Question 1

Information that comes to the agent because of his or her position as agent must be passed on to the principal.

Accepted Answer

A) True 
 B)False

Question 2

List three duties that an agent has to the principal.

Accepted Answer

to act in a reasonable manner with compe

Question 3

The certification process was introduced to solve which of the following kinds of disputes?

Accepted Answer

A) interest dispute 
B) recognition dispute 
C) rights dispute 
D) jurisdictional dispute 
E) commercial disputes 
A) interest dispute 
B) recognition dispute 
C) rights dispute 
D) jurisdictional dispute 
E) commercial disputes

Question 4

Which of the following would likely not be enforceable if included in an employment contract?

Accepted Answer

A) a duty of confidentiality 
B) a termination notice provision that exceeds the statutory period but is less than common law notice 
C) a provision for what will happen if duties are changed in the future 
D) a carefully worded restrictive covenant but without time or geographical limitations 
E) provisions for retirement 
A) a duty of confidentiality 
B) a termination notice provision that exceeds the statutory period but is less than common law notice 
C) a provision for what will happen if duties are changed in the future 
D) a carefully worded restrictive covenant but without time or geographical limitations 
E) provisions for retirement

Question 5

If the place of employment is not unionized and there are no provisions in the employment contract concerning termination of employment,which of the following would not be within the rights of the employer and therefore actionable by the employee?

Accepted Answer

A) An employee is dismissed because there is no more work to do and is given neither notice nor pay in lieu of notice. 
B) An employee is dismissed because his or her employer doesn't like his or her disposition,and he is given reasonable pay in lieu of notice. 
C) An employee is dismissed because he or she refused to do a job to which he or she had just been demoted,and he or she was given reasonable pay in lieu of notice. 
D) An employee is dismissed for incompetence and is given neither notice nor pay in lieu of notice. 
E) An employee is dismissed because he or she was found stealing goods from his or her employer,and he or she was given neither notice nor pay in lieu of notice. 
A) An employee is dismissed because there is no more work to do and is given neither notice nor pay in lieu of notice. 
B) An employee is dismissed because his or her employer doesn't like his or her disposition,and he is given reasonable pay in lieu of notice. 
C) An employee is dismissed because he or she refused to do a job to which he or she had just been demoted,and he or she was given reasonable pay in lieu of notice. 
D) An employee is dismissed for incompetence and is given neither notice nor pay in lieu of notice. 
E) An employee is dismissed because he or she was found stealing goods from his or her employer,and he or she was given neither notice nor pay in lieu of notice.

Question 6

Mr.Snarey devised and conducted a fraudulent scheme while working as an agent of Mutual Life.What would the likely result be?

Accepted Answer

A) Neither the agent nor the company could be liable,because Snarey was only an agent,and the company had no actual knowledge. 
B) Only the agent was liable,because the action taken was dishonest and therefore outside the scope of the agency relationship. 
C) Since Snarey was an agent with authority to enter into this general type of transaction,the company was vicariously liable for his conduct. 
D) The company could be liable only if it were shown Snarey was an employee acting under the direction of a superior. 
E) The doctrine of caveat emptor was applied. 
A) Neither the agent nor the company could be liable,because Snarey was only an agent,and the company had no actual knowledge. 
B) Only the agent was liable,because the action taken was dishonest and therefore outside the scope of the agency relationship. 
C) Since Snarey was an agent with authority to enter into this general type of transaction,the company was vicariously liable for his conduct. 
D) The company could be liable only if it were shown Snarey was an employee acting under the direction of a superior. 
E) The doctrine of caveat emptor was applied.

Question 7

Which of the following statements is correct with respect to the employer's liability for the conduct of the employee?

Accepted Answer

A) The employer is always liable for the wrongful conduct of his or her employee. 
B) Any employee can bind an employer in contract. 
C) All employees are agents of the employer. 
D) An employer is only liable for the wrongful conduct of his or her employee that takes place during the course of the employment. 
E) If a person is injured by an employee acting in the course of the job,that person must sue the employer,not the employee. 
A) The employer is always liable for the wrongful conduct of his or her employee. 
B) Any employee can bind an employer in contract. 
C) All employees are agents of the employer. 
D) An employer is only liable for the wrongful conduct of his or her employee that takes place during the course of the employment. 
E) If a person is injured by an employee acting in the course of the job,that person must sue the employer,not the employee.

Question 8

Benefits such as payments for absences due to pregnancy and adoptions are administered through workers' compensation legislation.

Accepted Answer

A) True 
 B)False

Question 9

An agent with no express,implied,or apparent authority to do so identified himself as an agent for his principal,and on behalf of his principal bought a computer.The principal refused to ratify the contract.On these facts,which of the following is true?

Accepted Answer

A) The seller could sue the principal for breach of warranty of authority. 
B) The principal would have to pay for the computer because the agent was an agent for that principal. 
C) The agent could be sued by the seller of the computer for breach of his warranty of authority. 
D) The seller of the computer could sue the agent for breach of contract for saying he was an agent. 
E) A third party cannot sue an agent even under these circumstances. 
A) The seller could sue the principal for breach of warranty of authority. 
B) The principal would have to pay for the computer because the agent was an agent for that principal. 
C) The agent could be sued by the seller of the computer for breach of his warranty of authority. 
D) The seller of the computer could sue the agent for breach of contract for saying he was an agent. 
E) A third party cannot sue an agent even under these circumstances.

Question 10

For the past seven years,Hudson has worked as vice president in charge of personnel (a non-union position)for Mountain Enterprises Ltd.As part of a corporate reorganization,the directors of the company decided to downgrade Hudson's position to manager of personnel.Hudson is very upset at this change and consequently refuses to go along with it.The company dismisses him immediately without any notice or pay in lieu thereof,because of his refusal.If Hudson sues for wrongful dismissal,which one of the following statements indicates the most likely outcome of the case?

Accepted Answer

A) Hudson will win because the company breached the employment contract and he does not have to accept that breach. 
B) The company will win because non-union employees are always subject to dismissal without notice,because there is no collective agreement. 
C) The company will win because it dismissed Hudson,rather than saying he was "fired." 
D) The company will win because Hudson's refusal constituted "cause." 
E) Hudson will win because an employer owes its employees a job,unless the employee is convicted of a theft. 
A) Hudson will win because the company breached the employment contract and he does not have to accept that breach. 
B) The company will win because non-union employees are always subject to dismissal without notice,because there is no collective agreement. 
C) The company will win because it dismissed Hudson,rather than saying he was "fired." 
D) The company will win because Hudson's refusal constituted "cause." 
E) Hudson will win because an employer owes its employees a job,unless the employee is convicted of a theft.

Question 11

Distinguish between the actual authority and the apparent authority of an agent.

Accepted Answer

The actual authority of an agent is dete

Question 12

Which of the following is true with regard to employment law?

Accepted Answer

A) The traditional test for determining whether or not a person is an employee is to assess the degree of control; an employee could be told not only what to do but also how to do it. 
B) If a worker is injured on a job covered by the Workers' Compensation Act,he can sue the employer for any injuries he may have suffered. 
C) A lockout is action taken by employees to prevent the employer from operating as normal. 
D) Constructive dismissal refers to a breach of the employment contract by the employer in which the employer has discovered that the employee committed theft. 
E) Employees are allowed to strike only when the employer refuses to honour the collective agreement (a rights dispute). 
A) The traditional test for determining whether or not a person is an employee is to assess the degree of control; an employee could be told not only what to do but also how to do it. 
B) If a worker is injured on a job covered by the Workers' Compensation Act,he can sue the employer for any injuries he may have suffered. 
C) A lockout is action taken by employees to prevent the employer from operating as normal. 
D) Constructive dismissal refers to a breach of the employment contract by the employer in which the employer has discovered that the employee committed theft. 
E) Employees are allowed to strike only when the employer refuses to honour the collective agreement (a rights dispute).

Question 13

With respect to the formation of agency by estoppel,which of the following statements is true?

Accepted Answer

A) If the principal tells an agent specifically not to sell something and the agent,in disobedience of those instructions,sells it anyway,the principal may be bound by the contract because of estoppel. 
B) The issue of apparent authority arises only if a person acts as an agent when he or she has express or implied authority. 
C) When a party terminates an express agency agreement with an agent and notifies third parties with whom that agent normally dealt,that party will be liable on a contract made for it by that "fired" agent. 
D) When a third party suspects that the agent it deals with has no authority,there is no obligation on it to question the agent's alleged authority. 
E) When a party represents,by words or conduct,that someone is its agent,that party can later deny liability on a contract made for it by that agent on the basis that no express agency agreement existed. 
A) If the principal tells an agent specifically not to sell something and the agent,in disobedience of those instructions,sells it anyway,the principal may be bound by the contract because of estoppel. 
B) The issue of apparent authority arises only if a person acts as an agent when he or she has express or implied authority. 
C) When a party terminates an express agency agreement with an agent and notifies third parties with whom that agent normally dealt,that party will be liable on a contract made for it by that "fired" agent. 
D) When a third party suspects that the agent it deals with has no authority,there is no obligation on it to question the agent's alleged authority. 
E) When a party represents,by words or conduct,that someone is its agent,that party can later deny liability on a contract made for it by that agent on the basis that no express agency agreement existed.

Question 14

In certain cases,a third party can hold a principal to a contract even though the agent acted outside the authorization given him by his or her principal and even though his or her principal elected not to ratify the contract made by the agent.The third party can enforce the contract because of:

Accepted Answer

A) the reasonable agent theory. 
B) the agent's apparent authority. 
C) agency by express agreement. 
D) fiduciary duty. 
E) the failure of the principal to register the agency agreement. 
A) the reasonable agent theory. 
B) the agent's apparent authority. 
C) agency by express agreement. 
D) fiduciary duty. 
E) the failure of the principal to register the agency agreement.

Question 15

Which of the following is correct with respect to restrictive covenants included in employment contracts?

Accepted Answer

A) For such a clause to be valid,it is only necessary to show that it was needed to protect the employer's interest. 
B) Such restrictive covenants are always void and have no place in employment contracts. 
C) Such restrictive covenants are enforceable in court if reasonable in that they are necessary to protect the employer's interests and go no further than necessary to achieve that goal. 
D) When employers require employees to enter into such agreements long after the initial hiring,it becomes part of the initial employment contract and does not require new consideration. 
E) The imposition of such a restriction is at the option of the employer and the employee has no say in the matter. 
A) For such a clause to be valid,it is only necessary to show that it was needed to protect the employer's interest. 
B) Such restrictive covenants are always void and have no place in employment contracts. 
C) Such restrictive covenants are enforceable in court if reasonable in that they are necessary to protect the employer's interests and go no further than necessary to achieve that goal. 
D) When employers require employees to enter into such agreements long after the initial hiring,it becomes part of the initial employment contract and does not require new consideration. 
E) The imposition of such a restriction is at the option of the employer and the employee has no say in the matter.

Question 16

In some jurisdictions where public employees are involved,legislation prohibits strikes or lockouts,requiring disputes to be dealt with through binding arbitration.

Accepted Answer

A) True 
 B)False

Question 17

Indicate what kinds of restrictions there are on an employer's right to dismiss an employee.

Accepted Answer

The employer must give reasonable notice

Question 18

A chauffeur,going against specific instructions,purchases a new car on behalf of his employer.The employer has done nothing to lead the seller to believe that the chauffeur has authority but is persuaded by the chauffeur to go for a drive before returning the vehicle.Explain the legal position of the parties.

Accepted Answer

Ratification is a two-edged sword,and a

Question 19

Which of the following is an example of an agent's breach of fiduciary duty to his or her principal?

Accepted Answer

A) An agent for the vendor makes a profit on the transaction he negotiated for his or her vendor above his or her commission and doesn't tell the principal/vendor. 
B) An agent negotiates a higher price than the highest sale price reasonably possible at that time. 
C) The agent takes presents from the third party and passes them on to the principal. 
D) An agent for the vendor collects a commission from the purchaser but told his or her principal and obtained the principal's consent. 
E) An agent discloses to his principal/vendor that he or she is giving some of his or her commission to the purchaser to induce the purchaser to sign the contract that the principal/vendor wants. 
A) An agent for the vendor makes a profit on the transaction he negotiated for his or her vendor above his or her commission and doesn't tell the principal/vendor. 
B) An agent negotiates a higher price than the highest sale price reasonably possible at that time. 
C) The agent takes presents from the third party and passes them on to the principal. 
D) An agent for the vendor collects a commission from the purchaser but told his or her principal and obtained the principal's consent. 
E) An agent discloses to his principal/vendor that he or she is giving some of his or her commission to the purchaser to induce the purchaser to sign the contract that the principal/vendor wants.

Question 20

If a third party relies on the principal's representation that the agent has the authority to act,which of the following is true?

Accepted Answer

A) The principal can claim the agent had no authority. 
B) The principal cannot claim the agent had no authority. 
C) The principal can claim estoppel. 
D) The agent is solely liable for the conduct if it results in injury to the third party. 
E) The agent can sue the principal for breach of contract. 
A) The principal can claim the agent had no authority. 
B) The principal cannot claim the agent had no authority. 
C) The principal can claim estoppel. 
D) The agent is solely liable for the conduct if it results in injury to the third party. 
E) The agent can sue the principal for breach of contract.

Information that comes to the agent because of his or her position as agent must be passed on to the principal.

List three duties that an agent has to the principal.

The certification process was introduced to solve which of the following kinds of disputes?

Which of the following would likely not be enforceable if included in an employment contract?

If the place of employment is not unionized and there are no provisions in the employment contract concerning termination of employment,which of the following would not be within the rights of the employer and therefore actionable by the employee?

Mr.Snarey devised and conducted a fraudulent scheme while working as an agent of Mutual Life.What would the likely result be?

Which of the following statements is correct with respect to the employer's liability for the conduct of the employee?

Benefits such as payments for absences due to pregnancy and adoptions are administered through workers' compensation legislation.

An agent with no express,implied,or apparent authority to do so identified himself as an agent for his principal,and on behalf of his principal bought a computer.The principal refused to ratify the contract.On these facts,which of the following is true?

Distinguish between the actual authority and the apparent authority of an agent.

Which of the following is true with regard to employment law?

With respect to the formation of agency by estoppel,which of the following statements is true?

In certain cases,a third party can hold a principal to a contract even though the agent acted outside the authorization given him by his or her principal and even though his or her principal elected not to ratify the contract made by the agent.The third party can enforce the contract because of:

Which of the following is correct with respect to restrictive covenants included in employment contracts?

In some jurisdictions where public employees are involved,legislation prohibits strikes or lockouts,requiring disputes to be dealt with through binding arbitration.

Indicate what kinds of restrictions there are on an employer's right to dismiss an employee.

Which of the following is an example of an agent's breach of fiduciary duty to his or her principal?

If a third party relies on the principal's representation that the agent has the authority to act,which of the following is true?

The Canadian Legal System

Torts and Professional Liability

Formation of Contracts

Enforcing Contractual Obligations

Legislation in the Marketplace

Methods of Carrying on Business

Property

Ideas and Information

Electronic Commerce and International Trade

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Exam 6: Agency and Employment

Information that comes to the agent because of his or her position as agent must be passed on to the principal.

List three duties that an agent has to the principal.

The certification process was introduced to solve which of the following kinds of disputes?

Which of the following would likely not be enforceable if included in an employment contract?

If the place of employment is not unionized and there are no provisions in the employment contract concerning termination of employment,which of the following would not be within the rights of the employer and therefore actionable by the employee?

Mr.Snarey devised and conducted a fraudulent scheme while working as an agent of Mutual Life.What would the likely result be?

Which of the following statements is correct with respect to the employer's liability for the conduct of the employee?

Benefits such as payments for absences due to pregnancy and adoptions are administered through workers' compensation legislation.

An agent with no express,implied,or apparent authority to do so identified himself as an agent for his principal,and on behalf of his principal bought a computer.The principal refused to ratify the contract.On these facts,which of the following is true?

Distinguish between the actual authority and the apparent authority of an agent.

Which of the following is true with regard to employment law?

With respect to the formation of agency by estoppel,which of the following statements is true?

In certain cases,a third party can hold a principal to a contract even though the agent acted outside the authorization given him by his or her principal and even though his or her principal elected not to ratify the contract made by the agent.The third party can enforce the contract because of:

Which of the following is correct with respect to restrictive covenants included in employment contracts?

In some jurisdictions where public employees are involved,legislation prohibits strikes or lockouts,requiring disputes to be dealt with through binding arbitration.

Indicate what kinds of restrictions there are on an employer's right to dismiss an employee.

Which of the following is an example of an agent's breach of fiduciary duty to his or her principal?

If a third party relies on the principal's representation that the agent has the authority to act,which of the following is true?

The Canadian Legal System

Torts and Professional Liability

Formation of Contracts

Enforcing Contractual Obligations

Legislation in the Marketplace

Methods of Carrying on Business

Property

Ideas and Information

Electronic Commerce and International Trade

Filters