Understanding Business and Personal Law

Unit 4: Being an Agent and Getting a Job

Being an Agent and Getting a Job

1.
Agency relationships can only be terminated when the parties have fully carried out their duties.
A)TRUE
B)FALSE
2.
The duties owed by the principal to the agent include
A)obedience.
B)compensation.
C)good faith.
D)loyalty.
3.
The Taft-Hartley Act allows the President of the United States to postpone a strike for up to 60 days if the strike would endanger the nation's health or safety.
A)TRUE
B)FALSE
4.
Under an implied covenant, the employer must put in writing that he or she will be fair and honest with all employees.
A)TRUE
B)FALSE
5.
The Drug-Free Workplace Act applies to companies that have
A)contracts with the federal government.
B)more than 100 employees.
C)had problems with employees using drugs in the past.
D)a required drug test as part of the hiring process.
6.
State right-to-work laws prohibit featherbedding.
A)TRUE
B)FALSE
7.
The doctrine of employment-at-will does not apply to employees who are protected by a union.
A)TRUE
B)FALSE
8.
A principal is generally bound to the terms of a contract made by an agent unless
A)the agent is considered a master.
B)the principle of respondeat superior is in place.
C)negligent retention has occurred.
D)the agent has no authority to enter into the contract.
9.
When the law creates an agency relationship by circumstance, it is called
A)agency by ratification.
B)agency by estoppel.
C)agency by agreement.
D)agency by operation of law.
10.
Apparent authority is the real power a principal gives to an agent to act in the principal's behalf.
A)TRUE
B)FALSE
11.
An employer who holds a general policy that "we do not hire female engineers" is discriminating through
A)disparate treatment.
B)disparate impact.
C)quid pro quo harassment.
D)a hostile work environment.
12.
Most agency relationships are created by estoppel.
A)TRUE
B)FALSE
13.
When a third party has given credit to the principal through the agent, the third party is entitled to
A)implied notice.
B)notice by publication.
C)express notice.
D)actual notice.
14.
A principal who fails to notify third parties when an agency has ended
A)must sign an "impossibility of performance" statement.
B)is in contempt of court.
C)may be liable for future acts of the agent.
D)cannot enter into contracts with those third parties for a period of one year.
15.
Wrongful discharge
A)is also called illegal discrimination in some states.
B)occurs when an employer makes a promise to an employee that he or she does not keep.
C)provides employees with grounds for legal action against employers who have treated them unfairly.
D)allows for employees to seek union protection if a layoff is forced due to a downturn in the economy.
16.
If agents enter into contracts on behalf of their principals without authority to do so,
A)the principal is still liable for the contract.
B)the agent is liable for the contract.
C)both the principal and the agent are liable for the contract.
D)no one is liable for the contract.
17.
Child labor laws allow children between the ages of 14 and 16 to work
A)if it is necessary for the child to provide support to the household.
B)in dangerous occupations only if special work permits are secured.
C)in businesses where one of their parents are employed.
D)only if the Secretary of Labor determines that such employment does not interfere with their schooling.
18.
A pension plan is a program established by an employer or union to provide an income to employees during an illness or other crisis.
A)TRUE
B)FALSE
19.
The duties owed by the agent to the principal include
A)obedience.
B)compensation.
C)reimbursement.
D)indemnification.
20.
Respondeat superior applies to master-servant relationships because the master has the right to control the physical conduct of the servant.
A)TRUE
B)FALSE
21.
A person who has been given authority to perform any act within the scope of a business is a(n)
A)ratified agent.
B)general agent.
C)special agent.
D)agent by estoppel.
22.
The purpose of the Wagner Act was to
A)equalize the power of labor and management.
B)stop corruption in the unions.
C)encourage collective bargaining and discourage certain unfair labor practices.
D)control the work that children are permitted to do.
23.
The Americans with Disabilities Act protects disabled individuals whether they are able to perform the essential functions of a job or not.
A)TRUE
B)FALSE
24.
Unemployment compensation is financed by payroll taxes on employers.
A)TRUE
B)FALSE
25.
Employment-at-will means that an
A)employer may discharge an employee at any time, for any or no reason, with or without notice.
B)employee may choose to join a union at any time during his or her employment period.
C)employer can refuse a collective bargaining agreement at any time during the contract period.
D)employee may collect severance pay if a layoff is forced due to a downturn in the economy.
26.
Under disparate treatment, an employer unknowingly discriminates against an individual or group.
A)TRUE
B)FALSE
27.
A hostile working environment occurs when a pattern of severe and pervasive sexually demeaning behavior has altered the workplace.
A)TRUE
B)FALSE
28.
When the third party has never given credit but has done a cash business with the agent, notice by publication is sufficient when a notice of termination is given.
A)TRUE
B)FALSE
29.
If an employee handbook contains statements promising discipline or discharge only for certain offenses, an employee may assume he or she is not an employee-at-will.
A)TRUE
B)FALSE
30.
The Age Discrimination Act forbids discrimination against any person
A)under the age of 16.
B)between the ages of 18 and 39.
C)over the legal retirement age in the United States.
D)aged 40 or older.
31.
The law allows some actual authority to be implied because
A)agency relationships can differ from situation to situation.
B)in an agency situation, real power is transferred from the principal to the agent.
C)agency by estoppel is in place to protect the principal.
D)mentioning every single act that the agent is allowed to perform would make the agreement cumbersome.
32.
The purpose of the Landrum-Griffin Act was to
A)equalize the power of labor and management.
B)stop corruption in the unions.
C)encourage collective bargaining and discourage certain unfair labor practices.
D)control the work that children are permitted to do.
33.
OSHA sets
A)rules related to an employee's benefit package.
B)procedures to be used in the event an employee becomes unemployed.
C)safety and health standards for many companies in the United States.
D)the equal pay rule for most companies in the United States.
34.
Vicarious liability is usually limited to negligence rather than intentional torts.
A)TRUE
B)FALSE
35.
Most employers may legally use a lie detector test to screen employment applicants.
A)TRUE
B)FALSE
36.
An agency relationship lets us
A)use an agency outside the state we reside in to provide consumer protection.
B)enter into a contract to provide services to a local community agency.
C)act through other people to accomplish things that might be impossible to do on our own.
D)provide a service to others without fear of liability.
37.
A contract negotiated by the employer and representatives of the labor union is called a
A)collective bargaining agreement.
B)employment-at-will agreement.
C)mutually bargained agreement.
D)promissory estoppel agreement.
38.
Employees who believe they have been discriminated against can file their complaints with the
A)FCC.
B)ADA.
C)EEOC.
D)FTC.
39.
An independent contractor works for, and is under the control of, a proprietor.
A)TRUE
B)FALSE
40.
Actual authority may not be implied.
A)TRUE
B)FALSE
41.
An agent is required by law to disclose the principal for whom the contract is being made.
A)TRUE
B)FALSE
42.
Under TANF, minors who are parents must maintain their education or be enrolled in a career program.
A)TRUE
B)FALSE
43.
An implied convenant exists
A)when there has been intentional infliction of emotional distress.
B)because the employment relationship exists.
C)because of something the employer has said.
D)as part of employment-at-will.
44.
Special agents have more authority than general agents.
A)TRUE
B)FALSE
45.
Agents have rights guaranteed to them by law.
A)TRUE
B)FALSE
46.
Coagents are subject to the authority of the principal as well as to each other.
A)TRUE
B)FALSE
47.
A sales representative is an example of a(n)
A)ratified agent.
B)general agent.
C)special agent.
D)agent by estoppel.
48.
If a proprietor fails to fire a contractor after learning he or she is incompetent, the proprietor may be liable because of
A)negligent retention.
B)negligent hiring.
C)vicarious liability.
D)contractual liability.
49.
Child labor laws allow children between the ages of 14 and 16 to work on dangerous machinery if a school official signs a special waiver.
A)TRUE
B)FALSE
50.
The Fair Labor Standards Act does not cover
A)minors.
B)restaurant employees.
C)school employees.
D)professional employees and administrators.
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