LAW CH. 26-36 MC

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  1. (26) Perry (a minor) signed a contract authorizing Allied, Inc. (a licensed real estate corporation) to sell and convey title to land that belonged to Perry. In many states, this contract of agency is

    a. Invalid. An agent cannot be authorized to sell or convery land on behald of principal

    b. Invalid. A corporation cannot be an agent

    c. Voidable. Perry is a minor and he can disaffirm the contract of agency d. Valid. Allied was properly authorized to sell and convey the land, and Perry cannot dissaffirm this contract of agency
  2. (26) Owner hired Jack as manager of a florist shop. Managers of such stores can customarily hire employees. But, Owner told Jack not to hire employees without Owner's consent. Dan applied for a job. Owner referred Dan to Jack, misleadingly stating "Jack handles all employment matters." Jack hired Dan without Owner's consent. Dan did not know that Jack's authority had been limited. Jack had what type of authority to hire Dan?

    a. Implied authority

    b. Customary authority

    c. Apparent authority
  3. (26) Without any authority to do so, Avery contracted to buy a printer on behalf of his principal, P&P Printing. After making the contract, Avery told P&P about the contract and explained the terms. P&P told Avery that the contract was acceptable, and P&P kept and used the printer. At all relevant times, P&P was capable of contracting, and the contract was legal. Under these facts

    a. The contract is binding on P&P. A principal is bound by any contract made by its agents

    b. The contract is binding on P&P. P&P ratified the contract

    c. The contract is not binding on P&P. Avery did not have express authority to contract
  4. (26) Tosco Mfg. hired Roadway, Inc. to build a road at Tosco's plant. Roadway was to build the road in accordance with basic plans stated in the contract. Roadway was to use its own toold, employees, and methods; Tosco did not have the right to control the manner by which Roadway build the road. During construction, Raodway negligently injured a third pary. In this case

    a. Roadway is an independent contractor

    b. Roadway is an employee

    c. Tosco is liable for the thir party's injuries that were caused by Roadway's negligence
  5. (27) Duke is an agent for Rork Co. Unknown to Rork, Co., Duke also represents a competitor and disclosed Rork Co.'s confidential marketing strategy to the competitor. Under these facts

    a. Duke violated his duty of loyalty and good faith to Rork Co.

    b. Duke did not violate his duty of loyalty and good faith to Rork Co.

    c. Rork Co. can sue Duke for damages that is may suffer as a result of Duke's conduct
    d. a and c
  6. (27) Lisa was a sales agent for DRG. By contract, DRG agreed to pay Lisa a $1,500 monthly salary plus a commission of 10 percent of the price of goods sold by her. Prior to her discharge (1) Lisa was owed one month's salary; (2) Lisa sold goods for $10,000; and (3) Lisa incurred $50 phone charges in making sales. Prior to her discharge, Lisa had also been negotiating a $20,000 sale of goods, but the sale was never completed. How much does DRG owe Lisa?

    a. $1,500

    b. $2,500

    c. $4,550

    d. $4,550
  7. (27) Juan Martinez is a purchasing agent for Viper Inc. On behalf of Viper, Juan contracted to buy a truck from Cory Truck Sales. Juan had express authority to make the contract. Juan signed the contract "Viper Inc., by Juan Martinez, purchasing agent." Under these facts

    a. Juan is personally obligated to perform the contract

    b. Viper, Inc. is obligated to perform the contract

    c. Juan and Viper, Inc. are both obligated to perform the contract
  8. (27) Katherine Frick is a general manager for C&C Clothing Co., which owns a clothing store. On behalf of C&C, Katherine agreed to buy froom Seller all of the assets of another clothing store that was quitting business. Katherine had no authority to make this contract. Under these facts

    a. Katherine is liable to Seller for damages
    b. C&C Clothing Co. is obligated to perform the contract with Seller

    c. C&C Clothing Co. is not obligated to perform the contract with Seller

    d. a and c
  9. (28) Nordig Sporting Goods Store employs Joe. Joe's employment contract does not state a fixed term of employment. Jos is paid on a weekly basis. Joe works in a state that does not imply a period of employment from terms of compensation. Under these facts

    a. Joe is not an employee at will

    b. Nordic can discharge Joe at any time. Nordic does not need good cause to discharge Joe

    c. Nordic can discharge Joe at any time. However, if Nordic discharges Joe during a work week, Nordic must pay Joe's wages for the entire week

    d. Nordic has the right to discharge Joe only if Nordic has good cause for doing so
  10. (28) Acme Inc employs Marsha as a welder. Marsha is covered by worker's compensation. One day, Marsha is injured in an accident that occurred while she was performing a welding job for Acme. In which situation would Marsha be denied worker's compensation?

    a. Marsha was negligent and her negligence caused the accident

    b. Marsha was intoxiated and her intoxication caused the accident

    c. a third party caused the accident. Acme was not negligent or responsible for causing the accident

    d. Marsha cannot recover worker's compensataion in any situation. Worker's compensation laws no longer exist in any state
  11. (28) Bob was hired by Ramco, Inc. as a tool and die maker. Bob's employment contract did not mention inventions. Bod was neither hired nor instructed to work on new products. However, during working hours and using Ramco's equipment, Bob invented a new piece of equipment that was applicable to Ramco's business. What rights does Ramco have to Bob's invention?

    a. Ramco owns the invention

    b. Ramco has a shop right that entitles it to make and sell products that embody the invention

    c. Ramco has a shop right to use the invention in conducting its business
  12. (28) Select the best answer that is correct under the federal social security act

    a. Orville is 65 yrs old. Orville worked a total of five years of covered employment. In this case, Orville is entitled to receive old-age retirement benefits

    b. Mary is 67 and bliind. mary is in severe need of financial aid, but she has never worked. In this case, Mary is not entitled to receive supplemental social security income payments

    c. John is 45 yrs old. John cannot work due to a permanent illness. John's illness is expected to last for the rest of his life. In this case, John is entitled to disability benefits
  13. (29) In which situation is there a violation of the Civil Rights Act of 1964?

    a. Acorn, Inc. conducts solely intrastate business and it has two employees. Acorn refused to hire Kent because he is a male and Catholic

    b. Best, Inc. engages in interstate commerce and employs fifty workers. Best refused to hire Stella as an electrician because she is a woman. Stella was qualified for the job

    c. Core, Inc. engages in interstate commerce and employes forty workers. Core fired Harry, an Afro-American. The termination was due to a recession and was unrelated to Harry's race
  14. (29) Select the correct answer

    a. employer is a government agency that makes nuclear weapons. In this case, Employer may require employees who make the weapons to take reasonable drug tests

    b. employer is a private firm that owns a stereo store. Employer wants to avoid thefts by dishonest employees. In this case, Employer can make all employees take polygraph tests

    c. employer is a private laboratory that prepares donor organs for human transplants. In this case, the Fourth Amendment prohibits Employer from requesint that employees be testes for AIDS

    d. all of the above are correct
  15. (30) Sunshine Bakers sells bakery products throughout the United States. Sunshine wants to hire additional workers, and it wants to extend the hours for some existing employees. Sunshine does not want to violate the Fair Labor Standards Act. Under these facts, select the correct answer

    a. Sunshine is not subject to this Act since it engages in only enterstate commerce

    b. Sunshine cannot employ anyone under 18 to do janitorial work at its plant

    c. Sunshine must pay its bakers time and a hald for hours exceeding 40 hours per week only if Sunshine's collective bargaining agreement requires such overtime pay

    d. Sunshine must pay its bakers at least minimum wage
  16. (30) Wholesome Foods engages in interstate commerce in connection with several farms and grocery store chains that is operates. The company has been informed that it must comply with the Natinonal Labor Relations Act. Which employess are covered by the Act?

    a. agricultural laborers who harvest produce on the company's farms

    b. retail clerks in the company's stores

    c. company managers who supervise the company's business operations
  17. (30) A union wishes to represent the employees of Karsten Co. Karsten believes that its employees would be better off without union representation. What action can Karsten take to discourage employee approval of the union without violating the Labor Management Relations Act?

    a. promise to increase employee medical benefits if union representation is voted down

    b. threaten to lay off employees if union representation is approved

    c. meet with employees to discuss the disadvantages of union representation

    d. limit the work hours of employees who support union representation
  18. (30) Ben's employment contract with Employer states that Ben can be terminated only for "good cause." Under these facts, Ben cannot be fired for which of the following reasons?

    a. Ben used illegal drugs during working hours

    b. Ben participated in lawful union activities

    c. Ben disclosed his employer's condifential customer list to a competitor

    d. Ben falsely stated on his employment application that he had a required college degree
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LAW CH. 26-36 MC
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