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1. Question : The United States has laws that prevent an employer from terminating employees without due cause.
2. Question : Peter owns an auto dealership. Peter hires Cara as a receptionist, Ben as a salesperson, Stacy as a mechanic, and the “Clean as a Whistle Co.” to come in at night and clean the premises. Which situation is LEAST likely to result in liability for Peter?
3. Instructor Explanation: The answer can be found in Section 12:1 Agency: Tort Liability and Agency; Section 12.1 Agency: Principal’s Liability for Agent’s Contracts, in the text.
4. Question : An employer has a duty to indemnify, or compensate an employee for any losses suffered as a result of authorized legal acts that the employee performs under the employment agreement.
5. Question : Petra appoints Alexander as her real estate agent to help her buy a house. Harry appoints Alexander as his agent to help sell Harry’s house. Alexander thinks Petra would like Harry’s house, and would be willing to pay Harry’s asking price. Which of the following can Alexander lawfully do?
6. Question : Peter tells Annabel to mark down all products 15% for a weekend sale. Annabel, correctly thinking that some items are so in demand they will still sell with only a 5% discount, sells some products with a 5% discount, some with 15%, and some with no discount at all. She keeps the extra as a bonus, figuring that Peter is expecting regular price minus 15%. All the inventory sells in the weekend sale. Which of the following is true?
7. Question : With authority, Ganeesh contracts to buy Samâ€™s farm for Belinda. Because he believes that Sam will raise the price if he finds out that he is representing Belinda, Ganeesh does not tell Sam he is representing anyone. On the day of the closing, neither Ganeesh nor Belinda shows up. Which of the following statements is NOT true?
8. Question : If an agent is acting pursuant to a valid agency contract and she is not being paid for her services, she cannot be sued for breach of contract if she fails to act as promised.
9. Question : Without authority, Christina contracts on behalf of Lawrence, to buy Valeriaâ€™s car for $3,000. Which of the following is true?
10. Question : Angelina is hired to work for Pupco Inc. for two years. Which of the following is true?