Question

Rico works for Street Tacos Inc. The basis for Rico’s contribution under the Federal Insurance Contribution Act to help pay for benefits that will partially make up for his loss of income on retirement is

a. an equitable share of his employer’s unpaid contribution.

b. his special job skills.

c. the employer’s adjusted gross profits.

d. his annual wage base.

Equipment Company holds a lien on Fertile Farm’s equipment. The equipment can be sold to satisfy the debt

a. without notice.

b. if, before the sale, notice is given to the general public.

c. if, before the sale, notice is given to Fertile Farm’s other creditors.

d. if, before the sale, notice is given to Fertile Farm.

Erin indicates that she is acting as an agent on behalf of an unidentified client—Flight Services Inc.—when she enters into a contract with Go Airlines. Liability to Go for nonperformance of the contract may be imposed on

a. Flight Services only.

b. Erin and Flight Services.

c. Erin only.

d. none of the choices.

Investment Corporation wants to monitor business communications on phones that the employer provides to the employees. The employer’s best course of action to avoid liability under laws related to employee monitoring is to inform

a. its clients and others who communicate with the employees.

b. no one.

c. the public generally.

d. its employees

Ben manages a warehouse and its inventory for Coffee Roaster Inc. To operate this part of the business, Ben’s authority can be inferred

a. by a reasonable party with whom Coffee Roaster does business.

b. from the position Ben occupies.

c. under no circumstances.

d. to contradict Ben’s express authority

Answer 1

Question No 1, The basis for Rico’s contribution under the Federal Insurance Contribution Act would be an equitable share of his employer’s unpaid contribution.Option 1. After a person's retirement, the contributions that the employer had made would be utilised for paying benefits post retirement.

Question No 2, Equipment Company holds a lien on Fertile Farm’s equipment. The equipment can be sold to satisfy the debt if before the sale, notice was given to Fertile Farm. Prior to any action being taken, notice has to be provided and an opportunity be given to the owner to repay his debt.

Question No 3, Erin indicates that she is acting as an agent on behalf of an unidentified client—Flight Services Inc.—when she enters into a contract with Go Airlines. Liability to Go for nonperformance of the contract may be imposed on ERIN only. Since the principal is undisclosed, the liability of non-performance will be impressed upon the agent only.

Question No 4, Investment Corporation wants to monitor business communications on phones that the employer provides to the employees. The employer’s best course of action to avoid liability under laws related to employee monitoring is to inform its own employees that the phones are being tapped to check for any deviation from the company policies.

Question No 5, Ben manages a warehouse and its inventory for Coffee Roaster Inc. To operate this part of the business, Ben’s authority can be inferred by a reasonable party with whom Coffee Roaster does business. While handling the business with Coffee Roaster, the other party would definitely come to know of the authority and the power of Ben handling the warehouse.