Question 1

Which is a requirement for establishing apparent authority?

Accepted Answer

A) underlying express authority 
B) an agency agreement 
C) both a and b 
D) none of the above 
A) underlying express authority 
B) an agency agreement 
C) both a and b 
D) none of the above

Question 2

Apparent authority and agency by estoppel are the same thing.

Accepted Answer

A) True 
 B)False

Question 3

Jay Housel,an employee at Raytheon Aircraft Services,was injured when his supervisor blasted compressed air into his backside while he was bending over his toolbox at the plant.Which of the following is correct about Raytheon's liability in this case?

Accepted Answer

A) Raytheon is not responsible for these kinds of intentional acts outside the scope of employment or that involve misuse of company tools. 
B) Raytheon could be responsible if it had knowledge of the supervisor's prior misconduct. 
C) Raytheon is liable for all injuries that occur in the workplace. 
D) none of the above 
A) Raytheon is not responsible for these kinds of intentional acts outside the scope of employment or that involve misuse of company tools. 
B) Raytheon could be responsible if it had knowledge of the supervisor's prior misconduct. 
C) Raytheon is liable for all injuries that occur in the workplace. 
D) none of the above

Question 4

Mary Scott was hired to manage the Cactus Cart,a tiny kiosk located in Sky Harbor Airport in Phoenix.No specific duties were listed,but the business owner who hired Mary told her,"Just sell the plants and deposit the money." Mary would have the implied authority to:

Accepted Answer

A) take checks as payment. 
B) change the business name. 
C) sell the kiosk. 
D) all of the above 
A) take checks as payment. 
B) change the business name. 
C) sell the kiosk. 
D) all of the above

Question 5

In a fully disclosed principal situation in which the agent is acting with authority,only the principal is liable on the contract.

Accepted Answer

A) True 
 B)False

Question 6

Novosel was an employee of Nationwide Insurance and had refused to engage in political lobbying efforts for Nationwide.Novosel was terminated.Discuss Novosel's rights.

Accepted Answer

He was probably an employee-at

Question 7

An employment-at-will relationship is:

Accepted Answer

A) one in which there is a definite ending date. 
B) rare in the employment market. 
C) now illegal. 
D) none of the above 
A) one in which there is a definite ending date. 
B) rare in the employment market. 
C) now illegal. 
D) none of the above

Question 8

A master-servant relationship is one in which the principal has little control over the agent.

Accepted Answer

A) True 
 B)False

Question 9

The ability of a clerk in a store to accept payment for goods is an example of implied authority.

Accepted Answer

A) True 
 B)False

Question 10

There is no liability of employers for the acts of independent contractors.

Accepted Answer

A) True 
 B)False

Question 11

A real estate agent who fails to disclose his interest as a buyer to his seller principal has violated his duty of loyalty.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not a factor in determining whether an agent is a servant or independent contractor?

Accepted Answer

A) level of supervision 
B) whether the agent has his or her own office 
C) whether the agent has a college degree 
D) whether the agent has more than one client 
E) All of the above are not factors. 
A) level of supervision 
B) whether the agent has his or her own office 
C) whether the agent has a college degree 
D) whether the agent has more than one client 
E) All of the above are not factors.

Question 13

Which of the following is necessary to create an agency relationship?

Accepted Answer

A) consideration 
B) an agent with contractual capacity 
C) a ratification by the principal 
D) none of the above 
A) consideration 
B) an agent with contractual capacity 
C) a ratification by the principal 
D) none of the above

Question 14

Berth Ness signed a promissory note for the purchase of real estate in Arizona.Only his name appeared on the note.Berth had acted as an agent for several corporations and Louise Ness in the past.Upon default,the payee of the note brought suit to collect from the corporations and Louise.They claim Berth was not acting as their agent in the transaction and they are,therefore,not liable.Who is correct?

Accepted Answer

Students should discuss the issues of ac

Question 15

Doug Everett worked for Columbia Power as a consultant for businesses in reducing their power bills.Columbia terminated Doug and provided notice to all of his customers that Doug was no longer working with Columbia.A business that had heard about Doug from one of his former clients called Doug and asked him to help with reducing power bills of their offices and plants.Doug still had his materials from Columbia and negotiated a contract with the business for Columbia to provide certain equipment to the business and also for specific new rate plans for the business.Columbia did not know of the agreement and now refuses to honor it.Which of the following statements is correct?​

Accepted Answer

A) ​Columbia is not liable on the contract with the business because Doug's actual (express and implied authority) had terminated. 
B) ​Columbia is not liable because a former employee cannot negotiate contracts with customers after his termination. 
C) Columbia is liable on the contract because Columbia did not give general notice of termination. 
D) Doug is liable on the contract, but not Columbia. 
A) ​Columbia is not liable on the contract with the business because Doug's actual (express and implied authority) had terminated. 
B) ​Columbia is not liable because a former employee cannot negotiate contracts with customers after his termination. 
C) Columbia is liable on the contract because Columbia did not give general notice of termination. 
D) Doug is liable on the contract, but not Columbia.

Question 16

Ratification requires full knowledge of the transaction.

Accepted Answer

A) True 
 B)False

Question 17

Sally Guthfield works for Allied Health,Inc.,a company that owns hospitals and clinics in 14 states.Sally works in billing and has noticed a great deal of "upcoding" in Allied's billing practices."Upcoding" is when the patient's condition and treatment are overstated as a way of obtaining higher reimbursement rates from the federal government for Medicare and Medicaid patients.Sally talked with her supervisor who explained that billing more means higher revenues and upcoding was a way to achieve that.Sally was unable to change the billing philosophy and left Allied after reporting the company to the Department of Health and Human Services.Sally provided this federal agency with billing records and information.The federal government was able to recover almost $500 million from Allied.Under the False Claims Act:​

Accepted Answer

A) ​Sally could be held responsible for submitting the upcoded bills. 
B) ​Sally is entitled to collect up to 30% of the amount recovered from Allied. 
C) Sally has violated federal law by turning over the records of her employer to a third party. 
D) both a and c 
A) ​Sally could be held responsible for submitting the upcoded bills. 
B) ​Sally is entitled to collect up to 30% of the amount recovered from Allied. 
C) Sally has violated federal law by turning over the records of her employer to a third party. 
D) both a and c

Question 18

Under the Revised Uniform Unincorporated Associations Act,which of the following is true?​

Accepted Answer

A) ​Unincorporated organizations are treated as entities for purposes of liability protections and authority. 
B) ​Unincorporated organizations are treated as entities for purposes of liability, but not authority. 
C) It does not apply to unincorporated associations other than churches. 
D) It has been adopted in nearly all states. 
A) ​Unincorporated organizations are treated as entities for purposes of liability protections and authority. 
B) ​Unincorporated organizations are treated as entities for purposes of liability, but not authority. 
C) It does not apply to unincorporated associations other than churches. 
D) It has been adopted in nearly all states.

Question 19

In a master/servant relationship,the principal is liable for the torts of the agent committed within the scope of employment.

Accepted Answer

A) True 
 B)False

Question 20

Under Dodd-Frank,a whistleblower can collect:​

Accepted Answer

A) ​only if the company is criminally convicted. 
B) ​between 10%-30% of any amounts recovered as penalties from the whistleblower's company. 
C) only if the whistleblower leaves the company. 
D) only if the whistleblower files suit. 
A) ​only if the company is criminally convicted. 
B) ​between 10%-30% of any amounts recovered as penalties from the whistleblower's company. 
C) only if the whistleblower leaves the company. 
D) only if the whistleblower files suit.

Which is a requirement for establishing apparent authority?

Apparent authority and agency by estoppel are the same thing.

Jay Housel,an employee at Raytheon Aircraft Services,was injured when his supervisor blasted compressed air into his backside while he was bending over his toolbox at the plant.Which of the following is correct about Raytheon's liability in this case?

Mary Scott was hired to manage the Cactus Cart,a tiny kiosk located in Sky Harbor Airport in Phoenix.No specific duties were listed,but the business owner who hired Mary told her,"Just sell the plants and deposit the money." Mary would have the implied authority to:

In a fully disclosed principal situation in which the agent is acting with authority,only the principal is liable on the contract.

Novosel was an employee of Nationwide Insurance and had refused to engage in political lobbying efforts for Nationwide.Novosel was terminated.Discuss Novosel's rights.

An employment-at-will relationship is:

A master-servant relationship is one in which the principal has little control over the agent.

The ability of a clerk in a store to accept payment for goods is an example of implied authority.

There is no liability of employers for the acts of independent contractors.

A real estate agent who fails to disclose his interest as a buyer to his seller principal has violated his duty of loyalty.

Which of the following is not a factor in determining whether an agent is a servant or independent contractor?

Which of the following is necessary to create an agency relationship?

Ratification requires full knowledge of the transaction.

Under the Revised Uniform Unincorporated Associations Act,which of the following is true?

In a master/servant relationship,the principal is liable for the torts of the agent committed within the scope of employment.

Under Dodd-Frank,a whistleblower can collect:

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

Which is a requirement for establishing apparent authority?

Apparent authority and agency by estoppel are the same thing.

Jay Housel,an employee at Raytheon Aircraft Services,was injured when his supervisor blasted compressed air into his backside while he was bending over his toolbox at the plant.Which of the following is correct about Raytheon's liability in this case?

Mary Scott was hired to manage the Cactus Cart,a tiny kiosk located in Sky Harbor Airport in Phoenix.No specific duties were listed,but the business owner who hired Mary told her,"Just sell the plants and deposit the money." Mary would have the implied authority to:

In a fully disclosed principal situation in which the agent is acting with authority,only the principal is liable on the contract.

Novosel was an employee of Nationwide Insurance and had refused to engage in political lobbying efforts for Nationwide.Novosel was terminated.Discuss Novosel's rights.

An employment-at-will relationship is:

A master-servant relationship is one in which the principal has little control over the agent.

The ability of a clerk in a store to accept payment for goods is an example of implied authority.

There is no liability of employers for the acts of independent contractors.

A real estate agent who fails to disclose his interest as a buyer to his seller principal has violated his duty of loyalty.

Which of the following is not a factor in determining whether an agent is a servant or independent contractor?

Which of the following is necessary to create an agency relationship?

Ratification requires full knowledge of the transaction.

Under the Revised Uniform Unincorporated Associations Act,which of the following is true?​

In a master/servant relationship,the principal is liable for the torts of the agent committed within the scope of employment.

Under Dodd-Frank,a whistleblower can collect:​

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

Under the Revised Uniform Unincorporated Associations Act,which of the following is true?

Under Dodd-Frank,a whistleblower can collect: