1. If an agent is authorized to buy a car for her principal for $40,000 but is able to buy it for $35,000:

a. the agent must account to the principal for the $5,000 not spent.

b. the agent must give the $5,000 to the seller of the car.

c. the agent is legally entitled to keep the $5,000 as a bonus.

d. the principal can legally fire the agent for failing to act in the principal’s best interest.

2. Who of the following is an independent contractor?

a. a lawyer hired on a one-time basis to represent OIT in a legal action.

b. a student taking a course at OIT.

c. a professor hired to teach for a year at OIT.

d. a US Postal Service driver delivering mail to OIT.

3. A principal is liable for his agent’s ________________ under the doctrine of respondeat superior

a. contracts negotiated outside the scope of his authority.

b. torts committed outside the scope of his authority.

c. torts committed within the scope of his authority.

d. contracts negotiated within the scope of his authority.

4. Under the doctrine of employment at will:

a. an employer is prohibited from firing any employee who is in a "protected class" even if the employee fails to perform the work as specified.

b. an employee must give sufficient notice to the employer before terminating employment.

c. an employee can quit or be fired at any time with or without a reason.

d. an employer can only fire an employee for "cause".

5. In the absence of any specific agreements, each partner in a general partnership has:

a. an equal right in managing the partnership.

b. no authority to contract on behalf of the partnership.

c. a legal right to compete with the partnership for personal gain.

d. limited personal liability.