BLAW chapter 17,18,19

true

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. t/f

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. T/F

true

Because a franchisor's termination of a franchise can adversely affect a franchisee, much franchise litigation involves claims of wrongful termination. t/f

false

To avoid permitting a key employee to take family or medical leave, an employer must show that the leave would cause "substantial injury" to the employer. t/f

true

In a sole proprietorship, the proprietor bears the burden of any liabilities incurred by the business enterprise. t/f

TRUE

Choosing a business organizational form that limits its owners' liability may lead to greater profits for the firm. T/F

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. t/f

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. T/F

TRUE

Limited legal liability can be an advantage for a small business wishing to raise capital. T/F

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. t/f

false

A whistleblower is an employee who publicly reveals a co-worker's unsafe or illegal activity. t/f

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. t/f

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. t/f

FALSE

An express employment contract cannot protect an employee from discharge without good cause. T/F

false

An express employment contract cannot protect an employee from discharge without good cause. t/f

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. t/f

TRUE

Because a franchisor's termination of a franchise can adversely affect a franchisee, much franchise litigation involves claims of wrongful termination. T/F

a. dissolve

Beri owns and operates City Delivery Service as a sole proprietorship. When she dies, the business will automatically... a. dissolve b. transfer to Bev's heirs c. reform with its employees as the owners d. transfer to its creditors

c. none of the choices

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... a. accounting b. loyalty c. none of the choices d. care

true

Choosing a business organizational form that limits its owners' liability may lead to greater profits for the firm. t/f

b. must continue it

Devon takes temporary family leave from her job at Equipment Sales Company to care for a newborn baby. With respect to Devon's health-care coverage, during the leave, under the Family and Medical Leave Act, Equipment... A. must add the baby to it b. must continue it c. may terminate it d. may suspend it

true

Directors and officers whose failure to exercise due care results in harm to the corporation or the shareholders can be held liable for negligence unless the business judgment rule applies. t/f

FALSE

Disparate-impact discrimination occurs when a protected class is adversely affected by the practice or procedure of an employer who intended that result. T/F

false

Disparate-impact discrimination occurs when a protected class is adversely affected by the practice or procedure of an employer who intended that result. t/f

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. t/f

b. benefit corporation

Health Food Inc. coordinates the purchase, sale, and delivery of organic products. The stated corporate purpose is to make a profit and to have a material positive impact on society and the environment. Health Food is.. a. not a corp b. a benefit corp c. a nonprofit corp d. a private corp

b. a benefit corporation

Health Food Inc. coordinates the purchase, sale, and delivery of organic products. The stated corporate purpose is to make a profit and to have a material positive impact on society and the environment. Health Food is... a. not a corp b. a benefit corp c. a nonprofit corp d. a private corp

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. T/F

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. t/f

d. a close corporation

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. a public corp and private corp b. an S corp c. a benefit corp d. a close corp

a. board of directors

Kay and Leo form Metro Delivery Inc. Responsibility for all policymaking decisions necessary to the management of corporate affairs rests with Metro's.... a, board of directors b. incorporators c. officers d. shareholders

FALSE

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

a. an exception based on public policy

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... a. an exception based on public policy b. an example of the doctrine c. an exception based on a statue d. an exception based on contract theory

true

Most of the states and the federal government have enacted statutes to protect employees who report wrongdoing from employer retaliation. t/f

a. state law

Nevis and Olsen want to do business as a corporation—Pastries & Pies Inc. The procedure for forming this firm is prescribed by.. a. state law b. city or county codes c. none of the choices d. federal administrative rules

c. state law

Nevis and Olsen want to do business as a corporation—Pastries & Pies Inc. The procedure for forming this firm is prescribed by... a. city or county codes b. federal administrative rules c. state law d. none of the choices

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

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.. a. have their shares appraised and be paid the fair market value for them b. reorganize the firm into a sole prop or partnership c. hold a special shareholders meeting to elect new directors d. promote the transferability of the company's shares to outside persons

b. retains its responsibility

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.... a. is relieved of its responsibility b. retains its responsibility c. was never responsible d. shares the responsibility

a. an ultra vires act

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... a. an ultra vires act. b. allowable and proper as an act to profit corporate shareholders c. within the corps implied powers d. within the corps express powers

TRUE

Shareholders' assumption of personal liability, as guarantors, for the obligations of a corporation can enable the firm to obtain credit. T/F

true

Shareholders' assumption of personal liability, as guarantors, for the obligations of a corporation can enable the firm to obtain credit. t/f

true

T/F... In many instances, agency law governs the relationships among partners.

true

T/F...In many instances, agency law governs the relationships among partners.

FALSE

The Americans with Disabilities Act defines disability to include a physical or mental impairment that causes "undue hardship." T/F

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. t/f

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. t/f