1.An employee may not act in the capacity of agent.

TrueFalse

2.Independent contractors have no control over the details of their work performance.

TrueFalse

3.An agreement to form an agency relationship can be oral.

TrueFalse

4.Remedies of the agent for breach of duty by the principal follow normal contract and tort remedies.

TrueFalse

5.Ratification occurs when a principal accepts responsibility for an agent's unauthorized act.

TrueFalse

6.An agency coupled with an interest is an agency created for the agent's benefit.

TrueFalse

7.An agency relationship may be terminated by an act of the parties but not by operation of law.

TrueFalse

8.Corporate profits could be subject to double taxation.

TrueFalse

9.A corporation cannot be held liable for the criminal acts of its employees.

TrueFalse

10.A holding company is a company whose business activity consists of holding shares in another company.

TrueFalse

11.A corporation formed in another country but doing business in the United States is referred to in the United States as an alien corporation.

TrueFalse

12.To pierce the corporate veil means to ignore the corporate structure exposing the shareholders to personal liability.

TrueFalse

13.A product liability action based on negligence does not require the plaintiff and the defendant to be in privity of contract.

TrueFalse

14.To succeed in a strict liability suit, an injured plaintiff must be more than a mere bystander.

TrueFalse

15.Many jurisdictions will consider the negligent actions of both the plaintiff and the defendant when apportioning liability in a product liability action.

TrueFalse

16.Causation in fact can be determined by use of the "but for test."

TrueFalse

17.Proximate cause exists when injuries sustained were too remotely connected to an incident to trigger liability.

TrueFalse

18.A person assumes all risks associated with any activity, which he or she participates.

TrueFalse

19.A defense available in an action based on a negligence theory is that the plaintiff failed to prove one or more of the required elements.

TrueFalse

20.Under their police powers, states can only regulate public activities, such as political demonstrations.

TrueFalse

21.The Constitution expressly excludes state regulation of commerce.

TrueFalse

22.The First Amendment does not protect corporate political speech.

TrueFalse

23.A law that has any impact on religion is unconstitutional.

TrueFalse

24.Picking pockets is not robbery.

TrueFalse

25.A person who commits larceny can be sued under tort law.

TrueFalse