1. Morgan, an agent was instructed to sell Drew's property at a specified price. A month later the value of the property increased substantially because of zoning changes. What is the status of the agency relationship?
It stands terminated.
It depends on what is considered reasonable.
It continues and is unaffected by any change what so ever.
It requires the agent to compensate the principal with additional compensation.
2. Geoffrey is an agent of Smith's Meat Products Limited. While delivering products, the company's van breaks down. What legal theory, if any, would allow Geoffrey to contract a garage for the repair of the principal's van?
Express authority
Actual authority
Apparent authority
Incidental authority
3. Global Industries requires all new employees to be at least six feet tall to correspond with their marketing campaign: "The big people serve you." Women who are denied employment solely because of their height sue Global. What must Global prove?
Height is directly related to the specific job in question.
Nothing, since the burden of proof is on the women who sue.
Height is directly related to Global's general business needs.
Nothing, since Global applies the height standard in a nondiscriminatory manner.
4. An employer can rightfully refuse employee benefits to a pregnant woman on the grounds that she is unable to discharge her duties properly.
True
False
5. If Big Co. wrongfully discharges Max but later discovers that Max has been stealing petty cash, Big Co. can use this as after-acquired evidence defense.
True
False