Chapter 18 - Legal Issues: Recognizing Your Small Business Needs

trade secret

A _____ is a type of intellectual property, not created by the government but is information known to certain people in a company that makes that company more competitive.

Flat fees

Anderson and Anderson is a law firm that has been handed a job to take care of patent issues for Gantar Labs. Anderson and Anderson charges a fixed amount for patent-related cases. Which of the following types of fees will Gantar be paying Anderson and Anderson?

The attorney would charge separately for consultation and paperwork.

Brendon wants to sue Fitness Ace, a leading provider of fitness equipments, for negligence. He approaches Arthur Bailey Group, a law firm, which has good experience in handling product liability claims for victims of exercise equipment failure. Which of the following would be true if the attorney charges Brendon in the form of flat fees?

hold harmless

In the lease agreement signed by Arthur Fraser, a _____ clause exempts him from paying any restitution in case he causes accidental damage on the property. Which of the following types of contractual clauses protects Arthur Fraser from paying for such damages?

free and paid.

The two basic categories of information available to small business owners are:

Hourly fees

Which of the following is one of the ways in which attorneys charge?

Most states allow several firms to use the same trade name, as long as the firms are in different lines of business.

Which of the following is true about trade name?

They require filings with the state in order to be set up and maintained legally.

Which of the following is true of limited partnerships?

Sole proprietorship

Which of the following types of business form is the most popular for start-ups?

Contingency fee

Which of the following types of legal fee does the attorney take a percentage of recovery as his or her fee?

legal entity

A _____ is a unit recognized as having rights and duties apart from the owners of the company.

flat fees.

A method of billing for lawyers in which a fixed amount is paid for a certain task is called:

plaintiff

A person or other entity filing a lawsuit is known as _____.

Contingency fees

Joshua suffered a serious knee injury at work after a machine he was using malfunctioned. Joshua plans to sue for compensation from Milch Enterprises, the company that built that machine. Joshua's attorney wants a percentage of the compensation if it is proven that Milch Enterprises' negligence caused the accident. Which of the following types of legal fee would Joshua be paying to his attorney?

vicarious liability.

Responsibility for the actions of another is referred to as:

It will dissolve the corporation into a sole partnership under Bradham.

Walter Bradham, the owner of Bradham Corporation muddled his personal finances with his business accounts. Following a suit into the financial irregularities at Bradham Corporation, a court subjected the Corporation to the decision of piercing the veil. Which of the following course is the court most likely to take in this case?

Mediation

Which of the following dispute resolution methods is the least expensive and much faster to complete?

A limited liability company

Which of the following forms of business is the easiest to set up?

Trade associations

_____ are an important source of information for start-ups. They compile legal information for their members, including laws particularly applicable to certain types of businesses in various jurisdictions and proposals for changing the laws that affect an industry.

Intellectual property

_____ refers to property coming from some sort of original thought such as trademarks, patents, and copyrights.