Exam: 060472RR - Agency and Employment Law
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Questions 1 to 20: Select the best answer to each question. Note that a question and its answers may be split across a page break, so be sure that you have seen the entire question and all the answers before choosing an answer.
1. Anna gives Doris a power of attorney. Doris does business with Big Bank as Anna's agent. Anna then revokes the power of attorney. Anna is not liable on any contracts Doris made
A. after the date of termination but before notice was received by Big Bank.
B. after Big Bank received notice that she was no longer an agent.
C. after her agency was terminated.
D. that weren't fully performed at the time notice was received by Big Bank.
2. Eric has gradually been losing his eyesight, which has adversely affected his work. When the boss fires Eric, she tells him that she's letting him go because he can't see anymore. Eric's discharge is
A. not wrongful because it didn't involve a hiring decision.
B. not wrongful if he can't perform the job without reasonable accommodations by the employer.
C. wrongful if the employer can make a reasonable accommodation for his disability.
D. wrongful because once hired, employees can't be discharged due to disability.
3. Phil receives a job offer from Big Tech, Inc., in a letter that states, "If you leave your current position and join us, we will employ you for the next five years as our company expands." Phil takes the job, and he is fired after six months even though his work was satisfactory. If Phil sues and wins, the most likely reason is
A. express contract.
B. the employment at-will doctrine.
C. the state's right-to-work law.
D. promissory estoppels.
4. Sally works for Big Tech, Inc. One day, the boss calls her into his office and says, "Women just don't get tech. You're fired." Sally sues. In the course of the litigation, the company discovers that Sally was pilfering paper from the company storage, and under the employee handbook, this is grounds for termination. Sally's discharge is
A. not wrongful because gender is a bona fide job qualification for working in tech.
B. wrongful because evidence can't be used in a gender discrimination case.
C. wrongful because the employer intended to fire her based on gender.
D. not wrongful because the employer discovered evidence that justifies the firing.
5. Bob works for the government and belongs to a union. Bob's union goes on strike. Which of the following statements is true?
A. The strike is lawful because only government employees can strike.
B. The strike is unlawful because only nongovernment employees can strike.
C. If the strike is lawful, Bob must not be a federal employee.
D. If the strike is lawful, Bob must be a federal employee.
6. Sam gives Dennis a written power of attorney to sell his house. Though the power of attorney doesn't expressly authorize Dennis to do so, Dennis purchases an ad in the newspaper to advertise sale of the house. The newspaper sends a bill to Sam. If Sam is liable for the bill, it's most likely based on agency by
A. appointment.
B. estoppels.
C. operation of law.
D. implication.
7. The right to notice of a plant closing or massive layoffs due to sale of a business is derived from the
A. Antitrust Procedures and Penalties Act.
B. Employee Retirement Income Security Act.
C. Worker Adjustment and Retraining Notification Act.
D. Hart-Scott-Rodino Antitrust Act.
8. Bob's company was found in violation of OSHA. The violation likely relates to
A. workplace safety.
B. workers' compensation.
C. failure to pay overtime.
D. racial discrimination.
9. Sandy works as a clerk in Big Department Store. After she finishes work one day, she heads out to her car in the parking lot to drive home. There, she sees Petra, someone she detests. Sandy and Petra argue, and Sandy punches Petra in the nose, causing an injury. Which of the following statements is true?
A. Only Sandy is liable for Petra's injury.
B. Only Big Department Store is liable for Petra's injury.
C. Neither Sandy nor Big Department Store are liable for Petra's injury.
D. Both Sandy and Big Department Store are liable for Petra's injury.
10. Norma has worked for Big Factory for 15 years, has never missed a day of work, and has always been an excellent worker. One day, without warning, Norma's supervisor fires her without any explanation. Norma knows of no reason for the termination. Which of the following statements is true?
A. Norma may file a bad faith action against her supervisor.
B. Norma can't do anything as long as the reasons were nondiscriminatory.
C. Norma may file a bad faith action against Big Factory.
D. Norma can't do anything unless she lives in an employment-at-will jurisdiction.
11. Jane works for Big Business, Inc., as a sales representative. The boss decides to fire her because she isn't a Mets fan. The boss can
A. not fire Jane if here work was satisfactory.
B. not fire Jane if she agrees to become a Mets fan.
C. fire Jane.
D. not fire Jane because of the Civil Rights Act of 1964.
12. Ted is a janitor at Big Deal, Inc. One night, Ted is cleaning the boss's office and sits in the boss's chair. At that moment, a salesman walks in, thinks Ted is a manager, and offers to sell Big Deal, Inc., 700 widgets for $100 each. Ted thinks this sounds like a good deal, assumes the boss will be pleased, and signs the contract as an agent for Big Deal, Inc. The boss discovers this deal the next day and is angry because widgets cost $27 each. If Big Deal is obligated under the agreement, it's based on __________ authority.
A. actual
B. apparent
C. express
D. implied
13. Carl, a little person with dwarfism, applies for a job. He is told he won't be hired because he is a little person. Carl sues, claiming discrimination under the Civil Rights Act. Which of the following statements is true?
A. Unless Carl can show that the height requirement has a disparate impact on short people, he has no claim.
B. Carl has a good claim.
C. Carl has no claim.
D. Unless the employer can show that being of a certain height is a bona fide job qualification, Carl has a good claim.
14. Irene hires Mark to do work for her. In the course of performing that work, Mark causes injury to a third party. Which of the following statements is true?
A. Irene is liable for the injury whether Mark is an employee or an independent contractor.
B. Irene isn't liable for the injury whether Mark is an employee or an independent contractor.
C. If Mark is an independent contractor, Irene is liable for the injury.
D. If Mark is an employee, Irene is liable for the injury.
15. Javier gives written authorization to Tamara to sell his house. Javier dies on the October 4. On October 8, Tamara enters into a written contract on behalf of Javier to sell the house to Trudy for $100,000. Before Tamara entered into the contract, she showed the written authorization to Trudy. Javier's estate is
A. liable if Tamara knew Javier was deceased at the time of the contract.
B. obligated to sell for $100,000 because Tamara had express authority.
C. liable if the price is fair.
D. not liable.
16. Molly borrowed $5,000 from Larry and, as collateral, gave him jewelry and authority to sell the jewelry if she defaulted. Afterward, Molly had second thoughts and revoked the agency. Which of the following statements is true?
A. Molly can't terminate the agency unless she claims bankruptcy.
B. Molly can terminate the agency based on impossibility of performance.
C. Molly can't terminate the agency unless Larry sold the jewelry.
End of exam
D. Molly can terminate the agency if she paid the loan.
17. Lee hires Zeke to sell her house. She tells Zeke to ask for $200,000, but says she will take $175,000. Zeke's friend Victor asks Zeke about the house, and Zeke tells him that Lee will take $175,000. Victor offers $175,000, and Zeke accepts. Zeke violated his duty of
A. loyalty.
B. due diligence.
C. obedience.
D. account.
18. Tim hires Brett to mow his yard once a week, using the mower stored in Tim's garage. Tim then gives the mower to his brother Ed, who lives in another town. Brett complains to Tim, pointing out that Brett won't incur expense to rent a mower to perform the contract. Tim says Brett is being uncooperative. Which of the following statements is legally true?
A. Brett violated his duty of cooperation.
B. Tim violated his duty of cooperation.
C. Tim violated his duty of loyalty.
D. Brett violated his duty of loyalty.
19. Polly hires Nick to sell her house and gives him power of attorney that authorizes him to do, but the power of attorney says nothing about price. Polly tells Nick to take nothing less than $200,000. Lola offers Nick $195,000 for the house, and Nick accepts. Nick violated his duty of
A. due diligence.
B. loyalty.
C. account.
D. obedience.
20. Carter wants to impress his boss, Marco. Carter approaches one of Marco's potential clients and negotiates a contract with the client on Marco's behalf. The client agrees and signs the contract. Marco, however, doesn't know about Carter's negotiation. Carter lacks the authority to negotiate on Marco's behalf. When Marco finds out, he is so pleased about the contract that he overlooks Carter's actions and tells Carter he did an excellent job landing the client. This forms an agency by
A. ratification.
B. agreement.
C. operation of law.
D. estoppel
