Finance study guide

How does a principal become liable to third parties on contracts?

The principal's agent has the authority to bind the principal in a contract with a third party.

If a user of a social media app, publicly posts content incriminating themselves, may police use that as evidence against the individual?

Yes, because there was no reasonable expectation of privacy in the post.

Is a principal liable for the tortious actions of the principal's agent?

Yes, but the agent must reimburse the principal.

Is a principal under a duty to compensate an agent who works on the principal's behalf?

Yes, if the contract requires compensation.

A corporation that is formed in one state but does business in another state is referred to in the second state as:

a foreign corporation.

When is an agent liable on a contract that the agent entered into in the business of the agent's principal? Choose 3 answers.

if the agent entered into the contract in a personal capacity when the agent is acting without authority when the principal is undisclosed

Common shareholders have the right to vote on:

proposals for fundamental changes affecting the company such as mergers or liquidation.

Under which of the following could an online user reasonably expect to maintain privacy protections under the Fourth Amendment? (Select two)

when the user posted to a private online journal which did not allow for sharing or followers when the user is entering in their credit card information to an online store

Which statement is true about creating a sole proprietorship?

No documentation is required to create a sole proprietorship.

An author may expect to receive copyright protection for the life of the author plus:

70 years

Which international agreement requires its member countries to establish border procedures for searching international shipments of goods?

Anti-Counterfeiting Trade Agreement

Which of the following is a requirement for the initial formation of a corporation?

Articles of Incorporation

The earliest international agreement that provided copyright protections among the signatories to the agreement was the:

Berne Convention

Internet Service Providers (ISPs) are not liable for the content posted by someone on a neutral forum under the:

Communications Decency Act of 1996

Who can terminate an agency relationship?

Either the agent or the principal may terminate.

Which of the following laws regulate wiretapping on a federal level?

Electronic Communications Privacy Act

The 1935 act that protects workers' rights to form and join unions for collective bargaining is called the:

National Labor Relations Act (NLRA).

Which of the following is a disadvantage of operating as a partnership?

Partners may suffer financial loss if the partnership is not profitable.

Which of the following are advantages of operating as a partnership? Choose 2 answers.

Partnerships are not taxed. Forming a partnership is simple and relatively inexpensive.

What are the main provisions of the Immigration Reform and Control Act (IRCA) enacted in 1986? Choose 2 answers.

The IRCA provided amnesty to certain groups of immigrants living illegally in the United States at the time. The IRCA made it illegal to hire, recruit, or refer for a fee someone not authorized to work in the United States.

If an employee has proven an unfair pay disparity between males and females, what defenses may the employer use? Choose 3 answers.

The pay disparity is based on seniority, not gender. The pay disparity is based on any factor other than gender. The pay disparity is based on merit or output.

If an anonymous online user commits defamation against an individual or business, may that individual or business compel the Internet Service Provider to reveal the identity of the user?

Yes, if ordered to do so by a court.

Which of the following types of intellectual property may only be owned by a business?

a trade secret

What are the fiduciary duties of an agent to her principal? Choose 3 answers.

accounting obedience loyalty

Who is liable to third parties for damage caused by an agent's tortious conduct if the principal had directed the agent to take that action?

both the agent and the principal

When Sandra was offered an assistant's job with a law firm, her supervisor told her she would move up to office manager after 9 months of employment. If this doesn't happen, Sandra may:

bring a tort action for fraudulent inducement.

How may an agency relationship be formed? Choose 3 answers.

by express written agreement between agent and principal by express oral agreement between agent and principal implied by the conduct of the principal

The Civil Rights Act of 1964 applies to:

companies with 15 or more employees

For an original work of authorship, such as a book, song, poem, article, recording, or other work, an author would seek the protection of a:

copyright

The Equal Pay Act forbids: (Choose 3 answers.)

denying an employee insurance or other benefits based on gender. refusing to pay or issue pension benefits due to the employee's gender. paying one gender a different amount for the same work.

Under the Civil Rights Act of 1964, which of the following are illegal if applied to a member of a protected class? Choose 2 answers.

disparate treatment and disparate impact hostile environment and retaliation

One of the key purposes of the Digital Millennium Copyright Act (DMCA) is to bring copyright laws into the digital age by regulating digital media copyright infringement. As with non-digital assets, an owner of copyrightable material:

does not need to include a (c) symbol on their digital work in order to be protected from reproduction.

The role of the Equal Employment Opportunity Commission (EEOC) is to: (Choose 3 answers.)

fairly and accurately assess the allegations in a charge of discrimination and make a finding. file a lawsuit to protect the rights of individuals and the interests of the public. investigate charges of discrimination against employers.

What categories are protected by the Equal Employment Opportunity Commission (EEOC)? Choose 3 answers.

genetic information national origin gender identity

A business will be able to protect its trademark for how long?

if unregistered, as long as it is in use

The National Labor Relations Board (NLRB) has the authority to: (Choose 3 answers.)

issue a cease-and-desist order. investigate employees' charges of unfair labor practices. file complaints against employers in response to charges of unfair labor practices brought by employees.

A partnership in which the liability of all the partners is limited to the amount of their capital investment in the firm is called a:

limited liability limited partnership.

Which of the following is a duty of both corporate directors and corporate officers?

making a full disclosure of potential conflicts of interest

An employee who violates a company's social media policy by public posting negative comments about the company:

may be fired

The system in which an employer pays her employees an amount based on how well they do their jobs, regardless of gender, is called:

merit

What type of corporation is formed for the purpose of doing a public service instead of making money?

nonprofit

In terms of personal liability of the owner, a sole proprietorship:

offers no protection.

Which of the following types of intellectual property protection usually has a set term of 20 years?

patent

To prevent others from making, selling, or using an invention, an inventor should seek what type of intellectual property protection?

patent protection

Which posters does the Occupational Safety and Health Act (OSHA) require most businesses to display? Choose 2 answers.

post certain notices in the workplace. records of occupational illness and injuries.

Title VII The Civil Rights Action of 1964 applies to

private and some federal government employers.

The CAN-SPAM Act regulates unsolicited commercial emails by: (Select two)

prohibits deceptive email headings requiring opt-out systems

An employee-at-will may be properly discharged for: (Choose 2)

showing up late to work one time. being "too attractive."

The simplest form of business to establish is a:

sole proprietorship.

Which act is violated if an employer refuses to provide health insurance to females due to the cost of pregnancies?

the Equal Pay Act

Which amendment to the U.S. Constitution is the primary source of equal protection provisions in employment law?

the Fourteenth Amendment

At the federal level, the primary legislation that protects workers from dangerous conditions on the job is:

the Occupational Safety and Health Act (OSHA).

What documents spell out the powers of a corporation? Choose 2 answers.

the bylaws the charter (also called the articles of incorporation)

A general partnership differs from a limited partnership in: (Choose 2 answers.)

the documents required for creation. a partner's management rights.

Which of the following provisions are typically in a charter for a corporation? Choose 2 answers.

the intended business purpose of the corporation the name and address of the corporation's agent

Who is liable for contracts entered into on behalf of the corporation before the corporation is formed?

the promoter

A business using a word, phrase, symbol, or design to identify and distinguish its brand of goods would protect that branding with a:

trademark

An operating agreement for a limited liability company:

typically includes provisions about choosing the LLC's management.

How much time off does the Family and Medical Leave Act (FMLA) provide?

up to 12 weeks of unpaid time off

Does the First Amendment protect defamatory speech online, provided it is anonymous?

No, because defamatory speech is unlawful.

What is required to form an agency relationship?

The agent and principal must agree to enter the relationship.

Which of the following are rights of common shareholders? Choose 3 answers.

transferable ownership voting on matters such as election of directors and proposals for mergers or liquidation opportunity to inspect corporate books and records

In ordinary circumstances, when the corporate veil has not been pierced, a shareholder may be liable for:

unpaid amounts on the shares held by that shareholder.

What are three ways that state workers' compensation claims are funded? Choose 3 answers.

Employers pay into a state-run insurance plan, and claims are paid by the insurance. Employers are self-insured and pay claims out of company funds. Employers pay into a privately-run insurance plan, and claims are paid by the insurance.

Which of the following are essential elements of a partnership? Choose 2 answers.

Profits and losses are shared among the members. All members have equal right to be involved in the management of the business.

What is the main provision of the Immigration Act of 1990?

The Immigration Act of 1990 placed caps on the number of visas (entry permits) that can be issued to immigrants each year.

Online activities and content may be legally regulated through the following laws or mechanisms: (Select two)

Tort law The First Amendment to the Constitution

If harm is done by an agent, and it is discovered that this agent has been convicted of the same harm before at a previous job, what might a principal be liable for?

negligent hiring

Employers have the right to monitor emails by their employees when: (Select two)

the employer has provided the computer on which the emails are sent. the company has provided the email server on which the email was sent.

Which of the following provisions are typically in an operating agreement for a limited liability company (LLC)? Choose 2 answers.

whether the dissociation of a member, such as by death or departure, will trigger dissolution of the LLC how membership interests may be transferred