42. John promises to give Jose a raise and promotion. Based on that promise, Jose buys a bigger house. After one month, John tells Jose he has given the raise and promotion to someone else. If Jose sued John, what is the likely result?*

1 point

a. John would win because he did not ask Jose to change his position in response to John's promise.

b. Jose will win because a contract was formed when John promised to give Jose the promotion.

c. John would win under quasi-contract.

d. Jose may win under the doctrine of promissory estoppel.

48. A sales representative at A Co. verbally told the purchasing agent from D Co. that its industrial saw is exceptional. The industrial saw performed just like every other industrial saw. D Co. sues A Co. Who will win?*

1 point

a. D Co. will win because it made an express warranty.

b. D Co. will win because of the implied warranty of merchantability.

c. A Co. will win because the warranty was not in writing.

d. A Co. will win because A Co. made no warranty.

56. ABC Company employs Sandy Miller as a shipping clerk. She receives an email that she, Sandy Miller, as Vice President of Operations, should enter into a contract with Huge Box Co. By mistake, ABC Company sent the email to her. Sandy sent this email to Huge Box Co. and signed a contract as requested. ABC Company refuses to be bound by Sandy Miller's signature. Huge Box Co. sues to enforce the contract. Who wins?*

1 point

a. ABC Company wins because Sandy Miller is not Vice President of Operations.

b. ABC Company loses because she has apparent authority

c. ABC Company wins because she does not have implied authority.

d. ABC Company loses because she has an implied contract.

57. An employer sends an employee to get coffee every morning at Starbucks before office hours begin. She is in an accident between Starbucks and the office. Is the employer liable?*

1 point

a. No, because getting coffee was not part of her job duties.

b. Yes, under apparent authority

c. Yes because the employer sent her.

d. No, under apparent agency

58. Laura does not receive a promotion to supervisor, but other women do. Her employer says she is not pretty enough to be part of the firm's annual picture and that is why she didn't get the promotion. She files a lawsuit under Title VII of the Civil Rights Act of 1964. The court*

1 point

a. Holds in her favor because it was a disparate treatment lawsuit

b. Holds in her favor because it was a retaliation claim

c. Holds in her favor because it was a disability discrimination lawsuit

d. Does not hold in her favor because there is no claim under Title VII

65. Debra wanted to form an S-Corporation with Lawrence. He agreed and they became co-owners of an S-Corporation. This year, after expenses, the S-Corporation had a profit of $10,000. How will this profit be handled for tax reasons?*

1 point

a. Neither the corporation, Debra nor Lawrence will pay taxes.

b. The corporation, Debra and Lawrence will each pay taxes.

c. Debra and Lawrence will pay taxes.

d. Only the corporation will pay taxes.