Practice Questions Legal Final
In 1978, the ________ which prohibits employment discrimination because of pregnancy, childbirth, or related medical conditions was enacted as an amendment to Title VII of the Civil Rights Act. A) Pregnancy Discrimination Act B) Sex Discrimination Act C) Gender Discrimination Act D) Sexual Harassment Act
A
The U.S. Supreme Court has held that sexual harassment that creates a hostile work environment violates ________. A) Title VII of the Civil Rights Act B) Fair Employment Practices Act C) Title II of GINA D) Title I of the ADA
A
To claim under disparate-treatment discrimination, the complainant must prove that ________. A) he or she is physically challenged B) he or she was rejected due to over-qualification C) he or she belongs to a Title VII protected class D) he or she is covered by Title I of the ADA
A
Which of the following is a fiduciary duty owed by an agent not to act adversely to the interests of the principal? A) duty of loyalty B) duty of undertaking C) duty of discharge D) duty of resolution
A
Which of the following is true of the EEOC? A) It cannot seek injunctive relief. B) Its members are elected from state legislatures. C) Its jurisdiction is limited to charges of racial discrimination. D) A person should file a complaint with EEOC after filing a discriminatory lawsuit against the employer.
A
Why is proving a bona fide occupational qualification essential? A) for discrimination to be legal B) to establish the employer's violation of Title VII C) to establish the employee's claim is fraudulent D) for an employee to claim being discriminated against by the employer
A
________ discrimination occurs when an employer treats a specific individual less favorably than others because of that person's race, color, national origin, sex, or religion. A) Disparate-treatment B) Disparate-impact C) Favored-treatment D) Unfair-impact
A
The ______ is a federal statute that prohibits discriminating against employees who are 40 years old and older.
Age Discrimination in Employment Act (ADEA)
The ________ imposes obligations on employers and providers of public transportation, telecommunications, and public accommodations to accommodate disabled individuals.
Americans with Disabilities Act (ADA)
If the EEOC chooses not to bring suit, it issues a(n) ________ to the complainant. A) affirmative defense B) right to sue letter C) filing date D) document of claim
B
Jason Smith is a Hispanic scriptwriter from Brazil who works for a television show on an American cable network. He was fired after the producer came to know that Smith was a scientologist by faith. The producer's official reason for this termination was that as Smith was based in Brazil, communication was a problem. This is an example of ________ discrimination that violates Title VII of the Civil Rights Act. A) racial B) religious C) national origin D) disparate-impact
B
QuickMoney LLC is looking to fill its chief executive officer position, as the current CEO is retiring soon. QuickMoney receives applications for this position from many persons, including Joe Thomas, an African-American. Mr. Thomas is the best-qualified applicant for the job. If QuickMoney does not hire Mr. Thomas because he is an African-American, the company has engaged in ________ discrimination. A) genetic information B) race C) color D) national origin
B
The ________ was intended to eliminate job discrimination based on race, color, national origin, sex, and religion. A) Lilly Ledbetter Fair Pay Act B) Fair Employment Practices Act C) Title II of GINA D) Title I of the ADA
B
Which of the following best describes quid pro quo sex discrimination? A) employment discrimination because of pregnancy, childbirth or related medical conditions B) discrimination where sexual favors are requested in order to obtain a job or be promoted C) discrimination in hiring or promotion based on the gender of the employee under consideration D) selective or partial treatment offered to an employee or a group of employees based on their gender
B
Which of the following is an instance of disparate-treatment discrimination? A) An employer does not promote Kelly as she is about take maternity leave. B) Ghalib, who is fluent in English, is not hired as a writer due to his Iraqi heritage. C) An employer refuses to install a wooden ramp to accommodate Lin who is restricted to a wheelchair. D) A factory hires 22-year old Jerry over 46-year old Barry, citing age as the reason.
B
Which of the following is true of religious discrimination? A) Only monotheistic religions are covered under Title VII. B) An employer need not accommodate religious observances or practices of its employees at the workplace. C) An employee who claims religious discrimination cannot sue the employer for any other violation of Title VII. D) Religious organizations can give preference in employment to individuals of a particular
B
Which of the following is true of the right to sue letter issued by the EEOC? A) It is issued when the EEOC chooses to bring suit. B) It is issued when the EEOC does not find a violation. C) It is issued when the complainant is found guilty. D) It is issued only when the discrimination is racial in nature.
B
________ discrimination occurs when an employer discriminates against an entire protected class. A) Disparate-treatment B) Disparate-impact C) Favored-treatment D) Unfair-impact
B
You want to open a Playboy Club in DeKalb. You place an advertisement in the newspaper seeking only women as Bunnies. A man with great legs and a winning smile applies fo the job but you reject him because of his sex. He sues. Your best defense would be; A. Business necessity B. Bona fide occupational qualification C. Business judgement rule D. Business opportunity doctrine E. None of the above
B. Bona fide occupational qualification
The city of Iowa City requires a college degree to qualify for being a city bus driver. Statistics show that 28% of the blacks and 85% of the whites in the metropolitan area and surrounding county have college degrees. John, a black male without a college degree, applies for the job but is rejected because of the diploma requirement. He sues. On the basis of just the facts given, which is the most likely result? A. Discrimination because of disparate, treatment B. Discrimination because of disparate impact C. No discrimination even though disparate treatment because the diploma requirement is a bona fide occupational qualification D. No discrimination even though disparate impact because the diploma requirement is a business necessity E. Title VII does not allow a discrimination suit for such a fact pattern
B. Discrimination because of disparate impact
A complainant may file his or her employment discrimination claim with the ________ instead of the EEOC. A) ADA B) ADEA C) FEPA D) BFOQ
C
A member of a minority race applies for a promotion to a position advertised as available at his company. The minority applicant, who is qualified for the position, is rejected by the company which hires a nonminority applicant for the position. The minority applicant can sue under ________. A) Title I of ADA B) Title II of GINA C) Title VII of the Civil Rights Act D) Lilly Ledbetter Fair Pay Act
C
An employee who believes that he or she is being sexually harassed has a duty to report the harassment to the ________. A) EEOC B) FEPA C) employer D) law enforcement authorities
C
If a light-skinned member of a race refuses to hire a dark-skinned member of the same race, this will constitute as discrimination in violation of ________. A) Title I of ADA B) Title II of GINA C) Title VII of the Civil Rights Act D) Title IV of GINA
C
Using a sexually explicit picture or screensaver to mock an employee constitutes ________. A) gender discrimination B) quid pro quo sex discrimination C) sexual harassment D) physical abuse
C
Which of the following elements constitutes an affirmative defense by an employer whose employee has suffered sexual harassment at the work place? A) The plaintiff-employee was harassed by other employees who are no longer employed by the employer. B) The employer had no knowledge about the sexual harassment faced by the plaintiff-employee until a court notice was served on the employer. C) The plaintiff-employee failed to take advantage of any preventive or corrective opportunities provided by the employer. D) The plaintiff-employee misinterpreted words or actions by the employer or his employees which were not intended to cause sexual harassment.
C
Which of the following is true of sex discrimination? A) It is not the same as gender discrimination. B) Prohibition against sex discrimination applies only to women, not men. C) Employment discrimination because of pregnancy is sex discrimination. D) Sex discrimination is covered by Title II of GINA.
C
Which of the following is true of sexual harassment? A) Same-sex harassment is not covered under Title VII. B) An employee being harassed at the workplace is not obligated to report it to the employer. C) Sending offensive e-mail is considered sexual harassment. D) Absence of a complaint policy makes an employer liable for disparate-impact discrimination.
C
Which of the following types of employment discrimination is carried out against a person because of his or her heritage or cultural characteristics? A) race discrimination B) color discrimination C) national origin discrimination D) genetic information discrimination
C
d. discriminated illegally based on age. Age discrimination prohibits discrimination based on age for individuals over 40 years of age.
Craig and Dawn are candidates for promotions. Craig is 34, Dawn is 56. Craig is given the promotion. Management decided that since Dawn has said she plans to retire in four years, promoting her would make little sense. In this case, the company: a. had a legitimate reason for denying the promotion. b. had a compelling reason for denying the promotion. c. engaged in a forced retirement scheme. d. discriminated illegally based on age.
If a company does not hire certain employees because of their accents, it has carried out ________ discrimination. A) genetic information B) race C) color D) national origin
D
Lila Miller who works for a large software firm is four-months pregnant and is due for a promotion. However, her employer offers the promotion to Harry Oswald, a less-experienced candidate, as Lila would go on maternity leave soon and would be unable to perform her duties. Which of the following is true of this scenario? A) Lila's employer is liable for disparate-treatment discrimination. B) Lila's employer is liable for disparate-impact discrimination. C) The employer was lawful in denying Lila the promotion. D) Lila's employer has violated Title VII of the Civil Rights Act of 1964.
D
The ________ is a federal statute that permits a complainant to file an employment discrimination claim against an employer within 180 days of the most recent paycheck violation. A) Civil Rights Act of 1968 B) Title II of GINA C) Civil Rights Act of 1964 D) Lilly Ledbetter Fair Pay Act
D
Which of the following best describes the scope of Title VII of the Civil Rights Act of 1964? A) It applies to all employers irrespective of the number of employees. B) It does not apply to labor unions. C) It does not cover state and local governments. D) It does not apply to Native American tribes.
D
Which of the following is true of employment discrimination as defined under Title VII of the Civil Rights Act of 1964?
Disparate-impact discrimination occurs when an employer adopts a work rule that is neutral on its face but is shown to cause an adverse impact on a protected class.
The ________ is the federal agency responsible for enforcing most federal antidiscrimination laws.
Equal Employment Opportunity Commission (EEOC)
The ________ protects both sexes from pay discrimination based on sex.
Equal Pay Act
The Age Discrimination in Employment Act permits the mandatory retirement of most employees at age 75
False
The ________ is a federal statute that makes it illegal for an employer to discriminate against job applicants and employees based on genetic information.
Genetic Information Nondiscrimination Act (GINA)
Which of the following is true of the right to sue letter issued by the Equal Employment Opportunity Commission (EEOC)?
It is issued when the Equal Employment Opportunity Commission (EEOC) does not find a violation.
Lila Miller who works for a large software firm is four months pregnant and is due for a promotion. However, her employer offers the promotion to Harry Oswald, a less-experienced candidate, as Lila would go on maternity leave soon and would be unable to perform her duties. Which of the following is true of this scenario?
Lila's employer may have violated Title VII of the Civil Rights Act of 1964.
An employer pays higher wages to Shelly—who has worked with the company for six years—than Samuel, who holds a similar position to Shelly and performs the same functions as her and has worked with the company for only five and a half years. Which of the following is true of this case?
The employer may not have violated the Equal Pay Act.
If an employer refuses to hire individuals belonging to a particular community, that would violate ________.
Title VII of the Civil Rights Act
________ prohibits any form of sex discrimination where sexual favors are requested in order to obtain a job or be promoted.
Title VII of the Civil Rights Act
If it is shown that an employment qualification rule, practice or device has a discriminatory impact, the employer must persuade the court that the practice has a manifest relationship to job performance and is a business necessity.
True
If the court "pierces the corporate veil" shareholder(s) have unlimited personal liability for corporate debts.
True
In a few situations, such as modeling clothing, an employer may discriminate on the basis of race as a bona fide occupational qualification.
True
In cases of affirmative action, the courts have held that discrimination in favor of qualified women or minority workers may be legal
True
It is likely that a company has legal rights to require the passing of a drug test as part of a pre-employment screening.
True
It is not necessary that an employer alter an employee's tangible job benefits (hours, overtime, office, wages, etc.) for that employer to be liable for sexual harassment
True
Limited liability companies are taxed like partnerships, but have the liability rules of a corporation.
True
The Americans With Disabilities Act requires employers to make reasonable accommodations for employees with disabilities
True
Which of the following are afforded limited liability for the debts and torts of a business? a. Limited partners b. Shareholders c. General partners d. Sole proprietors e. More than one of the above answers
a. Limited partners
Janice Coleman is a team leader at Jackson Equipment. She has been promoted several times over the past five years and her performance evaluations are outstanding. Milton, one of the vice presidents at Jackson has been very friendly to Janice and has served as her mentor. He has also been occasionally asking her to go out with him for the past 2 years. She has declined and Milton recently suggested that she could be an area supervisor if he became her advocate with the management team. One time, while at a company party, Milton indicated he would be willing to do so if they began dating. Janice does not agree to the relationship. She is eventually promoted to area supervisor based on her own merit. Does Janice have a claim against Milton for sexual harassment? Which of the following statements is correct? a. No, Janice has no basis for a harassment case because she was promoted. b. Yes, because Jackson is not responsible for the acts of Milton. c. Yes, Janice has a case for hostile environment. d. Yes, Janice has a claim for quid pro quo harassment.
a. No, Janice has no basis for a harassment case because she was promoted.
If a partner withdraws from a partnership a. a dissociation occurs. b. the partnership must file new organizational papers with the state. c. the partner remains personally liable for the obligations of the partnership until a new partner takes their place. d. the partnership must change its name.
a. a dissociation occurs.
Create a corporation: a. articles of incorporation and an application must first be filed with the federal government b. the federal government issues a certificate of incorporation, which must be filed with an application to do business in the relevant states c. the incorporators must hold a public organization meeting, then file articles of incorporation d. the corporation's articles of incorporation are filed with the appropriate officer of the state e. none of the above
a. articles of incorporation and an application must first be filed with the federal government
Surveys show that people may prefer to d^al with members of their own race. A company assigns white salespersons to white customers, and Hispanic salespersons to Hispanic clients. This makes revenues to all the salespersons higher than if the sales-persons were assigned randomly. Assignments based on race are: a. illegal segregation under Title VII b. illegal only if the salespersons earn different wages c. legal if a majority of the salespersons of all races have approved the market division d. legal since the effect is to raise gross income e. legal since the interests of the customers is the same as the interests of the firm
a. illegal segregation under Title VII
DST Telemarketing Company institutes has an ethnically diverse workplace. To promote unity and understanding in the workplace environment, DST adopts a policy that requires all employees to speak English in the work place at all times, unless they are on a call with a person whose first language is not English. This policy is a. mostly likely discriminatory based on race and/or national origin. b. a violation of the rights of the employees to exercise "freedom in speaking". c. a form of hate speech by DST. d. a company policy that in no way discriminates against race and/or national origin.
a. mostly likely discriminatory based on race and/or national origin.
Kate is being interviewed for a job and she volunteers that she has diabetes and has to occasionally take breaks to give herself insulin shots. The interviewer asks her how often she needs to take these breaks and how long the breaks take. These questions are: a. not illegal under the Americans with Disabilities Act. b. illegal under the Americans with Disabilities Act. c. illegal in California, but not in other states. d. illegal if the interviewer is a man, but not if it is a woman.
a. not illegal under the Americans with Disabilities Act.
Jace did not receive a position that he applied for and has established a prima facie case against his employer for age discrimination. This means that Jace a. will win this if his employer does not have a valid reason for not giving him the position. b. Has won his case. c. Must be given the exact position or a comparable position in terms of responsibility and pay. d. Still has the burden to prove that he was discriminated against even if his employer does not offer an explanation as to why he did not receive the position.
a. will win this if his employer does not have a valid reason for not giving him the position.
Amanda Tucker, a black female, applied for a sales position in Ames Department Stores in Seattle. After completing her application, she was asked to take a math test and a general aptitude test. Amanda was not hired. Later, Tucker learned that Ames only administers the math and aptitude tests to minority applicants. Ames says that its experience demonstrates that minority candidates do not work out well as sales clerks unless they have a minimum score on these tests. Which of the following statements is true regarding Ames' testing policy? a. Ames' testing policy is a violation of Title VII because it is not relevant to the job. b. Ames' testing policy is a violation of Title VII because it targets a protected class of individuals. c. Ames' testing policy is valid so long as the test is consistently given to minority applicants. d. Ames' testing policy is valid so long as it can substantiate the statements about the validity of the tests.
b. Ames' testing policy is a violation of Title VII because it targets a protected class of individuals.
Philbrook is a teacher employed by the Ansonia School District. He is a member of the Worldwide Church of God. His church holds certain holy days, and Philbrook has missed 6 school days each year for such holy days. The teachers' union has negotiated a contract that permits the following leaves: 18 days per year for sickness: up to 180 days can be cumulated, 5 days for a family death, 1 day for a wedding, 3 days for national meetings, and 3 days for personal leave. The contract did not allow the use of these days for other reasons. Philbrook was fired for having taken unauthorized, unpaid leave for his six holy days. He filed an EEOC complaint. Who will win? a. The school will win, because employees are not allowed personal days for religious holidays. b. Philbrook will win, because the school provided no reasonable accommodation for the holy days. c. Philbrook will win, because federal law allows him to use his sick and personal leave days for any purpose. d. The school will win, because the contract with the union must be followed
b. Philbrook will win, because the school provided no reasonable accommodation for the holy days.
Jill wants to form a corporation, but she wants to avoid double-taxation. What type of corporation should she form? a. C Corporation b. S Corporation c. X Corporation d. F Corporation
b. S Corporation
Nicholas and Adeline started doing tax returns for friends in college and split the profits. Now they do tax returns for their startup businesses and split the expenses and profits, but have never adopted a business name or filed any organization papers with the state. They have formed a. a sole proprietorship. b. a partnership. c. an LLC. d. an illegal association.
b. a partnership.
Ace Construction adopts a policy that forbids its pregnant employees from working on any construction site after their 28th week of pregnancy. This policy is a. an equitable policy because it shows sensitivity toward its female employees. b. discriminatory if the pregnant woman is able to perform the job duties. c. a form of reverse discrimination because it treats pregnant women different than women who are not pregnant. d. permissible under state law, as long as health benefits remain in tact.
b. discriminatory if the pregnant woman is able to perform the job duties.
Gary and Barry work at Stan's RV Lot. Gary dislikes Barry, makes insults about Barry's Iranian heritage, and treats him badly. Stan has heard the insults but does not reprimand Gary because Stan thinks Gary is right. Stan's actions are: a. legal because Barry is a U.S. citizen. b. discriminatory under Title VII. c. legal because Stan and Gary have a rational basis for their beliefs. d. legal because Iranian-Americans are not protected by Title VII.
b. discriminatory under Title VII.
A company with 30 employees has no personnel department. Several male employees pester several female employees, including making sexual gestures, comments, and, at times, grabbing them. Telling the men to stop does not change behavior. Several women quit and file a complaint against the employer for sexual harassment. It is likely that the women will: a. have a case because the company does not have a personnel office as required by law. b. have a case because there was a persistent hostile environment that was not corrected. c. not have a case because they did not complain sufficiently to the company manager before they quit. d. not have a case because they did not complain to the EEOC (or equivalent state office) before they quit.
b. have a case because there was a persistent hostile environment that was not corrected.
Gary and Sue start a consulting firm. They are co-owners of it and have joint control over its operation and the right to share in its profits. Their organization is most likely a: a. proprietorship. b. partnership. c. limited partnership. d. corporation.
b. partnership.
Which of the following would not be likely to be a violation of the Americans with Disabilities Act, because it goes beyond the scope of the legislation? a. using standardized tests that screen out people with disabilities b. refusing to hire job applicants because they have a history of drug abuse c.refusing to hire a job applicant because an assembly line for automobiles cannot accommodate workers in wheelchairs d. not hiring a disabled person because the bathrooms cannot accommodate wheelchairs e. asking job applicants if they have disabilities
b. refusing to hire job applicants because they have a history of drug abuse
To not violate Title VII's prohibition of discrimination based on religion, an employer may have to make changes in the way her business is organized to meet religious requirements of employees. Employers are required to incur: a) any expense required to avoid violating religious requirements of its employees b) up to ten percent of an employee's wage in costs to comply with the employee's beliefs c) no more than minimal expenses to accommodate an employee's religious requirements d) no expense or trouble at all e) none of the above
c) no more than minimal expenses to accommodate an employee's religious requirements
If an investigation of a discrimination charge is not settled by the EEOC working with the employer and complaining employee, to carry the case further, the: a. employee must file suit against the employer with an administrative law judge of the EEOC b. EEOC investigator must file suit against the employer with an administrative law judge of the EEOC c. EEOC issues a "right-to-sue" letter giving the employee the right to sue the employer in court d. EEOC must file suit in federal court on behalf of the employee e. EEOC must turn the case over to the Department of Justice for possible prosecution
c. EEOC issues a "right-to-sue" letter giving the employee the right to sue the employer in court
In the absence of a contrary agreement, a general partner's share of the partnership profits is determined by a.Her capital contribution to the partnership b. Her participation in the partnership c. Each general partner shares equally in the profits d. Her position within the partnership e. None of the above
c. Each general partner shares equally in the profits
Three Texas investors were shareholders in TexasFastFoodSouth, Inc. which owned several What-A-Burger franchises in different south Texas markets located in San Antonio and the Rio Grande Valley. The franchise agreement with What-A-Burger stated that franchisees could not own the "same or similar" competing franchises in the same geographical area. The same three investors formed TexasFastFoodNorth, Inc. and obtained a Burger King franchise for the north Texas (the Dallas-Fort Worth) metroplex. Upon discovery of this transaction, What-A-Burger terminated its franchise agreements with the owners for violating the franchise agreement. What-A-Burger claimed it had franchises in north Texas and the shareholder would be in direct competition. The shareholders argued that since the What-A-Burger and Burger King franchises were in different geographical regions and owned by different corporations the franchise agreement with What-A-Burger had not been breached. Who is correct? a. What-A-Burger is correct because the franchisee violated the terms of the "same or similar" clause of the franchise agreement. b. What-A-Burger is correct because a franchisor always has the unilateral right to terminate a franchise agreement. c. The shareholders are correct because the 'same or similar' clause was limited to south Texas and the original franchise agreement with What-A-Burger was not breached, even if the franchises were competing. d. The shareholders are correct because the What-A-Burger agreement was an unconscionable restraint on trade.
c. The shareholders are correct because the 'same or similar' clause was limited to south Texas and the original franchise agreement with What-A-Burger was not breached, even if the franchises were competing.
TNC Accounting Firm establishes a policy that forbids workplace romances. This is a. sexual discrimination. b. religious discrimination for those who believe in marriage. c. a valid and effective company policy to reduce claims of harassment. d. an invasion of privacy.
c. a valid and effective company policy to reduce claims of harassment.
This ad was seen in a publication: "Wanted: Assistant to the President. Great job opportunity for bright, young, hard working person to work with President of a major private university." This ad is most likely to violate: a. disability law because "bright" may discourage applicants with mental problems b. discrimination law that requires jobs to have clearly stated goals and qualifications, not vague terms c. age discrimination laws since "young" is probably not over the age of 40 d. sex and race discrimination law since women and minorities are presumed not to be hardworking e. nothing; no violations exist in the ad
c. age discrimination laws since "young" is probably not over the age of 40
A voluntary termination of a corporation's existence is typically accomplished a. with the sole approval of the board of directors alone. b. by a vote of the directors, officers and shareholders. c. by a vote of the shareholders and directors. d. when the state dissolves it or through bankruptcy
c. by a vote of the shareholders and directors.
Dissolution of a partnership takes place, unless otherwise provided for by contract, in the following instances except: a. bankruptcy of a partner b. withdrawal of a partner c. change in financial condition of a partner d. death of a partner e. all of the above would require dissolution
c. change in financial condition of a partner
If Don wants to form a corporation, he will need to: a. apply for permission from the Federal Trade Commission. b. apply for permission from the Department of Commerce to pursue an incorporation. c. create and file articles of incorporation with the proper state official. d. create and file articles of incorporation with the FCC.
c. create and file articles of incorporation with the proper state official.
The business organization that has at least one general partner and other investors who have limited liability is a: a. corporation b. general partnership c. limited partnership d. limited liability company e. sole proprietorship
c. limited partnership
The business judgment rule a. holds directors liable for corporate losses due to poor decision making. b. holds managers liable for poor performance in the function of their duties. c. makes directors immune from liability if there is a reasonable basis for their decisions. d. makes directors immune from liability if their good faith actions turn a profit for the corporation.
c. makes directors immune from liability if there is a reasonable basis for their decisions.
A ___________ is an association of two or more persons to carry on a business as co- owners for profit. a. proprietorship b. corporation c. partnership d. cooperative e. all of the above
c. partnership
A promise of a reward, such as promotion or pay raise, for providing sexual favors being demanded is called: a. hostile environment harassment b. bona fide impact c. quid pro quo harassment d. differential favoritism e. none of the above
c. quid pro quo harassment
A limited liability company: a) is taxed like a partnership b) has the liability of a corporation c) is taxed like a corporation d) a and b e) b and c
d) a and b
Dr. Smith had an oral agreement with Dr. Jones to take Dr. Smith's "on call" patients while Smith was on vacation. The oral agreement included a compensation provision that Smith would receive 30 percent of any fees collected by Jones and would see the patients in Dr. Jones' office. While Smith was on vacation, Jones saw BillyBob, a patient of Dr. Smith. Dr. Jones misdiagnosed BillyBob's problem, and he died. BillyBob's heirs sued both Dr. Smith and Dr. Jones, claiming at the time they were partners. Dr. Smith defended that he is not liable for BillyBob's death. Which of the following statements is most correct? a. Dr. Smith is not liable because Dr. Jones breached his fiduciary duty to Dr. Smith. b. Dr. Smith is not liable because Dr. Jones was not his agent, stepping into his shoes only when he was on vacation. c. Dr. Smith is not liable because Dr. Jones performed a medical act that Dr. Smith did not approve. d. Dr. Smith is not liable because no partnership was created.
d. Dr. Smith is not liable because no partnership was created.
Which of the following is not a basis for piercing the corporate veil? a. Corporate formalities are not observed. b. The officers pay corporate debts and bills with personal checks when the corporation is running low on cash. c. The corporation is undercapitalized at its start up. d. The corporation defaults on a loan business loan.
d. The corporation defaults on a loan business loan.
Assume the Uniform Partnership Act governs this scenario. Three surgeons conducted their medical practices through MEDICAL SERVICES, a general partnership they owned, with no written partnership agreement. Medical Services obtained a $1.5 million "balloon note" from Enterprise Bank. A balloon note means the entire loan and principal are due on a specific due date. The loan was secured by personal guarantees of the three doctors, each for $500,000. The partners agreed in writing that they would all be "equally liable" for any debts of the partnership. One month before the due date one doctor was tragically killed in a car accident. The remaining two doctors formed a new partnership and established their new medical practice across town. When Medical Services failed to pay the loan of $1.5 million on the due date, Enterprise Bank moved to sue the two remaining doctors and won a judgment of $1.5 million plus interest. Enterprise claimed the judgment was against the doctors jointly and severally, but the two doctors contended they were each only liable for one-third of the outstanding balance. Under the UPA, what would be the most likely result? a. All three doctors are equally liable for the judgment because they signed personal guarantees. b. All three doctors are liable, but the two remaining doctors will likely have to pay for a higher percentage of the judgment. c. The general partnership is liable, not the doctors. d. Under the UPA, the two remaining doctors are each jointly and severally liable for the entire judgment, and their signed personal guarantees did not constitute a partnership agreement to the contrary.
d. Under the UPA, the two remaining doctors are each jointly and severally liable for the entire judgment, and their signed personal guarantees did not constitute a partnership agreement to the contrary.
Disparate treatment (under Title VII) refers to: a. intentional discrimination b. unintentional discrimination c. illegally motivated employment decision d. a and c e. b and c
d. a and c
Jeanette wants to exercise sole managerial control over her business but she does not have enough money to set the business up so she is seeking investors. What type of organization should she form? a. a proprietorship b. a partnership c. a cooperative d. a corporation
d. a corporation
If Jason, an African-American employer with light skin, discriminates against Oscar, an African-American employee with dark skin, Oscar will most likely file a discrimination claim based on: a. sex. b. race. c. national origin. d. color.
d. color.
After Eli forms a corporation, he will need to do all of the following except: a. elect a board of directors. b. enact bylaws. c. issue stock. d. file the articles of incorporation.
d. file the articles of incorporation.
Purple Jet is a regional airline with smaller jets that fly no more than 500 miles. Eighty percent of the flight attendants are female. If a claim of gender discrimination is filed against the company because of its disproportionately female workforce, the companies best defense is a. flight attendants are traditionally female. b. the number of male pilots offsets the lack of male flight attendants. c. the males do not fit the flight attendant uniforms chosen by the company. d. the regional aircrafts typically have height restrictions which produces the predominantly female workforce.
d. the regional aircrafts typically have height restrictions which produces the predominantly female workforce.
Unless otherwise stated by contract, the law of partnership presumes which of the following not to be true? a) each partner has an equal voice in partnership management. b) a majority vote controls ordinary business decisions c) only managing partners are fully responsible for debts of the partnership d) regardless of the amount invested in the partnership, each partner has an equal vote e) all of the above are true
e) all of the above are true
A partnership can begin with: a. an implied agreement that can be inferred from the conduct of the parties doing business b. a written agreement c. an oral agreement d. b and c e. a, b and c
e. a, b and c
Which of the following best describes quid pro quo sexual harassment?
harassment where sexual favors are requested in order to obtain a job or be promoted
Which of the following is considered a major physiological impairment by the Americans with Disabilities Act Amendments Act (ADAAA)?
having cancer
To bring a claim for disparate-treatment discrimination, the complainant must prove that ________.
he or she belongs to a Title VII protected class
If a company does not hire certain employees because of their accents, it has committed ________ discrimination.
national origin
Which type of discrimination is based on a person's heritage or cultural characteristics?
national origin discrimination
If the Equal Employment Opportunity Commission (EEOC) chooses not to bring suit, it issues a(n) ________ to the complainant.
right to sue letter
Gloria's employer deducted 20 percent of her pay in the month of January due to personal problems he had with her. Under the Lilly Ledbetter Fair Pay Act, what period of time does Gloria have to file an employment discrimination claim?
within the month of April the same year
