BUL 3320 USF EXAM 3 QUESTIONS
AND ANSWERS
The principal-agent relationship is a fiduciary relationship - answer- True
If the principal is undisclosed, an agent can have no apparent authority - answer-
True
The Labor-Management Relations Act (Taft-Hartley Act) prohibits the closed shop
(i.e. requiring an employer to hire only union members), but permits the union shop
(i.e. permitting an employer to hire non-union members but requiring the hired
employee to become a union member within a specified time after gaining
employment and to remain a member in good standing as a condition of
employment) in a state unless a union shop is prohibited by a right to work law in
that state - answer- True
Northern Airlines would like to hire all male cabin attendants for its airline in order to
serve the growing number of female executives who travel. Sex is a legal BFOQ
under these facts - answer- False
Which of the following acts may terminate an agency?
A) Lapse of time
B) Revocation of authority
C) Renunciation by the agent
D) All of the above are correct - answer- D) All of the above are correct
Which of the following allowed claims will be paid first to the debtor's estate in a
Chapter 7 bankruptcy?
A) A gap creditor with a claim of $2,000.
B) A state claiming $5,000 in back taxes.
C) The trustee's expenses of $3,000.
D) Employees claiming unpaid wages of $4,000 for wages earned within 90 days of
the bankruptcy filing. - answer- C) The trustee's expenses of $3,000.
Pat wishes to raise some money to begin mass producing their prize winning jellies
and jams. Pat offers their neighbors apiece of their profits if they will stake their at
$2,000 a piece. Is the investment a security?
A) Yes, since Pat will do all of the work.
B) Yes, because Pat's neighbors will have a security interest in the jelly.
C) No, since Pat's neighbors are putting no effort into it.
D) No, because Pat is not issuing stock certificates - answer- A) Yes, since Pat will
do all of the work.
, Seller has a contract to provide 100 widgets to Buyer at a price of $10 a widget. The
Seller and Buyer agreed that time was of the essence and delivery is due on October
1. Due to unanticipated delays, Seller is unable to get the widgets to Buyer until
October 2. Buyer is not harmed by the delay but sues Seller anyway because Buyer
is angry at Seller.
Even if Seller's failure to deliver the widgets on October1 would not have been a
material breach under the common law, it would be a violation of the perfect tender
rule under the Uniform Commercial Code. - answer- True
Seller has a contract to provide 100 widgets to Buyer at a price of $10 a widget. The
Seller and Buyer agreed that time was of the essence and delivery is due on October
1. Due to unanticipated delays, Seller is unable to get the widgets to Buyer until
October 2. Buyer is not harmed by the delay but sues Seller anyway because Buyer
is angry at Seller.
If Buyer cannot establish any financial damages as a result of Seller's breach, Buyer
will still be able to obtain a judgment for nominal damages against Seller. - answer-
True
Foster Co. and Rice executed a written contract by which Foster Co. was to sell 5
acres of land to Rice for $270,000. The contract required Rice to pay the entire
$270,000 at the closing. Foster Co. has refused to close the sale of the land to Rice
although Rice is ready, able and willing to close. Rice would be entitled to the
remedy of specific performance of the contract with Foster Co. - answer- True
About 10% of trade secrets that are misappropriated or taken are by employees and
departing employees or business partners and the rest are taken by outside hackers.
T/F - answer- False
About 80% of trade secrets that are misappropriated are taken by employees and
taken by party employees.
T/F - answer- True
Federal statute that preempts existing state trade secret laws.
T/F - answer- False
Federal statute don't preempt existing state trade secret laws.
T/F - answer- True
Federal patent law is exclusive, there are no state patent laws.
T/F - answer- True
Suit must be brought in a state where the defendant resides.
AND ANSWERS
The principal-agent relationship is a fiduciary relationship - answer- True
If the principal is undisclosed, an agent can have no apparent authority - answer-
True
The Labor-Management Relations Act (Taft-Hartley Act) prohibits the closed shop
(i.e. requiring an employer to hire only union members), but permits the union shop
(i.e. permitting an employer to hire non-union members but requiring the hired
employee to become a union member within a specified time after gaining
employment and to remain a member in good standing as a condition of
employment) in a state unless a union shop is prohibited by a right to work law in
that state - answer- True
Northern Airlines would like to hire all male cabin attendants for its airline in order to
serve the growing number of female executives who travel. Sex is a legal BFOQ
under these facts - answer- False
Which of the following acts may terminate an agency?
A) Lapse of time
B) Revocation of authority
C) Renunciation by the agent
D) All of the above are correct - answer- D) All of the above are correct
Which of the following allowed claims will be paid first to the debtor's estate in a
Chapter 7 bankruptcy?
A) A gap creditor with a claim of $2,000.
B) A state claiming $5,000 in back taxes.
C) The trustee's expenses of $3,000.
D) Employees claiming unpaid wages of $4,000 for wages earned within 90 days of
the bankruptcy filing. - answer- C) The trustee's expenses of $3,000.
Pat wishes to raise some money to begin mass producing their prize winning jellies
and jams. Pat offers their neighbors apiece of their profits if they will stake their at
$2,000 a piece. Is the investment a security?
A) Yes, since Pat will do all of the work.
B) Yes, because Pat's neighbors will have a security interest in the jelly.
C) No, since Pat's neighbors are putting no effort into it.
D) No, because Pat is not issuing stock certificates - answer- A) Yes, since Pat will
do all of the work.
, Seller has a contract to provide 100 widgets to Buyer at a price of $10 a widget. The
Seller and Buyer agreed that time was of the essence and delivery is due on October
1. Due to unanticipated delays, Seller is unable to get the widgets to Buyer until
October 2. Buyer is not harmed by the delay but sues Seller anyway because Buyer
is angry at Seller.
Even if Seller's failure to deliver the widgets on October1 would not have been a
material breach under the common law, it would be a violation of the perfect tender
rule under the Uniform Commercial Code. - answer- True
Seller has a contract to provide 100 widgets to Buyer at a price of $10 a widget. The
Seller and Buyer agreed that time was of the essence and delivery is due on October
1. Due to unanticipated delays, Seller is unable to get the widgets to Buyer until
October 2. Buyer is not harmed by the delay but sues Seller anyway because Buyer
is angry at Seller.
If Buyer cannot establish any financial damages as a result of Seller's breach, Buyer
will still be able to obtain a judgment for nominal damages against Seller. - answer-
True
Foster Co. and Rice executed a written contract by which Foster Co. was to sell 5
acres of land to Rice for $270,000. The contract required Rice to pay the entire
$270,000 at the closing. Foster Co. has refused to close the sale of the land to Rice
although Rice is ready, able and willing to close. Rice would be entitled to the
remedy of specific performance of the contract with Foster Co. - answer- True
About 10% of trade secrets that are misappropriated or taken are by employees and
departing employees or business partners and the rest are taken by outside hackers.
T/F - answer- False
About 80% of trade secrets that are misappropriated are taken by employees and
taken by party employees.
T/F - answer- True
Federal statute that preempts existing state trade secret laws.
T/F - answer- False
Federal statute don't preempt existing state trade secret laws.
T/F - answer- True
Federal patent law is exclusive, there are no state patent laws.
T/F - answer- True
Suit must be brought in a state where the defendant resides.
