Module 2 Sample Questions

Module 2 Sample Questions - Module 2 Sample Questions...

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Module 2 Sample Questions Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Ozzy is an officer of Prudent Financial Corporation. Ozzy serves in a representative capacity for Prudent Fin- ancial's owners. With respect to binding Prudent Financial to contracts, Ozzy is a. an agent and has the authority. b. an agent but does not have the authority. c. not an agent and does not have the authority. d. not an agent but does have the authority. ____ 2. Genetic Seed Company hires Howie to work on Genetic's shipping dock, accepting deliveries and dealing with other companies' drivers. With respect to Genetic, Howie is most likely a. an agent. b. an independent contractor. c. a principal. d. a work for hire. ____ 3. Delicious Coffee Company hires Elton to sell Delicious's products in a certain area. Delicious agrees to pay Elton a salary, plus commission, for a trial period. They also agree that Elton can sell using any methods and during any hours that seem appropriate. The key factor in whether Elton is Delicious's employee is a. the amount of Elton's salary. b. the control Delicious has over the details of the work. c. the length of the trial period. d. the title that designates Elton's position. ____ 4. Jill introduces Kelly to her friends as "my associate." Kelly purports to act as Jill's agent in several business transactions with those friends. If Jill is liable for Kelly's actions, it will be under a. the doctrine of estoppel. b. the equal dignity rule. c. the fiduciary principle. d. the good faith statute. ____ 5. Home Development Company employs llya to buy property for a future residential development. Ilya secretly buys some of the property and sells it to Home Development at a profit. Ilya has breached a. no duty. b. the duty of accounting. c. the duty of loyalty. d. the duty of notification. ____ 6. Regional Products, Inc., hires Sam to act as its agent. Tina sues Regional for Sam's negligent conduct. Re- gional's right to sue Sam for an equal amount of damages is the right of a. avoidance. b. cooperation. c. indemnification. d. reimbursement. ____ 7. Hu is an officer of International Corporation. With respect to binding International to contracts, Hu's authority a. may be actual or apparent. b. must be actual and express, not implied or apparent. c. must be actual and may be express or implied, but not apparent. d. need not be actual or apparent. ____ 8. Jen, an agent for Kip, enters into a contract on Kip's behalf with Leon that must be in writing to be enforce- able under the Statute of Frauds. Under the equal dignity rule, Jen's authority to enter into this contract
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a. may be express, implied, or apparent.
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Module 2 Sample Questions - Module 2 Sample Questions...

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