FINAL EXAM BUS LAW QUESTIONS AND
ANSWERS
Nora works at Oil & Gas Inc. She is a sales representative who works with Oil & Gas
customers. The company closely supervises its sales reps, and dictates their schedules.
With respect to third parties, Nora is - ANSW- an employee and agent
Orin works at Pumps Inc. He works in the company's engineering department,
interacting with third parties only to discuss technical issues. With respect to third
parties, Orin is - ANSW- *THE ANSWER IS NOT * an employee and agent.
Ingmar asks Jess to contract with Kay's Lawn Service to maintain Ingmar's lawn. Jess
orally agrees to do so. This is an agency by - ANSW- agreement
Rosa introduces Sal to her friend Trey as "my associate." Sal purports to act as Rosa's
agent in a business transaction with Trey. If Rosa is liable for Sal's actions, it will be
because their relationship is - ANSW- an agency by estoppel.
Larry is an agent for Mary. She gives him clear instructions to enter into contracts on
her behalf only on Mondays, Wednesdays, or Fridays. He enters into a contract on her
behalf on Tuesday. Larry has breached - ANSW- the duty of obedience.
Curly Fries Inc. grants its agent Dian an exclusive territory in which to sell its products.
The company cannot compete with Dian in that territory under the duty of - ANSW-
cooperation.
Jon contracts with Kino to buy a certain number of sheep for Kino's Animal Farm. Jon
makes a deal with Lila for the sheep, but neither Jon nor Kino pays the price. Lila sues
Jon for breach. Jon's right to hold Kino liable for any damages is the right to - ANSW-
indemnification.
Suva is an agent for Tax Accountants, Inc. On the firm's behalf and at its request, Suva
pays Uzo for specially coded software. Suva's right to obtain the amount of the payment
from Tax Accountants arises under the duty of - ANSW- reimbursement.
Darla serves in a representative capacity for Ellen's Botanicals. To accomplish the
objectives of this relationship, Darla's authority can be implied by - ANSW- by custom
, Ben manages a warehouse and its inventory for Coffee Roaster Inc. To operate this
part of the business, Ben's authority can be inferred - ANSW- from the position Ben
occupies.
Erin indicates that she is acting as an agent on behalf of an unidentified client—Flight
Services Inc.—when she enters into a contract with Go Airlines. Liability to Go for
nonperformance of the contract may be imposed on - ANSW- *THE ANSWER IS NOT*
Flight Services only.
Ira serves in a representative capacity for Jett. Key is injured through Ira's negligence.
Jett may be liable to Key if Ira's conduct occurred - ANSW- in the course and scope of
Ira's employment
Vera is a purchasing agent for Wild-Caught Fish Inc., with the authority to buy a sea
fisher's catch up to a certain quantity. After the fish is bought, the agency relationship
terminates - ANSW- automatically.
Miklos employs Nathalie to handle a list of financial transactions on Miklos's behalf. This
power will terminate on - ANSW- Miklos's death or incapacity.
Fara hires Gil, a real estate broker, to act as her agent to sell her land for $150,000.
Before the land is sold at the stated price, oil is discovered beneath it, causing its
market value to increase considerably. The agreement between Fara and Gil is likely -
ANSW- .
terminated by operation of law.
Food Market Company employs workers, including Gina, at six locations in two states.
Food Market's discharge of Gina outside the terms of an implied employment contract
may result in - ANSW- the employer's liability for breach of contract.
Retail Company is located in Seattle, Washington, where the city and the state have
minimum wage laws. Retail pays its starting employees the legal minimum rate, which,
among the governing laws, is - ANSW- the highest minimum wage.
Tom is seventeen years old. Under the Fair Labor Standards Act, he cannot - ANSW-
work in a hazardous occupation.
Federal overtime provisions apply only after a covered employee works more than -
ANSW- forty hours in a week.
The Family and Medical Leave Act requires certain employers to provide eligible
employees with family or medical leave for any of the following reasons except - ANSW-
to go on an extended family vacation.
Luke takes temporary family leave from his job at Metal Works Corporation to arrange
for child care and deal with financial and legal matters when Nancy, his spouse, a U.S.
ANSWERS
Nora works at Oil & Gas Inc. She is a sales representative who works with Oil & Gas
customers. The company closely supervises its sales reps, and dictates their schedules.
With respect to third parties, Nora is - ANSW- an employee and agent
Orin works at Pumps Inc. He works in the company's engineering department,
interacting with third parties only to discuss technical issues. With respect to third
parties, Orin is - ANSW- *THE ANSWER IS NOT * an employee and agent.
Ingmar asks Jess to contract with Kay's Lawn Service to maintain Ingmar's lawn. Jess
orally agrees to do so. This is an agency by - ANSW- agreement
Rosa introduces Sal to her friend Trey as "my associate." Sal purports to act as Rosa's
agent in a business transaction with Trey. If Rosa is liable for Sal's actions, it will be
because their relationship is - ANSW- an agency by estoppel.
Larry is an agent for Mary. She gives him clear instructions to enter into contracts on
her behalf only on Mondays, Wednesdays, or Fridays. He enters into a contract on her
behalf on Tuesday. Larry has breached - ANSW- the duty of obedience.
Curly Fries Inc. grants its agent Dian an exclusive territory in which to sell its products.
The company cannot compete with Dian in that territory under the duty of - ANSW-
cooperation.
Jon contracts with Kino to buy a certain number of sheep for Kino's Animal Farm. Jon
makes a deal with Lila for the sheep, but neither Jon nor Kino pays the price. Lila sues
Jon for breach. Jon's right to hold Kino liable for any damages is the right to - ANSW-
indemnification.
Suva is an agent for Tax Accountants, Inc. On the firm's behalf and at its request, Suva
pays Uzo for specially coded software. Suva's right to obtain the amount of the payment
from Tax Accountants arises under the duty of - ANSW- reimbursement.
Darla serves in a representative capacity for Ellen's Botanicals. To accomplish the
objectives of this relationship, Darla's authority can be implied by - ANSW- by custom
, Ben manages a warehouse and its inventory for Coffee Roaster Inc. To operate this
part of the business, Ben's authority can be inferred - ANSW- from the position Ben
occupies.
Erin indicates that she is acting as an agent on behalf of an unidentified client—Flight
Services Inc.—when she enters into a contract with Go Airlines. Liability to Go for
nonperformance of the contract may be imposed on - ANSW- *THE ANSWER IS NOT*
Flight Services only.
Ira serves in a representative capacity for Jett. Key is injured through Ira's negligence.
Jett may be liable to Key if Ira's conduct occurred - ANSW- in the course and scope of
Ira's employment
Vera is a purchasing agent for Wild-Caught Fish Inc., with the authority to buy a sea
fisher's catch up to a certain quantity. After the fish is bought, the agency relationship
terminates - ANSW- automatically.
Miklos employs Nathalie to handle a list of financial transactions on Miklos's behalf. This
power will terminate on - ANSW- Miklos's death or incapacity.
Fara hires Gil, a real estate broker, to act as her agent to sell her land for $150,000.
Before the land is sold at the stated price, oil is discovered beneath it, causing its
market value to increase considerably. The agreement between Fara and Gil is likely -
ANSW- .
terminated by operation of law.
Food Market Company employs workers, including Gina, at six locations in two states.
Food Market's discharge of Gina outside the terms of an implied employment contract
may result in - ANSW- the employer's liability for breach of contract.
Retail Company is located in Seattle, Washington, where the city and the state have
minimum wage laws. Retail pays its starting employees the legal minimum rate, which,
among the governing laws, is - ANSW- the highest minimum wage.
Tom is seventeen years old. Under the Fair Labor Standards Act, he cannot - ANSW-
work in a hazardous occupation.
Federal overtime provisions apply only after a covered employee works more than -
ANSW- forty hours in a week.
The Family and Medical Leave Act requires certain employers to provide eligible
employees with family or medical leave for any of the following reasons except - ANSW-
to go on an extended family vacation.
Luke takes temporary family leave from his job at Metal Works Corporation to arrange
for child care and deal with financial and legal matters when Nancy, his spouse, a U.S.
