Question 1

Neighborly Insurance Company and Ollie put their agency agreement into a written document that describes the rights and duties of both parties. Ollie, as the agent, has

Accepted Answer

Express authority refers to authority that is explicitly granted to an agent in a written document or contract, which is exactly what Neighborly Insurance Company and Ollie have established in their agency agreement. This means that Ollie's rights and duties as an agent are specified and agreed upon by both parties, providing clarity and reducing the potential for misunderstandings or disputes.

Question 2

Hoppy, who works as an employee for Imperial Power Corporation, suffers an injury in an accident. Hoppy may be compensated under state workers' compensation laws

Accepted Answer

Workers' compensation laws only provide compensation for injuries that occur on the job. Therefore, Hoppy may be compensated only if his injury occurred while he was working.

Question 3

Machine Operations, Inc. (MO) employs four hundred workers at three locations in three states. Workers who do not have a right to continue group health benefits provided by MO for a limited time after the loss of their jobs include those who

Accepted Answer

According to the passage, workers who do not have a right to continue group health benefits provided by MO for a limited time after the loss of their jobs include those who are fired for gross misconduct. Therefore, choice A is correct. Workers who are laid off for budgetary reasons, have their hours decreased from full-time to part-time, or quit their jobs voluntarily may still be eligible for continued group health benefits for a limited time.

Question 4

Prospective Enterprises (PE) employs Quinn to buy property for a possible commercial development. Quinn secretly buys some of the property and sells it to PE at a profit. Quinn has breached

Accepted Answer

Quinn breached the duty of loyalty by secretly purchasing property for personal gain rather than solely acting in the best interest of PE.

Question 5

Carol hires Dick to act as her agent in the purchase of an office building. Carol does not want the seller to know that she is the buyer, so she asks Dick to represent that he is buying the building for himself. Carol is

Accepted Answer

By asking Dick to represent that he is buying the building for himself, Carol is an undisclosed principal. This means that the seller is not aware that Carol is the actual buyer and believes that Dick is the one purchasing the building for himself.

Question 6

Based on Bluto's conduct, Cass reasonably believes that Dee has the authority to act on Bluto's behalf even though Dee does not have the actual authority to do so. Cass makes a payment to Dee for Bluto. Dee absconds with the funds. Bluto

Accepted Answer

The principle of estoppel applies in this situation. Bluto's conduct led Cass to reasonably believe that Dee had the authority to act on Bluto's behalf. As a result, Bluto may be estopped from denying that Dee had authority to accept the payment on his behalf. Therefore, Bluto cannot demand repayment or obtain damages from Cass for Dee's misconduct. Bluto must accept responsibility for Dee's actions and cannot deny Dee's apparent authority.

Question 7

Cash is an employee of Drowsy Resort, Inc., covered by federal overtime provisions, which apply only after an employee has worked more than

Accepted Answer

Federal overtime provisions apply to employees who have worked more than forty hours in a week.

Question 8

Holly takes temporary leave from her job at Interstate Trucking Company to care for her new baby. When she attempts to return to work, Interstate refuses to reinstate her. Under the Family and Medical Leave Act, Holly may be entitled to

Accepted Answer

The answer of Holly takes temporary leave from her job...

Question 9

Stix & Stonz Corporation (S&S) employs Teri as an agent. S&S gives her an exclusive territory in which to sell S&S products. S&S cannot compete with her in that territory under the duty of

Accepted Answer

The duty of cooperation requires the principal (S&S) to not compete with the agent (Teri) within her exclusive territory.

Question 10

Bunky is seventeen years old. Under the Fair Labor Standards Act, Bunky cannot work

Accepted Answer

Under the Fair Labor Standards Act, minors under the age of 18 are prohibited from working in hazardous occupations.

Question 11

Lyn may hire employees to work in the Main St. Computer Store that she manages despite the fact that her employment agreement with Main St. says nothing about her being able to hire employees. This is

Accepted Answer

Lyn's authority to hire employees is not specifically stated in her employment agreement, but it can be inferred as necessary for her role as a manager of the Main St. Computer Store. This is an example of implied authority.

Question 12

Eve hires Frank to do some remodeling work in her office. The relationship between Eve and Frank is client and independent contractor. While working, Frank drops a tool on Gary, Eve's customer, causing an injury. Eve is

Accepted Answer

Eve is not liable because Frank is an independent contractor, and generally, a client is not liable for the acts of an independent contractor.

Question 13

Jay holds himself out as possessing special accounting skills. As an agent, he must exercise the degree of skill or care expected of

Accepted Answer

As Jay holds himself out as possessing special accounting skills, he must exercise the degree of skill or care expected of a person having those skills. This is known as the "standard of care" for agents with special skills and expertise.

Question 14

Clu serves in a representative capacity for Digger. Elmo is injured through Clu's negligence. Digger may be liable to Elmo if Clu's conduct occurred

Accepted Answer

Digger may be liable for Clu's negligence if it occurred within the scope of Clu's employment responsibilities. This means that Clu was acting on behalf of Digger at the time of the injury, and Digger may be held responsible for Clu's actions. Choices A, B, and D do not apply in this situation.

Question 15

Dolly is a businessperson acting as an agent for Elm Woods, Inc. In an ordinary business situation, Dolly

Accepted Answer

As an agent, Dolly can contract on Elm Woods, Inc.'s behalf if she has been given the authority to do so, either expressly or impliedly, without needing further authority or ratification.

Question 16

Heavy Hydraulics Corporation has a staff of ten, which will increase to fifty if it obtains a certain contract. Employers are required to keep occupational injury and illness records for each employee if the employers have

Accepted Answer

The answer of Heavy Hydraulics Corporation has a staff of...

Question 17

Picabo drives a truck as an employee for Quik Delivery, Inc. Picabo would most likely be considered to be acting outside the scope of her employment if she

Accepted Answer

Picabo would be acting outside the scope of her employment if she crashed into a car while off duty, as she is not performing work-related duties at that time.

Question 18

Geoff is hired by Huck to serve as his agent. To carry out the duties of this position, Geoff has authority that is implied

Accepted Answer

Authority implied by custom is authority that is not expressly stated in a contract, but is inferred from the past actions of the parties involved. In this case, Huck has hired Geoff as his agent, and it is customary for an agent to have certain implied authorities to carry out the duties of the position.

Question 19

Quick Supplies Company (QSC) requires its customers to pay by check. Ron, a QSC driver, tells customers on his route that they can pay him with cash. When QSC learns of Ron's collections, it takes no action to stop it. Ron steals some of the cash. QSC may suffer the loss under Ron's

Accepted Answer

QSC may suffer the loss under Ron's apparent authority because the company did not take action to stop Ron from collecting cash, which could lead customers to reasonably believe that Ron had the authority to accept cash payments on behalf of QSC.

Question 20

Eduardo is an employee of Free-Flo Plumbing Corporation. With respect to the workplace, under federal health and safety statutes, Free-Flo has

Accepted Answer

Under federal health and safety statutes, employers have a general duty to provide a safe workplace and to meet specific standards set by Occupational Safety and Health Administration (OSHA).

Quiz 15: Employment, Immigration, and Labor Law