1.In sales law, a warranty is an assurance by one party of the existence of a fact on which the other party can rely.
2.A contract cannot contain both a warranty of merchantability and a warranty of fitness for a particular purpose.
3.Manufacturers are liable in strict product liability for injuries caused by commonly known dangers.
4.A plaintiff cannot succeed in a suit for negligence against a manufacturer unless the plaintiff bought the defective good from the manufacturer.
5. To succeed in a product liability suit based on strict liability, a plaintiff must be more than a bystander.
6.One requirement for a product liability suit based on strict liability is a failure to exercise reasonable care.
7.In many states, the plaintiff's negligence is a defense that may be raised in a product liability suit based on strict liability.
8.A merchant can disclaim an implied warranty of merchantability.
9.Assumption of risk is a defense that may be raised in a product liability suit based on negligence.
10.An implied warranty of merchantability arises in every sale or lease by a merchant who deals in goods of the kind sold or leased.
11.A manufacturer's duty of care does not extend to the inspection and testing of products bought to incorporate in the final product.
12. A manufacturer may be liable for a failure to exercise due care to any person who sustains an injury caused by a defective product.
13. Information acquired through an agency relationship is not considered confidential.
14. If an agent acts within the scope of authority, a partially disclosed principal is liable to a third party for contracts made by the agent.
15. All employer-employee laws apply to employer–independent contractor relationships.
16. Even after an agency relationship has terminated, there are circumstances under which a principal may be bound by his or her agent's act.
17. Employees who deal with third parties are agents of their employers.
18. Firing a worker who refuses to perform an illegal act violates public policy.
19. Wrongful termination of an agency relationship can subject the canceling party to a suit for damages.
20. If an agent acts within the scope of authority, an undisclosed principal is liable to a third party for contracts made by the agent.
21. A principal is not liable for an agent's crime simply because it was committed while the agent was acting within the scope of employment.
22. A principal can ratify an agreement made without authorization on his or her behalf by one who is not his or her agent.
23. When a principal places an agent in a position to defraud a third party, the principal is liable for the agent's fraudulent acts.
24. An independent contractor is one whose physical conduct is controlled, or subject to control, by his or her employer.
25. An independent contractor may act in the capacity of an agent.
Multiple Choice
26. In most cases before the court where there is a dispute as to whether one is an employee or independent contractor, most parties are arguing for the status of:
a. Principal status
b. Agent status
c. Independent contractor status
27.In an agency relationship, which party directs traffic?
a. The Principle
b. The Agent
c. The Principal
d. Independent Contract
28.A Bouncer at a club is most likely a(n)
a. Employee of the club
b. Independent Contractor of the club
29.In an agency relationship, there are two primary parties:
a. The Principle and the Agent
b. The Principal and the Agent
c. The Agent and Independent Contractor
30.Principal is to _________________as Agent is to_______________.
a. Employee, Employer
b. Independent Contractor, Employee
c. Employer, Agent
d. Employer, Employee
cyanne2ak
1 = false.
2 = false
3 = true
4 = false
5 = false (so long as they are in the Zone of Danger, they can be a bystander)
6 = false - strict liability has no specific duty of care. This is why it is strict liability
7 = false
8 = false in 49 of 50 U.S. jurisdictions.
9 = true
10 = true
11 = false
12 = false (note, strict liability has no standard of care requirement)
13 = usually true, but not always, such as Doctor/Patient privilege where a nurse acts as agent for the physician - see the Rules of Evidence for your jurisdiction)
14 = true
15 = false
16 = true
17 = false
18 = true
19 = true (see, Restatement of Contracts 2d)
20 = false
21 = false - the principal is liable, unless they are precluded by another statute which requires them to have actual or constructive knowledge of the agent's act(s).
22 = TRUE
23 = true
24 = false (generally speaking, the difference between employee and independent contractor depends on the AMOUNT of control, not whether control itself exists).
25 = true
26 = C (because the employer is trying to disclaim their liability for the acts of the individual acting on their behalf)
27 = C (spelling matters!)
28 = B (because of the amount of discretion the bouncer has in their actions, though in many states they are statutorily considered employees)
29 = B (spelling matters!)
30 = D - Employer, Employee (though Independent Contractor is closer than Employee, that option isn't presented here)
Orignal From: Business Law Help!!! Please!!!! T/F?
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