Agency and Employment Law
1. Sal hires Antoinette to sell his house and gives her power of attorney that authorizes her to do, but the power of attorney says nothing about price. Sal tells Antoinette to take nothing less than $200,000. Harry offers Antoinette $195,000 for the house, and Antoinette accepts. If Sal is bound by the sale contract, the most likely reason is __________ authority.
2. Polly hires Nick to sell her house and gives him power of attorney that authorizes him to do, but the power of attorney says nothing about price. Polly tells Nick to take nothing less than $200,000. Lola offers
Nick $195,000 for the house, and Nick accepts. Nick violated his duty of
C. due diligence.
3. Bob’s company was found in violation of ERISA. The violation likely relates to
A. failure to pay overtime.
B. workers’ compensation.
C. Bob’s pension plan.
D. workplace safety.
4. Lee hires Zeke to sell her house. She tells Zeke to ask for $200,000, but says she will take $175,000.
Zeke’s friend Victor asks Zeke about the house, and Zeke tells him that Lee will take $175,000. Victor offers $175,000, and Zeke accepts. Zeke violated his duty of
A. due diligence.
5. Sandy works as a clerk in Big Department Store. After she finishes work one day, she heads out to her car in the parking lot to drive home. There, she sees Petra, someone she detests. Sandy and Petra argue, and Sandy punches Petra in the nose, causing an injury. Which of the following statements is true?
A. Neither Sandy nor Big Department Store are liable for Petra’s injury.
B. Both Sandy and Big Department Store are liable for Petra’s injury.
C. Only Big Department Store is liable for Petra’s injury.
D. Only Sandy is liable for Petra’s injury.
6. Sally works for Big Tech, Inc. One day, the boss calls her into his office and says, “Women just don’t get tech. You’re fired.” Sally sues. In the course of the litigation, the company discovers that Sally was pilfering paper from the company storage, and under the employee handbook, this is grounds for termination. Sally’s discharge is
A. not wrongful because the employer discovered evidence that justifies the firing.
B. wrongful because the employer intended to fire her based on gender.
C. wrongful because evidence can’t be used in a gender discrimination case.
D. not wrongful because gender is a bona fide job qualification for working in tech.
7. Jane works for Big Business, Inc., as a sales representative. The boss decides to fire her because she isn’t a Mets fan. The boss can
A. not fire Jane if here work was satisfactory.
B. not fire Jane if she agrees to become a Mets fan.
C. not fire Jane because of the Civil Rights Act of 1964.
D. fire Jane.
8. Bob’s company was found in violation of OSHA. The violation likely relates to
A. racial discrimination.
B. failure to pay overtime.
C. workplace safety.
D. workers’ compensation.
9. Javier gives written authorization to Tamara to sell his house. Javier dies on the October 4. On October
8, Tamara enters into a written contract on behalf of Javier to sell the house to Trudy for $100,000. Before
Tamara entered into the contract, she showed the written authorization to Trudy. Javier’s estate is
A. not liable.
B. liable if the price is fair.
C. obligated to sell for $100,000 because Tamara had express authority.
D. liable if Tamara knew Javier was deceased at the time of the contract.
10. Tony tries to start a union at Big Tech, Inc. His employer learns of his attempt to organize a union and fires him. Big Tech’s actions
A. constitute an unfair labor practice.
B. are permitted if they first give Bob notice forbidding the union.
C. are permitted.
D. are permitted if the state has adopted right-to-work legislation.
11. Norma has worked for Big Factory for 15 years, has never missed a day of work, and has always been an excellent worker. One day, without warning, Norma’s supervisor fires her without any explanation.
Norma knows of no reason for the termination. Which of the following statements is true?
A. Norma can’t do anything unless she lives in an employment-at-will jurisdiction.
B. Norma may file a bad faith action against Big Factory.
C. Norma may file a bad faith action against her supervisor.
D. Norma can’t do anything as long as the reasons were nondiscriminatory.
12. Bob works for the government and belongs to a union. Bob’s union goes on strike. Which of the following statements is true?
A. If the strike is lawful, Bob must be a federal employee.
B. The strike is lawful because only government employees can strike.
C. If the strike is lawful, Bob must not be a federal employee.
D. The strike is unlawful because only nongovernment employees can strike.
13. Eric has gradually been losing his eyesight, which has adversely affected his work. When the boss fires
Eric, she tells him that she’s letting him go because he can’t see anymore. Eric’s discharge is
A. wrongful because once hired, employees can’t be discharged due to disability.
B. not wrongful if he can’t perform the job without reasonable accommodations by the employer.
C. not wrongful because it didn’t involve a hiring decision.
D. wrongful if the employer can make a reasonable accommodation for his disability.
14. Shauna creates a website that sells shoes. Meagan chooses shoes, enters her credit card information, and purchases the shoes. She then receive an e-mail confirming the purchase. The website is programmed to perform these functions, and Shauna has no personal knowledge of the transaction. Shauna was on vacation at the time of the transaction and didn’t personally approve it. She returns from vacation, checks the site, and discovers the transaction. Was a contract created?
A. Yes, because agency by necessity applies.
B. No, because Shauna never confirmed the purchase.
C. Yes, because the computer is an agent for Shauna.
D. No, because the computer isn’t an agent for Shauna.
15. The union at Big Tech goes on strike. The president can petition the attorney general to seek an injunction stopping the strike for 60 days if the
A. strike would endanger the nation’s health or safety.
B. demands of the union are unreasonable.
C. strike would result in large losses to the company.
D. union failed to give 60 days’ notice of its intent to strike.
16. The right to notice of a plant closing or massive layoffs due to sale of a business is derived from the
A. Hart-Scott-Rodino Antitrust Act.
B. Employee Retirement Income Security Act.
C. Worker Adjustment and Retraining Notification Act.
D. Antitrust Procedures and Penalties Act.
17. Irene hires Mark to do work for her. In the course of performing that work, Mark causes injury to a third party. Which of the following statements is true?
A. If Mark is an independent contractor, Irene is liable for the injury.
B. If Mark is an employee, Irene is liable for the injury.
C. Irene isn’t liable for the injury whether Mark is an employee or an independent contractor.
D. Irene is liable for the injury whether Mark is an employee or an independent contractor.
18. Anna gives Doris a power of attorney. Doris does business with Big Bank as Anna’s agent. Anna then revokes the power of attorney. Anna is not liable on any contracts Doris made
A. after the date of termination but before notice was received by Big Bank.
B. that weren’t fully performed at the time notice was received by Big Bank.
C. after her agency was terminated.
D. after Big Bank received notice that she was no longer an agent.
19. Molly borrowed $5,000 from Larry and, as collateral, gave him jewelry and authority to sell the jewelry if she defaulted. Afterward, Molly had second thoughts and revoked the agency. Which of the following statements is true?
A. Molly can’t terminate the agency unless she claims bankruptcy.
B. Molly can’t terminate the agency unless Larry sold the jewelry.
C. Molly can terminate the agency if she paid the loan.
D. Molly can terminate the agency based on impossibility of performance.
A. agreements requiring union membership to get or keep a job.
B. union shops, but not closed shops.
C. closed shops, but not union shops.
D. employees from forming labor unions and bargaining units.