Unformatted Attachment Preview
Name:
Class:
Date:
ID: A
Spring 2017 Final LEB
Multiple Choice
Identify the choice that best completes the statement or answers the question.
1. Cody contracts with Drew to act as her agent in a fraudulent marketing scheme. Cody does not successfully
complete the scheme. Drew can recover from Cody for
a.
breach of contract.
b. breach of implied warranty.
c. breach of the duty of performance.
d. nothing
2. Louis, a certified public accountant and an investor, and Maria, an insurance salesperson and a realtor, may
create an agency relationship for
a. a business purpose only.
b. a legal purpose only.
any purpose.
no purpose.
3. Jill introduces Kelly to her friends as "my associate." Kelly purports to act as Jill's agent in several business
transactions with those friends. If Jill is liable for Kelly's actions, it will be under
the doctrine of estoppel.
b. the equal dignity rule.
the fiduciary principle.
the good faith statute.
c.
d.
a.
C.
d.
a.
4. AAA Development Company employs Bud to buy property for a future residential development. Bud secretly
buys some of the property and sells it to AAA at a profit. Bud has breached
no duty.
b. the duty of accounting.
the duty of loyalty.
d. the duty of notification.
c.
5. Bob, a salesperson at a Carpets Galore store, tells Dina, a customer, "Buy your carpet here, and I'll install it
for half of what the store would charge." Dina buys the carpet, which Bob installs for half the store's price.
Bob keeps the money. Bob has breached
no duty.
b. the duty of loyalty.
the duty of notification.
d. the duty of obedience.
a.
C.
6. Tri-state Financial Corporation hires Uri, a real estate agent, to locate investment properties for Tri-state.
learns of a warehouse available for $100,000, informs Tri-state, and makes an offer of $90,000 on Tri-sta-
instruction. The offer is rejected. Uri
breached the agent's fiduciary duties to the principal.
b. did nothing wrong.
failed to take advantage of a business opportunity.
d. made an unreasonable offer based on current market value.
a.
C.
1
Glen is an agent for High Flight, Inc. On High Flight's behalf and at its request, Glen pays Ilsa for
arises under the principal's duty of
avoidance.
cooperation
indemnification.
reimbursement.
Spis zzgent for Refined Chemicals Corporation, Refined Chemicals owes Pam the duty of
C
accounting
obedience
performance.
safe working conditions.
9. Cal employs Daily Employment Agency as an agent under a written agreement that describes th
cuties of both parties. This is
apparent authority.
equal authority.
express authority.
implied authority.
10. Elin, an agent for First Credit Corporation (FC), enters into an unauthorized contract with Gre
Expectations, Inc. (GE), purportedly on FC's behalf. This contract will be enforceable if it is
any third party,
Elin.
FC
11. Stan hires Tina, a real estate broker, to act as his agent to sell his house. The house burns de
sold. The agency agreement is likely
still in fore if Stan gives Tina additional consideration,
bill in fore if Tina does not mention the fire to prospective customers,
terminated by mutual consent of the parties,
& terminated by operation of law,
12. Macro Corporation and National Purchasing Company may create an agency agreement
by conduct, in writing, or orally,
b. by conduct of orally only
6 m writing only
wider no circumstances,
19, Ria is appointed as an agent for Superior Sales, Inc. The agency agreement is silent as
that Rae is expected to achieve. She must
shilove nothing because the agreement says nothing on the issue.
b. in the level that Rita achieved with her previous employer.
6. miitain the level Superior attained before Rita became an agent
fessonable diligence and skill in selling,
Name:
(EET
F
ID: A
14. Elle is an agent for Fine Cosmetics, Inc. Elle owes Fine Cosmetics the duty of
22 A
23
20
a. avoidance.
b. compensation.
c. indemnification.
d. performance.
15. Prospective Enterprises (PE) employs Quinn to buy property for a possible commercial development. Quinn
secretly buys some of the property and sells it to PE at a profit. Quinn has breached
a.
b.
no duty.
the duty of accounting.
the duty of loyalty.
the duty of notification.
c.
d.
a.
a.
b.
c.
16. Hugh is an agent for Industrial Solvents, Inc. Hugh owes Industrial Solvents the duty of
compensation.
b. loyalty.
c. reimbursement.
d. safe working conditions.
17. Mona is an agent for Nationwide Restaurant Corporation (NRC). In acting as an agent, Mona follows all of
NRC's clearly stated instructions. This responsibility arises under
no agent's duty.
the agent's duty of loyalty.
the agent's duty of notification.
d.
the agent's duty of obedience.
18. Jody is an agent for Kwik Credit Company (KCC). In the course of Jody's performance for KCC, Jody pays
Leo for certain auto maintenance and repair services. Jody's right to obtain the amount of those payments
from KCC arises under the principal's duty of
avoidance.
b. cooperation.
indemnification.
d. reimbursement.
19. United Trucking Company employs Vic as a driver. While driving a United truck within the scope of
employment, Vic causes an accident in which Wendy is injured. Wendy can recover from
United only.
b. United or Vic.
Vic only.
d. Wendy's insurance company only.
a.
c.
a.
c.
a.
20. Erin is the agent of Franco, an actor. Erin makes a deal for Franco to act in a new movie for Great
Productions, Inc. The contract is binding on Franco if it is signed on his behalf by
Erin.
b. Great Productions.
the Screen Actors Guild.
d. none of the above.
c.
3
ID: A
Name:
EET
Fact Pattern 31-1
B
Janet and Julie work at ABC Interiors. Janet is a designer who works with clients of ABC on interior design
projects. ABC closely supervises all
of its designers, and dictates their work schedules. Julie works
part-time in the evenings cleaning the offices.
21. Refer to Fact Pattern 31-1. Janet is ABC's
a. employee but not agent.
b. employee and agent.
c. independent contractor.
d.
employee, agent, and independent contractor.
22. Refer to Fact Pattern 31-1. Julie is ABC's
a. agent but not employee.
b. employee and agent.
c. independent contractor.
d.
employee or independent contractor, depending on whether ABC controls the details of
her physical performance.
23. Mike is an architect who works for General Construction Company. The most important factor in
determining whether Mike is General's employee or an independent contractor is
the degree of control that General exercises over Mike.
b. the distinction between General's business and Mike's occupation.
the length of the working relationship between General and Mike.
d. the method of payment.
a.
c.
Fact Pattern 31-2
Liz and Sara work as clerks in Ann's Dress Shop. Ann withholds federal taxes from their pay, and controls
the methods and details of the performance of their work. Liz and Sara are not authorized to modify the
prices or other terms of a sale at the shop.
a.
24. Refer to Fact Pattern 31-2. At the shop, Liz and Sara are
Ann's employees only.
b. Ann's employees and agents.
c. independent contractors.
d. none of the above.
25. Refer to Fact Pattern 31-2. Ann hires Krupp Carpet Company to clean the carpets of her shop. Ann gives
Krupp instructions as to what needs to be cleaned and when. Krupp is
a. Ann's employee only.
b. Ann's employee and agent.
an independent contractor.
d. none of the above.
c.
26. Steve contracts with Carol to cut her grass every two weeks, but Steve is not controlled by Carol nor subject
to Carol's right to control with respect to his physical conduct in the performance of the contract. Steve is
a. an employee.
b.
an agent.
an independent contractor.
d. none of the above.
c.
4
Name:
ID: A
leg. Warren is liable for
a.
b.
c.
d.
none of the above.
27. Warren hires Sam and Toby to paint his barn one time only. Sam decides it would be easier to paint the top
of the barn by climbing up a nearby tree and jumping onto the roof. Sam falls out of the tree and breaks his
nothing, because Sam is an independent contractor.
Sam's medical costs, because Sam is an agent.
Sam's lost income and medical costs, because Sam is an employee.
28. National Computer Corporation (NCC) employs Cynthia as an agent. NCC gives her an exclusive territory in
a. compensation.
b.
cooperation
c. indemnification.
d. reimbursement.
29. Andy hires Bree to act as his agent. Clyde sues Andy for Bree's negligent conduct. Andy's right to sue Bree
for an equal amount of damages is the right of
a. nullification.
b. avoidance.
c. termination.
d. indemnification.
a.
c.
d.
30. AAA Personnel, Inc., discharges Barb, who feels the discharge is due to her religious beliefs. She decides to
file an employment-discrimination suit against AAA. She should contact the Equal Employment Opportunity
Commission
after filing the suit.
b. any time or no time.
at the same time the suit is filed.
before filing the suit.
31. Cody believes that Delta Corporation has discriminated against him on the basis of gender. Cody files a suit
against Delta under Title VII. To establish a prima facie case of employment discrimination, Cody must she
that
a. Cody is a member of a protected class.
b. Delta has no legal defenses against the claim.
discriminatory intent motivated Delta's act.
d. other firms in Delta's industry have committed discriminatory acts.
32. Ken, who is Hispanic, applies for a job at Local Plant, Inc. Mary, the interviewer, says that Local Plant de
not hire Hispanics. This is
a. impermissible discrimination on the basis of race.
b. permissible discrimination because it is an honest response.
c. permissible discrimination because it occurs before employment.
d. permissible discrimination because "Ken" is not an Hispanic name.
c.
5.