M06 Busn201

A foreign corporation that has not obtained a certificate of authority to do business in a state can nevertheless maintain an action in the state's courts.

False

A whistleblower is an employee who publicly reveals a co-worker's unsafe or illegal activity.

False

An express employment contract cannot protect an employee from discharge without good cause.

False

Corporate bylaws and resolutions of the corporation's board of directors provide guidelines but cannot grant or restrict corporate powers.

False

Disparate-impact discrimination occurs when a protected class is adversely affected by the practice or procedure of an employer who intended that result.

False

In states that require a minimum wage that is higher than the specified federal minimum wage, employees are entitled only to the lower federal amount.

False

The Immigration Reform and Control Act makes it legal to hire, recruit, or refer for a fee someone not authorized to work in this country.

False

To avoid permitting a key employee to take family or medical leave, an employer must show that the leave would cause "substantial injury" to the employer.

False

An employer can avoid liability under Title VII by showing that the employer's standards for hiring and promoting have a substantial, demonstrable relationship to realistic qualifications for the job at issue.

True

An employer cannot discharge a worker who, in good faith, refuses to work in a high-risk area if bodily harm or death might result.

True

As in a partnership, a limited liability company may pay no taxes—profits can be passed through to the members, who pay personal taxes on the profits.

True

Because a franchisor's termination of a franchise can adversely affect a franchisee, much franchise litigation involves claims of wrongful termination.

True

Directors and officers whose failure to exercise due care results in harm to the corporation or the shareholders can be held liable for negligence unless the business judgment rule applies.

True

If the members of a limited liability company want to reinvest profits in the business, they may opt for the firm to be taxed as a corporation.

True

In a sole proprietorship, the proprietor bears the burden of any liabilities incurred by the business enterprise.

True

In many instances, agency law governs the relationships among partners.

True

Limited legal liability can be an advantage for a small business wishing to raise capital.

True

Most of the states and the federal government have enacted statutes to protect employees who report wrongdoing from employer retaliation.

True

Shareholders' assumption of personal liability, as guarantors, for the obligations of a corporation can enable the firm to obtain credit.

True

The primary document needed to incorporate a business is the articles of incorporation because the articles serve as a primary source of authority for the firm's organization and functions.

True

To make informed decisions and supervise corporate officers and employees, the directors need an unrestricted right to inspect corporate books and records.

True

Health Food Inc. coordinates the purchase, sale, and delivery of organic products. The stated corporate purpose is to make a profit and to have a material positive impact on society and the environment. Health Food is

a benefit corporation.

Integrated Devices, Inc., is a private, for-profit corporation that is owned by seven shareholders who are members of the same family. Integrated is

a close corporation

Lin is an employee at Manufacturing Plant Inc. Lin is called for jury duty and as a result cannot work her scheduled shift. The plant fires Lin, who subsequently successfully sues her employer for reinstatement. With respect to the employment-at-will doctrine, this is

an exception based on public policy.

Pipe Inc.'s stated purpose is to install plumbing. Pipe contracts with Quality Contracting to pour a new building's foundation despite lacking the skill and license to do such work. This is most likely

an ultra vires act.

Kay and Leo form Metro Delivery Inc. Responsibility for all policymaking decisions necessary to the management of corporate affairs rests with Metro's

board of directors.

Brea and Colin do business as Dig Excavators. In acting on the firm's behalf, Brea makes an honest error in underestimating the cost of a certain project. In this situation, to her firm, Brea is liable for a breach of the duty of

care option

Beri owns and operates City Delivery Service as a sole proprietorship. When she dies, the business will automatically

dissolve.

Devon takes temporary family leave from her job at Equipment Sales Company to care for a newborn baby. With respect to Devon's health-care coverage, during the leave, under the Family and Medical Leave Act, Equipment

must continue it.

An eligible employee may take unpaid leave under the Family and Medical Leave Act for family or medical reasons, or in certain situations for military service.

true