Multiple choice

Question 1

Lee, a salesperson for Midsize Corporation, causes a car accident while on business. Lee and Midsize are liable to

all those who were injured.

only those who were uninsured.

only those whose injuries could have been reasonably foreseen.

only those with whom Lee was doing business.

Question 2

Don works for Excel Tool Company. Don and other employees designate the Federated Machinists Union (FMU) as their bargaining representative. Without violating federal labor law, Excel can

only refuse to bargain with FMU.

only terminate Don for "choosing the wrong side."

refuse to bargain with FMU and terminate Don for "choosing the wrong side."

none of the above.

Question 3

Java Company hires Ken to manage one of its stores. Although their employment agreement says nothing about Ken being able to hire employees to work in the store, Ken has the authority. This is

apparent authority.

express authority.

imagined authority.

implied authority.

Question 4

Home Products Company issues common stock for sale to the public. If Ira buys ten shares of the stock, he has a proportionate interest with regard to

control only.

earnings and net assets only.

control, earnings, and net assets.

none of the above.