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1. General Construction Incorporated (GCI) hires A-1 Contractors Incorporated to work at a construction site as an independent contractor. Whether GCI will be held liable

1. General Construction Incorporated (GCI) hires A-1 Contractors Incorporated to work at a construction site as an independent contractor. Whether GCI will be held liable for torts committed at the site by A-1 depends on

A.

who is paying A-1.

B.

whether A-1 submitted a bid for the job.

C.

whether exceptionally hazardous activities are involved.

D.

none of the other answers.

2. Bob contracts with Computerama Incorporated to develop a new computer game. Computerama does not withhold taxes from his pay or control his work methods. Bob claims the game's copyright, which Computerama also claims. In the parties' suit, the court is most likely to rule in favor of

A.

Computerama, because Bob is its employee.

B.

Computerama, because it distributes the game.

C.

Bob, because he is an independent contractor.

D.

Bob, because he created the game.

3. Wendy hires Jen, a real estate broker, to sell Wendy's land for $10,000. Oil is discovered beneath the land, causing the market value to increase one hundred-fold. The existing agency agreement is likely

A.

terminated by operation of law.

B.

in force until Wendy gives Jen additional consideration.

C.

in force until Jen discusses the oil with prospective customers.

D.

terminated by mutual consent of the parties.

4. Bob is an agent for Computer Associates Incorporated. The party who may ratify an unauthorized contract entered into by Bob, purportedly on Computer Associate's behalf, is

A.

Bob or Computer Associates.

B.

Computer Associates only.

C.

none of the other answers.

D.

Bob only.

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