mgmt265hw5.docx
1. The Fellowship is a not-for-profit corporation whose primary purpose is promoting goodwill among churches and synagogues. Its annual meeting featured various vendors with display booths. Keener, a church representative, approached the booth of Chris’s Cars and Trucks (CCT) about buying a bus for his church. While Keener was test-driving one of CCT’s busses, the bus’ brakes malfunctioned, causing a crash that killed Keener. If CCT is liable for the accident, could The Fellowship also be liable as CCT’s principal?
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a. Yes, because CCT had a fiduciary obligation to Keener on behalf of The Fellowship.
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b. Yes, because The Fellowship had control over CCT’s actions.
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c. No, because there was no consideration between CCT and The Fellowship.
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d. No, because there was no control or consent between CCT and The Fellowship.
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2. Lionel is the personal assistant to the head coach of a professional football team. At the end of the football season, a football player’s wife gives Lionel front row tickets to the opera. What must Lionel do?
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a. Give the tickets to his boss.
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b. Nothing, he can keep the tickets.
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c. Return the tickets to the player’s wife.
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d. Tell his boss about the tickets and his boss may choose to keep the tickets for himself.
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3. The German-American Vocational League was formed in New York during World War II to serve as a propaganda agency for the Nazi Germany. Under U.S. law, all foreign agents were required to register, but neither the Vocational League nor its officers did so. When they were charged with violating U.S. law, they argued that they were not agents of the German government because they had no formal agency agreement. Is this a strong argument?
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a. No. A formal contract is not necessary to establish an agency relationship.
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b. Yes, because an agency relationship cannot be created by implication.
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c. Yes. There was no agency relationship unless the German government had control over the organization.
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d. No, because the organization was an agent of the German government if it received any funding or compensation from German government.
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