Reference no: EM132349810

1. An agent acting for a principal is hired to bid on artwork at an auction (for the principal's art collection). Under the scenario, the agent may:

a. Make bids as high as the principal authorizes.

b. After the auction price reaches the maximum the principal was willing to pay, keep bidding.

c. Represent another bidder, or him/herself for the same piece of art

d. both a. and c.

2. Social security taxes are owed by which group?

a. Employees

b. Employers

c. both a. & b.

d. neither a. nor b.

3. The emergence of federal laws regulating employment arrangements occurred closely after which significant period or event in United States history?

a. The stock market crash and Great Depression.

b. The Civil War

c. The assassination of President John F. Kennedy

d. The end of World War II

4.  Lee is the executive of a car manufacturer. Lee decides the appearance of one of his car designs outweighs the desire to make the car safer to its occupants, and overrules the company's engineers who wish to make the car safer. Lee is:

a. making the best possible ethical choice.

b. going to make a terrific President of the United States some day.

c. ultimately going to be rewarded by having the most profitable car.

d. none of the above.

5. The NLRB (National Labor Relations Board) has oversight over which of the following?

a. Employee union elections

b. Television transmission rules

c. Insider trading by employees of a publicly traded corporation

d. None of the above.

6. Which of the following is the best example of a breach of the fiduciary duty (or duty of loyalty) owed by an agent to principal?

a. A supervisor at a supermarket asks a stock person to restock shelves.

b. A partner passes up a prospective business opportunity because it is in the same line of business that the partnership conducts.

c. A real estate agent recommends his/her client accept an offer to sell the client's house for less than asking price, even though the commission received by the agent will be reduced.

d. An NBA basketball player's agent requires of a team trying to sign the player to a contract that as a condition to his client signing the team's contract, the agent must be given free tickets to the team's home games so the agent can entertain prospective clients.

7. If a principal accepts the benefits created by someone who was not really the principal's agent at the time, the concept is known as

a. ratification

b. constructive acceptance

c. personification

d. renouncement

8. The legal concept that makes the principal liable for torts of an agent is sometimes referred to as:

a. ratification

b. respondeat superior

c. renunciation

d. all of the above

9. An agent enters into a contract with a third party on behalf of a principal. The contract is:

a. void

b. enforceable against the principal

c. missing fiduciary duty

d. valid, but only if in writing.

10. If a principal specifically authorizes an agent to act on behalf of the principal, it is usually referred to as:

a. actual authority

b. ostensible authority

c. constructive authority

d. none of the above