Agency and Employment Law: Master the Fundamentals for Business Success

Question 1

Which duty is NOT owed by an agent to their principal?

Accepted Answer

Delegating duties to third parties without the principal's consent

Answer

Acting as per the principal's instructions

Answer

Exercising reasonable care and skill

Answer

Disclosing all relevant information to the principal

Question 2

To establish an agency relationship, what action is crucial?

Accepted Answer

Principal grants express or implied authority to the agent.

Answer

Agent acts without the principal's knowledge or consent.

Answer

Third party assumes an individual is an agent.

Answer

Agent claims to represent a principal without authorization.

Question 3

In an agency relationship, who is the party who grants authority to the agent?

Accepted Answer

Principal

Answer

Agent

Answer

Employer

Answer

Contractor

Question 4

What legal doctrine holds employers accountable for the actions of their employees?

Accepted Answer

Respondeat superior

Answer

Agency by estoppel

Answer

Apparent authority

Answer

Ratification

Question 5

What is the primary purpose of an employment contract?

Accepted Answer

To outline the terms and conditions of employment.

Answer

To protect the employer from lawsuits.

Answer

To create a fiduciary relationship between the employer and employee.

Answer

To provide tax benefits to the employee.

Question 6

Which type of agency arises from the actions or conduct of the parties involved?

Accepted Answer

Apparent authority

Answer

Actual authority

Answer

Estoppel

Answer

Ratification

Question 7

Which characteristic is essential to an agency relationship?

Accepted Answer

The agent has the ability to bind the principal to agreements.

Answer

The agent acts as an independent contractor.

Answer

The principal is immune from legal liability for the agent's actions.

Answer

The agent is exclusively an employee of the principal.

Question 8

Which practice does NOT constitute employment discrimination?

Accepted Answer

Terminating employees due to unsatisfactory performance

Answer

Denying employment opportunities based on race

Answer

Paying individuals with the same job responsibilities different wages based on gender

Answer

Rejecting job applications from people with disabilities

Question 9

How do express and implied agencies differ?

Accepted Answer

Express agencies are formed through written agreements, while implied agencies arise from the parties' conduct.

Answer

Implied agencies are formed through written agreements, while express agencies arise from the parties' conduct.

Answer

Express agencies are formed through oral agreements, while implied agencies are formed through written agreements.

Answer

There is no distinction between express and implied agencies.

Question 10

Which of the following is NOT a characteristic of an agency relationship?

Accepted Answer

The agent is an employee of the principal.

Answer

The agent has the authority to act on behalf of the principal.

Answer

The principal controls the actions of the agent.

Answer

The principal is liable for the agent's actions.

Question 11

What type of authority allows an agent to bind the principal to contracts without the principal's express consent?

Accepted Answer

Apparent authority

Answer

Actual authority

Answer

Implied authority

Answer

Inherent authority

Question 12

What is the legal doctrine that holds an employer liable for the discriminatory actions of its employees?

Accepted Answer

Respondeat superior

Answer

Res ipsa loquitur

Answer

Ultra vires

Answer

Estoppel

Question 13

Which of the following is NOT a potential remedy for wrongful termination?

Accepted Answer

Imprisonment

Answer

Reinstatement

Answer

Back pay

Answer

Emotional distress damages

Question 14

What is the Fair Labor Standards Act?

Accepted Answer

A law that establishes minimum wage and overtime pay requirements

Answer

A law that prohibits discrimination in employment

Answer

A law that regulates the employment of minors

Answer

A law that provides health insurance to employees

Question 15

Precise Question: Which of the following is NOT a fundamental fiduciary duty owed by an agent to a principal?

Accepted Answer

Revised: Duty to share confidential information without consent

Answer

Duty of care

Answer

Duty of loyalty

Answer

Duty of obedience

Question 16

Revised Question: What type of agency relationship arises when an agent is authorized to act on behalf of and bind the principal to a contract with a third party?

Accepted Answer

Revised: Express agency

Answer

Apparent agency

Answer

Implied agency

Answer

Ratification

Question 17

Revised Question: Under the Fair Labor Standards Act (FLSA), which category of workers is exempt from overtime pay?

Accepted Answer

Revised: Salaried employees meeting specific salary and job duty requirements

Answer

Hourly employees

Answer

Commission-based employees

Answer

Independent contractors

Question 18

Revised Question: Which legal doctrine protects employees from retaliation for reporting illegal or unethical conduct?

Accepted Answer

Revised: Whistleblower protection

Answer

Wrongful termination

Answer

Discrimination

Answer

Breach of fiduciary duty

Question 19

Precise Question: Which of the following is a characteristic protected from discrimination under federal employment anti-discrimination laws?

Accepted Answer

Revised: Age

Answer

Religion

Answer

Political affiliation

Answer

Height

Question 20

Precise Question: What is the primary purpose of an employment contract?

Accepted Answer

Revised: To outline the conditions and terms of employment

Answer

To create an agency relationship

Answer

To protect employees from wrongful termination

Answer

To avoid tax obligations

Question 21

Revised Question: What is the legal principle that imposes a duty on employers to provide a safe and healthful workplace for their employees?

Accepted Answer

Revised: Duty of care

Answer

Respondeat superior

Answer

Negligence

Answer

Vicarious liability

Question 22

Revised Question: Which of the following is NOT a potential consequence of wrongful termination?

Accepted Answer

Revised: Automatic reinstatement to the former job position

Answer

Lost wages

Answer

Emotional distress

Answer

Punitive damages

Question 23

Revised Question: Which legal doctrine holds an employer responsible for the actions of its employees while acting within the scope of their employment?

Accepted Answer

Revised: Respondeat superior

Answer

Negligence

Answer

Vicarious liability

Answer

Assumption of risk

Question 24

Which of the following is NOT a hallmark of an agency relationship?

Accepted Answer

Agent operates autonomously

Answer

Established through agreement

Answer

Fiduciary responsibility present

Answer

Agent is entitled to remuneration

Question 25

Legally, how is an agent classified?

Accepted Answer

Independent contractor

Answer

Employee

Answer

Contractor

Answer

Partner

Question 26

Describe the principle of 'respondeat superior'.

Accepted Answer

An employer bears liability for actions committed by their employees within their job scope.

Answer

Agents bear liability for actions taken by their principals.

Answer

Employers are liable for the actions of their employees regardless of job scope.

Answer

Independent contractors bear liability for the actions of their employees regardless of job scope.

Question 27

What is the primary function of the Equal Employment Opportunity Commission (EEOC)?

Accepted Answer

Enforce federal laws against workplace discrimination

Answer

Offer legal counsel to employers

Answer

Resolve workplace disputes

Answer

Develop job training programs

Question 28

Under federal employment discrimination laws, which of the following is a protected characteristic?

Accepted Answer

Age

Answer

Marital status

Answer

Political affiliation

Answer

Height

Question 29

How do unions and professional associations differ?

Accepted Answer

Unions engage in collective bargaining for employees, while professional associations focus on advancing their industry.

Answer

Professional associations engage in collective bargaining for employees, while unions focus on advancing their industry.

Answer

Unions and professional associations fulfill similar roles in collective bargaining and industry advancement.

Answer

There are no meaningful distinctions between unions and professional associations.

Question 30

What is the primary purpose of an employment contract?

Accepted Answer

To establish the terms and conditions of employment

Answer

To prevent employee resignation

Answer

To guarantee a specific level of job performance

Answer

To transfer ownership of an employee's work product

Question 31

According to the Age Discrimination in Employment Act (ADEA), which of the following actions would be considered unlawful employment discrimination based on age?

Accepted Answer

Denying employment to an applicant solely because they are 60 years old

Accepted Answer

Offering a lower salary to a qualified employee who is 40 years old compared to a younger employee for the same position

Accepted Answer

Terminating an employee who is 70 years old without a valid business reason

Answer

Promoting an employee who is 30 years old over an equally qualified employee who is 50 years old

Question 32

Which of the following is NOT a protected characteristic under federal employment discrimination law?

Accepted Answer

Political affiliation

Answer

Race

Answer

Religion

Answer

Disability

Question 33

What is the primary objective of the Fair Labor Standards Act (FLSA)?

Accepted Answer

To regulate minimum wage and overtime pay

Answer

To prohibit child labor

Answer

To establish equal pay for equal work

Answer

To provide health insurance for employees

Question 34

What are the main provisions of the Fair Labor Standards Act (FLSA) and how does it affect employers and employees?

Accepted Answer

Sets minimum wage, overtime pay, child labor, and recordkeeping rules

Answer

Provides unemployment insurance, worker's compensation, and Social Security benefits

Answer

Protects collective bargaining rights, union representation, and the right to strike

Question 35

According to the principle of *just cause*, which of the following is NOT a justifiable reason for terminating an employee's employment?

Accepted Answer

Having a personal conflict with the employer

Answer

Repeated poor performance despite warnings and assistance

Answer

Disobeying lawful instructions from a supervisor

Question 36

Identify the characteristic that is NOT typically associated with an agency relationship.

Accepted Answer

The agent has no authority to act on the principal's behalf.

Answer

The principal has the right to control the agent's activities.

Answer

The agent is liable to third parties for their actions.

Question 37

Who is referred to as an agent by estoppel?

Accepted Answer

An individual who presents themselves as an agent despite lacking authorization.

Answer

A person appointed as an agent through a written document

Answer

A person with express authority to act for another party

Question 38

Define the doctrine of respondeat superior.

Accepted Answer

An employer's liability for torts committed by employees acting within the scope of employment.

Answer

An agent's liability for torts committed by their principal

Question 39

What is the primary objective of the Fair Labor Standards Act (FLSA)?

Accepted Answer

To establish minimum wage, overtime pay, and recordkeeping requirements for employees.

Answer

To provide unemployment benefits to individuals who have lost their jobs

Answer

To prohibit discrimination in employment based on various protected characteristics

Question 40

Which attribute is NOT considered a protected characteristic under the Civil Rights Act of 1964?

Accepted Answer

Height

Answer

National origin

Answer

Race

Answer

Religion

Question 41

What is the purpose of an employment contract?

Accepted Answer

To outline the terms and conditions of employment between an employer and employee.

Answer

To establish the employee's wages and benefits

Answer

To protect employees from discrimination and harassment

Question 42

Which of the following is NOT a defining attribute of an agency relationship?

Accepted Answer

The agent has absolute authority.

Answer

The principal is responsible for the actions of the agent.

Answer

The agent represents the interests of the principal.

Answer

The principal can control the agent's actions.

Question 43

Which type of authority is granted directly by the principal?

Accepted Answer

Express authority.

Answer

Estoppel.

Answer

Apparent authority.

Answer

Implied authority.

Question 44

Under what circumstances does apparent authority arise?

Accepted Answer

When the principal allows a third party to reasonably believe that an agent has authority to represent them.

Answer

When an agent acts within the scope of their express authority.

Answer

When an agent has implied authority.

Question 45

Explain the distinction between the legal principles of respondeat superior and vicarious liability.

Accepted Answer

Respondeat superior holds employers responsible for torts committed by employees acting within their employment scope; vicarious liability holds principals responsible for torts committed by agents.

Answer

Respondeat superior only applies to intentional torts; vicarious liability only applies to negligent torts.

Question 46

What is the main function of the Equal Employment Opportunity Commission (EEOC)?

Accepted Answer

To enforce federal laws prohibiting discrimination in employment.

Answer

To provide legal representation to victims of workplace discrimination.

Answer

To promote diversity and inclusion initiatives.

Question 47

Explain the key distinction between disparate treatment and disparate impact in employment discrimination cases.

Accepted Answer

Disparate treatment involves intentional discrimination against an individual, while disparate impact refers to policies or practices that have an adverse effect on a protected group even if not intended.

Answer

Disparate treatment only applies to intentional discrimination based on race; disparate impact applies to all protected characteristics.

Question 48

Which of the following is NOT a legally justifiable reason for terminating an employee's employment?

Accepted Answer

Refusing to work overtime when not required by their contract.

Answer

Theft of company property.

Answer

Insubordination.

Answer

Repeated poor performance.

Question 49

An agent is instructed to buy a specific piece of equipment for their principal's business. However, the agent buys a different, but potentially better, piece of equipment without the principal's prior approval. What best describes the agent's actions?

Accepted Answer

The agent exceeded their authority.

Answer

The principal is obligated to accept the superior equipment.

Answer

The agent is entitled to compensation for their initiative.

Answer

The agent acted within the scope of their authority.

Question 50

A salesperson at a retail store misrepresents a product's features to a customer, who then makes a purchase based on this false information. Who is most likely to be held liable for the salesperson's actions?

Accepted Answer

Both the salesperson and the retail store.

Answer

Only the retail store.

Answer

Neither the salesperson nor the retail store, as it was a customer error.

Answer

Only the salesperson.

Question 51

A company requires all job applicants to take a drug test before they can be hired.  This practice is likely legal under which legal principle?

Accepted Answer

Business necessity.

Answer

Affirmative action.

Answer

Disparate impact.

Answer

Equal opportunity.

Question 52

An employee is denied a promotion because of their religious beliefs. This situation likely constitutes which type of discrimination?

Accepted Answer

Religious discrimination.

Answer

Disability discrimination.

Answer

Age discrimination.

Answer

National origin discrimination.

Question 53

An agent is appointed to negotiate a business deal for their principal. The agent successfully negotiates the deal but fails to disclose they are also a part-owner of the other company involved. This situation presents a potential conflict of interest. Which ethical obligation did the agent violate?

Accepted Answer

Duty of loyalty.

Answer

Duty to inform.

Answer

Duty of care.

Answer

Duty of obedience.

Question 54

A company implements a new policy requiring all employees to work overtime without extra pay. This policy is likely to be challenged under which legal framework?

Accepted Answer

Fair Labor Standards Act (FLSA).

Answer

Equal Pay Act.

Answer

Americans with Disabilities Act.

Answer

Civil Rights Act.

Question 55

A company asks a job applicant for personal information that is not directly related to the position. This practice may violate which legal principle?

Accepted Answer

Privacy laws.

Answer

Employment-at-will.

Answer

Affirmative action.

Answer

Non-compete agreements.

Question 56

An employee is wrongfully terminated from their job due to their gender. This situation would likely be considered a violation of which federal law?

Accepted Answer

Title VII of the Civil Rights Act.

Answer

Americans with Disabilities Act.

Answer

Fair Labor Standards Act.

Answer

Age Discrimination in Employment Act.