LEB 320F Final Practice Exam
Questions with All Correct
Answers
Which one of the following is not a typical fashion by which an agency relationship
ends?
Mutual Agreement.
Occurrence of a Specified Event.
Statute of Limitations.
Fulfillment of Purpose. - Answer-Statute of Limitations.
There is, generally, no limit on how long one of these relationships can last prescribed
by state or federal law. A, B, and D are all usual methods by which an agency
relationship may end. Other common methods that signify the end of an agency
relationship include a lapse of time (the relationship was designed to only last for a set
amount of time), the act of one party (because an agency relationship is consensual, it
can usually be terminated by either party if they want to get out of the relationship), or
operation of law (such as by death, insanity, bankruptcy, or other changes in
conditions).
Principals may be held liable for contracts signed by their appointed agents even in
cases when the agents acted outside of the direct authority granted to them by the
principals. - Answer-T
Agents have implied authority and apparent authority, in addition to express authority.
Implied authority covers acts that the parties did not expressly address when forming
the relationship. Apparent authority, although technically outside of the authority of the
agent, arises when a principal leads a third party to believe that the agent has authority
to do an action. Finally, principals may be liable if they ratify the actions of their agents,
even if the agents lacked express, implied and/or apparent authority.
Whom among of the following would be protected under the ADA?
A person with HIV.
Homosexuals.
Exhibitionists.
Kleptomaniacs. - Answer-A person with HIV.
An HIV infection is a disability under the definition of the ADA. Homosexuality,
exhibitionism, and kleptomania are expressly not protected under the ADA.
,Which of the following is not a necessary element in establishing a claim for retaliation?
The plaintiff suffered an adverse employment action.
The plaintiff engaged in a protected activity.
The plaintiff had complained to the EEOC.
There is a connection between the protected activity and the adverse employment actio
- Answer-The plaintiff had complained to the EEOC.
A, B, and D are all necessary elements in a prima facie case for retaliation.
Which one of the following is not an element required to establish an agency
relationship?
Consent.
Capacity.
Obedience.
All of the above. - Answer-Obedience.
Although obedience is owed by the agent to the principal, it is not a necessary element
to establish agency. Consent of both parties and capacity by the principal are
necessary.
An individual attempting to make a case for disparate impact can compare employment
statistics of the company with general population statistics when the job requires special
qualifications. - Answer-F
The plaintiff would have to compare the employment statistics with the statistics of the
population qualified for that field.
Addiction is a protected disability under the ADA for current users of drugs. - Answer-F
The ADA expressly provides that a current user of alcohol or illegal drugs is not
protected by law. Having the mere status of an alcoholic or drug addict is protected,
however.
The only way to terminate an agency relationship is by fulfilling the purpose for which
the relationship was created. - Answer-F
Other methods to terminate an agency relationships include by operation of law, act of
one party, mutual agreement, lapse of time, or occurrence of a specified event.
Title VII outlaws employment discrimination by any and all businesses. - Answer-F
Only businesses with at least 15 employees that engage in interstate commerce can be
sued under Title VII.
An employer can never be held liable for the tortious actions of an independent
contractor. - Answer-F
Although an employer generally is not liable for the tortious actions of an independent
contractor, if the task is inherently dangerous, a nondelegable duty, or if the employer
specifically directed, authorized, or intended for the wrongful conduct to occur, the
employer will usually be held liable.
Agents are always liable to third parties if their principals are insane. - Answer-F
,If the principal has not yet been declared insane, agents may not be held personally
liable to the third party in many instances.
Employees and independent contractors both normally create liability for their principals
when they commit torts within the scope of their employment. - Answer-F
In many situations, an employer may be held liable for the conduct of an employee but
usually not for the conduct of an independent-contractor.
Milton Friedman's view is that corporations are agents of capital and that they have only
a duty to earn as much money as possible for the shareholders, within the limits of the
law and customary ethical practices. - Answer-T
Friedman believes that companies should not engage in correcting problems the
company did not cause and that it is not appropriate for the company's managers to do
so.
In order to realize short-term goals, individuals will often not adequately take long-term
legal implications into consideration. - Answer-T
This fact is called a time-delay trap. Because short-term outcomes are considered to be
more tangible, the long-term considerations will tend to be ignored in some
circumstances.
Simply seeing another individual make an ethical decision in a similar situation
increases the chance that others will act ethically in that same situation. - Answer-T
In experiments, if even one out of several individuals acted ethically, other individuals
become much less likely to act immorally.
Pre-scripting certain actions, or deciding to take the actions in advance, tends to make
an actor more likely to do a certain action. - Answer-T
Many of those who have acted heroically have said that they had thought in advance
about how they would act in a circumstance and, when the situation arose, merely acted
in accordance with the court of action they had scripted.
Individuals are more likely to act ethically or whistle blow if it is clearly in their job
description. - Answer-T
Trevino and Nelson point out that employees enter work organizations in a state of role
readiness. If this includes acting ethically, they will be more likely to work in this way.
Aristotelian virtue ethics focus on cultivating a moral character within the actor instead
of doing individually moral acts. - Answer-T
Aristotelian virtues ethics concentrates more on the actor attempting to become a
virtuous person in all aspects, rather than concentrating on the resolution of specific
ethical issues. The notion is that each person should focus on developing and practicing
important values, which will in turn cause a person to make virtuous choices in general.
Behavioral ethics demonstrates that people can think of themselves as good people and
still often act dishonestly. - Answer-T
, The two major facts demonstrated by behavioral ethics research are that people tend to
simultaneously think of themselves as good people and often act dishonestly.
Taylor, a citizen of Nebraska, sues Devin, a citizen of Michigan, for $100,000 in
Nebraska state court for a state tort claim. Devin can't remove the case to a federal
court because the case was originally brought in state court.
True
False - Answer-F
Cases which meet the requirements for diversity jurisdiction or federal question can be
removed from a state court to a federal question.
Johnny, a citizen of Texas, sues AJ, a citizen of Alabama, for $80,000. This case can be
brought in a Federal District Court, even if it is a claim arising from state law.
Correct!
T/F - Answer-T
Diversity of Citizenship allows for a case to brought in Federal Court when there is
diversity of residency between parties and the claim is for at least $75,000.
For a criminal trial, the government must prove their case "beyond a reasonable doubt"
in order to secure a guilty verdict.
T/F - Answer-T
Criminal cases require that the case be proved "beyond a reasonable doubt." Civil
cases vary, but generally require proof by a "preponderance of evidence."
It is possible to violate moral or ethical standards without violating the law. T/F -
Answer-T
Some laws are less stringent than some moral or ethical standards.
An effective manager of a corporation should not attempt to alter political situations. T/F
- Answer-F
An effective manager will attempt to alter political situations and regulations to aid their
company.
Because a corporation is not an individual, a corporation does not have to be served
prior to a suit. T/F - Answer-F
Corporations generally appoint and register an agent to be served and some
jurisdictions will consider service valid if any officer of the corporation is properly served.
Conner, a citizen of South Carolina, intentionally publishes articles defaming Blake, a
citizen of Oklahoma, in the state of California. Defamation is an intentional tort. The
state of California has personal jurisdiction over Conner.
True
False - Answer-T
If the harm of an intentional tort is aimed at a specific jurisdiction, a court has personal
jurisdiction even in the absence of other forms of personal jurisdiction.
