7. Norma has worked for Big Factory loyally for 15 years, never missed a day of work,
and has always been an excellent worker. One day, without warning, Norma’s supervisor
tells her that she’s being fired. The supervisor offers no explanation. Norma
knows of no reason for the termination. Which of the following is true about this set of
A. Norma may file a bad faith action against her employer.
B. Norma may file a bad faith action against her supervisor.
C. As long as the reasons were nondiscriminatory, Norma can do nothing.
D. Even if the reasons were discriminatory, Norma can do nothing.
8. Carter wants to impress his boss Marco. Carter approaches a potential client of Marco’s
and spends hours negotiating a contract
on Marco’s behalf with the client. Finally, the
client agrees and signs the contract. However, Marco knew nothing about Carter’s
negotiations, and Carter lacked the authority to perform such actions on Marco’s behalf.
When Marco found out, he was so pleased about the contract that he overlooked
Carter’s actions and told Carter he did an excellent job landing the client. An agency by
_______ has been formed.
A. estoppel C. agreement
B. operation of law D. ratification
9. Millicent files suit under Title VII, alleging racial discrimination served as the reason for
her termination from her job. Millicent’s employer was a small company with 45
employees. The jury found for Millicent, but also found that the discrimination was
unintentional and without malice or reckless indifference. Which of the following may
A. Reinstatement and back pay C. Punitive damages
B. Compensatory damages D. Damages of $100,000
10. Steve is Jason’s agent, and it’s within Steve’s authority as Jason’s agent to purchase
homes on Jason’s behalf. Steve contracts with Albert to buy Albert’s house for Jason.
However, Steve doesn’t tell Albert he’s buying the house on Jason’s behalf, or that he’s
acting for another individual at all. Under the terms of the contract, which of the
following is true about this set of facts?
A. Only Steve can be held liable.
B. Only Jason can be held liable.
C. Neither Steve nor Jason can be held liable.
D. Both Steve and Jason can be held liable.
11. Sammy took out a home insurance policy on the home of his neighbor, Ed. Three months
later, Ed’s home mysteriously burned down. Sammy attempted to collect on the policy he
purchased earlier. Which of the following is true regarding this set of facts?
A. Sammy can’t collect the insurance proceeds because he lacked an insurable interest
at the time of the loss.
B. Sammy can’t collect the insurance proceeds because he lacked an insurable interest
at the time the policy was purchased.
C. Sammy may collect the insurance proceeds, so long as he wasn’t guilty of any
wrongdoing regarding the destruction of the house.
D. Sammy may collect the insurance proceeds because as long as the premium was
paid, it’s unnecessary that he have an insurable interest at any time.
12. Mildred deeded property to her daughter, Victoria. The deed explicitly stated that
Mildred would remain the owner of the property for the remainder of her life, and that
at her death Victoria would become the owner of the property. What type of possessory
interest does Mildred possess after the transaction?
A. Fee simple absolute C. Life estate
B. Easement appurtenant D. Remainder
13. Leopold owns 100 acres in a remote place that he rarely visits. One day, Kate sets up
camp in the middle of the 100 acres, and ends up living on the land and using the land
for her provisions for 15 years. Kate probably owns this land due to transfer by
A. warranty deed. C. quitclaim deed.
B. adverse possession. D. inheritance.
14. Bazel and Bennie own several investment
properties together. Each of the properties
was deeded so that upon the death of either Bazel or Bennie, each individual’s share
will pass to the deceased’s heirs. What type of ownership do Bazel and Bennie possess
in the investment property?
A. Joint tenancy C. Tenancy in common
B. Tenancy by the entirety D. Community property
15. Woody owns a movie theater. One night, Woody finds a purse beside one of the seats in
the theater after all of the moviegoers have left for the evening. Given this set of facts,
A. may become the owner of the purse and its contents, if he doesn’t know the
identity of the true owner.
B. may not become the owner of the purse and its contents because the purse is
C. possesses an affirmative duty to contact the authorities regarding the purse.
D. possesses an affirmative duty to run ads in the local newspaper and to place flyers
in the theater regarding the purse.