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39.An agent is generally prohibited from using his or her own judgment as a substitutefor the principal's judgment unless specifically authorized by the principal.40.In a fully disclosed agency situation, the agent is not contractually liable to the third party.41.The manager at an apartment complex has no prior criminal record but has just been arrested for possession of child pornography. If he is convicted but given probation and not jailed, the apartment complex may be liable if it does not fire him and he later harms a child on the premises42.If an agent is acting within the scope of his or her employment and commits an intentional tort harming a third party, the principal may be liable for the injuries sustained.43.A principal has the power to terminate an agency relationship at any time44.Authority based on what the third party reasonably believes the agent to possess is called apparent authority45.Under the Age Discrimination in Employment Act, substantially younger is not defined, but many courts follow the general rule that the age difference must be 10 years in order to qualify as substantially younger.46.Expressly firing someone for whistle-blowing constitutes an act of retaliation.47.State and local affirmative action plans in regard to race- or gender-based preferences in the hiring of government contractors are subject to strict scrutiny.48.Employers are not bound by the Fair Labor Standards Act regarding employees classified as exempt49.An employee with a salary in the top 10 percent of the company's payroll is classified as a key employee for purposes of the Family and Medical Leave Act.50.Once an employee has established that she or he has a covered disability, the Americans with Disabilities Act requires that the employer make reasonable
accommodations that will allow the employee to perform the essential functions of the job.51.An employee group with mutual interests and goals that is an appropriate unit for negotiating union contracts is called a collective bargaining unit.52.Employers are not required to offer their employees health care benefits.53.The Social Security Act is funded through mandatory employment taxes paid by both the employer and the employee.54.Workers' compensation provides benefits for workers who are injured on the job.