Law Exam 2

A binding promise is

A. central to the modern definition of contracts.

3 .The legal relationship that consists of the rights and duties of the agreeing parties growing out of promises is:

C. A contract

The Restatement (2d) of Contracts defines a promise as:

D. a manifestation of the intention [of a party] to act or refrain from acting in a specified manner.

42. The agency given the power to file suits against employers and unions believed to be violating Title VII of the Civil Rights Act is the:

Equal Employment Opportunity Commission.

41.What legislation makes it illegal to pay men and women employees different wages when their jobs require equal skill, effort, responsibility, and the same working conditions?

Equal Pay Act

33. A person authorized to execute all regular transactions connected with a business is called a:

General agent.

15. Leonard Besel did business as Leonard's Home Improvement. When he failed to do promised work for Norris, Leonard and his wife, Shelly, were sued. The court held that:

Shelly was not liable as her limited role in the business did not indicate partnership status.

34. An agent with authority to represent the principal only for a specific transaction, usually for a limited time is a:

Special Agent

14. What is often a disadvantage of the sole proprietorship form of doing business?

There are limited alternatives available for raising capital.

19. What is an artificial person, or legal entity, created under state law known as?

a corporation

16. Partners in a partnership owe each other:

a fiduciary duty.

11. A sole proprietorship comes into existence when:

a person begins to do business for herself.

8. An offer is:

a promise to do something or to refrain from doing some specific thing.

38. Agency by estoppel means:

actions by the principal lead a person to believe that the presumed agent has authority to act on the principal's behalf.

50. Under the Age Discrimination in Employment Act employers:

are prohibited from discriminating in employment against persons only over 40.

43. For Title VII of the Civil Rights Act to apply, an employer must have:

at least 15 employees.

32. The power to change the principal's legal obligations is an agent's:

authority

25. The governing committee of a corporation is the:

board of directors.

5. If a party fails to perform a nonbinding promise:

contract law will not provide a remedy.

17.In the process of termination of a partnership, before the business affairs can be wound up, what occurs?

dissolution

40. If a payment amount is not specified in the agency agreement, a principal's duty to compensate means that the principal must pay the agent:

for the reasonable value of the services provided.

35. A person who volunteers to act as an agent with no expectation of being paid for the services is a(n):

gratuitous agent.

9. To make an offer, the offeror must:

have the intent to be bound to the contract, and that intent must be clearly expressed or manifested.

13. One thing that makes a sole proprietorship different from other forms of business organizations is that, in a sole proprietorship, profits are taxed to the

individual owner of the proprietorship.

10. Ads are usually considered:

invitations for others to submit offers to buy.

47. Carol's business requires that all employees dress professionally in business attire to give her company a professional appearance. Susan insists that she be allowed to wear ratty jeans because her religion requires it. Carol:

may insist that Susan wear business attire since the company has a strict dress code policy.

18. Limited partners are investors who:

may not participate in management of the business.

39. If an agent claims to have authority but in fact has none, the principal is:

not responsible for the agent's dealings with third parties who have no reason to think the agent has authority.

45. Which is NOT a protected class under Title VII?

political affiliation

31. Through an agency relationship, the agent becomes a representative of the:

principal

23. Which constitutionally protected right is NOT granted to corporations?

privileges against self-incrimination

49. A manager tells a subordinate that the employee will not be given a choice assignment unless that employee goes along with certain sexual requests. This example would fall into which category of sexual harassment?

quid pro quo

46. Under Title VII of the Civil Rights Act's prohibition of discrimination based on religion, an employer is:

required to provide reasonable accommodation for an employee's religious practices.

24. The owners of a corporation are called:

shareholders.

36. Persons appointed by an agent delegated some authority are known as:

subagents.

48. Which of the following is an example of illegal discrimination under the Pregnancy Discrimination Act?

suspending a pregnant waitress because she might not be appealing to the diners at a café

21. A corporation must be created according to:

the Uniform Incorporation Act.

7. Implied contracts arise from:

the actions rather than the expressions of the parties.

12. In a sole proprietorship, the owner is:

the business.

22. The rules that regulate and govern the internal operations of a corporation are known as:

the bylaws

20. To create a corporation:

the incorporators must hold a public organization meeting, then file articles of incorporation.

4. Contract law governs the enforceability of:

the legal relationship that consists of the rights and duties of the agreeing parties growing out of promises.

37. A principal's ratification is:

the principal's acceptance of responsibility of an agent's activities.

6. Express contracts occur when:

there is a written or oral expression of intent by the parties to enter into a legally binding agreement.