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Exam 10: Agency and Employment Relationships

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Question 41

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Mike calls Beth asking her to referee a soccer game.Beth is not obligated to work the game.If she accepts the assignment and works the game she is told the time of the game,she must wear an approved uniform and she is paid a fee.Once on the pitch (field) she is in complete control.Beth is considered a/an:

A) incidental contractor.
B) principal.
C) an employee/agent.
D) independent contractor

E) None of the above
F) All of the above

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Question 42

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Karl is a driver for Arnold's Appliance Store and delivers appliances to customers.One day,Karl negligently secures a washer and dryer in the back of his truck and while driving,the washer falls out of the truck.Jan,driving behind the truck,sees the appliance flying at her and swerves into a telephone pole.Which of the following is correct?

A) Karl, but not Arnold's is liable
B) Both Karl and Arnold's are liable
C) Arnold's, but not Karl is liable
D) no one is liable, it was an accident

E) A) and B)
F) B) and C)

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Question 43

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An employee who reports unlawful conduct or a statutory violation committed by their employer is called a ______.

Agency law primarily exists on the:

If an agent is acting within the scope of her employment,should she commit an intentional tort harming a third party the principal may be liable for the injuries sustained.

Donald is an agent representing Xmart,a large department store chain.Xmart has sent him to deal with Fred to purchase Fred's land in order to erect a new store.When Donald first meets Fred,Fred calls Xmart to verify that Donald is in fact an agent authorized to deal on their behalf.Xmart sends Fred a written confirmation of Donald's authorization to act as their agent and states that a contract signed by Donald would be honored by Xmart.Donald and Fred meet every other day during the negotiations.While the negotiations are still ongoing,Donald is fired by Xmart because they don't feel that he is making sufficient progress.Why is it important for Xmart to communicate with Fred regarding Donald's firing?

The centerpiece of a fiduciary relationship is the agent's duty to act with due care when performing the responsibilities of the agency.

What is the effect of the employment-at-will doctrine and generally what are the exceptions to its application?

With regard to negligent hiring,the courts would require the least amount of scrutiny regarding:

Expressly firing someone for whistle-blowing constitutes the act of ______.

An express termination of the agency relationship by the agent is called a renunciation.

With regard to whistle-blowers:

Tom has been injured on the job so Dick hires Harry to fill in for him.The agreement with Harry is that he will work until Tom is ready to return.When Tom is indeed ready to return,Dick's position is terminated by an express act defined as ______.

One significant benefit of an employer completing an IRS Form SS-8 is that even if the employer does in fact misclassify a worker,the proper completion of the form may evidence a good faith effort by the employer reducing or even eliminating IRS penalties for misclassification.

The Happy Days Day Care is hiring a child care worker.On their application they specifically ask if you've ever been arrested.Tina has applied for a job at Happy Days and answered no to the question.She has also answered no to the question asking if there is any reason that she would not be qualified to work with children.Soon after Tina is hired she severely shakes a baby to stop it from crying causing the baby injuries.It is discovered at trial that Tina has been fired from numerous day cares for baby shaking and other various offenses.If the baby's parents sue Happy Days:

In Edgewater Motels,Inc.vA.J. Gatzke and Walgreen Company, Gatzke, an employee agent of Walgreen, while filling out expense reports under the scope of his employment, accidently started a fire due to careless smoking, severely damaging the Edgewater Motel. With regard to the smoking the court determined that:

Generally,regarding employment at-will,employees may be fired just because the boss doesn't like them.

A principal has the power to terminate an agency relationship whether or not they have the legal right to terminate that relationship.

An independent contractor is not considered an employee but is entitled to minimum wage and overtime protections.

Explain the difference between a frolic and a detour and how they affect or not affect the principal's liability.