Question

Which of the following is true regarding an agency coupled with an interest?

Multiple Choice

• It falls within the general rule that either party has the power to terminate an agency.
• It is an exception to the general rule that either party has the power to terminate an agency and arises when the power is given as a security.
• It is an exception to the general rule that either party has the power to terminate an agency and arises when a contract of employment between the principal and agent exists.
• It is an exception to the general rule that either party has the power to terminate an agency and arises when there is a substantial increase in the principal’s need for the agent.

Title VII encompasses discrimination based on:

Multiple Choice

• race, religion, or sex.
• race, color, religion, sex, or national origin.
• race, color, religion, sex, or national origin, or age.
• race, color, religion, sex, or national origin, age, or handicap

Which of the following is true under the Fair Labor Standards Act?

Multiple Choice

• Under new rules, exemptions from overtime pay are based on salary only, not the type of work an employee performs.
• If an employee works voluntarily, such as to increase his or her knowledge, the employer is not required to pay for the work regardless of whether or not the employer is aware of the work.
• Employers are not required to pay for rest periods regardless of the length of the rest period.
• The act prohibits oppressive child labor.

Abe and Mary have an agency contract under which, in return for a fee, for two years Abe is to manage Mary’s real estate holdings. Mary decides that she really does not like Abe very much and tells him that she is terminating the agency contract. Which of following represents the position of the parties?

Multiple Choice

• Mary is prohibited by law from terminating the agency relationship early, and she will be forced to allow Abe to complete his contract although he is not entitled to damages.
• Mary has the power to terminate the agency relationship, and, based on the agency at will doctrine, she cannot be held liable for breach of contract.
• Mary has the power to terminate the agency relationship, but she can be held liable for damages for breach of contract.
• Mary is prohibited by law from terminating the agency relationship early, and she will be forced to allow Abe to complete his contract and pay any attorney fees he incurs in the process.

Maria, a sixteen year old student, works part-time in the office of Frank's Furniture store. One of Maria's duties is to order office supplies for the store. Which of the following statements is true?

Multiple Choice

• Because Maria is a minor, she may not act as an agent for Frank's Furniture store.
• Because Maria does not have capacity, Frank's Furniture store will not be bound by any contracts Maria enters into on their behalf.
• Because Maria does not have capacity, Frank's Furniture store may choose to void any contract Maria enters into on their behalf.
• Even though Maria is a minor, Frank's Furniture store will be bound by the contracts she enters into on their behalf.

Answer 1

1. It falls within the general rule that either party has the power to terminate an agency.

2. race, color, religion, sex, or national origin, or age.

3. Employers are not required to pay for rest periods regardless of the length of the rest period.

4. Mary is prohibited by law from terminating the agency relationship early, and she will be forced to allow Abe to complete his contract although he is not entitled to damages.

5. Even though Maria is a minor, Frank's Furniture store will be bound by the contracts she enters into on their behalf.