Legal Aspects of Business Study Guide
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Course Introduction
Legal Aspects of Business introduces students to the fundamental legal concepts and frameworks that govern the operations of businesses. The course covers topics such as contract law, corporate governance, intellectual property rights, employment law, consumer protection, and dispute resolution mechanisms. Emphasis is placed on understanding the legal environment in which businesses operate, analyzing the implications of various laws and regulations, and applying legal principles to real-world business scenarios. By the end of the course, students will be equipped to identify legal issues in business contexts and make informed decisions to ensure compliance and minimize risk.
Recommended Textbook
Business Law and the Legal Environment Standard Volume 23rd Edition by David P. Twomey
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Chapter 1: The Nature and Sources of Law
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Q1) Jane asserts she has a legal right.Jane is really saying she has an obligation to perform or refrain from performing an act.
A)True
B)False
Answer: False
Q2) A good example of a uniform state law would be:
A)statutory law.
B)case law.
C)constitutional law.
D)the Uniform Commercial Code.
Answer: D
Q3) ______ is a body of law that provides justice when the law does not offer an adequate remedy.
A)Ethics
B)Regulations
C)Equity
D)Statutes.
Answer: C
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Chapter 2: The Court System and Dispute Resolution
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Q1) An appellate court determines whether there has been reversible error.
A)True
B)False Answer: True
Q2) The United States Supreme Court was created by:
A)Congress.
B)the President.
C)the Uniform State Law Commission.
D)the U.S. Constitution
Answer: D
Q3) If there is a reference to a third party to determine a dispute, in most cases the decision is binding.
A)True
B)False Answer: True
Q4) Mediation tends to keep discussions between parties proceeding.
A)True
B)False Answer: True
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Chapter 3: Business Ethics, Social Forces, and the Law
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Q1) To Immanuel Kant, an action is ethical if it is fair and done for the right reasons.
A)True
B)False
Answer: True
Q2) All of the following situations reflect a possible conflict of interest except:
A)A CEO offers a contract to a friend without checking competing bids.
B)A CEO hires a relative for a company position although another candidate is more qualified.
C)A manager buys a piece of realty that would be suitable for a planned company project.
D)A CEO takes a cut in pay to decrease company overhead.
Answer: D
Q3) "Primum non nocere" is Latin for:
A)Above all, do no harm.
B)Let the buyer beware.
C)Hear no evil, see no evil, and speak no evil.
D)No news is good news.
Answer: A
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Chapter 4: The Constitution As the Foundation of the Legal Environment
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Q1) Which of the following powers is not reserved solely to the national government?
A)power to regulate interstate commerce
B)power to tax
C)power to coin money
D)power to borrow money on the credit of the United States
Q2) When the federal government deregulates an industry, the states automatically have the power to regulate the same industry.
A)True
B)False
Q3) The power to tax income:
A)is possessed only by the federal government.
B)is possessed only by state governments.
C)may be exercised concurrently by both state and federal governments.
D)is controlled exactly like the power to wage war.
Q4) When we speak of government regulation of business we ordinarily mean state government regulation, not federal government intervention.
A)True
B)False
Page 6
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Chapter 5: Government Regulation of Competition and Prices
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Q1) A price reduction to one customer is lawful when it is made because of the deteriorated condition of the goods sold to that customer.
A)True
B)False
Q2) The Robinson-Patman Act:
A)prohibits charging different prices to different buyers when the margin costs are the same.
B)allows sellers to offer incentives and bonuses to certain customers.
C)allows sellers to refuse to deal with anyone for any reason.
D)prohibits boycotts among competitors.
Q3) A manufacturer having a restriction on territories in the form of a sole outlet is a per se violation.
A)True
B)False
Q4) The Federal Trade Commission administers the law prohibiting unfair methods of competition.
A)True
B)False
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Chapter 6: Administrative Agencies
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Q1) Because administrative agencies have broad powers, they are subject to strict procedural rules as well as disclosure requirements.
A)True
B)False
Q2) Administrative hearings often have additional parties involved, called ______, who are _______ with an interest in the case are permitted to participate.
A)intervenors, political entities.
B)industry organizations, intervenors
C)intervenors, ALJ's.
D)intervenors, industry organizations.
Q3) The Federal Register lists all administrative regulations, presidential proclamations, and executive orders on a semiannual basis.
A)True
B)False
Q4) A court will not reverse an agency's decision merely because the court would have made a different decision based on the same facts.
A)True
B)False
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Chapter 7: Crimes
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Q1) The Economic-Espionage Act (EEA):
A)makes it a crime to use a fraudulently obtained device to obtain money through an electronic fund transfer system.
B)makes it a crime to send unsolicited bulk emails.
C)makes it a crime to transfer proprietary files, documents and information from a computer to an unauthorized person. D)all of these.
Q2) The Foreign Corrupt Practices Act applies to businesses with their principal offices located in the United States.
A)True
B)False
Q3) Forgery includes signing another person's name to a check with the intent to defraud.
A)True
B)False
Q4) The Racketeer Influenced and Corrupt Organizations (RICO) Act authorizes both criminal and civil actions.
A)True
B)False
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Chapter 8: Torts
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Q1) Sal sent Max an e-mail message telling Max that his wife had been killed in a car accident, and Sal knew this was untrue.Max may be able to sue Sal for:
A)Intentional infliction of emotional distress
B)Libel
C)Violations of the First Amendment
D)Battery
Q2) What type of damages are recoverable when the defendant's tortious conduct is accompanied by fraud, malice, or willful or wanton conduct?
A)compensatory
B)consequential
C)nominal
D)punitive
Q3) Georgia is at a crowded carnival.As she's trying to get to the corn dog stand, someone in the crowd accidentally pushes and into another carnival-goer, causing that carnival-goer to get a black eye.Georgia is guilty of the tort of assault.
A)True
B)False
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Chapter 9: Intellectual Property Rights and the Internet
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Q1) Copyright of a "work made for hire" runs for the life of the creator of the work plus 50 years.
A)True
B)False
Q2) Although processes and machines are eligible for patent protection, manufactures and compositions of matter are not.
A)True
B)False
Q3) The best way to distribute and sell copyrighted computer programs is using:
A)copyright laws.
B)patent laws.
C)trade secret laws.
D)restrictive licensing.
Q4) The Lanham Act grants protection for:
A)marks.
B)patents.
C)copyrights.
D)trade secrets.
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Page 11
Chapter 10: The Legal Environment of International Trade
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Q1) The provisions of the United Nations Convention on Contracts for the International Sale of Goods (CISG) have been strongly influenced by:
A)the GATT's most-favored nation clause.
B)the European Economic Community's Treaty of Rome.
C)the Uniform Commercial Code.
D)the success of the Organization of Petroleum Exporting Companies.
Q2) A 'choice-of-law' provision in an international contract set's forth whether the CISG will govern the contract.
A)True
B)False
Q3) Which is a correct statement about arbitration of contractual disputes regarding international trade?
A)It is done in court.
B)There is extensive judicial review of the decision.
C)Parties frequently arbitrate in neutral countries.
D)It is not available in disputes of more than $1 million.
Q4) The use of import quotas represents the most common form of tariff barrier.
A)True
B)False
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Chapter 11: Nature and Classes of Contracts: Contracting
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Q1) In a quasi-contract situation, the reasonable value of services or goods to avoid unjust enrichment are called:
A)preclusion.
B)benefits.
C)quantum meruit.
D)restitution damages.
Q2) The effect of an implied contract is not the same as the effect of an express contract.
A)True
B)False
Q3) The elements for a valid contract do NOT include:
A)a fair price.
B)capacity.
C)consideration.
D)assent.
Q4) The subject matter of a contract can never relate to the performance of personal services.
A)True
B)False
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Chapter 12: Formation of Contracts: Offer and Acceptance
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Q1) Contractual intention is determined by objective standards.
A)True
B)False
Q2) A party to an existing contract can modify the agreement without the other party's actual acceptance or approval.
A)True
B)False
Q3) At an auction sale, each bid is:
A)a counteroffer to the auctioneer's offer of the merchandise.
B)an acceptance of the auctioneer's offer.
C)an invitation to negotiate.
D)an offer.
Q4) Offers, acceptances of offers, and revocations of offers are all effective when mailed in a properly-addressed envelope bearing the proper amount of postage.
A)True
B)False
Q5) Advertisements that call for an act may be deemed to be a unilateral contract.
A)True
B)False
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Chapter 13: Capacity and Genuine Assent
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Q1) A young stockbroker was rather overwhelmed by a flood of new clients.Assunta, one of his clients, had purchased XYZ Corp.stock through the broker at a price of $35 per share.The price had gone down to $29 by the time Assunta telephoned the broker.Assunta told the broker that she wanted to sell the stock if it went below $30 and inquired as to the price.The broker did not check the price, but thinking it could not have fallen below the $30 threshold, simply reassured Assunta that it was still "in the low 30s." Marta, Assunta's cousin, also had purchased XYZ stock at $35 per share and made a similar call to the broker and received the same response.Marta, however, coincidentally saw the price on a stock ticker tape when she hung up and realized the broker had made an error.Both Assunta and Marta held the stock and did not sell.?Later that same day, the stock price fell an additional $7 per share.Facing sizable losses, both Assunta and Martha decided to sue for fraud when Marta told Assunta of the broker's misstatement.Discuss the probable outcome of the lawsuits.
Q2) When necessary medical care is provided to a minor, a parent is liable at common law for the medical expenses provided the minor child. A)True B)False
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Chapter 14: Consideration
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Q1) The fact that the consideration supplied by one party is slight when compared with the burden undertaken by the other party is immaterial.
A)True
B)False
Q2) The effect of the making of a partial payment to satisfy an admitted debt is an example of the rule that:
A)past benefits cannot be consideration for a later promise.
B)a conditional promise may be consideration.
C)doing what one is already under a legal obligation to do is not consideration.
D)consideration must be adequate to be binding.
Q3) Damages recoverable in a case of promissory estoppel are determined by the profits that the promisee expected.
A)True B)False
Q4) Consideration is the bargained-for exchange between the parties to a contract. A)True B)False
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Chapter 15: Legality and Public Policy
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Q1) An agreement that unreasonably restrains trade is illegal and void on the ground that it is contrary to public policy.
A)True
B)False
Q2) When parties are not in pari delicto, the least guilty party is granted relief when it is in the public interest.
A)True B)False
Q3) Public policy:
A)can be precisely defined
B)is frequently used by the courts as a reason to invalidate contracts
C)is protections from that which violates any established interest of society
D)is policy that is made during a trial.
Q4) In most states the usury laws apply to loans made to both individuals and corporations.
A)True
B)False
Q5) Substantive unconscionability has to do with matters of freedom of assent.
A)True
B)False
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Chapter 16: Writing, Electronic Forms, and Interpretation of Contracts
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Q1) An oral contract containing a promise by an executor to pay estate debts from estate funds is:
A)binding.
B)voidable by the executor or administrator.
C)enforceable against the executor only if the executor signs written proof of the agreement.
D)enforceable against the other contracting party only if that party signs a written agreement.
Q2) An oral contract can be enforced when it relates to:
A)the purchase of a television set for $200.
B)the sale of an interest in land for $400.
C)managing a factory for five years.
D)a promise to answer for the debt of another.
Q3) A contract is interpreted to give effect to:
A)the intent of the parties.
B)what the court believes is a fair contract.
C)what the defendant thought the contract meant.
D)what will be best for the economic life of the community.
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Chapter 17: Third Persons and Contracts
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Q1) A life insurance contract is a third-party:
A)beneficiary contract.
B)assignment contract.
C)payment contract.
D)performance contract.
Q2) Under the UCC, an assignment of all the assignor's rights under a contract generally is held to be both an assignment of rights and a delegation of duties.
A)True
B)False
Q3) An assignment is a transfer of duties, and a delegation is a transfer of rights.
A)True
B)False
Q4) An assignment, if otherwise valid, takes effect the moment it is made.
A)True
B)False
Q5) When a lease is assigned, the assignee becomes the sole obligor for rent payments, and the original lessee is discharged from the lease.
A)True
B)False
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Chapter 18: Discharge of Contracts
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Q1) Sam Student had borrowed $1,000 from his cousin.Sam and the cousin became involved in a heated disagreement when the cousin began to press Sam for repayment of the loan.Finally, Sam wrote a check for $190 to the cousin and conspicuously wrote on the check in big letters that it was full and final payment of the $1,000 loan.In need of money, the cousin cashed the check and demanded the remaining $810 from Sam.Sam refused to pay, claiming that they had entered into an accord and satisfaction that discharged Sam's obligation to pay anything more.The cousin sued Sam.Discuss the probable outcome.
Q2) Commercial impracticability discharges a party's contractual obligations when the contract becomes more expensive to perform due to drastic and severe economic downturns.
A)True
B)False
Q3) Which of the following is not an element of an accord and satisfaction?
A)a bona fide dispute
B)a proposal to settle the dispute
C)performance of the agreement to settle the dispute
D)reservation of rights under the federal Consumer Credit Protection Act
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Chapter 19: Breach of Contract and Remedies
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Q1) When the contract requires that both parties submit disputes to arbitration, this is an example of a limitation-of-remedies clause.
A)True
B)False
Q2) A waiver of a breach may be either express or implied.
A)True
B)False
Q3) If an exculpatory clause limits liability for damages caused by negligent conduct, the tortfeasor's liability is:
A)contributorily negligent.
B)not limited if the conduct is willful.
C)limited unless the plaintiff signed a release.
D)limited if the conduct is grossly negligent.
Q4) __________ occurs when a party expressly declares that performance will not be made when required.
A)Anticipatory repudiation.
B)An injunction.
C)Restitution.
D)A waiver of breach.
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Chapter 20: Personal Property and Bailments
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Q1) If while trespassing a hunter kills game, the game belongs to that hunter.
A)True
B)False
Q2) To establish a gift, the party claiming to be the donee must prove:
A)delivery only.
B)intent only.
C)intent and a promise to deliver.
D)intent and delivery.
Q3) If a maintenance employee at a hotel finds a pocketbook with $500 in cash while cleaning an empty guest room, the employee:
A)is entitled to keep the property, because the employee has the legal status of a "finder."
B)must give the property to the manager of the hotel to be kept for the owner.
C)must place an advertisement in a local newspaper, and if the property is not claimed within seven (7) business days, the employee is entitled to keep it.
D)can retain possession of the property until the owner establishes ownership.
Q4) A gift causa mortis is considered a conditional gift.
A)True
B)False
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Chapter 21: Legal Aspects of Supply Chain Management
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Q1) The rights and duties of warehousers are regulated by the UCC.
A)True
B)False
Q2) Bob Brown entered the Hotel Lux to attend a conference being held within the hotel.Sam Smith arrived to attend the same conference, registered at the front desk, and obtained a room.Sally Jones also intended to participate in the conference and was in essence living at the hotel at the time.What relationship exists between the hotel and each of these individuals? What can be said of the hotel's obligations to each individual under these circumstances?
Q3) A purchaser of a nonnegotiable warehouse receipt:
A)receives no implied warranties.
B)may acquire rights superior to those of the transferor.
C)acquires only the title and the rights the transferor had authority to transfer.
D)may be considered to have the rights of a holder in due course.
Q4) As a general rule, a hotelkeeper has a lien on the property of boarders or lodgers.
A)True
B)False
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Chapter 22: Nature and Form of Sales
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Q1) The parol evidence rule does not apply to the sale of goods.
A)True
B)False
Q2) Which of the following situations create(s) an exception to the statute of frauds writing requirement?
A)non-resellable goods
B)receipt and acceptance
C)payment
D)specially manufactured goods
Q3) UCC Article 2 applies not only to contracts for the sale of familiar items of personal property, such as automobiles or chairs, but also to the transfer of commodities, such as oil, gasoline, milk, and grain.
A)True
B)False
Q4) A contract for the sale of goods is enforceable even if the price is "open."
A)True
B)False
Q5) A bill of sale can be used as proof of an otherwise oral agreement.
A)True
B)False
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Chapter 23: Title and Risk of Loss
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Q1) A buyer with a voidable title cannot pass on valid title to a subsequent good faith purchaser.
A)True
B)False
Q2) Title to goods can be transferred without the actual delivery of the goods involved.
A)True
B)False
Q3) "Without reserve" auctions give the auctioneer the right to withdraw the goods from the sale process if the bids are not high enough.
A)True
B)False
Q4) Goods that are not yet in existence or are not yet owned by the seller are__________ goods.
A)fungible
B)nonexistent
C)future
D)contingent
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Chapter 24: Product Liability: Warranties and Torts
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Q1) A defective product can injure intangible economic interests.
A)True
B)False
Q2) The theories of product liability are mutually exclusive.
A)True
B)False
Q3) An express warranty can be disclaimed, even if it was a critical part of the bargain to the buyer.
A)True
B)False
Q4) The warranties of both merchantability and fitness for a particular purpose exist under the Convention on Contracts for the International Sale of Goods (CISG).
A)True
B)False
Q5) In order to create an express warranty the seller must use as the words "warrant" or "guarantee."
A)True B)False
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Chapter 25: Obligations and Performance
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Q1) An acceptance of goods can be done either expressly or by implication.
A)True
B)False
Q2) A seller's duty to deliver goods requires the seller to transport the goods to the place designated by the buyer.
A)True
B)False
Q3) If a contractually-specified mode of transportation is not available, the:
A)contract is automatically voided.
B)seller must make delivery by a commercially-reasonable substitute.
C)buyer must arrange to pick up the goods.
D)seller must make personal delivery.
Q4) Unless otherwise agreed by the parties, payment by a buyer requires payment either in cash or by certified check.
A)True
B)False
Q5) Unless otherwise specified, the place of delivery is the seller's place of business.
A)True
B)False
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Chapter 26: Remedies for Breach of Sales Contracts
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Q1) A liquidation of damages clause in a consumer contract is enforceable if it:
A)is not in excess of twice the provable damages.
B)is agreed to by both parties to the contract.
C)reasonably attempts to estimate the actual harm caused by a breach.
D)is a reasonable amount designed to punish the breaching party.
Q2) If a seller elects to resell the goods remaining in the seller's possession after the buyer breaks the contract, the seller:
A)must always give notice of the sale to the original buyer.
B)is never required to give notice of the sale to the original buyer.
C)is required to follow strict standards in the resale of the goods.
D)is not required to give notice of the sale to the original buyer when the goods are perishable.
Q3) If goods are specially manufactured, unique, or rare, a buyer may have the right to specific performance.
A)True
B)False
Q4) Consumer protection law prohibits the waiver of defenses in consumer contracts.
A)True
B)False
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Chapter 27: Kinds of Negotiable Instruments and Negotiability
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Q1) A payee has no rights in an instrument until:
A)the drawer or the maker has delivered the instrument to the payee.
B)an acceptor has been established.
C)an accommodation party has signed the instrument.
D)a guarantor has signed the instrument.
Q2) Article 3 of the UCC establishes a four year statute of limitations for most actions involving negotiable instruments.
A)True
B)False
Q3) An authorized agent signing an instrument will not be liable on the instrument if the agent discloses on the paper either the identity of the principal or the fact that the agent has signed in a representative capacity.
A)True
B)False
Q4) Negotiation of commercial paper results in lesser rights to transferees than those rights afforded assignees of contracts under contract law.
A)True
B)False
29
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Chapter 28: Transfers of Negotiable Instruments and
Warranties of Parties
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Q1) Under the UCC, a negotiation is not effective when it is made by a minor or any other person lacking capacity.
A)True
B)False
Q2) The warranty liability of a qualified indorser is the same as that of an unqualified indorser.
A)True
B)False
Q3) A qualified indorsement is given by using the phrase __________.
A)"as is"
B)"without recourse"
C)"with all faults"
D)"buyer beware"
Q4) Coppersmith executed and delivered negotiable notes to the payee, Charlene.The payee indorsed the notes to Whitehurst but did not deliver them.Instead, she kept the notes in her possession because she wanted to collect the interest during her life and wanted the indorsee to have the notes on her death.After Charlene's death, her executor, Cartwright, found the notes.Both Cartwright and Whitehurst sought to enforce the notes against Coppersmith.Who was entitled to do so?
Page 30
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Chapter 29: Liability of the Parties Under Negotiable Instruments
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Q1) A person who acquires an instrument with knowledge that there is a defense a party may have cannot be an HDC.
A)True
B)False
Q2) A holder becomes a holder in due course if they meet all the following requirements except:
A)Takes the instrument for value
B)Takes the instrument in good faith.
C)Takes an instrument with no notice of defects.
D)Takes an instrument that runs to him.
Q3) Fraud as to the nature or essential terms of an instrument is a limited defense not available against a holder in due course.
A)True
B)False
Q4) Ordinarily, a maker's lack of capacity may be raised as a defense against a holder in due course.
A)True
B)False
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Chapter 30: Checks and Funds Transfers
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Q1) A bank is not required to pay a check presented more than three months after its date.
A)True
B)False
Q2) Checks that involve amounts of more than $5,000 generally trigger the bank reporting requirements under the USA Patriot Act.
A)True
B)False
Q3) All of the following statements is incorrect concerning stale checks except: ______.
A)A check is stale when dated more than six (6) months before presentation to the bank.
B)Banks are required to pay stale checks unless a stop payment order has been issued.
C)Banks can pay in good faith after three (3) months.
D)Stale checks do not have to be verified with the bank's customer.
Q4) Postdating a check changes the check from a demand draft to a time draft.
A)True
B)False
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Chapter 31: Nature of the Debtor-Creditor Relationship
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Q1) A surety that has made payment of a claim for which it was liable as surety is entitled to indemnity from the principal debtor.
A)True
B)False
Q2) Standby letters of credit are used only in international trade situations.
A)True
B)False
Q3) Suretyship is a pledge to pay one's own debts and obligations.
A)True
B)False
Q4) In a letter of credit the beneficiary is the drawer of the drafts that will be drawn under the letter of credit.
A)True
B)False
Q5) The issuer of a letter of credit has a duty to verify that the underlying transaction has been performed.
A)True B)False
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Chapter 32: Consumer Protection
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Q1) The CARD Act substantially restricts the solicitation of credit card accounts for those under the age of 18.
A)True
B)False
Q2) Consumer protection laws, which commonly regulate the form of consumer contracts, provide that back-page disclaimers are void if the front page of a contract does not call attention to the presence of the terms on the back page.
A)True
B)False
Q3) Odometer fraud allows the purchaser to recover:
A)the entire purchase price of the automobile plus $1,500.
B)twice the actual loss from the fraud.
C)the total loss the buyer can collect to $1,500.
D)three times the actual loss or $1,500, whichever is higher.
Q4) Labels on packages are regulated to provide information about the contents and warnings about the dangers involved in the use of the product.
A)True
B)False
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34
Chapter 33: Secured Transactions in Personal Property
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Q1) Grund, a professional night club musician, financed the purchase of a drum set to be used in his night club act.Under Article 9, the drum set will be classified as a consumer good.
A)True
B)False
Q2) Generally, a secured creditor who has repossessed collateral may retain the collateral and cancel the debt.
A)True
B)False
Q3) A financing statement must provide all of the following except: _______.
A)the name of the debtor.
B)the name of the secured party or their representative.
C)the covered collateral.
D)the value of the collateral.
Q4) A security agreement must be backed by a written record even if the creditor has possession of the collateral.
A)True
B)False
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Page 35
Chapter 34: Bankruptcy
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Q1) Creditors who hold security for payment, such as a lien or a mortgage on the debtor's property, are less affected by the debtor's bankruptcy.
A)True
B)False
Q2) Jurisdiction over bankruptcy proceedings is vested in the federal district courts.
A)True
B)False
Q3) In a Chapter 7 bankruptcy, the debtor's nonexempt assets are liquidated to pay debts.
A)True
B)False
Q4) An automatic stay:
A)arises only upon the filing of a voluntary petition.
B)prevents any further interest from accruing on a debtor's outstanding debts.
C)prevents creditors from taking action outside of the bankruptcy proceeding against a debtor.
D)ends if a debtor attempts to incur additional debt after a petition has been filed.
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Page 36
Chapter 35: Insurance
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Q1) If an insured person tells her current husband that she is going to name him as beneficiary of her life insurance in place of her former husband and dies a year later without having taken any further steps with respect to the change of the policy beneficiary, the insurance company must pay the proceeds of the policy to:
A)the former husband.
B)the current husband.
C)the children by the first marriage.
D)the children by the second marriage.
Q2) A person has an insurable interest in property if destruction of that property would cause a monetary or pecuniary loss to that person.
A)True
B)False
Q3) If an insurer denies liability for a loss, the insured has the burden of proving that there was a loss that came within the coverage of the policy.
A)True
B)False
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Chapter 36: Agency
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Q1) If a store owner places Joe as manager and gives him a special nametag, customers may assume that Joe has ______ for the owner in that respect.
A)apparent authority
B)ratification powers
C)special agency
D)universal agency
Q2) The "right to control" test determines whether an individual is an agent, an employee, or an independent contractor.
A)True
B)False
Q3) An agent is distinguished from an ordinary employee in that employees are always hired to represent the employer in dealings with third persons.
A)True
B)False
Q4) The scope of an agent's authority is always known by the third party.
A)True
B)False
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Chapter 37: Third Persons in Agency
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Q1) The employer of a salesperson:
A)is only bound by a contract if the employee is acting as a soliciting agent.
B)is not bound by a contract if the employee is acting as a contracting agent.
C)is not bound by a contract until the contract is accepted.
D)is always bound by contracts made by all employee salespersons.
Q2) John Smyth is an agent for L.T.Adams.To avoid becoming a party to any contract that Smyth signs for Adams, Smyth should sign in which of the following ways?
A)John Smyth, agent
B)John Smyth, for the principal
C)John Smith, as agent for the principal
D)L. T. Adams, per John Smyth
Q3) If an agent commits a crime, the agent's liability will depend on the nature of the agency relationship.
A)True
B)False
Q4) A third person dealing with the agent of a disclosed principal ordinarily intends to make a contract with the principal, not the agent.
A)True
B)False
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Chapter 38: Regulation of Employment
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Q1) Employers may verify ______ through the federal government's employment verification program using the ______ system.
A)employers' compliance with ICRA, E-Verify
B)new employee eligibility status, I-9
C)new employee eligibility status, E-Verify
D)new employee eligibility status, ICRA
Q2) A dispute arose in a small factory and the workers decided to strike concerning the firing of an employee for union-organizing activity.As the strike wore on without resolution, the employer hired what the employer called permanent replacements for the strikers.Eventually, the strike was settled.Are the fired workers entitled to getting their jobs back?
Q3) Algonquin Industries was a small business that hired mostly recent immigrants to the United States and paid them a minimum wage.The business prospered and people began to come around to organize the workers into a union.Officials of Algonquin spoke against the advisability of joining the union.Finally, a date for a certification vote was set.In the days leading up to the vote, Algonquin officials began to intimate that those workers who voted against the union would receive overtime opportunities "as they became available." A charge has been brought that this is an unfair labor practice.Decide.
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Page 40
Chapter 39: Equal Employment Opportunity Law
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Q1) Which of the following scenarios would not qualify as a BFOQ exception to Title VII?
A)a religious school hiring only members of that religion to teach religion
B)a women's store that sells wedding gowns hiring only women to measure and fit customers
C)an airline hiring only female flight attendants
D)a men's store not hiring men with earrings.
Q2) Generally, the EEOC attempts to remedy an unlawful practice through mandatory arbitration.
A)True
B)False
Q3) Title VII and the ADA protects U.S.citizens against discrimination in foreign countries:
A)as long as there is no "undue hardship" on the foreign employer.
B)if they are employed by American-owned companies.
C)if they are employed by foreign-owned companies.
D)regardless of what nation controls the company.
Q4) Title VII requires equal pay for men and women.
A)True
B)False
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