FINAL EXAM REVIEW Call center Cox Comm TX Created by Pamela S Evers Assoc Prof UNCW for Educational Purposes 2001 w updates True False Agency is a contract in which an agent is authorized to act on behalf of and under the control of a principal All employees are agents and all agents are employees Agents may bind a principal on the basis of apparent authority Agency may be created unintentionally True False Answers TRUE Agency is a contract in which an agent is authorized to act on behalf of and under the control of a principal FALSE All employees are agents but some agents are independent contractors TRUE Agents may bind a principal on the basis of apparent authority TRUE Agency may be created unintentionally through apparent authority True False All duties are delegable An agent s duty of confidentiality continues after the agency ends To be considered actual authority the authority must be expressed in words orally or in writing Agency is a fiduciary relationship True False Answers FALSE Not all duties are delegable e g personal services TRUE An agent s duty of confidentiality continues after the agency ends TRUE To be considered actual authority the authority must be expressed in words orally or in writing express authority TRUE Agency is a fiduciary relationship Multiple Choice Principals have the following duties to agent a Duty to compensate b Duty to reimburse for reasonable expenses for doing agency business c Duty to indemnify the agent for losses suffered due to agency s business d Both A and B e All of the above Multiple Choice Answer Principals have the following duties to agent a Duty to compensate b Duty to reimburse for reasonable expenses for doing agency business c Duty to indemnify the agent for losses suffered due to agency s business d Both A and B E ALL OF THE ABOVE True False An agent is always liable for his own torts The doctrine of respondeat superior means that a principal is liable for torts committed by employees acting within the course and scope of employment If an agent enters into contracts for a legally existing and competent principal but lacks authority to enter contracts the principal is not bound True False Answers TRUE Agent always liable for his own torts TRUE Doctrine of respondeat superior means that principal is liable for torts committed by employees acting within the course and scope of employment NOT NECESSARILY If an agent contracts for a legally existing and competent principal but lacks authority to enter contracts the principal MAY BE bound IF THE AGENT HAD APPARENT AUTHORITY True False A principal is never liable for an independent contractor s torts Apparent authority arises if communications by principal to third party creates reasonable appearance of authority in the agent If a principal fails to inform the agent about a defect in the product the principal will be directly liable for an agent s torts True False Answers FALSE A principal MAY BE liable for an independent contractor s torts IF FOR A DANGEROUS ACTIVITY TRUE Apparent authority arises if communications by principal to third party creates reasonable appearance of authority in the agent TRUE If principal fails to inform agent about defect in product the principal will be directly liable for an agent s torts Multiple Choice Carl owned a a pizza business and employed Zip to deliver pizzas Carl knew that Zip occasionally drank beer while driving but didn t fire Zip Zip injured Dan while delivering pizzas and driving drunk Is Carl liable to Dan for Zip s conduct a No only Zip is liable Drunk driving was not within the scope of employment b Yes since Carl knew about Zip s drinking and negligently retained Zip Multiple Choice Answer Carl owned a a pizza business and employed Zip to deliver pizzas Carl knew that Zip occasionally drank beer while driving but didn t fire Zip Zip injured Dan while delivering pizzas and driving drunk Is Carl liable to Dan for Zip s conduct b Yes since Carl knew about Zip s drinking and negligently retained Zip Note that a plaintiff bears the burden of proof that Carl knew about Zip s drinking on the job negligent supervision Multiple Choice Carl s Pizza hired Miller to be general manager Miller hired Sam for pizza prep work In general would Carl s Pizza be obligated to honor the contract with Sam a No only the owner of Carl s Pizza can hire Sam thus Sam s contract is void b Yes Miller acted with implied authority since he is general manager and Carl s Pizza must honor Sam s employment contract Multiple Choice Answer Carl s Pizza hired Miller to be general manager Miller hired Sam for pizza prep work In general would Carl s Pizza be obligated to honor the contract with Sam b Yes Miller acted with implied authority since he is general manager and Carl s Pizza must honor Sam s employment contract True False Employment at will is the law in all states An employer 100 employees may not fire a man for taking a two month leave of absence to care for his seriously ill wife Workers compensation is an employee s exclusive remedy against an employer for covered injuries True False Answers FALSE Employment at will is the law in all states Some states have limited the common law rule of employment at will TRUE in general An employer 100 employees may not fire a man for taking a two month leave of absence to care for his seriously ill wife Slightly different rules for key employees TRUE Workers compensation is an employee s exclusive remedy against an employer for covered injuries However if the employee cannot obtain fair compensation s he may file a lawsuit in court True False Fair Labor Standards Act prohibits any form of child work or labor by any employer engaged in interstate commerce OSHA may not inspect a workplace or issue citations for violations of the act without a warrant issued by a judge An employer may terminate a whistle blower immediately because whistle blowers make defamatory comments to the public True False Answers FALSE Fair Labor Standards Act prohibits any form of child work or labor by any employer engaged in interstate commerce BUT agricultural companies are exempted However statement generally is true FALSE OSHA may not inspect a workplace or issue citations for violations of the act without a warrant issued by a judge BUT routine inspections do not need a warrant FALSE An employer may not terminate a whistleblower immediately because public policy protects whistle blowers Caution employers probably WILL fire the employee The
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