QUESTION 21 Eleanor hired Michelle as her agent to acquire Jude's land at a price not to exceed $50,000 Eleanor also instructs Michelle not to let anyone know that Michelle is actually buying the land as Eleanor's agent Eventually Michelle negotiates the purchase of the land from Jude for $45,000 Under these circumstances a Michelle and Eleanor committed fraud by not disclosing their agency relationship to Jude b Michelle is entitled to the $5,000 difference between the actual purchase price and the $50,000 limitation as agent's compensation from Eleanor c Jude can rescind the contract if he discovers the nature of the agency relationship d Jude may sue either Eleanor or Michelle in the event that Eleanor defaults on her contractual obligations 1 points QUESTION 22 Concerning agency a an agent's implied authority is determined by the principal's conduct towards third parties b an agent's apparent authority is determined by the principal's conduct towards third parties c both a and b d neither a nor b 1 points QUESTION 23 In determining whether a person is working as an employee or an independent contractor the law considers most importantly a the payer's right to control the work b the hazardous nature of the activity c the amount of compensation d the gender of the parties 1 points QUESTION 24 Son, a minor , buys Dad a lottery ticket using Dad's money without Dad's knowledge Dad is quite upset when he discovers Son's frivolous actions until he discovers that the ticket is worth $50,000 When dad cashes in this would be an example of a Implied agency b apparent agency c agency by ratification d No agency sonny boy gets to keep the loot 1 points QUESTION 25 Jerry works for X Corp at a salary of $200,000 Which of the following statements is true a He must pay a social security tax and medicare tax on the full amount of his salary b He must pay a social security tax on the entire salary but the medicare tax will be limited c He must pay a medicare tax on the entire salary but the social security tax will be limited d Both the social security tax and medicare tax will only be paid on a limited amount of salary

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QUESTION 21 Eleanor hired Michelle as her agent to acquire Jude's land at a price not to exceed $50,000. Eleanor also instructs Michelle not to

QUESTION 21

Eleanor hired Michelle as her agent to acquire Jude's land at a price not to exceed $50,000. Eleanor also instructs Michelle not to let anyone know that Michelle is actually buying the land as Eleanor's agent. Eventually Michelle negotiates the purchase of the land from Jude for $45,000. Under these circumstances:

	a.	Michelle and Eleanor committed fraud by not disclosing their agency relationship to Jude.
	b.	Michelle is entitled to the $5,000 difference between the actual purchase price and the $50,000 limitation as agent's compensation from Eleanor.
	c.	Jude can rescind the contract if he discovers the nature of the agency relationship.
	d.	Jude may sue either Eleanor or Michelle in the event that Eleanor defaults on her contractual obligations.

1 points

QUESTION 22

Concerning agency:

	a.	an agent's implied authority is determined by the principal's conduct towards third parties.
	b.	an agent's apparent authority is determined by the principal's conduct towards third parties.
	c.	both a and b
	d.	neither a nor b

1 points

QUESTION 23

In determining whether a person is working as an employee or an independent contractor the law considers most importantly:

a.
the payer's right to control the work

b.
the hazardous nature of the activity

c.
the amount of compensation

d.
the gender of the parties

1 points

QUESTION 24

Son, a minor , buys Dad a lottery ticket using Dad's money without Dad's knowledge. Dad is quite upset when he discovers Son's frivolous actions until he discovers that the ticket is worth $50,000!

When dad cashes in this would be an example of:

a.
Implied agency

b.
apparent agency

c.
agency by ratification

d.
No agency...sonny boy gets to keep the loot!

1 points

QUESTION 25

Jerry works for X Corp at a salary of $200,000. Which of the following statements is true?

	a.	He must pay a social security tax and medicare tax on the full amount of his salary
	b.	He must pay a social security tax on the entire salary but the medicare tax will be limited.
	c.	He must pay a medicare tax on the entire salary but the social security tax will be limited.
	d.	Both the social security tax and medicare tax will only be paid on a limited amount of salary.