exam 5

Which of the following is false regarding dissociation of a partnership under the Revised Uniform Partnership Act?

A partner who wrongfully dissociates nevertheless retains the right to demand a dissolution.

The following is false regarding the bona fide occupational qualification (BFOQ) permitted by Title VII.

An employer may refuse to hire a man with an Asian heritage as a bouncer in a bar because he believes people with such a heritage are not aggressive enough.

Which of the following statements is NOT true regarding apparent authority?

Apparent authority is a type of actual authority.

The following form of business organization limits personal liability the most:

Corporation.

Which of the following is true regarding the employment-at-will doctrine?

It puts the risk of an uncertain economy on the employer.

Jennifer, a limited partner in "Raingear to Go," was dissatisfied with the performance of the business. She began attending staff meetings, working in the store, and participating in the day-to-day operations. Which of the following statements is true?

Jennifer's actions changed her status from a limited partner to a general partner.

Which of the following is true regarding making a choice as to the appropriate form of business organization

Once it is formed a partnership may later be changed to a corporate form of business.

Which of the following is true regarding ratification in regard to the agency relationship?

Ratification may be inferred by a court from the fact that the principal accepted the benefits of an unauthorized contract.

What test is used by a court in determining the extent of an agent's implied authority?

The justifiable belief of the agent

When does a principal have a duty to reimburse an agent?

When the agent is acting within the scope of his or her authority.

Mandatory arbitration agreements in Title VII cases

are opposed by the EEOC but supported by the Supreme Court.

Generally, if a limited partnership failed to file the proper certificate, it would be treated as a:

general partnership.

The standard of care and skill for a gratuitous agent is usually:

less than that of a compensated agent.

An S corporation may not have:

more than 100 shareholders.

A limited partnership must have:

one or more general partners and one or more limited partners.

An agent may delegate:

only acts that do not involve judgment or discretion.

Title VII encompasses discrimination based on:

race, color, religion, sex, or national origin.

If a partnership is established for a term of 20 years, which of the following is true regarding the authority of a partner to continue the business beyond that time?

An individual partner has no right to continue the partnership, and there must be unanimous agreement of all partners in order for the partnership to continue.

How is disability defined under the Americans with Disabilities Act?

As (1) a physical or mental impairment that substantially limits one or more of a person's major life activities, (2) a record of such an impairment, or (3) being regarded as having such an impairment.

In regard to purchasing real estate, Ann dealt with Bob. After the sale, Ann discovered that Bob was actually acting on behalf of and with authority from someone else. Ann believes that the contract of sale was breached. Assuming the contract was breached as Ann believes, which of the following states Ann's rights?

Bob will be held liable, but he is entitled to indemnification from the principal. Correct

Bruce, a lawyer and member of a limited liability partnership consisting of other lawyers, committed legal malpractice. Which of the following is true regarding the liability of Bruce and the other members of the limited partnership?

Bruce has personal liability, but the other members of the limited liability partnership do not.

Linda's husband, Dave, has granted her Power of Attorney to act on his behalf while he is out of the country on business. Dave soon discovers that Linda has talked to several car dealers in town negotiating deals to purchase several cars in Dave's name. In order to end her authority to bind him to agreements what must Dave do?

Dave must terminate the agency and provide appropriate notice to third parties.

All the partners in a limited liability partnership have equal say in its management, and this may not be altered by agreement.

False

An LLC may not be sued in its own name.

False

By statute, piercing the corporate veil is not an option for a plaintiff when a limited liability company is involved.

False

Sylvia works for the local hardware store. Her job title is "Office Manager." Sylvia's job description states that she is responsible for the overall management of the office. When Sylvia places an order for office supplies she is acting with which type of authority?

Implied authority

Which of the following is true of the Lilly Ledbetter Act?

It provides that each illegal pay differential payment renews a cause of action under the Equal Pay Act.

Which of the following is true regarding limited partnerships?

Limited partner bankruptcy does not result in dissolution.

Which of the following is subject to unlimited personal liability?

Partners in a general partnership

Rick, who did odd jobs for Farmer Barbara and helped out around the farm, believed that he had authority from Barbara to buy some cattle for her and proceeded to buy $5,000 worth of cattle after stating to the seller that he was buying on behalf of Barbara. Rick was mistaken, and actually lacked any authority to purchase on behalf of Barbara. Which of the following is true regarding his liability?

Rick is liable on the contract unless Barbara ratifies his act and accepts liability.

Which of the following was the result in In re Porter, the case in the text in which the plaintiff musicians claimed that the defendant, who had served as their personal manager, violated his fiduciary duty to them through failing to properly account for and disperse earnings?

That the defendant violated his fiduciary duty to the group by his actions including incurring charges without approval and commingling the musicians' funds in his private checking account, and that he violated his duty of loyalty to the individual musicians through failing to disclose differential distributions.

Which of the following was the result in Roberts v. Danner, the case in the text in which an employee driving his personal vehicle to see a physician for a non-work related injury struck and injured the plaintiff on a road leased by the employer, and the issue was whether the employer was liable for the plaintiff's injuries?

The employer was not held liable because the employee was not acting within the course and scope of his employment.

Which of the following is false regarding the attributes of a limited liability company?

There are restrictions on the number of members a limited liability company may have.

A corporation is not affected by the death of a shareholder.

True

Under the Affordable Care Act:

Young adults up to age 26 may stay on their parents' insurance plans, people cannot be excluded from coverage because of preexisting conditions, and states may mandate certain types of coverage.

The Age Discrimination in Employment Act does NOT apply to the following:

a 22 year old person

One advantage of the corporate form over that of a partnership is that:

corporations can more easily hold property over long periods of time.

The Revised Uniform Partnership Act (RUPA) gives every partner:

implied authority to bind the partnership on contracts that are usually appropriate to that business.

A freeze-out:

results in the minority shareholder having little or no influence in important corporate issues such as reduction or elimination of dividends or loss of employment.

Which of the following is true regarding an agency coupled with an interest?

t is an exception to the general rule that either party has the power to terminate an agency and arises when the power is given as a security.