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LEGL 3000 Final Test Review

Decent Essays

L3000 Practice Exercise-Unit 4-Miller and Jentz 6e
Multiple Choice - Agency

Fact Pattern 17-1 (Questions 1-3 apply)
Roz and Sara work as clerks in Trina’s Hot Clothes Shop. Trina withholds federal taxes from their pay, and controls the methods and details of the performance of their work. Roz and Sara are not authorized to modify the prices or other terms of a sale at the shop.

1. Refer to Fact Pattern 17-1. Trina authorizes Roz to sell clothes at remote locations at prices that Liz negotiates in those locations. With respect to sales at those locations, Roz is a. an independent contractor. b. not Trina’s agent or employee, or an independent contractor. c. Trina’s agent and employee. d. Trina’s employee only.
2. …show more content…

d. set an unreasonable price based on current market value.
13. Pam is an agent for Refined Chemicals Corporation. Refined Chemicals owes Pam the duty of a. accounting. b. obedience. c. performance. d. safe working conditions.
14. Regional Products, Inc., hires Sam to act as its agent. Tina sues Regional for Sam’s negligent conduct. Regional’s right to sue Sam for an equal amount of damages is the right of a. avoidance. b. cooperation. c. indemnification. d. reimbursement.
15. Glen is an agent for High Flight, Inc. On High Flight’s behalf and at its request, Glen pays Ilsa for certain plane maintenance and repair services. Glen’s right to obtain the amount of those payments from High Flight arises under the principal’s duty of a. avoidance. b. cooperation. c. indemnification. d. reimbursement.
16. Ann is a businessperson acting as an agent for Business Sales, Inc. (BSI). In an ordinary business situation, Ann
a. can contract on BSI’s behalf without further authority or ratification. b. cannot contract on BSI’s behalf. c. must obtain BSI’s written authority to enter into a contract for BSI. d. must obtain BSI’s later ratification of a contract entered into for BSI.
17. 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
a. apparent authority.
b. equal

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