Test Bank
CHAPTER 1
Employment Relationship
F 1. A lawyer would be regarded as an independent contractor.
F 2. An employer has direct control over the work performed by an independent
contractor.
F 3. An employee and an independent contractor may be the same.
F 4. Implied authority is the authority the employee professes to have which induces a
reasonable person to believe in the employee.
T 5. An employment relationship is a fiduciary one, based on trust and confidence.
F 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.
T 7. An employee is entitled to the reasonable value for services performed if no fee
was agreed upon.
T 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.
F 9. An injunction can never be granted in personal service contracts.
T 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, Albert Broccoli, the producer,
could get an injunction.
T 11. In #10, Broccoli would be entitled to sue Connery for loss of profits if the movie
opened up two weeks late due to Connery’s delay.
F 12. In #10, if the movie theaters suffered a lack of attendance because Sean Connery did not
play 007, they could sue him for loss of profit.
F 13. An employer is contractually liable when the employee signs his or her own name
without designating himself or herself as an employee.
F 14. An employer is liable for the intentional torts of its employee regardless of whether
the torts were committed during the scope of employment.
T 15. An employee is always liable for the intentional torts he commits even if the torts
were committed during the scope of employment.
T 16. An employee will be personally liable to the third party when he or she acts
without actual or apparent authority.
,F 17. Ratification is the approval or sanction given by the employer of the authorized
acts of an employee.
D 18. A car owner sees a sign at the service station which reads, “Please see manager for all
business needs.” The manager is out but the mechanic asserts that he will fix
the car. Can the car owner justifiably rely on the mechanic’s statement and if so
under what authority?
a) actual
b) apparent
c) implied
d) cannot rely on authority of mechanic
A 19. In #18 if the mechanic is negligent in making the repairs, who could the car owner
sue?
a) mechanic
b) service station
c) both
d) neither
B 20. 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
C 21. 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
B 22. Herb, an oral surgeon, is employed to work in Steven’s oral surgery practice
subject to a restrictive covenant for five years with a $40,000 bond to secure it.
The next year Herb opens his own office across the street where he practices
dentistry and oral surgery. In a lawsuit brought by Steven, Herb will be enjoined
from practicing
a) dentistry
b) oral surgery
c) both
d) neither
A 23. In #22, Steven is entitled to
a) injunction
b) $40,000
c) both
d) neither
,B 24. If Dereck Jeter decided to switch from the Yankees to the Mets, the
Yankees best remedy would be
a) specific performance
b) injunction
c) rescission
d) money damages
B 25. Once the employer approves the unauthorized acts of the employee and this is
communicated to the third person, can the employer change his or her mind?
a) Yes
b) No
26. When a person changes his or her position in reliance on a promise, the person
making the promise will be stopped from asserting that there is no consideration to
enforce the contract. This is known as the doctrine of promissory estoppel.
27. An injunction prevents a party breaching a contract from rendering the same
performance elsewhere.
28. Negligence is an omission to act which proximately causes injury to another.
29. Ratification is the approval given by the employer to the unauthorized acts of an
employee.
30. An employer is liable for the torts committed by his or her employee if the tort is
committed within the scope of employment.
, CHAPTER 2
Selection
T 1. Discrimination is possible in the selection process.
T 2. An employer can be guilty of negligent hiring.
F 3. Nepotism is not permissible.
F 4. Promotions from within the company can not be considered discriminatory.
T 5. Firms who recruit exclusively at predominantly white male schools are practicing
discrimination.
F 6. An employer can specify “recent college graduate” only in an employment ad.
T 7. An employment agency may use the language “recent college graduates” in an
employment ad around the time of graduation.
F 8. Discrimination is not permissible based on education and communication skills.
F 9. An employer has no right to investigate an employee’s background for past criminal
records.
T 10. Investigating past criminal records may be done upon a showing of a justifiable
business necessity.
E 11. The term selection procedure encompasses
a) aptitude testing
b) physical evaluation
c) education
d) b&c
e) all
C 12. An employer can specify “recent college graduates” in employment ads
a) at any time
b) at graduation
c) never
d) it is unclear
E 13. Giant Department Store is hiring a security guard. Giant wishes to investigate
applicants’ criminal records. Which of the following convictions may they look
into?
a) robbery
b) larceny
c) rape
d) a&b
e) all
CHAPTER 1
Employment Relationship
F 1. A lawyer would be regarded as an independent contractor.
F 2. An employer has direct control over the work performed by an independent
contractor.
F 3. An employee and an independent contractor may be the same.
F 4. Implied authority is the authority the employee professes to have which induces a
reasonable person to believe in the employee.
T 5. An employment relationship is a fiduciary one, based on trust and confidence.
F 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.
T 7. An employee is entitled to the reasonable value for services performed if no fee
was agreed upon.
T 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.
F 9. An injunction can never be granted in personal service contracts.
T 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, Albert Broccoli, the producer,
could get an injunction.
T 11. In #10, Broccoli would be entitled to sue Connery for loss of profits if the movie
opened up two weeks late due to Connery’s delay.
F 12. In #10, if the movie theaters suffered a lack of attendance because Sean Connery did not
play 007, they could sue him for loss of profit.
F 13. An employer is contractually liable when the employee signs his or her own name
without designating himself or herself as an employee.
F 14. An employer is liable for the intentional torts of its employee regardless of whether
the torts were committed during the scope of employment.
T 15. An employee is always liable for the intentional torts he commits even if the torts
were committed during the scope of employment.
T 16. An employee will be personally liable to the third party when he or she acts
without actual or apparent authority.
,F 17. Ratification is the approval or sanction given by the employer of the authorized
acts of an employee.
D 18. A car owner sees a sign at the service station which reads, “Please see manager for all
business needs.” The manager is out but the mechanic asserts that he will fix
the car. Can the car owner justifiably rely on the mechanic’s statement and if so
under what authority?
a) actual
b) apparent
c) implied
d) cannot rely on authority of mechanic
A 19. In #18 if the mechanic is negligent in making the repairs, who could the car owner
sue?
a) mechanic
b) service station
c) both
d) neither
B 20. 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
C 21. 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
B 22. Herb, an oral surgeon, is employed to work in Steven’s oral surgery practice
subject to a restrictive covenant for five years with a $40,000 bond to secure it.
The next year Herb opens his own office across the street where he practices
dentistry and oral surgery. In a lawsuit brought by Steven, Herb will be enjoined
from practicing
a) dentistry
b) oral surgery
c) both
d) neither
A 23. In #22, Steven is entitled to
a) injunction
b) $40,000
c) both
d) neither
,B 24. If Dereck Jeter decided to switch from the Yankees to the Mets, the
Yankees best remedy would be
a) specific performance
b) injunction
c) rescission
d) money damages
B 25. Once the employer approves the unauthorized acts of the employee and this is
communicated to the third person, can the employer change his or her mind?
a) Yes
b) No
26. When a person changes his or her position in reliance on a promise, the person
making the promise will be stopped from asserting that there is no consideration to
enforce the contract. This is known as the doctrine of promissory estoppel.
27. An injunction prevents a party breaching a contract from rendering the same
performance elsewhere.
28. Negligence is an omission to act which proximately causes injury to another.
29. Ratification is the approval given by the employer to the unauthorized acts of an
employee.
30. An employer is liable for the torts committed by his or her employee if the tort is
committed within the scope of employment.
, CHAPTER 2
Selection
T 1. Discrimination is possible in the selection process.
T 2. An employer can be guilty of negligent hiring.
F 3. Nepotism is not permissible.
F 4. Promotions from within the company can not be considered discriminatory.
T 5. Firms who recruit exclusively at predominantly white male schools are practicing
discrimination.
F 6. An employer can specify “recent college graduate” only in an employment ad.
T 7. An employment agency may use the language “recent college graduates” in an
employment ad around the time of graduation.
F 8. Discrimination is not permissible based on education and communication skills.
F 9. An employer has no right to investigate an employee’s background for past criminal
records.
T 10. Investigating past criminal records may be done upon a showing of a justifiable
business necessity.
E 11. The term selection procedure encompasses
a) aptitude testing
b) physical evaluation
c) education
d) b&c
e) all
C 12. An employer can specify “recent college graduates” in employment ads
a) at any time
b) at graduation
c) never
d) it is unclear
E 13. Giant Department Store is hiring a security guard. Giant wishes to investigate
applicants’ criminal records. Which of the following convictions may they look
into?
a) robbery
b) larceny
c) rape
d) a&b
e) all
