Question 1

A(n) ________ allows for an agent to conduct all business for the principal.

Accepted Answer

A)  special power of attorney 
B)  general power of attorney 
C)  encompassing power of attorney 
D)  detailed power of attorney 
E)  employment power of attorney 
A)  special power of attorney 
B)  general power of attorney 
C)  encompassing power of attorney 
D)  detailed power of attorney 
E)  employment power of attorney

Question 2

Kellen is Cronon's hired employee responsible for making sure that deliveries of flowers get to weddings and funerals on time. One afternoon however, after having a fight with his girlfriend, Kellen takes all the flower deliveries to her house as a show of love leaving the wedding party without their flowers. This would be considered:

Accepted Answer

A)  Out on their own 
B)  Rebelling against the master 
C)  Pleasure before work 
D)  Deviation for the employer's needs 
E)  Frolic of his own 
A)  Out on their own 
B)  Rebelling against the master 
C)  Pleasure before work 
D)  Deviation for the employer's needs 
E)  Frolic of his own

Question 3

The text discussed the case of Aguas v. State of New Jersey, where the New Jersey Supreme Court addressed a correctional officer's hostile work environment claim in which she alleged that she had was sexually harassed by her supervisor on several occasions. Which of the following was the result?

Accepted Answer

A)  The employer was not liable because it had an anti-discrimination policy in place. 
B)  The plaintiff successfully stated her claim for hostile work environment and was granted a $1,000,000 award in damages. 
C)  The case was dismissed because the employer launched a thorough internal investigation, which revealed no harassment had occurred. 
D)  The case was dismissed because there was an anti-discrimination policy in place, the employer conducted a thorough investigation of the claims, and there was no evidence the alleged harassment derived from the supervisory relationship. 
E)  The employer was liable because it failed to look into applicants' background before hiring. 
A)  The employer was not liable because it had an anti-discrimination policy in place. 
B)  The plaintiff successfully stated her claim for hostile work environment and was granted a $1,000,000 award in damages. 
C)  The case was dismissed because the employer launched a thorough internal investigation, which revealed no harassment had occurred. 
D)  The case was dismissed because there was an anti-discrimination policy in place, the employer conducted a thorough investigation of the claims, and there was no evidence the alleged harassment derived from the supervisory relationship. 
E)  The employer was liable because it failed to look into applicants' background before hiring.

Question 4

[Club Security] Trevor works security at Night Club and often has to escort rowdy patrons outside of the club. One night Trevor was called to separate a fight that started between Zack and Pat. When Trevor approached the fight, he saw Zack on top of Pat, punching him repeatedly. Trevor approached Zack and yelled, "Stop!" and "Security!" Zack would not stop punching Pat. Trevor removed Zack from Pat and tried to restrain him as he was thrashing around the bar. Zack head-butted Trevor in attempt to get away, causing Trevor to fallback. When Trevor stood back up, he threw a chair toward Zack but hit Pat on accident, resulting in a broken leg. Trevor then observed Zack attempting to fight with other customers and tried to take him down by jumping on his back. Zack was injured and suffered a pelvic fracture. Trevor received help from other bar patrons and Zack was escorted out of the building and detained until the police arrived.
-If Pat sues Night Club for his injury, will it be liable?

Accepted Answer

A)  Night Club would not be liable because Trevor was not acting within the scope of his employment. 
B)  Night Club would not be liable because Trevor's acts were not criminal or tortious. 
C)  Night Club would be liable because Trevor was negligent when he hit Pat with the chair. 
D)  Night Club would be liable because it should have anticipated an injury similar to Pat's based on the type of business it conducts. 
E)  Night Club would not be liable because Zack started the fight. 
A)  Night Club would not be liable because Trevor was not acting within the scope of his employment. 
B)  Night Club would not be liable because Trevor's acts were not criminal or tortious. 
C)  Night Club would be liable because Trevor was negligent when he hit Pat with the chair. 
D)  Night Club would be liable because it should have anticipated an injury similar to Pat's based on the type of business it conducts. 
E)  Night Club would not be liable because Zack started the fight.

Question 5

[Beach Home] Wendy hires Rob to find and negotiate a price for her perfect vacation home. Rob previously helped Wendy find a home and Wendy was very satisfied with his service. Wendy had many demands for her dream vacation home and told Rob that each demand was nonnegotiable. Wendy desired her home to have five bedrooms, seven bathrooms, a large master suite with a balcony, a pool house, and she wanted the property to be within a block of the beach. Rob informed Wendy this was a high demand and he was not confident he could find a property that met all of Wendy's requirements within her price range. Wendy thought Rob was underestimating himself and told him that she was not willing to budge. Rob finds a home that meets all of her requirements, except it is five blocks from the beach. Rob informed the seller he was working on behalf of a principal and the property met all of her requirements. Rob negotiates an outstanding price and is excited to share it with Wendy. Rob tells Wendy about the stellar price and Wendy is devastated that the property is not in her defined location. She immediately calls the seller to rescind the offer but the seller declines, stating the offer is binding because as the seller knew, Rob had authority to contract and the seller was not aware of Wendy's requirements.
-Even though the home did not meet all of Wendy's requirements, what would have made Rob's offer authorized?

Accepted Answer

A)  If Rob would have contacted Wendy and received her approval to extend an offer on a home that did not meet all of her requirements. 
B)  If Rob would have informed the seller of Wendy's name and contact information. 
C)  If Rob would have informed the seller the home did not meet all of the principal's requirements. 
D)  If Rob would have contacted Wendy and told her that he was going to make an offer on a home that did not meet all of her requirements. 
E)  Rob's offer was authorized. 
A)  If Rob would have contacted Wendy and received her approval to extend an offer on a home that did not meet all of her requirements. 
B)  If Rob would have informed the seller of Wendy's name and contact information. 
C)  If Rob would have informed the seller the home did not meet all of the principal's requirements. 
D)  If Rob would have contacted Wendy and told her that he was going to make an offer on a home that did not meet all of her requirements. 
E)  Rob's offer was authorized.

Question 6

An employer can hire an independent contractor to complete an inherently dangerous activity to escape liability just in case something goes wrong.

Accepted Answer

A) True 
 B)False

Question 7

Vicarious liability is assigned liability without fault.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not a way an agency relationship will terminate by acts of the parties?

Accepted Answer

A)  Fulfillment of purpose 
B)  Change in circumstances 
C)  Mutual agreement by the parties 
D)  Renunciation by the agent 
E)  Agency coupled with interest 
A)  Fulfillment of purpose 
B)  Change in circumstances 
C)  Mutual agreement by the parties 
D)  Renunciation by the agent 
E)  Agency coupled with interest

Question 9

[The Big Sale] Simone, the owner of ABC department store, needed to hire a number of employees in a hurry because of a big summer sale she was planning. Jamal was hired by Simone to run a cash register and to assist customers with taking large purchases to their cars. Jamal encountered a particularly annoying customer, Ryan. Ryan started complaining the minute he saw Jamal. Ryan complained about having to wait for Jamal to assist him with carrying his television purchase to his car, about the merchandise in the store, and about the quality of the store's employees. Jamal tried to control himself while he carted Ryan's television to the car; however, when Ryan began verbally attacking Jamal's appearance and professional manner, Jamal threw the television to the ground and punched Ryan in the nose. Ryan chose to investigate Jamal's employment history and discovered that Jamal had been fired from his previous three jobs for taking violent action against customers. Two of his former employers were willing to testify that if Simone had called them, they would have disclosed Jamal's tendencies to her. Jamal listed the former employers on his application, but because she was in a hurry to hire employees, Simone did not take the time to check with the former employers. Another problem confronting Simone during the big sale is that Lea, a long-time employee of Simone who had never caused any problems before, accidentally, but negligently, dropped a box on the foot of a customer, Greg. Greg had to have an X-ray and is threatening to sue both Simone and Lea.
-Which of the following is true regarding Simone's liability, if any, for her own conduct in regards to Ryan's injury?

Accepted Answer

A)  Simone would likely be held liable for negligent hiring. 
B)  Regardless of whether she did anything to directly cause injury to Ryan, Simone would likely be held liable on a strict liability theory because her customer was injured. 
C)  Simone would likely be held liable for breach of customer warranty. 
D)  Simone would likely be required to split the damages with Jamal because Jamal was her employee. 
E)  There is no theory on which Simone could be held liable for her own conduct in this situation. 
A)  Simone would likely be held liable for negligent hiring. 
B)  Regardless of whether she did anything to directly cause injury to Ryan, Simone would likely be held liable on a strict liability theory because her customer was injured. 
C)  Simone would likely be held liable for breach of customer warranty. 
D)  Simone would likely be required to split the damages with Jamal because Jamal was her employee. 
E)  There is no theory on which Simone could be held liable for her own conduct in this situation.

Question 10

What is the rationale behind vicarious liability?

Accepted Answer

A)  Under the time and place theory, the employee would not have caused harm at that exact time and place had it not been for the employer. 
B)  The employer benefits from the work of the employee, therefore, the employer should also be responsible for any harm the employee caused. 
C)  The employer did know or should have known his or her employee would cause harm. 
D)  The employer typically has more money to pay for the harm. 
E)  The employer should have better hiring practices. 
A)  Under the time and place theory, the employee would not have caused harm at that exact time and place had it not been for the employer. 
B)  The employer benefits from the work of the employee, therefore, the employer should also be responsible for any harm the employee caused. 
C)  The employer did know or should have known his or her employee would cause harm. 
D)  The employer typically has more money to pay for the harm. 
E)  The employer should have better hiring practices.

Exam 34: Liability to Third Parties and Termination

A(n) ________ allows for an agent to conduct all business for the principal.

The text discussed the case of Aguas v. State of New Jersey, where the New Jersey Supreme Court addressed a correctional officer's hostile work environment claim in which she alleged that she had was sexually harassed by her supervisor on several occasions. Which of the following was the result?

An employer can hire an independent contractor to complete an inherently dangerous activity to escape liability just in case something goes wrong.

Vicarious liability is assigned liability without fault.

Which of the following is not a way an agency relationship will terminate by acts of the parties?

What is the rationale behind vicarious liability?

An Introduction to Dynamic Business Law

Business Ethics

The Us Legal System

Alternative Dispute Resolution

Constitutional Principles

International and Comparative Law

Crime and the Business Community

Tort Law

Negligence and Strict Liability

Product Liability

Liability of Accountants and Other Professionals

Intellectual Property

Introduction to Contracts

Agreement

Consideration

Capacity and Legality

Legal Assent

Contracts in Writing

Third-Party Rights to Contracts

Discharge and Remedies

Introduction to Sales and Lease Contracts

Title, Risk of Loss, and Insurable Interest

Performance and Obligations Under Sales and Leases

Remedies for Breach of Sales and Lease Contracts

Warranties

Negotiable Instruments: Negotiability and Transferability

Negotiation, Holder in Due Course, and Defenses

Liability, Defenses, and Discharge

Checks and Electronic Fund Transfers

Secured Transactions

Other Creditors Remedies and Suretyship

Bankruptcy and Reorganization

Agency Formation and Duties

Forms of Business Organization

Partnerships: Nature, Formation, and Operation

Partnerships: Termination and Limited Partnerships

Corporations: Formation and Financing

Corporations: Directors, Officers, and Shareholders

Corporations: Mergers, Consolidations, Terminations

Corporations: Securities and Investor Protection

Employment and Labor Law

Employment Discrimination

Administrative Law

Consumer Law

Environmental Law

Antitrust Law

The Nature of Property, Personal Property, and Bailments

Real Property

Landlord-Tenant Law

Insurance Law

Wills and Trusts

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