BUSA 310 1st Edition Exam 2 Study Guide Lectures 4 6 STUDY QUESTIONS 1 Brook moved from Denver to San Francisco to take a job with an advertising agency His employment contract stated that he was at will and could be terminated at any time After 28 months with the company he was fired without explanation Which of the following statements is true a His contract implied that he could only be fired for cause b Because he had a contract he was not an employee at will c He could only be fired for a good reason d He could be fired for any reason e He could be fired for any reason except a bad reason 2 Under the FMLA a Both men and women are entitled to take a leave of absence from their jobs for childbirth adoption or a serious health condition of their own or in their immediate family b An employee is entitled to 12 weeks of paid leave c An employee is entitled to leave to care for any member of his household including pets d An employee who takes a leave is entitled to return to the exact job she left e All employees in the country are covered 3 Which of the following statements is true under the public policy doctrine a An employee can be fired for any reason b An employee can be fired for threatening a coworker c An employee can be fired for filing a workers compensation claim d An employee can be fired for violating company policy even if he does so to save someone s life e An employee can be fired for refusing to lie under oath on the witness stand 4 A whistleblower is a always protected by the law b c d e 5 never protected by the law always protected when filing suit under the False Claims Act always protected if she is an employee of the federal government always protected if she works for a private company George was furious when Hermione left the company in the middle of a very busy sales period He vowed that he would get even with her Another employer called to check Hermione s references Which of the following statements should George make if his goal is to limit his company s potential liability a Hermione was generally a good worker but she was often late arriving at the office This is true b Hermione tried to run over a coworker with her care This is true c Hermione wore inappropriate clothing This is not true d Hermione doesn t know her debits from her credits This is not true e Hermione worked for this company for a year and a half Her title was chief knowledge officer This is true 6 When two parties make no agreement in advance about the duration of their agreement it is called a Term agreement b Apparent authority c Agency at will d A duty of an agent e Implied authority 7 When an agent has authority to perform acts that are necessary to accomplish an assignment it is called a Term agreement b Apparent authority c Agency at will d A duty of an agent e Implied authority 8 When two parties agree in advance on the duration of their agreement it is called a Term agreement b Apparent authority c Agency at will d A duty of an agent e Implied authority 9 When behavior by a principal convinces a third party that the agent is authorized even though she is not it is called a Term agreement b Apparent authority c Agency at will d A duty of an agent e Implied authority 10 Duty of loyalty is a Term agreement b Apparent authority c Agency at will d A duty of an agent e Implied authority 11 Property that individual debtors can keep for themselves a Discharge b Fraudulent transfer c Exempt property d Reaffirmation e Voidable preference 12 Debtors are not liable for money owed before the filing a Discharge b Fraudulent transfer c Exempt property d Reaffirmation e Voidable preference 13 Debtor s promise to pay a debt after discharge a Discharge b Fraudulent transfer c Exempt property d Reaffirmation e Voidable preference 14 Payment to a creditor immediately before filing a Discharge b Fraudulent transfer c Exempt property d Reaffirmation e Voidable preference 15 Payment made within the year before a petition is filed with the goal of hindering creditors a Discharge b Fraudulent transfer c Exempt property d Reaffirmation e Voidable preference 16 Someone who buys goods in good faith from a seller who deals in such goods a Attachment b 16 17 BIOC c Perfection d PMSI e Priority Steps necessary to make a security interest valid against the whole world a Attachment b BIOC c Perfection d PMSI e Priority A security interest taken by the person who sells the collateral or advances money so the debtor can buy it 18 19 20 a Attachment b BIOC c Perfection d PMSI e Priority The order in which creditors will be permitted to seize the property of a bankrupt debtor a Attachment b BIOC c Perfection d PMSI e Priority Steps necessary to make a security interest valid against the debtor but not against third parties a Attachment b BIOC c Perfection d PMSI e Priority Bank has loaned unsecured money to Retailer which still owes 700 000 Nervous that Retailer is on the verge of bankruptcy Bank sends a notice of security interest to Retailer claiming a security interest in all the inventory and real estate of Retailer Retailer does not respond Bank files its notice in the state s central filing office When Retailer goes bankrupt Bank a b c d e inventory Has a perfected security interest in the inventory but not the real estate Has a perfected security interest in the real estate but not the inventory Has a perfected security interest in both the real estate and the inventory Has no security interest in either the real estate or the inventory Has an unperfected security interest in both the real estate and the 21 Which case does not represent a purchase money security interest a Auto Dealer sells Consumer a care on credit b Wholesaler sells Retailer 5 000 pounds of candy on credit c Bank lends money to Retailer using Retailer s existing inventory as collateral d Bank lends money to Auto Dealer to purchase 150 new cars which are the collateral e Consumer applies to Credit Agency for a loan with which to buy a yacht 22 Millie lends Arthur her next door neighbor 25 000 He gives her his diamond ring as collateral for the loan Which statement is true a Millie has no valid security interest in the ring because the parties did not enter into a security agreement b Millie has no valid security interest in the ring because she has not filed appropriate papers c Millie has an attached unprotected security interest in the ring d Millie has an attached unprotected security interest in the ring but she can perfect her