Corazon employs Josefina, a C.P.A., to represent her in tax liability negotiations with
the IRS. Josefina is busy with other clients and delegates the negotiation to Lillian, a
non-C.P.A. member of her office. Has Corazon impliedly agreed to this delegation?
A. Yes, Corazon is relying on Josefina's skill and integrity.
B. No, Lillian is a member of Josefina's office.
C. Yes, Corazon must approve in writing any delegation of authority.
D. No, delegations within offices happen regularly.
Which of the following is true of conventional fixed-rate mortgages?
A. It has a rate of interest that changes according to fluctuations in the index to which it
B. It involves no government backing by either insurance or guarantee.
C. It has a fixed interest rate during the life of the mortgage, where the monthly
payments by mortgagor increase over the term of the loan.
D. It has comparatively low fixed payments during the life of the mortgage, followed
by one large final payment.
Celebrity Shelly Dunkle, wishing to spend a few undisturbed days by herself, checks
into a resort hotel. She reserves a suite under the name of Barbi and stamps the initials
B.I. into the hotel register. She also orders room service and signs all hotel bills with
those same initials. Which of the following statements is true?
A. Because Shelly has not signed her real initials, she cannot be held liable for the cost
of the suite and all other bills she rings up under the initials B.I.
B. Because Shelly has not signed her real initials, the hotel management cannot prove
that any contractual agreement took place between them.
C. Because the initials B.I. constitute Shelly's legal signature, she is legally obligated to
pay for the cost of the suite as well as for other bills that she signs using those initials.
D. Because Shelly did not sign her real name both parties must split payments for all