Busn Law MO 6

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

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

Dissolve

Brewery Company's debt to Credit Service is past due. Credit obtains a judgment against Brewery, but the firm refuses to pay. Credit asks the court to order the seizure of Brewery's property. This is a request for

a writ of execution.

Nora works at Oil & Gas Inc. She is a sales representative who works with Oil & Gas customers. The company closely supervises its sales reps, and dictates their schedules. With respect to third parties, Nora is

an employee and an agent.

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.

A court cannot dismiss a debtor's petition under Chapter 13 even if the circumstances indicate bad faith.

false

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 gratuitous agent can be liable to a principal for breach of contract, even in the absence of a contract, but not liable for the negligent performance of the deal.

false

A partner can be held liable for a partnership obligation only if he or she participated in, or knew about, whatever it was that gave rise to the obligation.

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

During an employee's leave under the Family and Medical Leave Act, an employer must continue to compensate the employee to avoid the potential negative effect of unpaid leave on interstate commerce.

false

If a bank pays a stale check in good faith but without consulting the customer, the bank has no right to charge the customer's account for the amount.

false

In an agency relationship, one party called the principal agrees to represent or act for another called the agent.

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

Like the partners in a partnership, the shareholders in a corporation cannot change without affecting the continued existence of the firm.

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

The principal is bound by the agent's unauthorized act, unless the principal negates it.

false

Oil Industries Inc. is a private, for-profit corporation that is owned by five shareholders who are members of the same family. Po, the majority shareholder, misappropriates company funds. The shareholders whose interests are injured by Po's misconduct should

have their shares appraised and be paid the fair market value for them.

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

none of the choices

Oversight Inc.'s board of directors votes to empower corporate officers to make decisions regarding ordinary, daily corporate affairs within well-defined guidelines. With respect to these affairs, Oversight's board

retains its responsibility.

Nevis and Olsen want to do business as a corporation—Pastries & Pies Inc. The procedure for forming this firm is prescribed by

state law

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

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

Choosing a business organizational form that limits its owners' liability may lead to greater profits for the firm.

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 Chapter 13 proceeding, the debtor retains possession of his or her assets.

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

Individual state laws should be relied on to determine corporate law because, despite the existence and use of model corporation acts, there is considerable variation among the states.

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