UMaine BUA 220 Exam 3
Urban Loan Company extends credit to consumers. Urban is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on which of the following
gender
secondary boycott
A union's refusal to work for, purchase from, or handle the products of a secondary employer, with whom the union has no dispute, in order to force that employer to stop doing business with the primary employer, with whom the union has a labor dispute.
articles of incorporation
The document that is filed with the appropriate state official, usually the secretary of state, when a business is incorporated and that contains basic information about the corporation.
Roy, a director of Service & Sales Corporation, does not attend a board meeting for three years. During that time, Terry, the firm's president, makes improper loans that cost the company $10 million. Roy is most likely liable for the breach of
The duty of loyalty
Faye and Grant are shareholders of Hearthside Hotels, Inc. As stockholders, they must approve
a merger (with a new corporation)
Beth participates in an investigation into possible violations of the Civil Rights Act of 1964 at Fabrication Foundry, Inc., where she works. As a result, Beth's employer demotes her. Beth can file
a retaliation claim
Nominal Damages
a small monetary award granted to a plaintiff when no actual damage was suffered or when the plaintiff is unable to show such loss with sufficient certainty
The FLSA applies to
full-time and part-time workers in the private sector and in Federal, State, and local governments.
corporations can be fined for the criminal acts of its agents under the
"responsible officer" doctrine
For military caregiver leave, the employee may take up to ______ weeks of leave within a twelve-month period.
26
FMLA requires employers that have_____ or more employees to provide unpaid leave for specified reasons.
50
plea bargaining
A bargain struck between the defendant's lawyer and the prosecutor to the effect that the defendant will plead guilty to a lesser crime (or fewer crimes) in exchange for the state's promise not to prosecute the defendant for a more serious (or additional) crime.
unconscionable
A contract or clause that is void on the basis of public policy because one party, as a result of his or her disproportionate bargaining power, is forced to accept terms that are unfairly burdensome and that unfairly benefit the dominating party.
public corporation
A corporation owned by a federal, state, or municipal government—not to be confused with a publicly held corporation.
Defacto Corporation
A corporation that was formed in a good faith effort to comply with the law. It is formed under a statute and is generally not subject to collateral attack.
Midigation of Damages
A rule requiring a plaintiff to have done whatever was reasonable to minimize the damages caused by the defendant.
intended beneficiary
A third party for whose benefit a contract is formed; an intended beneficiary can sue the promisor if such a contract is breached.
Creditor Beneficiary
A third party to whom one or both contracting parties owe a continuing debt of obligation arising from a contract.
benefit corporation
A type of for-profit corporation, available by statute in a number of states, that seeks to have a material positive impact on society and the environment.
ultra vires
Acts of a corporation that are beyond its express and implied powers to undertake (the Latin phrase means "beyond the powers").
corporation formed in another country
Alien corporation
Strike
An action undertaken by unionized workers when collective bargaining fails. The workers leave their jobs, refuse to work, and (typically) picket the employer's workplace.
Non-Profit Corporation
An organization that does not pay taxes and does not exist to make a profit.
For FMLA, how long do you have to work for your employer?
At least a year
Artur, who has a disability, is an employee of Banquet & Event Facilities & Services, Inc. After the installation of new doors on the entrance to Banquet's hall, Artur finds it nearly impossible to enter and exit. For repeatedly failing to be on time, Banquet replaces Artur with Carter, who does not have a disability. To succeed with a claim against Banquet under the Americans with Disabilities Act, Artur will have to show that
Banquet cannot make changes to the door without undue hardship
Gavin is a shareholder of Houseboats inc. with preemptive rights. With these rights, he can
Buy a prorated share of a new issue of stock before other buyers
What are incidental damages?
Damages that compensate for expenses directly incurred because of a breach of contract, such as those incurred to obtain performance from another source.
Emily, an employee of Farm Supplies Inc. files a suit against her employer, alleging sexual harassment by supervisor Gowan. The employer may be liable if it had effective harassment policies and complaint procedures that were followed by
Emily
Brad is a shareholder of Cloud Servers & Routers Inc. Brad will be deemed to have a fiduciary duty to Cloud and its minority shareholders if he has a sufficient number of shares to
Exercise de facto control
Corporation from X state does business in Z state
Foreign corporation
Ellen and Fred work on the loading dock for Grange Storage. Ellen, who has a disability, requests a transfer, which would represent an accommodation for her disability. But when an opening occurs, Grange transfers Fred on the basis of seniority. In Ellen's suit against Grange for discrimination, most likely
Fred's seniority is a good defense.
Limited liability of shareholders
Generally, shareholders are not personally liable for corporate acts. But in certain situations, the corporate "veil" of limited liability can be pierced, holding the shareholders personally liable
FMLA reason- illness occurs
If the employee suffers from a serious health condition and is unable to perform the essential functions of her or his job.
Elise and many other consumers complain to the Federal Trade Commission (FTC) that a Faux Diamonds Company ad is deceptive. The FTC's first step is to
Investigate
Home Products Inc. and it's advertisements makes false claims about its own products and about the products of its competitors. The firm may be subject to sanctions for false claims about
Its products and competitors products.
What is a task of the board of directors?
Makes Policy decisions, hires officers to run the corporation on a daily basis.
third party beneficiary
One for whose benefit a promise is made in a contract but who is not a party to the contract.
collective bargaining
Process by which a union representing a group of workers negotiates with management for a contract
Shipping, LLC, provides its employees with an e-mail system. The company notifies them that it will monitor their communications over the system. Some employees file a suit against their employer, claiming a violation of privacy. The court is most likely to hold that, with respect to communications over the e-mail system,
The employees did not have a reasonable expectation of privacy
liquidation
The sale of the nonexempt assets of a debtor and the distribution of the funds received to creditors. occurs when a business closes and sells its assets to pay creditors
Assignment
The transfer of a contract right from one person to another.
Delegation
The transfer of a contractual duty.
FMLA reason- birth
To care for a newborn baby within one year of birth
FMLA reason- adoption
To care for an adopted or foster child within one year of the time the child is placed with the employee.
FMLA reason- to care
To care for the employee's spouse, child, or parent who has a serious health condition.
Lockout
When management closes the doors to the place of work and keeps the workers from entering until an agreement is reached
Lawncare Company and Mowers, Inc. make yard tools. Both companies use only steel produced in the United States. Lawncare's ad claims, "We use only U.S. steel, while our competitors use inferior foreign steel!" This statement is
a false claim about a competitor's product
Disparate Impact
a condition in which employment practices are seemingly neutral yet disproportionately exclude a protected group from employment opportunities
Laura is the only female employee in the maintenance department of motor vehicle sales & service inc. her supervisor and co-workers tease and play tricks on her so relentlessly that she feels compelled to quit. this is
a constructive discharge on the basis of gender discrimination
closed corporation
a corporation whose stock is owned by relatively few people and is not sold to the general public
Corporation by Estoppel
a defective corporation that has conducted business with a third party and therefore cannot deny its status as a corporation to escape liability
Lenny works for Mechanical Engineers, P.A. While working on a Mechanical Engineers project, Lenny is injured. Under state workers' compensation laws, Lenny will be compensated only if his injury was
accidental
Pipes & Plumbing Corporation is a private employer involved in an employment discrimination suit under Title VII of the Civil Rights Act. Punitive damages may be recovered only if the employer
acted with malice or reckless indifference
Ivy is an alcoholic who has completed a supervised substance-abuse rehabilitation program. Jerold is morbidly obese. Kim has heart disease. Considered to have a disability under the Americans with Disabilities Act is
all of the choices (all of them)
Harry and Ilene want to market a new line of kayaks and related gear under the brand name Journeys as a corporation—Journeys Inc. To avoid income taxes at the corporate level, they should form
an S corporation
FMLA reason- dealing with an issue
an employee can take leave to arrange for child care or to deal with financial or legal matters when a spouse is being deployed overseas.
Anna is an employee at Bento Food Mart. Anna is called for jury duty and as a result cannot work her scheduled shift. Bento fires Anna. She successfully sues Bento for reinstatement. With respect to the employment-at-will doctrine, this is
an exception based on public policy
Blair and Chanel are holders of common stock in Discount Retail Stores, Inc. Like other holders of common stock, they have a residual position in the overall financial structure of Discount Retail, because they
are the last to receive returns for their investment
after a corporation is ______ it can do business
chartered (created)
Ginny takes temporary family leave from her job at Home Sales Company to care for a new born baby. With respect to the employee's health-care coverage, during the leave, under the Family and Medical Leave Act, the employer must
continue it
publicly held corporation
corporation that sells stock on the open market
Liquidated Damages
damages that parties to a contract agree in advance should be paid if the contract is breached
Nell, a member of a protected class, applies for a job with Origami Paper Products Corporation, but fails the company's employment test and is not hired. Nell believes that the test has an unintentionally discriminatory effect. If so, this is
disparate-impact discrimination
A corporation that does business within the state of incorporation
domestic corporation
Investment Sales Corporation wants to monitor its employees' electronic communications. Investment Sales's best course of action to avoid liability under laws related to employee monitoring is to notify
its employees
Data Accountants, a private employer, handles bookkeeping for small employers. In most circumstances, with exceptions, federal law clearly prohibits Data from subjecting its employees to
lie-detector tests
The FLSA establishes...
minimum wage, overtime pay, recordkeeping, and child labor standards
Kip opens an account at a Lotsa Goodies Store, and buys a digital music player and other items, but makes no payments on the account. To collect the debt, Mako, the manager, contacts Kip's parents. This violates
no federal law
dian takes out a loan from equity bank. when she fails to make the scheduled payments, Equity advises her of further action that it will take. This is a violation of
no federal law
Bay City Merchants Corporation has six shareholders, four of whom are members of the same family. All of Bay City's shareholders agree in writing to operate without shareholders' meetings. Under the Revised Model Business Corporation Act, this most likely warrants
no penalties or sanctions
An ad for Running Shoes Inc. states that its products are "The Athlete's Choice." Because of this ad, the Federal Trade Commission is most likely to issue
none of the choices
Sara believes that she was rejected for a position at Trek n' Travel Agency on the basis of her race. Sara files a suit against Trek n' Travel under the Civil Rights Act of 1964. To establish a prima facie case of employment discrimination, Sara must show all of the following except that
other persons of her race hold similar positions with other similar employers
Production Industries, Inc., employs five hundred workers. For the Occupational Safety and Health Administration, Steel Production must do all of the following except
pay employees higher wages for working in more dangerous areas.
What is in the articles of incorporation?
pertinent information such as the firm's name, street address, agent for service of process and the amount and type of stock to be issued.
Created for profit
private corporation
Formed by the government for some purpose (like the US postal service)
public corporation
Nina is a director of Outback Outfitters, Inc. Under the standard of due care owed by directors of a corporation, Nina's decisions must be informed and
reasonable
Inez files an employment discrimination suit against Jiffy Delivery Service, Inc., under the Civil Rights Act of 1964, based on Jiffy's discharge of Inez. Possible relief includes
reinstatement
steps to secure a corporation
secure the name (subject to state approval), articles of incorporation, explain number of shares and file them publicly
Spicy Salsa, Inc., complains to the Federal Trade Commission (FTC) about an ad broadcast by Tangy Taco Sauce Company, Spicy Salsa's competitor. The FTC investigates and concludes that the ad is deceptive. The FTC's next step is to
send a formal complaint
Corporate shareholders can
sue the corporation and be sued by the corporation
The FMLA does not
supersede any state or local law that provides more generous protection.
Ernie is a director of Five-Star Properties, Inc. Ernie is a property appraiser. Five-Star makes several purchases in which it pays too much. Ernie approves all the transactions without evaluating them. He is most likely liable for breach of
the duty of care
Carlo is a director of Desserts Italiano, Inc. Carlo opposes a tender offer that is in the company's best interest because its acceptance would cost his position as a director. Carlo is most likely liable for a breach of
the duty of loyalty
Tim works for University Food Service inc. the employers discharge of Tim outside the terms of an oral employment contract may result in
the employer's liability for breach of contract
Reciprocity
the exchange of resources, goods, and services among people of relatively equal status; meant to create and reinforce social ties
The board of Management Consultants, Inc., can delegate some of its responsibilities to
the firm's officers
Craig applies for a job at Dispatch Transportation & Warehousing, Inc., for which he is well qualified. He passes a test to determine which applicants are eligible for hiring, but the employer discards the results, and Craig is rejected. Dispatch continues to seek applicants. To successfully defend itself against Craig's suit, Dispatch must articulate
the practice in question was justified
indecorous voice
the symbolic framing by some public officials of the voices of others as inappropriate or unqualified for speaking in official forums and their belief that ordinary people may be too emotional or ignorant to testify about chemical pollution or other environmental issues
Teri borrows $10,000 from USA National Bank to remodel a room in her home. This transaction is subject to
the truth-in-lending act
An eligible employee may take up to
twelve weeks of leave within a twelve-month period
Carly applies for a job at Data Applications LLC for which she is qualified, but for which she is rejected. The employer continues to seek applicants and eventually fills the position. To succeed in a suit against Data for discrimination under the Americans with Disabilities Act, Carly must show that she
was not hired solely because of a disability