Answer all 3 MCQ's.

1. John Li has worked as manager of a video store for six years. Since the 7-Eleven store next door began renting movies for 97 cents, his business has fallen off drastically. Accordingly, the owner of the business told Li that, because the business had fallen on such hard times, he would take over managing and Li would have to take over the counter duties. The present counter clerk would be laid off. The owner also told Li that his wages would be reduced by 15 percent. When Li came to work the next day, he told the owner that he wouldn't accept the job working at the counter. The owner became angry and said, "If you don't like it, then you can leave! I don't have to put up with your insubordination one minute!" Li left and then sued the owner for unlawful dismissal. The owner argued that he had "just cause": economic slowdown and disobedience. Given the above facts, identify the true statement.

a. The owner was justified in firing Li without notice or pay in lieu of notice because of economic slowdown.

b. The owner could fire Li without notice or pay in lieu of notice because Li refused his order to take over the counter.

c. Li would win the unlawful dismissal action because the owner "dismissed" him by unilaterally changing Li's job without Li's consent and insisting that Li do it.

d. The owner cannot dismiss without cause even if he gives proper notice or pay in lieu thereof.

e. If Li were wrongfully dismissed, he does not have to mitigate his losses by looking for a new job, until the case has been resolved.

2. Which of the following is correct with respect to the agency relationship?

a. Agents are those who act on behalf of others but are not employees.

b. The agency relationship must be created by contract.

c. No agency can be created without the consent of the principal.

d. An agency agreement in writing and under seal is called a power of attorney.

e. For an agency contract to be valid, it must be in writing.

3. Which of the following is an unfair labour practice?

a. A union representative has a conversation with an employee about joining the union.

b. An employer threatens to have an employee fired if he joins a union.

c. An employee is required to join a union as a condition of employment.

d. An employer pays higher wages as part of his annual wage increase, as a union is trying to organize his employees.

e. An employer starts another unrelated business that is non-union, as a union tries to organize his employees at the present location.