CHAPTER 1
Employment Relationship
1. A lawyer who has his/her own practice would be regarded as an independent
contractor.
Answer: TRUE
2. An employer has direct control over the work performed by an independent contractor.
Answer: FALSE
3. An employee and an independent contractor may be the same.
Answer: FALSE
4. Implied authority is the authority the employee professes to have which induces a
reasonable person to believe in the employee.
Answer: FALSE
5. An employment relationship is a fiduciary one, based on trust and confidence.
Answer: TRUE
6. An employee may keep funds received in his or her own account so long as he or she
keeps an accurate record to justify it.
Answer: FALSE
7. An employee is entitled to the reasonable value for services performed if no fee was
agreed upon.
Answer: TRUE
,8. An employer will be liable to an employee for any injuries sustained because of tools or
equipment that were not in proper working order.
Answer: TRUE
9. An injunction can never be granted in personal service contracts.
Answer: FALSE
10. The original Bond is back with Sean Connery contracting to play 007 in Never Say
Never Again. If Connery refused to play the part and left to act in another film, the
producer, could get an injunction.
Answer: TRUE
11. A non compete clause which restricts competition throughout the U.S. would be too
broad.
Answer: FALSE
12. A non compete clause which restricts competition throughout an entire city would be
acceptable.
Answer: FALSE
13. A non disclosure clause allows an employee to work for a competitor, but restricts the
disclosure of certain information.
Answer: TRUE
14. An employer is liable for the intentional torts of its employee regardless of whether the
torts were committed during the scope of employment.
Answer: FALSE
,15. An employee is always liable for the intentional torts he commits even if the torts were
committed during the scope of employment.
Answer: TRUE
16. An employee will be personally liable to the third party when he or she acts without
actual or apparent authority.
Answer: TRUE
17. An independent contractor is under the direct control of the person hiring him/her.
Answer: FALSE
18. Employers do not pay employees for their lunch break because employers do not want
to be liable to employees or third parties for injuries or damages that happen during
lunchtime.
Answer: TRUE
19. If an employee acts without authority and a third person justifiably relies on the
employee’s authority, this is called:
a) actual authority
b) apparent authority
c) implied authority
d) none of the above
Answer: B
20. When a physician performs an operation, this would be considered what type of
contract?
a) real property
b) sales
, c) personal service
d) none of the above
Answer: C
Employment Relationship
1. A lawyer who has his/her own practice would be regarded as an independent
contractor.
Answer: TRUE
2. An employer has direct control over the work performed by an independent contractor.
Answer: FALSE
3. An employee and an independent contractor may be the same.
Answer: FALSE
4. Implied authority is the authority the employee professes to have which induces a
reasonable person to believe in the employee.
Answer: FALSE
5. An employment relationship is a fiduciary one, based on trust and confidence.
Answer: TRUE
6. An employee may keep funds received in his or her own account so long as he or she
keeps an accurate record to justify it.
Answer: FALSE
7. An employee is entitled to the reasonable value for services performed if no fee was
agreed upon.
Answer: TRUE
,8. An employer will be liable to an employee for any injuries sustained because of tools or
equipment that were not in proper working order.
Answer: TRUE
9. An injunction can never be granted in personal service contracts.
Answer: FALSE
10. The original Bond is back with Sean Connery contracting to play 007 in Never Say
Never Again. If Connery refused to play the part and left to act in another film, the
producer, could get an injunction.
Answer: TRUE
11. A non compete clause which restricts competition throughout the U.S. would be too
broad.
Answer: FALSE
12. A non compete clause which restricts competition throughout an entire city would be
acceptable.
Answer: FALSE
13. A non disclosure clause allows an employee to work for a competitor, but restricts the
disclosure of certain information.
Answer: TRUE
14. An employer is liable for the intentional torts of its employee regardless of whether the
torts were committed during the scope of employment.
Answer: FALSE
,15. An employee is always liable for the intentional torts he commits even if the torts were
committed during the scope of employment.
Answer: TRUE
16. An employee will be personally liable to the third party when he or she acts without
actual or apparent authority.
Answer: TRUE
17. An independent contractor is under the direct control of the person hiring him/her.
Answer: FALSE
18. Employers do not pay employees for their lunch break because employers do not want
to be liable to employees or third parties for injuries or damages that happen during
lunchtime.
Answer: TRUE
19. If an employee acts without authority and a third person justifiably relies on the
employee’s authority, this is called:
a) actual authority
b) apparent authority
c) implied authority
d) none of the above
Answer: B
20. When a physician performs an operation, this would be considered what type of
contract?
a) real property
b) sales
, c) personal service
d) none of the above
Answer: C
