Part 3 1 Amy was hired as the general manager of a bookstore. In October she ord
ID: 374859 • Letter: P
Question
Part 3
1 Amy was hired as the general manager of a bookstore. In October she ordered a delivery of heating oil for the store but never discussed this purchase with the store’s owner. Amy:
a.
is personally liable to pay for the oil if the bookstore's owner refuses to pay.
b.
has implied authority to purchase the heating oil.
c.
has implied authority to purchase heating oil only if the temperature drops below 55°.
d.
has no authority to purchase heating oil on behalf of the bookstore.
2 If an agent is authorized to buy a car for her principal for $40,000 but is able to buy it for $35,000:
a.
the agent must give the $5,000 to the seller of the car.
b.
the agent must account to the principal for the $5,000 not spent.
c.
the agent is legally entitled to keep the $5,000 as a bonus.
d.
the principal can legally fire the agent for failing to act in the principal’s best interest.
3 Who of the following is an independent contractor?
a.
a student taking a course at OIT.
b.
a lawyer hired on a one-time basis to represent OIT in a legal action.
c.
a US Postal Service driver delivering mail to OIT.
d.
a professor hired to teach for a year at OIT.
4 A principal is liable for his agent’s ________________ under the doctrine of respondeat superior
a.
contracts negotiated outside the scope of his authority.
b.
contracts negotiated within the scope of his authority.
c.
torts committed outside the scope of his authority.
d.
torts committed within the scope of his authority.
5 Under the doctrine of employment at will:
a.
an employee must give sufficient notice to the employer before terminating employment.
b.
an employee can quit or be fired at any time with or without a reason.
c.
an employer can only fire an employee for "cause".
d.
an employer is prohibited from firing any employee who is in a "protected class" even if the employee fails to perform the work as specified.
6 In the absence of any specific agreements, each partner in a general partnership has:
a.
limited personal liability.
b.
a legal right to compete with the partnership for personal gain.
c.
an equal right in managing the partnership.
d.
no authority to contract on behalf of the partnership.
7 Mars, Inc. is a closely held corporation. Which of the following is NOT true?
a.
Its stock can be bought and sold on a public stock exchange.
b.
Its profits are subject to federal and state corporate profit tax.
c.
It has a perpetual existence in accordance with the laws of the state in which it is incorporated.
d.
Its owners have limited liability
a.
is personally liable to pay for the oil if the bookstore's owner refuses to pay.
b.
has implied authority to purchase the heating oil.
c.
has implied authority to purchase heating oil only if the temperature drops below 55°.
d.
has no authority to purchase heating oil on behalf of the bookstore.
Explanation / Answer
1. Amy was hired as the general manager of the bbokstore. In october she orddered the delivery of heating oil for the store but never discussed this purchase with the store owner, Amy has implied authority to purchase the heating oil, as Amy is the general manager of the store and she has some authority to take decisions on the behalf of the store owner.
2.If an agent is authorized to buy a car for her principal for $40000, but is able to buy it for $ 35000 , in this case agent is legally entitled to keep $5000 as a bonus, as he make a best deals.
3. An independent contractor is a professor hired to teach for a year at OIT. as independent contractor a one who provide services to other party on the specefied term .
4.The principal is liable for his agent if the tort committed within the scope of his authority, under the doctrine of respondent superior.
5. Under the doctrine of employment at will ,an employee can quit or be fired at any time with or without reasn, as under this employment is for indefinite period of time and may be terminated either by employer or employee at point of time.
6. In the absence of any specific agreement, each partners in general partnership has an equal right in managing the partnership , as partners equally divide the management and will be liable for the obligations of the partnership.
7. Mars, inc is closely held corporation , the statement which is not true is its owner have limited liability.