Business Law Final Part 1
Adam enters into an oral agreement with Tushar that Tushar will sell Adam's house for him. A week later, the house burns down. Adam and Tushar's agency is now: a. terminated by operation of law b. still in place c. illegal in some states d. fraudulent in all states e. temporarily suspended
A
If a payment amount is not specified in the agency agreement, a principal's duty to compensate means that the principal must pay the agent: a. for the reasonable value of the services provided b. at least half the customary rate c. for the rational value of the services provided d. however much the agent demands e. however much the agent's attorney demands
A
In Guz v. Bechtel National, where Guz was fired after 22 years good service in a personnel cutback and sued for breach of implied contract and covenant of fair dealing, the California high court held that Guz: a. had no suit against his employer b. had a suit only for breach of implied contract to be terminated for good cause c. had a suit only for breach of implied covenant of fair dealing d. had a suit for both breach of implied contract and of implied covenant e. none of the other choices
A
Posting a notice of unfair practices in the workplace, issuing a cease and desist order, providing back pay for lost wages, reinstating dismissed workers, and issuing an order to bargain with the union are all examples of: a. remedies the NLRB may impose on an employer that has committed an unfair labor practice b. remedies the NLRB may not impose on an employer that has committed an unfair labor practice c. remedies workers may impose on an employer that has committed an unfair labor practice d. remedies employers may impose on a union that has committed an unfair labor practice e. none of the other choices are correct
A
Putting a bold disclaimer at the front of the handbook that says it is not a contract and requiring employees to sign the disclaimer is an attempt by businesses to: a. protect themselves from being found to create an implied contract b. protect employees from implied contracts c. protect employees from express contracts d. protect themselves from suits regarding express contracts e. none of the other choices are correct
A
The Wagner Act, the Taft-Hartley Act, and the Landrum-Griffin Act make up the: a. National Labor Relations Act b. National Worker Regulations Act c. National Employment Regulations Act d. Norris-La Guardia Act e. National Workforce Regulation Act
A
The ______________was created to monitor unfair labor practices and assure that union representation elections are fair. a. National Labor Relations Board b. National Employee Relations Board c. National Union Relations Board d. National Workplace Relations Board e. National Worker Relations Board
A
The articles of incorporation usually include all of the following except: a. name of the CEO b. address of the corporation c. purpose of the business d. classes of stock to be issued e. all of the other choices are included
A
When a court holds shareholders personally liable for corporate debts it is said to be: a. "piercing the corporate veil" b. "opening the corporate veil" c. "closing the corporate veil" d. "tearing the corporate veil" e. "cutting the corporate veil"
A
Workers' compensation law: a. gives an employer immunity from employee tort suits arising from on-the-job accidents b. applies only to accidents that conform to a specific set of work-related injuries c. holds employees responsible for reimbursing employers for the cost of injuries for which employees are at fault d. is a federal program that is mandatory for nearly all workers e. all of the other choices
A
"Yellow-dog" contracts, in which employees agree not to join a union as a condition of employment, were made unlawful by: a. the Landrum-Griffin Act b. the Norris-La Guardia Act c. the Taft-Hartley Act d. the Civil Rights Act of 1964 e. the Wagner Act
B
An agency coupled with an interest is created: a. when the principal provides the agent with a general power-of-attorney b. by an agent who has paid for the right to exercise authority with regard to a business c. when a person volunteers her services out of interest in the business d. when the agent is authorized to delegate any authority to an interested party e. none of the other choices
B
Death, total disability, permanent partial disability, temporary partial disability, and medical expenses are all: a. categories of torts b. categories of benefits of workers' compensation c. categories of employer crimes d. categories of things employers are not liable for in most states e. categories of things employees may sue for
B
Karen has a history of drunk driving and has been convicted several times. The Pizza Parlor hires her as a delivery person, despite knowing her history. If Karen causes an accident while on the job because she has been drinking you would expect the courts to: a. hold Karen liable, but not The Pizza Parlor since it was Karen's decision to drink and drive b. hold The Pizza Parlor liable for negligent hiring c. hold neither Karen nor The Pizza Parlor liable d. hold The Pizza Parlor liable for negligence in hiring or not, depending on the state e. none of the other choices are correct
B
Through an agency relationship, the agent becomes a representative of the: a. third party b. principal c. customer or supplier of the principal d. shareholder e. all of the other choices
B
Unlike a corporation, a limited liability company is: a. allowed perpetual life b. not allowed perpetual life c. allowed to exist for more than five years d. not allowed to exist for more than five years e. none of the other choices are correct
B
A company that has more than $25,000 worth of business with the federal government and does not state what action will be taken against employees who violate the company's drug-free policy would be in violation of: a. the Drug Prohibition Act b. the Drug Control in the Workplace Act c. the Drug-Free Workplace Act d. the Zero Tolerance Act e. the Drug Prevention in the Workplace Act
C
A corporation separates: a. ownership from responsibility b. ownership from profit c. ownership from control d. control from losses e. control from profits
C
A potential drawback of sole proprietorships and partnerships is that the parties involved have: a. limited financial liability b. only corporate liability c. unlimited liability d. partial protection from creditors for business debts e. only corporate liability and partial protection from creditors for business debts
C
A shareholder's relation to creditors of the corporation is generally that the shareholder: a. is a secured creditor b. is an unsecured creditor c. has no relation to creditors d. is a third-party beneficiary to creditors e. none of the other choices
C
An agent's ______________ is the power to change the principal's legal obligations. a. legal right b. official power c. authority d. responsibility e. authorization
C
General partners in a limited partnership: a. have no liability b. have limited liability c. are personally liable to the partnership's creditors d. are personally liable to the secretary of state e. are personally liable to the partnership's creditors only if they choose to be
C
In general, limited partners lose their limited liability status by: a. being a limited partner in another partnership b. denying association with the partnership c. participating in managerial decisions in the partnership d. being a partner in another partnership or by participating in managerial decisions in the partnership e. being a partner in another partnership or by participating in managerial decisions in the partnership or by denying association with the partnership
C
The document that sets forth the rights and obligations of the franchisor and franchisee is known as the: a. franchise contract b. franchise list c. franchise agreement d. franchise document e. agreement of franchise
C
The federal labor code, which consists of various major pieces of legislation is generally referred to as the: a. Code of Federal Labor b. Labor Management Code c. National Labor Relations Act d. Griffin-Hartley Act e. none of the other choices
C
The franchisee follows the business model set out by the parent company, such as OrangeTheory Fitness or Chick-fil-A in which category of franchise: a. product distributorship b. trademark or trade-name licensing c. business format franchising d. sale format franchising e. all of the other specific choices are correct
C
The governing committee of a corporation is the: a. board of presidents b. president c. board of directors d. board of shareholders e. board of managers
C
The owners of a corporation are called: a. partners b. officers c. shareholders d. principals e. none of the other choices
C
The_____________is the most common way for employers to verify a prospective employee's legal right to work in the United States. a. I-5 form b. I-8 form c. I-9 form d. I-12 form e. Department of Justice Employment Form 9
C
When liability is imposed on an employer for a tort committed by an employee, the liability is based on the rule of law known as: a. contractor liability b. tortious liabilitius c. respondeat superior d. principal duty e. there is no such rule as the employee only is responsible
C
Which of the following can determine the scope of authority given to an agent: a. statements of the agent b. the principal's personal relationship with a third party c. statements of the principle d. all of the other specific choices are correcte. none of the other specific choices are correct
C
A person authorized to execute all regular transactions connected with a business is called a: a. universal agent b. special agent c. gratuitous agent d. general agent e. none of the other choices
D
A(n) _______________ is a principal's clear signal to be bound to the otherwise unauthorized agreement. a. implied ratification b. real ratification c. delayed ratification d. express ratification e. explicit ratification
D
An agency can be ended upon reasonable notice by: a. only the agent b. only the principal c. only the party that initiated the agency d. either the agent or the principal e. none of the other choices are correct
D
An agency through operation of law is established: a. by a written contractual agreement of the parties b. by ratification of the agent's activities by the principal c. by the application of the doctrine of estoppel d. when an emergency exists and the "agent's" actions are in the public interest e. none of the other choices
D
Employment-at-will: a. allows employees to quit their jobs for any reason at any time b. allows employers to discharge employees for any reason at any time subject to contract obligations c. has been restricted by the courts or legislatures in some states that recognize some public policy limitations on the employer's right to fire an employee d. allows employees to quit their jobs for any reason at any time and allows employers to discharge employees for any reason at any time subject to contract obligations e. allows employees to quit their jobs for any reason at any time and allows employers to discharge employees for any reason at any time subject to contract obligations and allows employees to quit their jobs for any reason at any time and allows employers to discharge employees for any reason at any time subject to contract obligations
D
In France v. Southern Equipment Co., where France, after falling off a roof, sued Southern Equipment Co. who had employed Quality Metal Roof, a company that contracted with France's employer, Royalty Builders, to build them a new metal roof for exposing him to the inherently dangerous job of roofing, the appeals court held that: a. Southern Equipment was liable because they engaged Royalty Builders to do the work b. Southern Equipment was not liable because they engaged Royalty Builders to do the work and in doing so passed the liability to Royalty Builders c. Southern Equipment was liable even though they did not engage Royalty Builders to do the work d. Southern Equipment was not liable because they did not engage Royalty Builders to do the work and they had no control over Royalty Builders e. Southern Equipment was not liable because France was a minor and should not have been working in construction
D
In Zhou v. Bickley, Zhou helped Bickley start a motorcycle repair shop. When they got into a dispute later, the courts held that: a. Zhou and Bickley were partners, so each was owed the fair market value of his share in the organization b. Bickley was a partner but breached his duty to Zhou by not working, so could be fired from the partnership. c. Bickley was not a partner, he was an employee subject to wrongful dismissal and could sue for damages for that d. Zhou and Bickley were not partners, Bickley owed Zhou for money received to start the business run by Bickley. e. none of the other choices
D
The Family and Medical Leave Act applies to all: a. private employers of 50 or more persons b. employees after 30 days of employment c. government units d. private employers of 50 or more persons and government units e. private employers of 50 or more persons and government units and employees after 30 days of employment
D
The principal is possibly liable for the torts of the agent if the agent's tort was: a. authorized by the principal b. an unauthorized intentional tort outside the scope of the agent's employment c. an unauthorized intentional tort within the scope of the agent's employment d. authorized by the principal or an unauthorized intentional tort within the scope of the agent's employment e. authorized by the principal or an unauthorized intentional tort within the scope of the agent's employment or an unauthorized intentional tort outside the scope of the agent's employment
D
Under the hazard communication standard, a written hazard communication program must include: a. a list of hazardous chemicals in the workplace b. the manner in which safety data sheets, chemical labels, and worker training about chemical safety will be handled c. a description of how employees will be trained for non-routine tasks, such as chemical spills or explosions d. all of the other specific choices must be included e. none of the other specific choices must be included
D
Which of the following actions are employers most likely to be able to take when it comes to drug testing? a. screen job applicants for drug use before they are hired b. routinely test employees on an annual basis as part of a physical examination c. allow supervisors to order employees to be tested for drugs whenever a supervisor thinks it is a good idea d. screen job applicants for drug use before they are hired and routinely test employees on an annual basis as part of a physical examination e. screen job applicants for drug use before they are hired and routinely test employees on an annual basis as part of a physical examination and allow supervisors to order employees to be tested for drugs whenever a supervisor thinks it is a good idea
D
Which of the following are public-policy exceptions recognized by most states as limits to the employment-at-will doctrine allowing termination of employees? a. refusing to commit an illegal act b. performing a public duty (reporting for jury duty) c. exercising freedom of speech rights d. refusing to commit and illegal act and performing a public duty (reporting for jury duty) e. refusing to commit and illegal act and performing a public duty (reporting for jury duty) and exercising freedom of speech rights
D
Which of the following is an objective of workers' compensation law: a. to increase the number of injured workers who sue for compensation when injured on the job b. to increase court costs and time delays associated with tort litigation to deter workers from suing for minor injuries c. allow people to sued private charities for accidents related to the charity's function d. reduce payment of fees to lawyers and expert witnesses e. all of the other specific choices are correct
D
Which of the following is not true about the termination of a limited partnership? a. the bankruptcy of a limited partner does not force termination b. the business may continue to operate during dissolution c. creditors' rights come before partners' rights to funds d. limited and general partners share assets equally at the same time after the creditors are paid e. all of the other choices are true
D
Which of the following workers would not be covered by the FMLA: a. an employee who is among the 50 percent highest paid b. an employee who had only been employed for 18 months c. an employee who had worked fewer than 2,000 hours in the past year d. an employee who had only been employed for 6 months e. all of the other specific choices are correct
D
A business organization in which some of the partners are not liable for partnership debts is called a: a. no liability partnership. b. unlimited liability partnership c. partial liability partnership d. local liability partnership e. none of the other choices are correct
E
A person who volunteers with no expectation of being paid for her services is a(n): a. exceptional agent b. universal agent c. agent who has an agency coupled with an interest d. special agent e. none of the other choices
E
A(n) ________________ is one in which employees agree not to leave and go into competition against the employer or go to work for a competitor for a certain time. a. anti-competition pledge b. anti-raiding covenant c. exculpatory agreement d. whistle-blower agreement e. none of the other choices
E
OSHA may impose penalties for which of the following: a. a willful or repeated violation b. a serious violation c. a non-serious violation d. failure to correct a violation e. all of the other choices are correct
E
Someone designated to do all acts that can be legally granted to an agent is called a: a. special agent b. gratuitous agent c. general agent d. subagent e. none of the answers are correct
E
Under traditional common law rules, a partnership: a. was always treated as a single legal entity b. could only be formed with the consent of the state c. had the same legal personality as a corporation d. was forbidden under the law. e. none of the other choices
E
When an employee reports an employer's illegal act it is referred to as: a. defamation b. horn blowing c. tattle-tailing d. whistle calling e. none of the other choices are correct
E
When you go on vacation you give your neighbor authority to pick up your mail and watch for burglars for you. You tell the neighbor not to go into the house or let anyone else in. A fire on the hills threatens your house. The neighbor goes in to carry out valuables before the house burns. This action is: a. a trespass, which is illegal b. breaking and entering, which is a crime c. an agency by estoppel d. an agency by implied ratification e. none of the other choices
E
Which class of employees is not covered by the NLRA: a. managers b. independent contractors c. government workers d. managers and independent contractors e. managers and independent contractors and government workers
E
A person who thinks they have been the victim of discrimination in employment must file a complaint within 100 days or lose the right.
False
After reviewing a corporation's articles of incorporation for compliance with state standards, and its application, the state issues corporate bylaws.
False
An agent may not legally bind a principal to contracts without the principal agreeing to each contract.
False
An independent contractor is an agent and an employee of the person who hired her.
False
Employment-at-will means that, unless a contract holds otherwise, employers can fire workers only for job performance reasons, but employees are free to quit their jobs at any time for any reason.
False
Firing an employee because she has the AIDS virus is not likely to violate the Disabilities Act because employers have a business necessity for not wanting to employ such people: i.e. high medical insurance costs.
False
If a plaintiff proves a prima facie case of employment discrimination, they have won their suit as there is no defense for prima facie discrimination.
False
If the subject matter of an agency agreement is destroyed, the agency relationship continues until new subject matter is found.
False
In Armstrong v. Food Lion, where employees at a grocery store beat two customers, the court held the store liable under the rule of vicarious liability.
False
In K.C. Roofing Center v. On Top Roofing, the courts held that the owners of a corporation were not liable for the debts of the business entity.
False
In workers' compensation cases, the employer is shielded from tort liability.
False
It is not a violation of the ADA to ask an employee if a work assignment might be modified to help accommodate their disability.
False
Like a general partnership, all partners in a limited partnership have unlimited personal liability for the debts of the business venture.
False
Limited liability companies, like corporations, are presumed to have perpetual life.
False
Most large businesses are organized as proprietorships.
False
One factor that courts may consider when trying to decide if an independent contract or employee relationship exists is whether or not the contractor has the right to direct or control the work of the employer.
False
Ordering Spanish-speaking workers to always speak English to each other while they are at the workplace does not violate Title VII.
False
Shareholders may not authorize third parties to vote on their behalf at shareholder meetings.
False
The National Labor Relations Act states that only union members may engage in concerted activities.
False
The articles of incorporation set the rules that regulate the internal structure of a corporation.
False
Under the hazard communication standard, an employer with toxic and explosive chemicals on the premises must have an ambulance available within five minutes.
False
Agents have a duty of obedience to their principals, which means that if the agent ignores the principal's instructions, she violates her duty.
True
An employer could be liable for acts of an employee based on negligent hiring.
True
Directors of a corporation are responsible for making basic corporate policy.
True
Disparate impact employment discrimination is based on unintentional actions that cause employment discrimination.
True
Employers may wish to state that employee handbooks are not binding contracts.
True
For any person to be hired legally in the U.S., they must be able to present documents to show their identity.
True
If a hurricane is coming and you spend $800 to buy supplies to protect your neighbor's house against storm damage, when they are gone and cannot be reached, you may have created an agency by operation of law.
True
If an employer denies a female worker a promotion because she is pregnant, the employer has violated the Pregnancy Discrimination Act.
True
If an older worker is fired instead of a worker under age 40, but the younger worker has more seniority on the job, the employer has not violated the Age Discrimination in Employment Act.
True
If the NLRB finds that an employer has engaged in an unfair labor practice, it can order the worker be provided back pay or even be rehired if he was dismissed.
True
If the court "pierces the corporate veil" it may hold the shareholder(s) personally liable for corporate debts.
True
In a few situations, such as modeling clothing, an employer may discriminate on the basis of sex as a bona fide occupational qualification.
True
In a sole proprietorship, legally the owner is the business and the business is the owner.
True
It is likely that a company has the right to test prospective employees for drug use in a pre- employment screening.
True
Limited liability companies are taxed like partnerships, but have the liability rules of a corporation.
True
Limited partners may not participate in the management of the limited partnership or they lose certain legal protections.
True
Noncompete agreements are when an employer has employees sign agreements not to compete with the employer in the future.a.
True
Principals have an obligation to reimburse their agents for their normal business expenses related to the agency, unless otherwise agreed.
True
The National Labor Relations Act requires employers and unions to deal in good faith in collective bargaining.
True
The corporate bylaws are the rules that regulate the internal structure of a corporation.
True
Title VII provides equal employment opportunity protection for people who are members of "protected classes."
True
Under the Family and Medical Leave Act, employees may take leave to care for a spouse.
True
In a partnership, partners are presumed to place their individual interests above those of the partnership.
false
The winding up of partnership affairs completes any unfinished business and distributing the partnership's assets.
true
