Exam 15: Special Forms of Contracts

A person who is not an employee who is employed by a principal to perform a certain task on his behalf is an independent contractor.

The Landrum-Griffin Act was passed in response to abuses by management in opposing unions' organizing activities.

The primary function of an agent in a principal-agent relationship is to:

In an undisclosed agency,both the principal and the agent are liable on the contract with the third party.

When a principal hires another to kill someone,an agency is created.

Mary has been hired to write courses for a Web-based training organization.Mary works at the offices of the organization.Mary is given content guidelines and a contract for each course that she writes,and is paid a flat fee upon completion of the course.It can take anywhere from 2 weeks to 6 weeks to complete a course.The organization wants the contractors to work in their offices during the regular 40-hour work week,unless they need to be elsewhere to do research.The organization provides a computer to Mary.Mary also is able to use other employees at the organization for word processing and editing.Is Mary an employee or an independent contractor?

The two labor organizations that combined in 1955 were:

Agency is a fiduciary relationship.

The law of negotiable instruments was designed to create a substitute for cash and to facilitate commerce.Has the importance of negotiable instruments in commerce increased or decreased in recent years? How will increased online commerce affect the importance of negotiable instruments?

Both a sight draft and a time draft are payable on demand.

Employers and unions are required to negotiate in good faith.

A corporation must conduct all of its business affairs through agents.

A promissory note for the purchase of an automobile qualifies as a negotiable instrument.

In collective bargaining,wages and hours are considered which type of subjects?

Generally,in agency situations,the principal and agent must both have contractual capacity.

The death of which party(ies)will cause an agency to terminate?

Karen has a checking account at First Bank.Karen writes a check to Bonanza Apartments for her rent.In this situation:

A principal who lacks contractual capacity can appoint an agent.

Agent enters into a contract with Third Party on behalf of Principal.Agent told Third Party that this contract was being entered into on behalf of someone else,but did not identify Principal to Third Party.A couple of weeks later,Principal disappears and Third Party wants to hold Agent to the contract.Third Party can:

An attorney is an agent when he represents a client.