CHAPTER 1
Employment Relationship
1. A lawyer who has his/her own practice would be regarded as an independent contractor.
2. An employer has direct control over the work performed by an independent contractor.
3. An employee and an independent contractor may be the same.
4. Implied authority is the authority the employee professes to have which induces a reasonable
person to believe in the employee.
5. An employment relationship is a fiduciary one, based on trust and confidence.
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.
7. An employee is entitled to the reasonable value for services performed if no fee was agreed
upon.
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.
9. An injunction can never be granted in personal service contracts.
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.
11. A non compete clause which restricts competition throughout the U.S. would be too broad.
12. A non compete clause which restricts competition throughout an entire city would be
acceptable.
13. A non disclosure clause allows an employee to work for a competitor, but restricts the
disclosure of certain information.
14. An employer is liable for the intentional torts of its employee regardless of whether the torts
were committed during the scope of employment.
15. An employee is always liable for the intentional torts he commits even if the torts were
committed during the scope of employment.
16. An employee will be personally liable to the third party when he or she acts without actual or
apparent authority.
17. An independent contractor is under the direct control of the person hiring him/her.
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.
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
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
21. 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
22. In #19, Steven is entitled to ________.
a) injunction
b) $40,000
c) loss of profits
d) a & b
e) a & c
23. If Dereck Jeter while under contract 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
24. 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
25. In Case 1.6, DCS Sanitation Management v. Eloy Castillo,
a) the court would not enforce the noncompetition clause because it would stop the
employee from working in his field of expertise
b) the employees posed no threat of monetary harm to the employer
c) the employee would be prevented from using information that belonged just to his
employer for his own use or for the use of his new employer
d) all
e) a and b
Answer : E
26. In Case 1.3, Douglas Schultz v . Capital International Security, Incorporated, the employer
claimed the workers were independent contractors because the employer did not want to a)
pay benefits b) overtime pay c) withhold taxes d) be liable for the workers’ actions.
27. 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 ________.
28. An ________ prevents a party breaching a contract from rendering the same performance
elsewhere.
29. ________ is an omission to act which proximately causes injury to another.
30. ________ is the approval given by the employer to the unauthorized acts of an employee.
31. An employer is liable for the torts committed by his or her employee if the tort is committed
within the ________.
32. A ________ clause allows an employee to work for a competitor, but restricts the disclosure
of certain information.