her passage to her car.

a. she will lose if there was another exit she could have used.

Regarding drug and alcohol testing of employees by employers, a. the NLRB makes it a mandatory subject of collective bargaining in a union setting. b. the constitutional protection from unwarranted search and seizure protects private sector employees from the practice. c. the Constitution prohibits any public sector employer from testing its employees under any circumstances without a warrant. d. federal legislation sets forth comprehensive guidelines for the practice.

a. the NLRB makes it a mandatory subject of collective bargaining in a union setting.

An agent has breached his fiduciary duty in which of the following situations? a. All of these are correct. b. Where the agent makes a secret profit. c. Where the agent uses information obtained in the course of the agency for his own benefit. d. Where the agent competes with the principal.

a. All of these are correct.

Matt hires Joe's real estate agency to sell his property, telling Joe he has lost too much money playing the stock market to afford to keep it up. Then Matt wins the three million-dollar lottery! Joe reads this in the newspaper and that afternoon makes a contract with Sharon to sell the property. Is the contract valid? a. No, the agency terminated because of the change in conditions. b. No, the agent has no right to sell without consent. c. Yes, Matt would have to notify Joe if he wanted to stop the sale. d. Yes, Joe had apparent authority to sell.

a. No, the agency terminated because of the change in conditions.

The basic enforcement mechanism of ____ is a system of on-site inspections by safety and health inspectors. a. OSHA b. Social Security c. workers' compensation laws d. FLSA

a. OSHA

Victor negligently led Gus to believe that Brenda had the authority to act on Victor's behalf. If Brenda had no authority but Gus reasonably and in good faith relied on Brenda's apparent authority: a. Victor is liable to Gus for Gus's loss suffered because of his reliance. b. Victor cannot be held liable to Gus because Brenda had no actual authority. c. only Brenda can be held liable for any loss Gus suffered because of his reliance. d. Gus must bear any loss because he did not determine the extent or existence of Brenda's authority.

a. Victor is liable to Gus for Gus's loss suffered because of his reliance.

The Electronic Signatures in Global and National Commerce Act validates: a. contracts relating to transactions affecting interstate commerce formed by electronic agents as long as the action of the electronic agent is legally attributable to the person to be bound. b. electronic signatures on codicils and testamentary trusts. c. electronic signatures on divorces and other matters of family law. d. electronic signatures on contracts governed by the UCC, other than sales and leases of goods

a. contracts relating to transactions affecting interstate commerce formed by electronic agents as long as the action of the electronic agent is legally attributable to the person to be bound.

Carolyn, a cashier at Tops Supermarkets, may cash checks for up to $20 over a purchase amount. A friend needs money for a dress so Carolyn cashes a check for $50 with no purchase. The check bounces. Carolyn is: a. liable because she violated her duty of obedience. b. liable because she breached her duty to inform. c. not liable since she has apparent authority to take the check. d. not liable unless she knew her friend did not have the money in the bank.

a. liable because she violated her duty of obedience.

Margie negligently drives her car into Nancy who is crossing against the light. Nancy sustains damages in the amount of $10,000 and sues Margie. The jury determines that Margie's negligence contributed 75% to Nancy's injury and that Nancy's negligence contributed 25% to her injury. Under the doctrine of comparative negligence, Nancy can recover:

$7,500

The elements of common-law negligence include

(1) a legal duty owed by one person to another, (2) breach of that duty, (3) damages proximately caused by the breach

In determining the duty of care owed by a defendant using the reasonable person standard, the court will consider which of the following factors?

Both the existence of emergency conditions and also a physician's training and years of experience

Clara is planning to incorporate a new landscaping company, "Evergreen and Growin'." She has held herself out as an agent for Evergreen and has contracted to buy a truck, tools, fertilizer, and seed and also has entered into a lease on behalf of Evergreen for an office. When she fails to get the loan from the bank, she cannot start the business, so she cancels all the contracts. What are the consequences? a. Clara can cancel all the contracts with no personal liability if she told them she was acting as an agent and expressly warranted that she would not be responsible. b. Clara may be held personally liable on the contracts because she misrepresented to third parties that she had authority to make contracts on behalf of a non-existent corporation. c. Since the company never existed, she gave no implied warranty. d. Clara will be held liable for the contracts only if she ever gets the loan.

Clara may be held personally liable on the contracts because she misrepresented to third parties that she had authority to make contracts on behalf of a non-existent corporation.

34. To which of the following does a property owner owe the highest duty of care? a. A stranded motorist who comes onto the property to seek help b. A social guest and close friend who have come to the house for a party c. A client who has come to an accountant's office in a building which the accountant owns d. A neighbor who comes over uninvited to use a backyard lounge chair

c. A client who has come to an accountant's office in a building which the accountant owns

22. Adam doesn't like having neighborhood teenagers walk across his yard at night. He rigs an animal trap on the path the teenagers usually use to cross his land. One night, Tim and his friends are walking across the yard when Tim gets caught in the trap. He is taken to the hospital for his injuries. a. Tim is a trespasser on Adam's property, and Adam has the right to use animal traps to strongly discourage anyone from trespassing. b. Adam has no duty toward Tim. c. Adam is not free to inflict intentional injury on a trespasser. d. All of the above.

c. Adam is not free to inflict intentional injury on a trespasser.

21. Arnold wrote a defamatory letter regarding Bill which he mailed to Bill, but which he did not show to anyone else. a. Arnold has committed the tort of slander. b. Arnold has committed the tort of libel. c. Arnold has committed neither libel nor slander, because there has been no publication of the letter. d. Arnold has committed the tort of false light.

c. Arnold has committed neither libel nor slander, because there has been no publication of the letter.

11. Cal sprayed pesticide on his crops in a very careful manner on a windless day. Nevertheless, some of the pesticide spray fell on his neighbor's side of the fence and contaminated the feed for the chickens. The chickens died, and the neighbor sues. What is the likely result? a. Cal is not liable because he was not negligent in his spraying operation. b. Cal is not liable because the neighbor assumed the risk of damage to the feed by placing it so close to the fence. c. Cal is liable because spraying pesticides is an abnormally dangerous activity. d. Cal is not liable for the damage because of contributory negligence.

c. Cal is liable because spraying pesticides is an abnormally dangerous activity.

30. While driving his car five miles over the speed limit, Carl struck Darla, who was jaywalking across the street. When the case came to trial, the jury determined that Carl was 60% negligent and that Darla was 40% negligent. Darla's injuries are $10,000. This accident occurred in a state following the comparative negligence theory of recovery. a. Darla will recover $10,000. b. Darla will not recover anything. c. Darla will recover $6,000. d. Darla will recover $4,000.

c. Darla will recover $6,000.

Which of the following are prohibited under Title VII of the 1964 Civil Rights Act? a. Seniority systems b. Affirmative action programs c. Disparate impact d. All of the above

c. Disparate impact

The Recreation and Parks Agency of the state government has six employees and is interviewing for a person to teach gymnastics and arts and crafts to 3-5 year olds. Ed, age 68, applies but is told he is too old. If he sues under the Age Discrimination in Employment Act, the agency's best defense would be: a. it is not subject to the Act since it only has six employees. b. the Act only protects people from 40-68 years of age. c. Ed is not able to do gymnastics. d. this is not a salary dispute.

c. Ed is not able to do gymnastics.

13. Mr. and Mrs. Weaver have a duty to: a. control the behavior of their minor son with regard to foreseeable risks. b. merely warn their dependent son regarding his activities related to third persons involving foreseeable risks. c. Either (a) or (b), depending upon the circumstances. d. use reasonable care under the circumstances to third persons with regard to foreseeable risks that arise within the family relationship no matter what their son's age.

c. Either (a) or (b), depending upon the circumstances.

36. A ninety-year-old patient walked away from a nursing home and wandered onto some nearby railroad tracks. Once on the tracks, the patient stumbled and sprained his ankle. A few minutes later a train approached. The engineer saw the man on the track and could have stopped, but the train's brakes were defective. As a result, the train hit and killed the man. His family is suing the railroad for negligence. a. The patient has assumed the risk of wandering onto the railroad tracks. b. Because the patient was contributorily negligent, most states would hold that the railroad has no liability. c. In states that follow the contributory negligence rule, the train had the last clear chance to avoid the accident, so the patient's negligence does not bar his estate's recovery. d. The train's striking of the man was an intervening cause, so the railroad company was strictly liable.

c. In states that follow the contributory negligence rule, the train had the last clear chance to avoid the accident, so the patient's negligence does not bar his estate's recovery.

18. Arthur fired a gun in the middle of the desert. He intended to fire the gun, but had no reason to believe anyone else was in the area. The bullet hit Tom, who happened to be riding his ATV across the desert. a. Arthur has committed the tort of assault. b. Arthur has committed the tort of battery. c. It is unlikely that Arthur has the necessary intent to commit a tort. d. Arthur has committed the tort of intentional infliction of emotional distress.

c. It is unlikely that Arthur has the necessary intent to commit a tort.

9. Joe intentionally pushed Bill into a fence negligently erected by Sam around Sam's swimming pool. The fence caved in and Bill nearly drowned. Under the Second Restatement, who is liable? a. Sam, because of his negligent conduct. b. Sam, because Joe's conduct would be foreseeable. c. Joe, because of his intentional intervening conduct. d. Sam and Joe, because they both contributed to the harm.

c. Joe, because of his intentional intervening conduct.

6. Chris was driving a car with defective brakes very slowly down Fifth Avenue looking for a parking place. Mindy jumped out into the street five feet in front of his car. Chris could not avoid hitting her. What is Chris's best defense to the charge of negligence? a. Mindy had a mental deficiency. b. Chris was not negligent since he did not have a statutory duty to keep his brakes in top condition. c. Mindy illegally crossed in the middle of the street, which was a superseding cause of the accident. d. Chris was lawfully seeking a parking place and did not see her jump out.

c. Mindy illegally crossed in the middle of the street, which was a superseding cause of the accident.

IBM has two manufacturing facilities-one in New York City and one in Evergreen, Oklahoma. Marjorie has worked in the Oklahoma plant for 15 years assembling resistors. Her sister, Ellen, has worked at the same plant for 15 years also. Their brother, Hank, has worked there for 10 years in the same job as his sisters. Ellen transfers to the New York facility. Their salaries are now as follows: Marjorie-$12.00 per hour Ellen-$19.50 per hour Hank-$14.00 per hour Is there a violation of the Equal Pay Act? a. Yes, because Ellen's pay is higher than Marjorie's. b. Yes, because Ellen and Hank's pay is higher than Marjorie's. c. Yes, because Hank's pay is higher than Marjorie's. d. No, since they are different people with different personalities.

c. Yes, because Hank's pay is higher than Marjorie's.

27. A form of strict liability applies to all of the following situations except: a. a lawnmower sold in a defective condition that injures its owner. b. a fireworks factory that blows up and injures townspeople and their property. c. a medical procedure. d. a herd of goats that travel onto a neighbor's property, eating and trampling the neighbor's roses.

c. a medical procedure.

The tort of ____ is a false communication which injures a person's reputation and good name by disgracing him and diminishing the respect in which he is held. a. false light b. intrusion c. defamation d. disparagement

c. defamation

Remedies for the Equal Pay Act would include: a. recovery of future wages. b. an award of non-liquidated damages. c. enjoining the employer from further unlawful conduct. d. employer fines.

c. enjoining the employer from further unlawful conduct.

9. The Restatement Third, Torts: a. was approved in its final form by the American Law Institute in 1995. b. addresses the elements of the tort action for liability for accidental personal injury, including property damage and liability for economic loss. c. has been expanded to include chapters on emotional harm and landowner liability. d. All of the above.

c. has been expanded to include chapters on emotional harm and landowner liability.

30. Tort law: a. is primarily federal statutory law. b. is primarily state statutory law. c. is primarily common law. d. has as a primary objective the punishment of offenders.

c. is primarily common law.

A pregnant worker: a. is protected under the Pregnancy Discrimination Act of 1978 only if she is married. b. under the Pregnancy Discrimination Act of 1978 must be granted at least four months' of unpaid leave for pregnancy and childbirth. c. may not be excluded from health insurance coverage for her pregnancy and childbirth if her employer also offers comprehensive medical coverage to male employees. d. Both (b) and (c) are correct.

c. may not be excluded from health insurance coverage for her pregnancy and childbirth if her employer also offers comprehensive medical coverage to male employees.

in a "closed shop," an employee: a. cannot be hired if he is a union member. b. cannot agitate for union representation. c. must be a union member before being hired. d. need not be a union member to work but must pay the union an amount equal to normal dues.

c. must be a union member before being hired.

12. If a statute is found to be applicable to a fact situation, then the courts will hold that an unexcused violation of that statute which causes an injury to another is: a. strict liability. b. res ipsa loquitur. c. negligence per se. d. assumption of the risk.

c. negligence per se.

Which of the following would NOT be a violation of Title VII of the Civil Rights Act of 1964? An employer refuses to hire an applicant for a job because the person is: a. a Mormon. b. a woman. c. sixty-four years old. d. Hispanic.

c. sixty-four years old.

7. Henry was burning leaves in his backyard. One of the burning leaves was lifted by the wind into Emilio's yard next door. It landed on the lawn mower which exploded, setting fire to the wooden lawn furniture. Henry's best argument against liability would be: a. that the leaf was not a substantial factor in causing the damage. b. res ipsa loquitur. c. that it was not foreseeable that the lawn mower would explode. d. that the damage was not caused by the leaf but by the gasoline.

c. that it was not foreseeable that the lawn mower would explode.

Arthur advances money to John so that John can purchase inventory for his business. In return and for security on the loan, John makes Arthur his agent. If John: a. becomes incapacitated, Arthur's agency is terminated by operation of law. b. dies, Arthur's agency is terminated by operation of law. c. Arthur's agency is irrevocable. d. None of these are correct.

c. Arthur's agency is irrevocable.

14. Which of the following is/are considered in determining the application of the reasonable person standard? a. Physical disability. b. Superior skill or knowledge. c. Emergency circumstances. d. All of the above are considered.

d. All of the above are considered.

16. Sally, while walking in a park, got hit on the head with a baseball. The ball was thrown at her by Aaron who intended to hit her to show off in front of his friends. She may recover damages for: a. bodily harm. b. emotional distress. c. reasonable medical expenses. d. All of the above.

d. All of the above.

36. An absolute privilege exists to protect which of the following defendants in defamation cases? a. Members of Congress on the floor of Congress b. Statements made by the U.S. President in the discharge of official duty c. Statements about third persons made to one's spouse when they are alone d. All of the above.

d. All of the above.

The common law of torts protects employees from: a. an unreasonable intrusion into their private lives by employers. b. unreasonable disclosure by employers of private information. c. unreasonable publicity putting them in a false light. d. All of the above. e. None of the above.

d. All of the above.

Which of the following can be raised as a defense to a claim of defamation? a. That the statement was true. b. That there was a constitutional privilege to comment about the plaintiff who is a public figure and that the statement was made without malice. c. That there was a conditional privilege to make defamatory comment on another's statements in order to protect legitimate self-interest. d. All of the above.

d. All of the above.

32. Andrew noticed Michael and his pregnant wife Georgette walking down the street and drove his car within inches of Michael, as a joke. Michael wasn't injured, but his wife suffered severe mental distress and needed to be hospitalized in order to save the pregnancy. a. Andrew has no liability to Georgette, because he has not committed a tort against her. b. Andrew has committed the tort of battery against Georgette. c. Andrew has committed the tort of battery against Michael but has committed no tort against Georgette. d. Andrew has committed the tort of intentional infliction of emotional distress against Georgette.

d. Andrew has committed the tort of intentional infliction of emotional distress against Georgette.

19. Stella goes to Ranger's Department Store to look for clothes. The store is in the process of remodeling, and there is a lot of clutter in the aisle. Stella trips over the clutter and breaks her leg. What standard of care does the store have toward Stella under the circumstances? a. None, because she came to the store voluntarily. b. The store owes her a duty of only ordinary care, because she is a trespasser. c. Because she is a licensee, the store must warn her of hazards of which the store knows but which Stella is not likely to discover. d. Because Stella is a business visitor, the store must exercise reasonable care to protect her against dangerous conditions she is unlikely to discover.

d. Because Stella is a business visitor, the store must exercise reasonable care to protect her against dangerous conditions she is unlikely to discover.

29. Arthur negligently stopped his car on the highway. Betty, who was driving along, saw Arthur's car in sufficient time to attempt to stop. However, Betty negligently put her foot on the accelerator instead of the brake and ran into Arthur's car. a. Arthur's contributory negligence will prevent his recovery from Betty in all jurisdictions. b. Betty had the last clear chance to avoid the accident and will bear full legal responsibility for it. c. Arthur has assumed the risk of the accident. d. Because both parties were negligent, in a state that follows the comparative negligence doctrine, both parties will share the liability for their injuries.

d. Because both parties were negligent, in a state that follows the comparative negligence doctrine, both parties will share the liability for their injuries.

37. The constitutional privilege protects the press in a defamation action: a. in the absence of malice. b. when the plaintiff is a public figure or official. c. from all liability to anyone. d. Both (a) and (b)

d. Both (a) and (b)

28. Alice was briefly married at the age of 16. She is now 28 years old and plans to marry Henry in the spring. Henry's sister found out about Alice's first marriage and then told Henry's parents. Alice now wants to sue Henry's sister for public disclosure of private facts. Does Alice have a case against Henry's sister? a. No, because marriage is a public and not a private fact. b. No, because telling Henry's parents is not sufficient publication for public disclosure of private facts. c. No, because the statement is true. d. Both (a) and (b) are correct.

d. Both (a) and (b) are correct.

24. In determining the duty of care owed by a defendant using the reasonable person standard, the court will consider which of the following factors? a. The existence of emergency conditions b. A physician's training and years of experience c. A person's severe mental retardation d. Both (a) and (b), but not (c).

d. Both (a) and (b), but not (c).

26. The harshness of the contributory negligence doctrine has been mitigated by: a. the last clear chance rule. b. substitution of the doctrine of comparative negligence. c. strict liability. d. Both (a) and (b), but not (c).

d. Both (a) and (b), but not (c).

33. In which of the following situations would a landowner have liability to a trespasser? a. Where the landowner has rigged up a trap to injure anyone coming onto the property without permission. b. Where a landowner next to a nursery school has an unfenced swimming pool and a trespassing child drowns. c. Where a trespasser trips over some lawn furniture in an unlighted backyard. d. Both (a) and (b). e. All of the above.

d. Both (a) and (b).

5. The doctrine of res ipsa loquitur would permit the court to infer negligence in which of the following situations? a. A can of peas fell off the shelf onto your foot. b. A sign over a storefront fell on your head. c. Neither (a) nor (b). d. Both (a) and (b).

d. Both (a) and (b).

39. Intent as used in the law of intentional torts requires the defendant to: a. have knowledge or reckless disregard of the negligence of her action. b. desire to cause the consequence of her action. c. believe the consequences are substantially certain to result from her action. d. Both (b) and (c)

d. Both (b) and (c)

Which of the following is NOT covered by the Fair Labor Standards Act? a. Minimum wages b. Hours of employment c. Child labor d. Defined benefit plans

d. Defined benefit plans

15. Harms or injuries that are tortious may be inflicted: a. intentionally. b. negligently. c. without fault. d. In all of the above ways.

d. In all of the above ways.

The Hometown News snapped a picture of Tom, a local teenager, as he was sleeping under a tree in the park on a warm spring day. They printed the picture on the front page of the paper. a.The Hometown News is guilty of intrusion. b.The Hometown News is guilty of false light. c.The Hometown News is guilty of appropriation. d.It is unlikely that the Hometown News is guilty of any tort

d. It is unlikely that the Hometown News is guilty of any tort

1. Mark is out sailing in his boat one evening when he hears a young girl crying for help in the lake. Which of the following is true? a. Mark MUST help the girl or he will be liable for negligence. b. Mark must help the girl ONLY if he knows her. c. Mark MUST help the girl if he is the girl's uncle. d. Mark MUST help the girl if he begins to rescue her and moves her to a position farther from the shore.

d. Mark MUST help the girl if he begins to rescue her and moves her to a position farther from the shore.

25. Mark gave the keys to his apartment to his friend Jack so Jack could sleep after an all-night study session. When Jack walked in, Mark's roommate, Sam, was standing behind the door in the dark, holding a baseball bat over his head. Jack flicked on the light and Sam saw it was Jack, so he lowered the bat before Jack noticed him. a. Jack is guilty of assault. b. Sam is guilty of assault. c. Both Sam and Jack are guilty of assault. d. Neither Jack nor Sam is guilty of assault.

d. Neither Jack nor Sam is guilty of assault.

33. The intentional exercise of dominion or control over another's personal property which so seriously interferes with the other's right of control as to justly require the payment of full value for the property is: a. trespass to personal property. b. interference with economic interests. c. fraudulent misrepresentation. d. None of the above.

d. None of the above.

Under the Americans with Disabilities Act, a. only governmental employees are protected. b. punitive and compensatory damages are not recoverable. c. employers with fewer than 15 employees did not have to comply until mid-1994. d. punitive damages for intentional discrimination are subject to a ceiling depending on company size.

d. punitive damages for intentional discrimination are subject to a ceiling depending on company size.

An agent may lose the right to compensation: a. by breaching the agency contract willfully and deliberately. b. if the specified result of the contract is not obtained. c. if the duty of loyalty is breached. d. All of the above

d. All of the above

The Civil Rights Act of 1964 provides which of the following defenses? a. A bona fide seniority or merit system b. A professionally developed ability test c. A bona fide occupational qualification (BFOQ) d. All of the above e. None of the above

d. All of the above

The concept of conflict of interest as it relates to the law of agency includes which of the following? a. An agent may take a position that conflicts with the principal only if the principal, with full knowledge of all the facts, consents. b. An agent may not represent her principal in a transaction in which the agent has a personal interest. c. An agent may not act on behalf of adverse parties to a transaction without both principals' approval of the dual agency. d. All of the above.

d. All of the above.

The contractual duties owed by a principal to an agent are the duties of: a. compensation. b. reimbursement. c. indemnification. d. All of the above.

d. All of the above.

If Carson, who is an agent for Peter, breaches his fiduciary duty to Peter, Carson: a. is liable to Peter for breach of contract. b. is liable to Peter in tort for any losses caused by the breach. c. must make restitution for any profits or property received in breach of this duty. d. All of these are correct.

d. All of these are correct.

A principal has no duty to compensate his or her agent if: a. the agent breached the duty of obedience. b. the agent breached the duty of loyalty. c. it is a gratuitous agency. d. All these are correct.

d. All these are correct.

A durable power of attorney is: a. a written instrument that expresses the principal's intention that the agent's authority will become effective upon the principal's subsequent incapacity. b. a written instrument that expresses the principal's intention that the agent's authority will not be affected by the principal's subsequent incapacity. c. an irrevocable written or oral expression that an agent will have authority to make contracts for and on behalf of the principal. d. Both (a) and (b).

d. Both (a) and (b).

Les, a teenager, has the permission of Harold to walk across his yard on the way to school. Les now brings twenty of his friends across the yard, and they stop to play ball. a. Les is not guilty of trespass to real property, because he had Harold's permission to cross the yard. b. Les's friends are not guilty of trespass to real property, because they were with Les. c. Les is guilty of trespass to real property, because he walked across the yard. d. Les and his friends are guilty of trespass to real property, because they played ball in Harold's yard.

d. Les and his friends are guilty of trespass to real property, because they played ball in Harold's yard.

Which of the following will terminate a power given as security? a. The death of the creator. b. Revocation of the power. c. The incapacity of the creator. d. None of the above.

d. None of the above.

Which of the following is NOT a breach of an agent's duty of obedience? a. Entering into an unauthorized contract for which his or her principal is then liable. b. Committing a tort for which the principal is now liable. c. Improperly delegating her authority. d. Not following a principal's instruction to misrepresent the quality of a competitor's goods to a potential customer.

d. Not following a principal's instruction to misrepresent the quality of a competitor's goods to a potential customer.

Apparent authority: a. depends on an agent's own statements about her authority. b. depends on the principal's manifestations to the third party. c. confers on the agent or supposed agent the power to bind a disclosed, unidentified, or undisclosed principal. d. All of these are correct.

depends on the principal's manifestations to the third party.

An agent is not normally liable on a contract he makes with a third party on behalf of a(n): a. undisclosed principal. b. disclosed principal. c. unidentified principal. d. All of these are correct.

disclosed principal.

40. Intentional harm to property includes which of the following torts? a. Trespass to real property b. Nuisance c. Trespass to personal property d. Conversion e. All of the above

e. All of the above

Which of the following are remedies for violation of the American's with Disabilities Act (ADA)? a. Injunctive relief b. Reinstatement c. Back pay d. Compensatory and punitive damages e. All of the above

e. All of the above

The Family and Medical Leave Act: a. applies to private employers with 50 or more employees. b. applies to governmental employers. c. allows up to twelve weeks per year of leave for childbirth, adoption, or serious health conditions of a spouse, child, or parent. d. states that the leave may be paid, unpaid, or a combination of both. e. All of the above.

e. All of the above.

The NLRA prohibits unfair labor practices by employers. Which of the following would be illegal under the NLRA? a. Tel Ko Computer Company refuses to allow notice of union meetings to be posted at work. b. Tel Ko Computer Company refuses to pay .50 per hour more to union employees. c. Tel Ko Computer Company fires Billy because he filed charges with the NLRB. d. All of the above e. Both (a) and (c) above are correct.

e. Both (a) and (c) above are correct.

The Equal Employment Opportunity Commission is empowered to: a. file legal actions in its own name but not to intervene in actions filed by third parties. b. attempt to resolve alleged violations through informal means prior to bringing suit. c. investigate all charges of discrimination. d. Both (a) and (b). e. Both (b) and (c).

e. both (b) and (c)

T/F: A gratuitous agent has a duty of loyalty but is not liable for any harm caused by his careless performance.

false

T/F: A minor cannot act as an agent.

false

T/F: A person who engages an independent contractor to do a specific job has the right to control the details of the conduct and activities of the independent contractor as it applies to the specific job.

false

T/F: Agency relationships are governed primarily by federal statute.

false

T/F: All independent contractors are agents, but not all agents are independent contractors.

false

T/F: An agent will not be authorized to act for a principal unless he receives some consideration for the task.

false

T/F: Anna employs Mark to purchase for her a suitable site for a roller rink. Mark owns a huge site himself and sells it to Anna at fair market value without disclosing to her that he is the owner of the land. Anna may not rescind the transaction, because Mark has not breached his fiduciary duty to his principal.

false

T/F: If an agent receives a gift from a third person with whom he is dealing on behalf of the principal, he can keep it without notifying the principal.

false

T/F: Linton, as a sales agent for Nancy, may keep the money for the sales in his personal bank account until due to her as long as he keeps accurate records of the amounts he must separate out to pay to her.

false

T/F: The only employees who are agents of their employers are those authorized to contract on behalf of their employers.

false

T/F: Whether an agency relationship has been created is determined by using a subjective test.

false

A(n) _________ is a person in a position of trust and confidence who has a duty of utmost loyalty and good faith.

fiduciary

Richard writes a letter to Sarah authorizing her to sell his car and sends a copy of the letter to Timothy, a prospective purchaser. The next day, Richard sends a letter to Sarah revoking her authority, but he fails to notify Timothy. Sarah: a. has actual authority to sell the car to Timothy. b. has implied authority to sell the car to Timothy. c. has apparent authority with respect to Timothy to sell the car. d. is empowered under the doctrine of respondeat superior to negotiate the contract.

has apparent authority with respect to Timothy to sell the car.

By law, all apartment buildings in the state where Morgan lives must have smoke alarms in the ceilings. Morgan suffers smoke inhalation during a fire when she could not get out quickly enough because the smoke alarm in her apartment building was not yet installed. To win a negligence action against the building owner, Morgan would have to put on evidence and prove:

injury and causation

T/F: Diane appoints Edward as her agent to sell goods in markets where the highest price can be obtained. Edward sells the goods in a market that is glutted and obtains a low price, even though he could have obtained a higher price in a nearby market by using more care in obtaining the available market information. Edward is liable to Diane for breach of the duty of diligence.

true

T/F: If Elizabeth, agent for Wade, finds out one of Wade's customers has become insolvent, she has the duty to communicate this information to Wade.

true

T/F: If an agency is gratuitous, the principal ordinarily may revoke it without liability to the agent.

true

T/F: In some states, the authority of an agent to sell land must be in writing and signed by the principal.

true

T/F: Since the agency relationship is created by agreement, the agency relationship may be terminated at any time by mutual agreement of the principal and the agent.

true

T/F: The agency relationship involves three basic elements: assent, control by the principal, and the agent's acting on behalf of the principal.

true

T/F: The appointment of an agent by a minor or an incompetent not under guardianship and any resulting contracts are voidable.

true

T/F: The capacity to be a principal, and thus to act through an agent, depends on the capacity of the principal to do the act.

true

T/F: The duty of obedience owed by an agent to a principal is not breached and will not result in liability to the principal by an agent's refusal to do an illegal or tortious act for the principal.

true

T/F: The operation of agency involves only two persons: a principal and an agent

true

T/F: The principal has the duty to provide the employee with reasonably safe conditions of employment and to warn the employee of any unreasonable risks involved in the employment.

true

T/F: When the agency terminates, the agent's duty of confidentiality continues.

true

In the Parlato v. Equitable Life Assurance Society case, the appeals court held: a. the "public notice rule" was binding under the facts of this case. b. the principal had a duty to give notice to the third party in this case. c. that the principal is responsible for torts its agent or former agent commits against unknown third parties because the principal has the ability to select agents. d. under the circumstances of this case, the agent's apparent authority with regard to the third party terminated along with his actual authority when his employment by Equitable ended.

under the circumstances of this case, the agent's apparent authority with regard to the third party terminated along with his actual authority when his employment by Equitable ended.

An agent with actual authority is not normally liable on a contract he makes with a third party on behalf of a(n):

undisclosed principal

If a sales rep who was an employee had a car wreck while calling customers, the doctrine of respondeat superior:

would hold the principal liable for this tort of the agent.

22. Arnold wrote a defamatory letter regarding Bill which he did not show to anyone, but which he posted on a bulletin board in the laundromat. a. Arnold has committed the tort of slander. b. Arnold has committed the tort of libel. c. Arnold has committed neither libel nor slander, because there has been no publication of the letter. d. Arnold has committed the tort of false light.

b. Arnold has committed the tort of libel.

Challenges to affirmative action plans adopted by private employers are tested under: a. the Equal Protection Clause of the U.S. Constitution. b. Title VII of the Civil Rights Act of 1964. c. guidelines developed under President Johnson's executive order related to affirmative action programs for federal contractors. d. None of the above. Due to the absence of state action, challenges cannot be made to affirmative action plans adopted by private employers.

b. Title VII of the Civil Rights Act of 1964.

The National Labor Relations Act is also known as the: a. Taft-Hartley Act. b. Wagner Act. c. Landrum-Griffin Act. d. Norris-La Guardia Act.

b. Wagner Act.

37. In which of the following situations would a court be likely to find an affirmative duty to act? a. Where a pedestrian witnesses an auto accident in which one of the drivers is injured. b. Where an airline attendant sees one passenger threaten another passenger. c. Where the driver of a car sees a two-year-old toddler wandering in the middle of a busy street. d. All of the above are situations where legally there is an affirmative duty to act.

b. Where an airline attendant sees one passenger threaten another passenger.

Under the Equal Pay Act: a. an employer cannot discriminate against a minority worker by paying him less than a non-minority worker. b. a man could be paid more than a woman for the same kind of work if he produced more on a piece-rate basis. c. an employer cannot discriminate in pay for substantially equal work on the basis of religion, sex, or national origin. d. All of these are correct.

b. a man could be paid more than a woman for the same kind of work if he produced more on a piece-rate basis.

Active recruitment of minority applicants to meet hiring goals is termed: a. reverse discrimination. b. affirmative action. c. comparable worth. d. BFOQ.

b. affirmative action

Title VII of the Civil Rights of 1964: a. is enforced by the FTC. b. applies to employers engaged in an industry affecting commerce and having fifteen or more employees. c. has been displaced by the Civil Rights Act of 1991. d. forbids discrimination in the workplace involving hiring, promotion, and retention, but does not cover transfer and retirement discrimination.

b. applies to employers engaged in an industry affecting commerce and having fifteen or more employees.

Bodily contact that is harmful or offensive can give rise to the tort of: a. assault. b. battery. c. defamation. d. appropriation.

b. battery.

17. Sarah goes to Marlin's Department Store to look for clothes. The store happens to be in the process of remodeling, and there is a lot of clutter in the aisle. Sarah trips over the clutter and is injured. Sarah's status with regard to the store is that of: a. licensee. b. business visitor. c. public invitee. d. trespasser.

b. business visitor.

18. Conduct on the part of the plaintiff which falls below the standard to which he should conform for his own protection and which cooperates with the negligence of the defendant in bringing about the plaintiff's harm is: a. comparative negligence. b. contributory negligence. c. res ipsa loquitur. d. voluntary assumption of the risk.

b. contributory negligence.

ompliance with the affirmative action requirement for contractors: a. is the same for construction and nonconstruction contractors. b. demands nonconstruction contractors with 50 or more employees or with contracts for more than $50,000 to have a written affirmative action plan. c. means that federal contractors need only implement affirmative action in promoting employees, not in recruiting. d. affects only federal construction contractors and subcontractors

b. demands nonconstruction contractors with 50 or more employees or with contracts for more than $50,000 to have a written affirmative action plan.

Under the Pregnancy Discrimination Act, a. family leave must be given to pregnant women and mothers of newborns. b. employers may not refuse to hire a pregnant woman, fire her, or force her to take maternity leave. c. employers must give family leave to fathers of newborns as well as to mothers. d. the BFOQ defense is not available.

b. employers may not refuse to hire a pregnant woman, fire her, or force her to take maternity leave.

The Labor-Management Relations Act: a. hampers employer free speech, although it encourages employee free speech. b. is also known as the Taft-Hartley Act. c. prohibits union shops. d. specifies certain employer activities as unfair labor practices.

b. is also known as the Taft-Hartley Act

19. Under the Third Restatement of Torts, a person acts recklessly if the person: a. has an unconscious disregard of the consequences of the act committed. b. knows facts that make the risk obvious to another in the person's situation. c. exhibits malice or a fraudulent or evil motive. d. All of the above.

b. knows facts that make the risk obvious to another in the person's situation.

Handwritten, typewritten, printed, pictorial, or televised defamation is: a. false light. b. libel. c. slander. d. disparagement.

b. libel.

11. A(n) ____ is a non-trespassory invasion of another's interest in the private use and enjoyment of land. a. trespass to real property b. nuisance c. interference with contractual relations d. fraudulent misrepresentation

b. nuisance

15. The rule which permits the jury to infer both negligent conduct and causation from the mere occurrence of certain events is: a. proximate cause. b. res ipsa loquitur. c. causation in fact. d. comparative negligence.

b. res ipsa loquitur.

29. Damages for interference with contractual relations include: a. payment for emotional distress. b. nominal damages. c. conversion fees. d. criminal fines.

a. payment for emotional distress.

Who administers the federal unemployment compensation laws? a. The Social Security Administration b. The states c. The federal courts d. The NLRB

b. the states

Pat bought a cotton sweater at Ivey's Fashion Store. Sue, the salesperson, told her the sweater was guaranteed not to shrink if washed in cold water by hand. Pat washes the sweater as directed, and it shrinks. Which of the following is correct? a. Pat has no recourse against the store, because it was only the salesclerk who misrepresented the sweater. b. Sue has apparent authority to make warranties such as the one that she made. Therefore, the store is bound. c. If Sue is only a part-time employee, Ivey has no responsibility for misrepresentations she makes. d. Salesclerks are usually independent contractors. Thus, there is no liability on the part of Ivey.

Sue has apparent authority to make warranties such as the one that she made. Therefore, the store is bound.

. Which of the following is correct with regard to a contract entered into with a third person by an agent of an undisclosed principal? a. The agent has no liability to the third person if the agent has acted within the scope of her authority. b. The agent is personally liable upon the contract. c. Under the Second Restatement, once the third person learns of the existence and identity of the principal, that third person may hold both the principal and the agent to the performance of the contract. d. Under the Third Restatement, if the third party obtains a judgment against the principal, the agent is discharged from liability to that third party.

The agent is personally liable upon the contract.

Which of the following is true regarding an agent who is acting for an undisclosed principal? a. The agent will bind both himself and the principal on most contracts. b. The third party will never be bound in a contract with the principal. c. An undisclosed principal will bind only himself and not the agent. d. Failure to disclose the name of the principal is a form of fraud.

The agent will bind both himself and the principal on most contracts.

The Civil Rights Act of 1964 would scrutinize which of the following situations? a. A woman engineer was denied a job for which she was qualified. b. A short man was denied employment as a busboy. c. A two-man partnership with two employees refused to hire a qualified black attorney. d. Both (a) and (c) above are correct.

a. A woman engineer was denied a job for which she was qualified.

Fixit Co., a four-person business, employs Wesley as a full-time mechanic. One day while welding a frame modification on a sports car, Wesley paid no attention to a clearly visible oil leak dripping from the engine compartment of the car. The welding torch ignited the oil causing a fire in which Wesley was badly burned. Which of the following BEST describes the rights of the parties? a. Fixit is liable to Wesley under a workers' compensation statute despite the fact Wesley may have been contributorily negligent when he ignored the oil leak. b. Wesley cannot recover workers' compensation since federal law requires that an employer have at least 15 employees before he must provide workers' compensation benefits. c. Fixit is not liable to pay Wesley workers' compensation since Wesley fell below a recognized standard of care by auto mechanics. d. Wesley cannot recover workers' compensation benefits, but can sue Fixit for failing to provide a safe working environment.

a. Fixit is liable to Wesley under a workers' compensation statute despite the fact Wesley may have been contributorily negligent when he ignored the oil leak.

38. A points an unloaded gun at B and threatens to shoot. Unobserved by A, C witnesses the threat and believes A's gun is loaded and that B is about to die. C pulls out a gun and shoots and kills A. a. C cannot successfully invoke the privilege of defense of others because A's gun was unloaded. b. C can successfully invoke the privilege of defense of others because of his reasonable belief at the time he shot A. c. One can use deadly force only to protect himself and his immediate family; therefore, C is liable. d. Deadly force was not being threatened against B and hence C had no right to counter with deadly force.

b. C can successfully invoke the privilege of defense of others because of his reasonable belief at the time he shot A

Which of the following is NOT true about Social Security? a. Disability insurance is one program within the system. b. Employees pay for Social Security when they file their federal income tax returns. c. Contributions made by the employer are tax deductible. d. None of the above.

b. Employees pay for Social Security when they file their federal income tax returns.

23. There is a(n) ____ privilege to comment regarding public officials or public figures so long as it is done without malice. a. Fourth Amendment b. First Amendment c. conditional d. absolute

b. First Amendment

24. Hal doesn't like Bradley, so he spread untrue rumors about his personal lifestyle and sexual practices at a cocktail party. These rumors harm Bradley's reputation in the community. a. Hal is guilty of libel. b. Hal is guilty of slander. c. Bradley does not have a defamation suit against Hal. d. Hal is protected by the First Amendment to the Constitution.

b. Hal is guilty of slander.

10. Pat and Sally started a charcoal fire for Sally's backyard barbecue and left it uncovered. Then Sally went into the kitchen to make hamburger patties. While Sally was inside, Pat backed up to catch a football and hit the grill, knocking the coals onto his feet. In a modified comparative negligence state, who is liable? a. Sally is liable for ALL of Pat's injuries. b. If Sally is found negligent, Sally is liable for a proportionate share of Pat's injuries unless Pat's negligence was as great as or greater than Sally's. c. Sally is not liable for any of Pat's injuries. d. Sally is liable for Pat's injuries only if Pat was more negligent than Sally.

b. If Sally is found negligent, Sally is liable for a proportionate share of Pat's injuries unless Pat's negligence was as great as or greater than Sally's.

32. Oscar, who was driving too fast for conditions, collided with a truck carrying explosives. The truck was unmarked, so Oscar had no way of knowing what it contained. The collision caused an explosion, which shattered glass in a building a block away. The glass injured Ida, who was working inside the building. John, who was walking down the street near the site of the collision, was seriously burned as a result of the explosion. a. Oscar's negligent driving is the proximate cause of Ida's injury. b. Oscar's negligent driving is the proximate cause of John's injury. c. Both Ida and John are within the zone of danger of the collision. d. All of the above.

b. Oscar's negligent driving is the proximate cause of John's injury.

Tim and Steve are roughhousing in Tim's parents' front yard when Steve intentionally pushes Tim onto the neighbor's property. a.Tim is a trespasser . b.Steve is a trespasser. c.Tim and Steve are both trespassers. d.None of the above.

b. Steve is a trespasser.

Tammy joined a religious cult while a student at college. Her father hired a deprogrammer who spent several weeks with her, during which they occasionally went on outings. After Tammy met with her boyfriend one weekend, she rejoined the cult and sued her father and the deprogrammer for false imprisonment. a. Tammy will win because this is clearly false imprisonment. b. Tammy will lose if she had a reasonable means of escaping and voluntarily consented to the confinement. c. Tammy has committed the tort of malicious prosecution. d. Tammy's parents are guilty of intrusion but not of false imprisonment.

b. Tammy will lose if she had a reasonable means of escaping and voluntarily consented to the confinement.

31. Andrew negligently hit a dog, which lay stunned in the street for a moment and then ran toward Bill, a bystander, and bit him. a. The dog's action is a foreseeable cause of harm. b. The dog's action is a superseding cause of harm. c. Andrew will be liable to Bill, because the dog's behavior is a natural consequence of the situation caused by Andrew's negligence. d. Two of the above, (b) and (c).

b. The dog's action is a superseding cause of harm.

20. Ray threw a bomb into the office of his insurance agent, intending to kill the agent because the company had disallowed his claim. The agent wasn't in the building, but the bomb seriously injured his secretary, who was working in the office. a. Ray cannot be liable to the secretary for any torts because he did not intend to hurt her. b. The intent to harm the agent is transferred to the secretary who can sue Ray for her injuries with an intentional tort cause of action. c. Ray has committed a crime, but he is not liable for any torts. d. Ray has committed the tort of intrusion.

b. The intent to harm the agent is transferred to the secretary who can sue Ray for her injuries with an intentional tort cause of action.

35. Which of the following is a defense that a defendant could raise in an action based on strict liability? a. The plaintiff negligently failed to observe a sign on a highway warning of blasting operations and was injured from the operations. b. The owner of a car knowingly and voluntarily parked his vehicle in a blasting zone as a result of which the car was damaged. c. A child played with a neighbor's pet raccoon which had escaped from its cage. The child teased the pet and was bitten. d. All of the above are valid defenses which would be successful if raised by the defendant.

b. The owner of a car knowingly and voluntarily parked his vehicle in a blasting zone as a result of which the car was damaged.

21. The local supermarket has a large, glass front door which is well lighted and plainly visible. Nelson, who is new in the neighborhood, mistook the glass for an open doorway and walked into it, shattering the door and injuring himself. a. The store is strictly liable to Nelson. b. The store is not liable to Nelson. c. Res ipsa loquitur would require the store to be held liable. d. The store has no duty to Nelson.

b. The store is not liable to Nelson.

If an agent, at his principal's direction, fixes prices with the principal's competitors: a. only the agent is criminally liable. b. only the principal is criminally liable. c. both the principal and agent are criminally liable. d. any liability would be civil only.

both the principal and agent are criminally liable

17. An employer: a. must not provide electronic bulletin boards and chat rooms because of provisions of the CDA. b. should act quickly to remove any defamatory statements brought to its attention because Section 230 of the CDA grants immunity from defamation liability only to ISPs. c. need not be concerned about allegedly defamatory statements on e-forums it controls because Section 230 of the CDA grants any employers immunity from liability for defamation for publishing information originating from a third party. d. cannot be held liable for unauthorized online defamatory statements made by employees.

b. should act quickly to remove any defamatory statements brought to its attention because Section 230 of the CDA grants immunity from defamation liability only to ISPs.

When a state government adopts an affirmative action plan that is challenged as constituting illegal reverse discrimination, the plan is subject to: a. a rational basis test under the Equal Protection Clause of the Fourteenth Amendment. b. strict scrutiny under the Equal Protection Clause of the Fourteenth Amendment. c. Due Process Clause scrutiny. d. a disparate treatment test under the Civil Rights Act.

b. strict scrutiny under the Equal Protection Clause of the Fourteenth Amendment.

20. Perry is injured on the job at the factory where he works. He files a workers' compensation claim against his employer. The liability of the employer under the workers' compensation statute is: a. comparative. b. strict. c. contributory. d. negligence per se.

b. strict.

Social Security benefits are funded by: a. legally required assessments on employers. b. taxes paid by both employers and employees, or by self-employed persons. c. the federal tax on corporations. d. a combination of federal and state taxes.

b. taxes paid by both employers and employees, or by self-employed persons.

A defense available to the employer in an action for workers' compensation is that: a. the employee assumed the risk. b. the employee's injury happened before he came to work. c. the employee was contributorily negligent. d. a co-worker caused the injury.

b. the employee's injury happened before he came to work.

40. Under the Third Restatement of Torts, if the plaintiff is a veterinarian who accepts for treatment a dog from the defendant: a. the defendant is strictly liable if the dog is abnormally dangerous and it bites the plaintiff. b. the plaintiff, if charging a fee, is beyond the scope of strict liability, even if the dog is abnormally dangerous. c. the doctrine of implied voluntary assumption of risk applies. d. the defendant is strictly liable for any damage to the plaintiff whether or not the dog is considered abnormally dangerous.

b. the plaintiff, if charging a fee, is beyond the scope of strict liability, even if the dog is abnormally dangerous.

The intentional dispossession or unauthorized use of the personal property of another is known as: a. conversion. b. trespass to personal property. c. fraud. d. stealing.

b. trespass to personal property.

Under the Civil Rights Act of 1991, a. only victims of racial discrimination can recover compensatory and punitive damages for intentional discrimination. b. victims of intentional religious discrimination are entitled to receive compensatory and punitive damages. c. victims of disparate impact sex discrimination can recover punitive damages. d. victims of disability discrimination have no remedy, but must seek redress under disability law.

b. victims of intentional religious discrimination are entitled to receive compensatory and punitive damages.

35. A newspaper article hints that a certain corporation is a front for illegal activity. The corporation: a. will lose a defamation suit because only natural persons can successfully bring defamation suits. b. will likely win a defamation suit if the statement is untrue and was made with malice. c. will likely lose a defamation suit because the press has an absolute privilege in this type of case. d. can win an invasion of privacy suit even if the statement is true.

b. will likely win a defamation suit if the statement is untrue and was made with malice.

The Age Discrimination in Employment Act currently protects employees between the ages of: a. 40 and 65. b. 40 and infinity. c. 50 and 65. d. 18 and 70.

b. 40 and infinity

When is an agency relationship irrevocable? a. It is never irrevocable. b. When the agency is coupled with an interest of the agent in the subject matter. c. When the principal violates his duties to the agent. d. When the agent is a fiduciary.

b. When the agency is coupled with an interest of the agent in the subject matter.

A gratuitous agent: a. is a paid agent. b. is subject to the same duty of loyalty as other agents. c. has no duty of diligence. d. need not be reimbursed for her expenses.

b. is subject to the same duty of loyalty as other agents.

Sam is George's agent. George decides to fire Sam. Mel is an old customer of George's and he has dealt on credit with Sam for over twenty years. Ellie is a prospective customer that Sam has spoken with on numerous occasions in his capacity as George's agent, and George was aware of the preliminary negotiations. Mel orders goods from Sam after Sam has been fired but Mel has no knowledge of the firing. Later, Sam takes an order from Ellie. Under the Second Restatement, if George does not give notice of the firing, George will: a. be liable for the contract with Mel. b. not be liable on the contract with Mel. c. not be liable on the contract with Ellie. d. Both (a) and (c).

be liable for the contract with Mel.

Saul is a sales representative for the Incman Corporation. Saul has a terrible driving record and has had his driver's license revoked, but nevertheless he continues to drive the company car for his job. One day he drives too fast for conditions, goes through a red light, and strikes a pedestrian. The accident happened despite the fact that Saul's supervisor at Incman had repeatedly reprimanded him and advised him to drive more cautiously. Incman: a. has no liability, because they did not authorize Saul to drive carelessly. b. has no liability, because Saul's actions were not a tort. c. is liable even though it did not authorize Saul to drive carelessly, because it employed an improper person as its agent. d. has no liability, because it has adequately supervised Saul as its agent.

is liable even though it did not authorize Saul to drive carelessly, because it employed an improper person as its agent.