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Agency and Employment Law Test

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Test Ch. 12: Agency and Employment Law
Date: 8/22/2019
Total Score: 1 out of 5
Percentage: 20%
1. Patience hires Alanna to paint her house. Alanna negligently injures Tom by dropping a paint bucket on
his head. Patience is liable to Tom.
a. TRUE
b. FALSE
Explanation: Alanna is an independent contractor, and principals are not ordinarily liable for these types of
agents' torts.
2. Western Airways only hires women as flight attendants, because surveys show that 99% of the customers
prefer them to men. Western will not be liable for sex discrimination because they have a genuine business
purpose for the policy.
a. FALSE
Explanation: Customer preference is not a basis for a bona fide occupational qualification, which is the defense
of a facially discriminatory policy of this type.
b. TRUE
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3. Peter hires Allen as a salesman, and tells him not to sell in units over 50 in quantity. Allen then contracts to
sell 100 units to Theresa. If Peter refuses to sell the goods to Theresa, he will not be liable.
a. TRUE
b. FALSE
Explanation: Although Allen breached his duty of obedience to Peter, Allen still had apparent authority to make
the contract, binding Peter as principal.
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4. Pamela contracts for Raschid, a realtor, to help her buy a house. Raschid's brother happens to own one he
thinks is suitable. Without telling Pamela that it is his brother's house, Raschid shows it to her. Pamela is
delighted with the house, and Raschid gives her a very good deal on it. At the closing, Pamela discovers for
the first time that Raschid's brother is the owner. Pamela can legally refuse to pay Raschid's commission on
the sale.
a. FALSE
b. TRUE
Explanation: Raschid breached his duty of loyalty and notification, and one of Pamela's remedies as a principal
is withholding compensation.
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5. Beta Inc. hires Anita as a salesperson. Despite Anita's doing a great job, Beta can fire her for no reason at
any time.

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Test Ch. 12: Agency and Employment Law • Date: 8/22/2019 • Total Score: 1 out of 5 • Percentage: 20% 1. Patience hires Alanna to paint her house. Alanna negligently injures Tom by dropping a paint bucket on his head. Patience is liable to Tom. • a. TRUE • b. FALSE Explanation: Alanna is an independent contractor, and principals are not ordinarily liable for these types of agents' torts. 2. Western Airways only hires women as flight attendants, because surveys show that 99% of the customers prefer them to men. Western will not be liable for sex discrimination because they have ...
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I was having a hard time with this subject, and this was a great help.

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