Business Law

Chapter Quiz

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Results Reporter

Out of 10 questions, you answered 4 correctly with a final grade of 40%

4 correct (40%)

6 incorrect (60%)

0 unanswered (0%)

Your Results:

The correct answer for each question is indicated by a .

1 CORRECT

James hired Megan to represent him in purchasing a building on May Street for his business. The next day, Megan learned that one of her other clients, Will, wished to sell his building on Main Street. Will told Megan that he was going to ask $200,000 for the building but would accept an offer of $160,000 or more. Under these circumstances, Megan would have a duty to communicate the information about Will's intent to accept $160,000 to James.

A)

True

B)

False

2 INCORRECT

In order for an agent to bind a principal to a contract, the agent must have authority to do so.

A)

True

B)

False

3 CORRECT

An agent who receives no compensation for his services is a special agent.

A)

True

B)

False

4 INCORRECT

The president of a corporation is much more likely to be considered an employee than an independent contractor.

A)

True

B)

False

5 CORRECT

In his years with the Mumford Corporation, William learned a lot about software systems. He applied that knowledge to good effect after he left Mumford and went to work for the Sebastian Corporation. When Mumford sues William for violating an agent's duty of loyalty by using confidential information of the principal, Mumford will probably lose.

A)

True

B)

False

6 CORRECT

Nick was a heavy-machine operator employed by Randall Construction, Inc. While operating a bulldozer in accordance with instructions, the bulldozer malfunctioned, causing a serious accident which left Nick paralyzed. An analysis showed that the bulldozer failed because of improper and inadequate maintenance by Randall. Under these circumstances:

A)

Nick will be successful in suing Randall for negligence.

B)

Nick will be successful in making a worker's compensation claim against Randall.