Kalli scheduled a Zoom call to introduce Malakai to all her clients as her new purchasing agent. Kalli and Malakai signed a written agreement limiting Malakai's spending authority to the sum of $30,000, Kalli did not inform any clients of this spending limit. Acting as Kalli's purchasing agent, Malakai enters into a $42,000 contract with a client. Which of the following is correct?

Question 1 options:

a)	Due to actual authority and apparent authority, there is no contract between Kalli and the client.

b)	Due to actual and apparent authority, there is a contract between Kalli and the client.

c)	Due to apparent authority, there is no contract between Kalli and the client.

d)	Due to apparent authority, there is a contract between Kalli and the client.

Question 2

Which of the following is an example of an agent as opposed to an employee?

a)	Journee worked as a driver for Smith Textiles Ltd., delivering orders to customers.

b)	Journee worked as a mechanic for Smith Used Cars Ltd., fixing cars.

c)	Journee worked as a cashier for Smith Textiles Ltd., selling textiles.

d)	Journee worked in the mailroom of Smith Textiles Ltd., sorting mail.

e)	Journee worked as a janitor for Smith Textiles Ltd., cleaning offices.

Question 3

An agent is hired as a salesperson by a principal. Which of the following is an example of an agent's breach of fiduciary duty to his principal?

a)	An agent makes a profit on the transaction he negotiated for his principal and doesn't tell his principal.

b)	An agent discloses to his principal that he is giving some of his commission to the purchaser to induce the purchaser to buy goods from the principal.

c)	An agent collects a commission from the purchaser. He informs his principal about this and the principal consents.

d)	The agent takes presents from purchasers and passes them on to the principal.

Question 4

Bailey shows Bentley the specifications and list price for computers she is selling. She says to Bentley "I will sell 10 of these computers to you on Friday for 10% off the list price". What has happened so far?

a)	Consensus has occurred.

b)	This is legally meaningless because Bentley must be told when the computers will be delivered, where delivery will occur and whether or not interest will be charged. If there is interest, Bentley must be told the interest rate.

c)	An offer has been made; this offer is now open for acceptance.

d)	There has been a mutual expression of willingness to do business, which is invitation to treat.

Question 5

Narek saw Ziazan Electronics Inc.'s online ad stating that the store had pedometers on sale, $50 off, for sale for the price of $275. Unfortunately, the store was sold out by the time Narek arrived at the store, and she now wants to sue Ziazan for breach of contract, claiming she accepted their offer by arriving at the store to buy a pedometer. Why will Narek's breach of contract claim be unsuccessful?

a)	because the store was not able to actually supply her with a pedometer

b)	because the store's ad did not constitute an offer

c)	because the offer in the ad was too vague; it did not say how many pedometers were for sale.

d)	because the offer lapsed due to the passage of time

e)	because the court won't waste time with a case for this amount of money

Question 6

Cristiano Cranes Inc. has offered to sell a piece of equipment to Saulo Systems Inc. for $100,000 and has promised to keep its offer open until the last day of the month. Which of the following is correct?

a)	the promise to hold the offer open is contrary to public policy and is unenforceable

b)	the offer can be revoked at any time by Cristiano Cranes Inc. without legal consequences, though there may be business consequences to Cristiano's reputation

c)	Cristiano Cranes Inc. is legally bound to keep its offer open until the last day of the month

d)	the offer can be revoked before the last day of the month with the consent of Saulo Systems Inc.

Question 7

Yee offered to sell equipment to Chang for $4000, but Chang counteroffered with a price of $3500, as long as Yee would deliver it. Yee rejected Chang's counteroffer. What is the effect of Chang's counteroffer on Yee's original offer?

a)	Yee's original offer is still available for acceptance until Yee specifically revokes it.

b)	Yee's original offer is no longer available because it has lapsed.

c)	Yee's original offer is no longer available for acceptance because Chang's counteroffer ended the original offer.

d)	Yee's original offer is still available because she has not replaced it with a new offer.

Question 8

Nasir works for Amina AI Inc. Nasir has a judgment debt against him for $120,000.00. Nasir has refused to pay the judgment debt and Amina AI Inc. has received a Garnishee Summons ordering the corporation to deduct part of Nasir's pay and pay it to the court. A Garnishee Summons is the name of the court order used to garnishee wages. Which of the following is correct?

a)	If Nasir agrees, the employer may make this deduction, but otherwise, no money can be deducted

b)	If the employer wishes to do so, the employer may make this deduction

c)	The employer is required to make this deduction

d)	Even if Nasir agrees, the employer is not allowed to make this deduction

Question 9

You have cause to fire Akani. He has worked with your organization for the last seven years. His salary is $4000 per month. At the time you fire him, you owe him $2500 salary. What is the total amount you must pay Akani, including severance (if any).

$_________________

Question 10

You are laying off Tazman. He has worked with your organization for the last three years. His salary is $8000 per month. At the time you fire him, you owe him $4000 salary. What is the total amount you must pay Tazman, including severance (if any).

$_________________

Question 11

For question 10 above, would your answer change if Tazman had been constructively dismissed and quit?

a)	Yes, because he quit

b)	No, because he was constructively dismissed.

Question 12

The fact situation here applies to questions 12 - 14. Eyulf posted an ad on Kijiji with a picture of his home stereo equipment, and a caption reading "For Sale, $8500" (Step One, Question 12). Birgitt sent a message which stated "That stuff looks great. I'll buy it all for $8500, where should we meet?"(Step Two, Question 13). Eyulf tells Birgitt that he sold the equipment months ago and never bothers to update his Kijiji ads (Step Three, Question 14). What occurred at the following point? - Eyulf posted an ad on Kijiji with a picture of his home stereo equipment, and a caption reading "For Sale, $8500".

a)	Invitation to treat

b)	Offer or counteroffer

c)

Lapse

d)	Revocation or rejection

e)	Acceptance

f)

Nothing

Question 13

Refer to the fact pattern in question 12 above. What occurred at the following point? - Birgitt sent a message which stated "That stuff looks great. I'll buy it all for $8500, where should we meet?"

a)	Invitation to treat

b)	Offer or counteroffer

c)

Lapse

d)	Revocation or rejection

e)	Acceptance

f)

Nothing

Question 14

Refer to the fact pattern in question 12 above. What occurred at the following point? - Eyulf tells Birgitt that he sold the equipment months ago and never bothers to update his Kijiji ads.

a)	Invitation to treat

b)	Offer or counteroffer

c)

Lapse

d)	Revocation or rejection

e)	Acceptance

f)

Nothing

Question 15

In a written employment contract, an employee can agree to make less than minimum wage.

a)	True, this is allowed because a contract was signed.

b)	False, even in a signed contract, this is illegal under the Employment Standards Code