Question 1

Which of the following is not a way an agency relationship will terminate by operation of law?

Accepted Answer

A) War 
B) Impossibility 
C) Death 
D) Lapse of time 
E) Bankruptcy 
A) War 
B) Impossibility 
C) Death 
D) Lapse of time 
E) Bankruptcy

Question 2

If Jun pays for the damage to Gina's car,does he have any remedy against Connor?

Accepted Answer

A) Any recovery Jun receives from Connor will be based upon principles of comparative negligence. 
B) If Jun covers Gina's damages,then Jun is not entitled to any reimbursement from Connor. 
C) Any recovery Jun receives from Connor will be based upon principles of contributory negligence. 
D) If Jun covers Gina's damages,Jun is only entitled to reimbursement from Connor for 50% of whatever he paid. 
E) If Jun covers Gina's damages,then Jun may receive full reimbursement from Connor based upon the right of indemnification. 
A) Any recovery Jun receives from Connor will be based upon principles of comparative negligence. 
B) If Jun covers Gina's damages,then Jun is not entitled to any reimbursement from Connor. 
C) Any recovery Jun receives from Connor will be based upon principles of contributory negligence. 
D) If Jun covers Gina's damages,Jun is only entitled to reimbursement from Connor for 50% of whatever he paid. 
E) If Jun covers Gina's damages,then Jun may receive full reimbursement from Connor based upon the right of indemnification.

Question 3

The text discussed the case of Burlington Industries,Inc.v.Ellerth,where the U.S.Supreme Court addressed workplace harassment and defined two ways an employer may be liable for torts of its employees while acting outside the scope of employment.Which of the following is one of those ways?

Accepted Answer

A) The employer had bad hiring practices. 
B) The employer knew or should have known of the employee's harm and failed to stop it. 
C) The employer failed to monitor its employees. 
D) The employer outsourced its human resources overseas and failed to follow traditional U.S.human resources procedures. 
E) The employer failed to conduct a semi-annual training on appropriate workplace behavior. 
A) The employer had bad hiring practices. 
B) The employer knew or should have known of the employee's harm and failed to stop it. 
C) The employer failed to monitor its employees. 
D) The employer outsourced its human resources overseas and failed to follow traditional U.S.human resources procedures. 
E) The employer failed to conduct a semi-annual training on appropriate workplace behavior.

Question 4

Will a company be liable if it hires an independent contractor and directs the contractor to commit a tort?

Accepted Answer

A) Yes,because the company directed the independent contractor to commit a tort. 
B) No,because the independent contractor did not have to obey the company. 
C) No,because companies are not liable for acts of an independent contractor. 
D) Yes,because the company should have known the independent contract would do what it asked. 
E) No,because the contractor is not an employee. 
A) Yes,because the company directed the independent contractor to commit a tort. 
B) No,because the independent contractor did not have to obey the company. 
C) No,because companies are not liable for acts of an independent contractor. 
D) Yes,because the company should have known the independent contract would do what it asked. 
E) No,because the contractor is not an employee.

Question 5

If a third party comes to know of an undisclosed principal's identity and obtains a judgment against the principal,which of the following is true?

Accepted Answer

A) The agent is released from liability to the third party unless the principal resides in another state and has not paid the judgment within 30 days from when it was rendered. 
B) The agent remains liable to the third party. 
C) The agent is released from liability to the third party. 
D) The agent remains liable to the third party unless the dispute involves an amount less than $1,000 in which case the agent is released. 
E) The agent remains liable to the third party unless the dispute involves an amount less than $500 in which case the agent is released. 
A) The agent is released from liability to the third party unless the principal resides in another state and has not paid the judgment within 30 days from when it was rendered. 
B) The agent remains liable to the third party. 
C) The agent is released from liability to the third party. 
D) The agent remains liable to the third party unless the dispute involves an amount less than $1,000 in which case the agent is released. 
E) The agent remains liable to the third party unless the dispute involves an amount less than $500 in which case the agent is released.

Question 6

Which statement is false regarding agency law in the United Arab Emirates (UAE)?

Accepted Answer

A) Registered agents may seek compensation when an agency ends even if the termination occurs in accordance with the terms of the agency agreement. 
B) Only registered agents are entitled to seek compensation in the event of termination. 
C) The UAE Civil Code is relevant in regard to agents. 
D) In regard to disputes about compensation of agents,court-appointed experts are usually the entities that are responsible for determining compensation amounts. 
E) UAE Commercial Transaction Law is relevant in regard to agents. 
A) Registered agents may seek compensation when an agency ends even if the termination occurs in accordance with the terms of the agency agreement. 
B) Only registered agents are entitled to seek compensation in the event of termination. 
C) The UAE Civil Code is relevant in regard to agents. 
D) In regard to disputes about compensation of agents,court-appointed experts are usually the entities that are responsible for determining compensation amounts. 
E) UAE Commercial Transaction Law is relevant in regard to agents.

Question 7

List the options of an injured third party when a principal is found liable for a misrepresentation made by an agent.

Accepted Answer

The third

Question 8

Which of the following is true regarding whether Jason is liable to Sakura for the cost of the book if Sakura pays Gwen the purchase price?

Accepted Answer

A) Jason is liable to Sakura for the cost of the book. 
B) Jason can avoid liability to Sakura only if he can establish that his actions constituted "justifiable expectations" under the law absolving him from liability. 
C) Jason is liable to Sakura only if she resells the book and is unable to recover as much as she paid for it. 
D) Jason is liable to Sakura for the cost of the book only if Sakura had Jason sign a document affirming his liability before Sakura paid Gwen. 
E) Jason is not liable to Sakura for the cost of the book. 
A) Jason is liable to Sakura for the cost of the book. 
B) Jason can avoid liability to Sakura only if he can establish that his actions constituted "justifiable expectations" under the law absolving him from liability. 
C) Jason is liable to Sakura only if she resells the book and is unable to recover as much as she paid for it. 
D) Jason is liable to Sakura for the cost of the book only if Sakura had Jason sign a document affirming his liability before Sakura paid Gwen. 
E) Jason is not liable to Sakura for the cost of the book.

Question 9

As set forth in the text,which of the following is true regarding respondeat superior in Iraq?

Accepted Answer

A) Through a specific enactment,government municipalities may not be held liable for acts of employees. 
B) The concept of respondeat superior is irrelevant in Iraq because civil actions for injury are not allowed. 
C) Iraqi law contains no exceptions under which respondeat superior principles are permitted. 
D) Iraq's law is influenced in part by classical Islamic law which suggests that those who cause harm should repair it. 
E) Iraq applies the same concept of respondeat superior as the U.S. 
A) Through a specific enactment,government municipalities may not be held liable for acts of employees. 
B) The concept of respondeat superior is irrelevant in Iraq because civil actions for injury are not allowed. 
C) Iraqi law contains no exceptions under which respondeat superior principles are permitted. 
D) Iraq's law is influenced in part by classical Islamic law which suggests that those who cause harm should repair it. 
E) Iraq applies the same concept of respondeat superior as the U.S.

Question 10

The principal may terminate an agency coupled with an interest.

Accepted Answer

A) True 
 B)False

Question 11

The text discussed the case of Dunkley v.S.Coraluzzo Petroleum Transporters,where the New Jersey Appellate Court addressed an employer's liability for the harassing conduct of its supervisor.Which of the following was the result?

Accepted Answer

A) The employer was not vicariously liable because it fired the supervisor. 
B) The plaintiff was successful because the employer could not prove its employees were aware or should have been aware of its policies. 
C) The employer was not vicariously liable because it maintained a handbook of anti-discrimination policies and complaint methods,provided it to employees upon hire and directed them to become familiar with the information provided,and took steps to prevent plaintiff from further harassment. 
D) The plaintiff was successful because the employer admitted it knew the supervisor harassed the plaintiff but failed to take action. 
E) The plaintiff was successful because the employer did not have any policies in place to prevent the harassment that occurred and the employer did not take steps to prevent the harassment once it became aware. 
A) The employer was not vicariously liable because it fired the supervisor. 
B) The plaintiff was successful because the employer could not prove its employees were aware or should have been aware of its policies. 
C) The employer was not vicariously liable because it maintained a handbook of anti-discrimination policies and complaint methods,provided it to employees upon hire and directed them to become familiar with the information provided,and took steps to prevent plaintiff from further harassment. 
D) The plaintiff was successful because the employer admitted it knew the supervisor harassed the plaintiff but failed to take action. 
E) The plaintiff was successful because the employer did not have any policies in place to prevent the harassment that occurred and the employer did not take steps to prevent the harassment once it became aware.

Question 12

When would an agent who breaches his or her agreement be liable for a breach of implied warranty?

Accepted Answer

A) When the principal is disclosed. 
B) When the principal is partially undisclosed. 
C) When the principal is undisclosed. 
D) When the principal is disclosed or partially disclosed. 
E) When the principal is partially disclosed. 
A) When the principal is disclosed. 
B) When the principal is partially undisclosed. 
C) When the principal is undisclosed. 
D) When the principal is disclosed or partially disclosed. 
E) When the principal is partially disclosed.

Question 13

Which of the following is true regarding the relevance of whether a tort committed by an employee occurred within the time and space limits of employment?

Accepted Answer

A) It is relevant on the issue of what percentage of harm the agent must bear as opposed to the principal. 
B) It is relevant on whether the principal is liable for the tort or whether the agent alone is liable. 
C) It is relevant in regard to whether equitable relief is available. 
D) It is not relevant. 
E) It is relevant on whether the agent is liable for the tort or whether the principal alone is liable. 
A) It is relevant on the issue of what percentage of harm the agent must bear as opposed to the principal. 
B) It is relevant on whether the principal is liable for the tort or whether the agent alone is liable. 
C) It is relevant in regard to whether equitable relief is available. 
D) It is not relevant. 
E) It is relevant on whether the agent is liable for the tort or whether the principal alone is liable.

Question 14

Which of the following is false regarding revocation of the authority of an agent and renunciation by an agent?

Accepted Answer

A) If an agent has breached a fiduciary duty to the principal,the principal can revoke the agent's authority;but the agent may be entitled to damages. 
B) An agent can terminate the agency relationship by renouncing the authority given to the agent. 
C) At any time a principal can revoke an agent's authority. 
D) A principal's revocation of an agent's authority may result in a breach of contract entitling the agent to damages. 
E) An agent's wrongful ending of the agency relationship may be a breach of contract entitling the principal to damages. 
A) If an agent has breached a fiduciary duty to the principal,the principal can revoke the agent's authority;but the agent may be entitled to damages. 
B) An agent can terminate the agency relationship by renouncing the authority given to the agent. 
C) At any time a principal can revoke an agent's authority. 
D) A principal's revocation of an agent's authority may result in a breach of contract entitling the agent to damages. 
E) An agent's wrongful ending of the agency relationship may be a breach of contract entitling the principal to damages.

Question 15

When an agent is an employee and commits a tort,which of the following is true regarding liability of a principal/employer who controls the employee's behavior?

Accepted Answer

A) The employer can be liable. 
B) In order to give the employer a chance to evaluate the employee,the employer is liable only if the employee has worked for the employer for at least six months. 
C) In order to give the employer a chance to evaluate the employee,the employer is liable only if the employee has worked for the employer for at least thirty days. 
D) The employer is not liable because as a matter of public policy,a person is singularly liable for his or her torts. 
E) In order to give the employer a chance to evaluate the employee,the employer is liable only if the employee has worked for the employer for at least seven days. 
A) The employer can be liable. 
B) In order to give the employer a chance to evaluate the employee,the employer is liable only if the employee has worked for the employer for at least six months. 
C) In order to give the employer a chance to evaluate the employee,the employer is liable only if the employee has worked for the employer for at least thirty days. 
D) The employer is not liable because as a matter of public policy,a person is singularly liable for his or her torts. 
E) In order to give the employer a chance to evaluate the employee,the employer is liable only if the employee has worked for the employer for at least seven days.

Question 16

[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 Zack sues Night Club for his injury based on Trevor's acts,would it be liable?

Accepted Answer

A) Night Club would not be liable because Trevor's acts toward Zack were not criminal or tortious. 
B) Night Club would not be liable because Trevor was not acting within the scope of his employment. 
C) Night Club would be liable because it should have anticipated an injury similar to Zack's based on the type of business it conducts. 
D) Night Club would be liable because it was unnecessary for Trevor to jump on Zack's back. 
E) Night Club would not be liable,only Pat is liable. 
A) Night Club would not be liable because Trevor's acts toward Zack were not criminal or tortious. 
B) Night Club would not be liable because Trevor was not acting within the scope of his employment. 
C) Night Club would be liable because it should have anticipated an injury similar to Zack's based on the type of business it conducts. 
D) Night Club would be liable because it was unnecessary for Trevor to jump on Zack's back. 
E) Night Club would not be liable,only Pat is liable.

Question 17

A ________ power of attorney grants an agent express authority over specific outlined acts,in contrast to a ________ power of attorney,which grants an agent authority to conduct all business for the principal.

Accepted Answer

A) General;durable 
B) Special;general 
C) Special;durable 
D) Durable;special 
E) Durable;general 
A) General;durable 
B) Special;general 
C) Special;durable 
D) Durable;special 
E) Durable;general

Question 18

[Textbook Confusion] Jason needs a business law book.He hears that Gwen has one for sale.Jason asks his girlfriend Sakura to buy it for him from Gwen if Sakura can get it for under $40.Sakura sees Gwen in the hall and asks if she will sell the book for $30,and Gwen agrees.They are between classes,and Sakura does not mention that the book is for Jason,although all the parties were on good terms,and the identity of the buyer should not have affected Sakura's agreement.Later,however,Rima agrees to give Jason her used business law book.Jason tells Sakura that he no longer wants the book.Sakura tells Gwen about the situation with Jason.Gwen replies that she does not care if Jason wants the book or not.Gwen says that she passed up a couple of opportunities to sell the book because she thought she already had it sold and that she wants her money from either Gwen or Jason - she doesn't care who pays.
-When Sakura and Gwen enter their agreement,what type of principal is Jason?

Accepted Answer

A) Unidentified 
B) Disclosed 
C) Legally nonexistent 
D) Undisclosed 
E) Partially disclosed 
A) Unidentified 
B) Disclosed 
C) Legally nonexistent 
D) Undisclosed 
E) Partially disclosed

Question 19

Which type of liability does a principal have when it authorizes an agent to engage in an act and the agent intentionally or unintentionally falsifies his or her role?

Accepted Answer

A) Ratification liability 
B) General liability 
C) Vicarious liability 
D) Misrepresentation liability 
E) Strict liability 
A) Ratification liability 
B) General liability 
C) Vicarious liability 
D) Misrepresentation liability 
E) Strict liability

Question 20

When a court considers whether an employee's act occurred within the scope of his or her employment,it considers,among other things,whether the employee used force not expected by the employer.

Accepted Answer

A) True 
 B)False

Exam 34: Liability to Third Parties and Termination

Which of the following is not a way an agency relationship will terminate by operation of law?

If Jun pays for the damage to Gina's car,does he have any remedy against Connor?

The text discussed the case of Burlington Industries,Inc.v.Ellerth,where the U.S.Supreme Court addressed workplace harassment and defined two ways an employer may be liable for torts of its employees while acting outside the scope of employment.Which of the following is one of those ways?

Will a company be liable if it hires an independent contractor and directs the contractor to commit a tort?

If a third party comes to know of an undisclosed principal's identity and obtains a judgment against the principal,which of the following is true?

Which statement is false regarding agency law in the United Arab Emirates (UAE)?

List the options of an injured third party when a principal is found liable for a misrepresentation made by an agent.

Which of the following is true regarding whether Jason is liable to Sakura for the cost of the book if Sakura pays Gwen the purchase price?

As set forth in the text,which of the following is true regarding respondeat superior in Iraq?

The principal may terminate an agency coupled with an interest.

The text discussed the case of Dunkley v.S.Coraluzzo Petroleum Transporters,where the New Jersey Appellate Court addressed an employer's liability for the harassing conduct of its supervisor.Which of the following was the result?

When would an agent who breaches his or her agreement be liable for a breach of implied warranty?

Which of the following is true regarding the relevance of whether a tort committed by an employee occurred within the time and space limits of employment?

Which of the following is false regarding revocation of the authority of an agent and renunciation by an agent?

When an agent is an employee and commits a tort,which of the following is true regarding liability of a principal/employer who controls the employee's behavior?

A ________ power of attorney grants an agent express authority over specific outlined acts,in contrast to a ________ power of attorney,which grants an agent authority to conduct all business for the principal.

Which type of liability does a principal have when it authorizes an agent to engage in an act and the agent intentionally or unintentionally falsifies his or her role?

When a court considers whether an employee's act occurred within the scope of his or her employment,it considers,among other things,whether the employee used force not expected by the employer.

An Introduction to Dynamic Business Law

Business Ethics

The Uslegal 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

Filters

A power of attorney grants an agent express authority over specific outlined acts,in contrast to a power of attorney,which grants an agent authority to conduct all business for the principal.