Multiple Choice Questions
1. Someone painting the outside of a building you own crashed through a window, injuring a visiting executive. Which of the following questions would your lawyer not need to ask to determine if the painter was your servant?
(a) Did the painter work full-time for you?
(b) Had you checked the painter's references?
(c) Was the painter paid by the hour or the job?
(d) Were you in the painting business?
(e) Did the painter consider herself your employee?
2. Which of the following duties does an agent not owe to her principal?
(a) Duty of loyalty
(b) Duty to obey instructions
(c) Duty to reimburse
(d) Duty of care
(e) Duty to provide information
3. Finn learns that, despite his stellar record, he is being paid less than other salespeople at Barry Co. So he decides to start his own company. During his last month on the Barry payroll, he tells all of his clients about his new business. He also tells them that Barry is a great company, but his fees will be lower. After he opens the doors of his new business, most of his former clients move with him. Is Finn liable to Barry?
(a) No, because he has not been disloyal to Barry -- he praised the company.
(b) No, because Barry was underpaying him.
(c) No, because his clients have the right to hire whichever company they choose.
(d) Yes, Finn has violated his duty of loyalty to Barry.
4. Kurt asked his car mechanic, Quinn, for help in buying a used car. Quinn recommends a Ford Focus that she has been taking care of its whole life. Quinn was working for the seller. Which of the following statements is true?
(a) Quinn must pay Kurt the amount of money she received from the Ford's prior owner.
(b) After buying the car, Kurt finds out that it needs $1,000 in repairs. He can recover $1000 from Quinn, but only if Quinn knew about the needed repairs before Kurt bought the car.
(c) Kurt cannot recover anything because Quinn had no obligation to reveal her relationship with the car's seller.
(d) Kurt cannot recover anything because he had not paid Quinn for her help
5. Figgins is the dean of a college. He appointed Sue acting dean while he was out of the country and posted a message on the college web site announcing that she was authorized to act in his place. He also told Sue privately that she did not have the right to make admissions decisions. While Figgins was gone, Sue overruled the admissions committee to admit the child of a wealthy alumnus. Does the child have the right to attend this college?
(a) No, because Sue was not authorized to admit him.
(b) No, because Figgins was an unidentified principal.
(c) Yes, because Figgins was a fully disclosed principal.
(d) Yes, because Sue had apparent authority.
6. A principal will not be liable to a third party for a tort committed by an agent:
(a) Unless the principal instructed the agent to commit the tort
(b) Unless the tort was committed within the scope of the agency relationship
(c) If the agency agreement limits the principal's liability for the agent's tort
(d) If the tort is also regarded as a criminal act