Question 1

Express authority:

Accepted Answer

A) must be in writing. 
B) can limit the agent's authority. 
C) includes customary authority. 
D) none of the above 
A) must be in writing. 
B) can limit the agent's authority. 
C) includes customary authority. 
D) none of the above B

Question 2

Zaney,Inc.operated Zaney's Bar and Grill.An officer of the corporation instructed the bartender at Zaney's to "maintain order" at the bar.The bartender pulled out a gun and shot a patron because he was making advances to the girl sitting next to him.Which of the following is correct?

Accepted Answer

A) Zaney's Inc.is liable to the patron for the injuries caused by the bartender. 
B) Zaney's is not a principal because it is a corporation. 
C) The bartender is not liable for the injuries to the patron because he was working for someone else at the time. 
D) Zaney's is not liable for the injuries sustained by the patron. 
A) Zaney's Inc.is liable to the patron for the injuries caused by the bartender. 
B) Zaney's is not a principal because it is a corporation. 
C) The bartender is not liable for the injuries to the patron because he was working for someone else at the time. 
D) Zaney's is not liable for the injuries sustained by the patron. D

Question 3

Public notice of termination of an agent is not required.

Accepted Answer

A) True 
 B)False  False

Question 4

All states recognize non-compete agreements as enforceable contract clauses.

Accepted Answer

A) True 
 B)False

Question 5

An unincorporated association:

Accepted Answer

A) has no liability for its members. 
B) is not a principal with capacity. 
C) can have agents. 
D) none of the above 
A) has no liability for its members. 
B) is not a principal with capacity. 
C) can have agents. 
D) none of the above

Question 6

Which of these ends apparent authority?

Accepted Answer

A) Departure of the agent 
B) Retirement of the agent 
C) Termination of the agent 
D) None of these 
A) Departure of the agent 
B) Retirement of the agent 
C) Termination of the agent 
D) None of these

Question 7

In a partially disclosed principal relationship,who is liable to the third party on a contract within the agent's authority?

Accepted Answer

A) principal 
B) agent 
C) both a and b 
D) none of the above 
A) principal 
B) agent 
C) both a and b 
D) none of the above

Question 8

A gratuitous agency is void.

Accepted Answer

A) True 
 B)False

Question 9

An agent for which of these would have authority to act?

Accepted Answer

A) An unincorporated company 
B) A minor 
C) An incompetent person 
D) None of these 
A) An unincorporated company 
B) A minor 
C) An incompetent person 
D) None of these

Question 10

Genesis Testing decided that it needed to have noncompete agreements signed by its current employees,something that was not part of their original employment contracts.The noncompete agreements provided that if the employee left Genesis Testing that the employee would not go to work for any of Genesis's competitors for a three-month period.Genesis is involved in an evolving field of blood testing with rapidly changing technology.Genesis offered its employees an extra two weeks of vacation and $1,200 if they would sign the noncompete agreements.All of the employees signed the agreements.Which of the following is true?​

Accepted Answer

A) ​The covenants not to compete are unenforceable because they lack consideration. 
B) ​The covenants not to compete are unenforceable because they are too long in duration. 
C) The covenants not to compete are unenforceable because these types of covenants violate public policy. 
D) The covenants not to compete are enforceable. 
E) a, b, and c 
A) ​The covenants not to compete are unenforceable because they lack consideration. 
B) ​The covenants not to compete are unenforceable because they are too long in duration. 
C) The covenants not to compete are unenforceable because these types of covenants violate public policy. 
D) The covenants not to compete are enforceable. 
E) a, b, and c

Question 11

An agency at will is a relationship in which there is no definite ending date.

Accepted Answer

A) True 
 B)False

Question 12

Aaron Smith,a junior at Yale,was a counselor at Camp Winipesaukee for the summer of 2007.Several of the children,ages 8-12 reported to their parents that they had been physically assaulted by Aaron while they were at camp.The children had signs of bruising and other injuries.The parents brought suit against Camp W,the corporation that operated the camp for their children's injuries.Camp W says that it is not liable because (a)it had no knowledge of the assaults; (b)Aaron had not injured anyone in the past; and (c)what Aaron did was not within his scope of employment as a camp counselor.Discuss the liability and defense issues in the case.

Accepted Answer

Students should discuss the difference b

Question 13

James Franklin listed his home with Freda Payne Realty.The listing contract provided that Franklin's home could not be sold for less than $100,000.Freda entered into a contract for Franklin to sell his home for $95,000.Which of the following statements is true?​

Accepted Answer

A) ​Although Freda did not have actual authority, she had apparent authority and the contract is binding on Franklin. 
B) ​Freda did not have actual or apparent authority to enter into the contract and it is not binding on Franklin. 
C) Freda had implied authority to enter into the contract and it is binding on Franklin. 
D) The buyer can enforce the contract against Franklin using promissory estoppel. 
A) ​Although Freda did not have actual authority, she had apparent authority and the contract is binding on Franklin. 
B) ​Freda did not have actual or apparent authority to enter into the contract and it is not binding on Franklin. 
C) Freda had implied authority to enter into the contract and it is binding on Franklin. 
D) The buyer can enforce the contract against Franklin using promissory estoppel.

Question 14

Kay of Kay's Realty was representing Tom Tutone,a well known singer and songwriter,in his purchase of a home in Jackson Hole.She was to act as the buyer and then subsequently sign the property back over to Tom.The seller of the home was not to be told that anyone but Kay would hold title to the property.Which of the following statements is correct?

Accepted Answer

A) The transaction is illegal because of misrepresentation because information has been withheld from the seller. 
B) The transaction involves an undisclosed principal. 
C) The transaction involves a partially disclosed principal. 
D) Tom is not liable on the purchase agreements for any homes. 
A) The transaction is illegal because of misrepresentation because information has been withheld from the seller. 
B) The transaction involves an undisclosed principal. 
C) The transaction involves a partially disclosed principal. 
D) Tom is not liable on the purchase agreements for any homes.

Question 15

Joe Helquist and Samantha Gillis were partners in the operation of an office supply business for 32 years.Joe had always handled suppliers and Samantha was responsible for running the store and managing employees.Joe decided to retire and Samantha gave him a fine retirement dinner.Joe had some financial setbacks shortly after retirement when his wife became ill and two of his children decided to go on for their masters' degrees.Joe began ordering supplies from the usual suppliers since they were not aware of his retirement.Joe would intercept the supplies at the loading dock and then sell them on his own.Samantha soon caught the discrepancy in the bills and her inventory and refused to pay the suppliers when she learned of Joe's scheme.Which of the following statements is correct?

Accepted Answer

A) Samantha is not liable to the suppliers since Joe's authority terminated. 
B) Samantha is not liable to the suppliers because Joe's acts constituted fraud. 
C) Samantha is liable to the suppliers. 
D) none of the above 
A) Samantha is not liable to the suppliers since Joe's authority terminated. 
B) Samantha is not liable to the suppliers because Joe's acts constituted fraud. 
C) Samantha is liable to the suppliers. 
D) none of the above

Question 16

A power of attorney is an example of an agency relationship.

Accepted Answer

A) True 
 B)False

Question 17

The Restatement of Agency:

Accepted Answer

A) is a summary of the common law agency. 
B) has been adopted in all states. 
C) is legislative law. 
D) none of the above 
A) is a summary of the common law agency. 
B) has been adopted in all states. 
C) is legislative law. 
D) none of the above

Question 18

The employment-at-will doctrine prohibits the firing of nonunion or noncontract employees.

Accepted Answer

A) True 
 B)False

Question 19

Gilda Steinforth is a partner in the law firm of Jones,Deloitte & Ernst.A wealthy couple has met with her and asked her to draw up a trust for a portion of their property.They gave Steinforth a check for $10,000 as a retainer fee and a check for $500,000 to begin the trust.Within two days after her meeting with the couple,Gilda and the checks are gone.The couple wishes to recover from Jones,Deloitte & Ernst.Which of the following statements is true?

Accepted Answer

A) The couple may not recover since Jones, Deloitte & Ernst is not responsible for the intentional torts of its employees. 
B) The couple may not recover since Steinforth, as a lawyer, was an independent contractor and not a servant of the firm. 
C) The couple may not recover since Steinforth had no express or implied authority to receive the checks. 
D) none of the above 
A) The couple may not recover since Jones, Deloitte & Ernst is not responsible for the intentional torts of its employees. 
B) The couple may not recover since Steinforth, as a lawyer, was an independent contractor and not a servant of the firm. 
C) The couple may not recover since Steinforth had no express or implied authority to receive the checks. 
D) none of the above

Question 20

A gratuitous agency is one in which the agent is not paid.

Accepted Answer

A) True 
 B)False

Express authority:

Zaney,Inc.operated Zaney's Bar and Grill.An officer of the corporation instructed the bartender at Zaney's to "maintain order" at the bar.The bartender pulled out a gun and shot a patron because he was making advances to the girl sitting next to him.Which of the following is correct?

Public notice of termination of an agent is not required.

All states recognize non-compete agreements as enforceable contract clauses.

An unincorporated association:

Which of these ends apparent authority?

In a partially disclosed principal relationship,who is liable to the third party on a contract within the agent's authority?

A gratuitous agency is void.

An agent for which of these would have authority to act?

An agency at will is a relationship in which there is no definite ending date.

James Franklin listed his home with Freda Payne Realty.The listing contract provided that Franklin's home could not be sold for less than $100,000.Freda entered into a contract for Franklin to sell his home for $95,000.Which of the following statements is true?

A power of attorney is an example of an agency relationship.

The Restatement of Agency:

The employment-at-will doctrine prohibits the firing of nonunion or noncontract employees.

A gratuitous agency is one in which the agent is not paid.

Introduction to Law

Business Ethics and Social Responsibility

The Judicial System

Managing Disputes: Alternative Dispute Resolution and Litigation Strategies

Business and the Constitution

Administrative Law

International Law

Business Crime

Business Torts

Environmental Regulation and Sustainability

Contracts and Sales: Introduction and Formation

Contracts and Sales: Performance,Remedies,and Collection

Product Advertising and Liability

Business Competition: Antitrust

Business and Intellectual Property Law

Governance and Structure: Forms of Doing Business

Governance and Regulation: Securities Law

Management of Employee Welfare

Management: Employment Discrimination

Filters

Exam 16: Management of Employee Conduct: Agency

Express authority:

Zaney,Inc.operated Zaney's Bar and Grill.An officer of the corporation instructed the bartender at Zaney's to "maintain order" at the bar.The bartender pulled out a gun and shot a patron because he was making advances to the girl sitting next to him.Which of the following is correct?

Public notice of termination of an agent is not required.

All states recognize non-compete agreements as enforceable contract clauses.

An unincorporated association:

Which of these ends apparent authority?

In a partially disclosed principal relationship,who is liable to the third party on a contract within the agent's authority?

A gratuitous agency is void.

An agent for which of these would have authority to act?

An agency at will is a relationship in which there is no definite ending date.

James Franklin listed his home with Freda Payne Realty.The listing contract provided that Franklin's home could not be sold for less than $100,000.Freda entered into a contract for Franklin to sell his home for $95,000.Which of the following statements is true?​

A power of attorney is an example of an agency relationship.

The Restatement of Agency:

The employment-at-will doctrine prohibits the firing of nonunion or noncontract employees.

A gratuitous agency is one in which the agent is not paid.

Introduction to Law

Business Ethics and Social Responsibility

The Judicial System

Managing Disputes: Alternative Dispute Resolution and Litigation Strategies

Business and the Constitution

Administrative Law

International Law

Business Crime

Business Torts

Environmental Regulation and Sustainability

Contracts and Sales: Introduction and Formation

Contracts and Sales: Performance,Remedies,and Collection

Product Advertising and Liability

Business Competition: Antitrust

Business and Intellectual Property Law

Governance and Structure: Forms of Doing Business

Governance and Regulation: Securities Law

Management of Employee Welfare

Management: Employment Discrimination

Filters

James Franklin listed his home with Freda Payne Realty.The listing contract provided that Franklin's home could not be sold for less than $100,000.Freda entered into a contract for Franklin to sell his home for $95,000.Which of the following statements is true?