Business Law Exam 15, 16, & 17

Bayside Restaurant LLC is a limited liability company. Its sole member is Conrad. For federal income tax purposes, unless the firm indicates otherwise, it will automatically be taxed as

a sole proprietorship.

Rico works for Street Tacos Inc. The basis for Rico's contribution under the Federal Insurance Contribution Act to help pay for benefits that will partially make up for his loss of income on retirement is

his annual wage base.

The purpose of state workers' compensation laws is to establish an administrative process for compensating workers for

injuries that arise in the course of employment, regardless of fault.

Cady files an employment discrimination suit against Durable Goods Corporation under the Civil Rights Act. If Cady shows that Durable Goods acted with malice or reckless indifference, she may recover

a limited amount of compensatory and punitive damages.

Gift Shop is operated as a partnership, with five partners. Han has a one-third interest in the firm. Each of the other partners has a one-sixth interest. Ingre is the senior partner. With respect to ordinary management decisions

a majority of the partners must agree

A limited liability company that wants to distribute profits to its members could avoid "double taxation" by electing to be taxed as

a partnership.

Ivy is blind. Jerold has cancer. Kim has cerebral palsy. Considered to have a disability under the Americans with Disabilities Act is

Ivy, Jerold, and Kim.

Jana and Kwan are partners in Lawyers LLP, a limited liability partnership. Jana supervises the firm's associate Milo, who negligently fails to appear in court on behalf of Norm, a client. Liability to Norm rests only with

Jana and Milo

Qin applies for a job at Rocket Science Inc. He passes a test to determine which applicants are eligible for hiring, but Rocket discards the results, and Qin is rejected. To support a claim for discrimination against the employer under Title VII of the Civil Rights Act, Qin must be a member of

a protected class.

Beth participates in an investigation into possible violations of Title VII of the Civil Rights Act at ChemCo Inc., where she is an employee. As a result, the employer demotes her. Beth can file

a retaliation claim.

Maeve sells New Energy, a sole proprietorship that makes and sells solar panels, to Omar. This is a. the establishment of

a transfer of the ownership of the business.

Mica is an employee of Natural Gas Company and a member of a union of company employees. Under federal law, Mica and other union members have the right to

bargain collectively with their employer through their representative.

Without creating a separate business organization, Rey starts up Street Cruisers, a pre-owned auto sales enterprise. This enterprise is

borrowing funds.

Neva is a partner in Orchard Farm. Neva gives notice to quit the firm, which otherwise continues to do business. This is

dissociation

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

dissolve.

An affirmative action plan may be found to be unconstitutional because it

does not attempt to remedy past discrimination.

Holly files an employment discrimination suit against Industrial Inc. under Title VII of the Civil Rights Act on a disparate-impact theory. To succeed, Holly must show in part that she was adversely affected by the employer's

practice

Carl starts up, and assumes the financial risk of, DataWorks, a new marketing enterprise. As a sole proprietorship, Carl's enterprise must meet legal requirements relating to

state business licenses.

Berry Farm Inc. employs hundreds of seasonal and permanent workers, both skilled and unskilled, in three states. Under federal immigration law, Berry Farm can hire illegal immigrants

under no circumstances.

Resort Company replaces Sharon, a forty-five-year-old employee, with Terry. Sharon files a suit against the employer under the Age Discrimination in Employment Act. To establish a prima facie case, she must show, among other things, that she is

qualified for the position.

The employees of Beverage Bottling Company designate Cola Cappers Union as their bargaining representative. Beverage refuses to bargain with the union. This most likely violates

the National Labor Relations Act.

To succeed in a suit against a potential employer for discrimination under the Americans with Disabilities Act, a job applicant must show that he or she

was not hired solely because of a disability.

Tom is seventeen years old. Under the Fair Labor Standards Act, he cannot

work in a hazardous occupation.

Bib replaces Chloe in her job at Data Sales Corporation. To succeed with an age-discrimination claim against Data, Chloe will have to show that

Chloe is qualified for the job.

Lisa brings a successful suit against her employer Mold & Die Corporation for employment discrimination. Lisa may be awarded

back pay, retroactive promotions, and damages.

Bob buys a Club Fitness, Inc., franchise, which the franchisor later terminates. In determining whether the termination was proper, a court will generally

balance the rights of both parties.

Mena, a female, and Neil, a male, are employees of Operation Business Corporation. Mena regularly e-mails sexually explicit images to Neal via Operation's network. Neil finds this offensive. This is most likely

hostile work environment harassment.

Batteries Corporation is a private employer involved in an employment discrimination suit under the Civil Rights Act. Punitive damages may be recovered against Batteries

if it acted with reckless indifference to an individual's rights.

Ruby is interested in buying a franchise from Snax Stores Inc. This transaction, like other franchise deals, is regulated to protect

prospective franchisees from dishonest franchisors.

Analytic Data, Inc., wants to hire Benazir, a noncitizen. A work visa is most likely to be set aside for a noncitizen if

there is a shortage of qualified U.S. workers capable of doing the work.

Otto is a general partner in Port Exports, a limited partnership. By participating in the firm's management, Otto is liable for its obligationsa. in proportion to the number of partners in the firm.

to the full extent.

Ang enters into an agreement with Burgers Inc. to operate a franchise. Their contract does not grant Ang exclusive territorial rights. Later, Burgers allows a competing franchise to be established nearby, causing Ang to suffer a significant loss in profits. In Ang's suit against Burgers, his best argument is that the franchisor

violated the implied covenant of good faith and fair dealing.

Emily, an employee of Farm Supplies Inc., files a suit against her employer, alleging sexual harassment by her supervisor Gowan. The employer may be liable if it had effective harassment policies and complaint procedures that were followed by

Emily.

Heber, Irma, and Jon apply to work for Kitchen Chicken Inc. in Louisiana. These individuals' eligibility to work must be verified by

Kitchen Chicken.

Kyla replaces Lomax in his job at Motor Corporation. Lomax believes that he has been discriminated against on the basis of his age. For the Age Discrimination in Employment Act to apply

Lomax must be forty years of age or older.

Gil and Hera are employees of IT Solutions Inc. Under the Equal Pay Act, IT Solutions can legitimately pay different wages to male and female employees on the basis of

Merit

Riki contracts to buy a franchise from Sushi Company. In this contract, as in most franchise contracts, the determination of the territory to be served is made by

Sushi

Fitness Club employs only female staff to assist its female-only members in the club. Greg, a forty-one-year-old male, applies for a staff job, but is not hired. In his suit against the club under the Civil Rights Act, the club most likely has

a bona fide occupational qualification defense.

Denny works for Engineers P.A. While working on an Engineers project, Denny is injured. Under state workers' compensation laws, he will be compensated only if the injury was

accidental.

As the promoter of Glassworks LLC, Hans enters into a contract with Interstate Transport Company. Once formed, Glassworks can

adopt the contract through a novation.

Dona, a fifty-five-year-old member of a racial minority with a disability, believes that she is a victim of employment discrimination. Potentially the most widespread form of discrimination is based on

age

Sam buys a franchise from Taco Loco Inc. This relationship, like all other franchise relationships, is governed by

all of the choices.

The Uniformed Services Employment and Reemployment Rights Act applies to

all of the choices.

Under the Equal Pay Act, an employer can legitimately pay different wages to male and female employees on the basis of

all of the choices.

Title VII of the Civil Rights Act applies to employers and labor unions with at least

fifteen employees or members.

The Americans with Disabilities Act applies to workplaces with at least

fifteen workers.

Teresa buys a franchise from Urgent Care Clinics, LLC. If their agreement is like most franchise agreements, it will specify that Urgent can terminate the franchise

for cause only.

Federal overtime provisions apply only after a covered employee works more than

forty hours in a week.

Federal employment discrimination laws restrict the ability of employers to discriminate against workers on the basis of

gender.

Oren believes that Plumbing Contractor discriminated against him on the basis of race. He files a suit against Plumbing under the Civil Rights Act. To establish a prima facie case of employment discrimination, Oren must show that

he is a member of a protected class.

To gain an advantage in a business deal, Masonry LLC engages in fraud. Nicol, a member of Masonry, significantly contributes to the firm's misconduct. For any resulting damages, a court is most likely to hold Nicol

liable but only to the extent of any amount that the firm cannot pay.

Accounting LLC is a member-managed limited liability company. Unless the members have agreed otherwise, all decisions with respect to the firm's business are made by

majority vote.

Aircraft Corporation employs mechanics, programmers, outside salespersons, and professionals, including pilots. Employees exempt from the Fair Labor Standards Act's overtime provisions include all of the following except

mechanics.

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

must continue it.

eSports Inc. offers entrepreneurs the opportunity to operate a franchise under the eSports trade name as the owner of a game-playing venue. To possible franchisees, eSports makes earnings claims. For those claims, the franchisor

must have a reasonable basis.

After a union election campaign among the employees of Frozen Food Company, the Food Workers Union does not obtain a majority vote in the election. This most likely violates

no federal or state law.

Assembly Corporation operates a plant near the border between the United States and Mexico. Due to the location, it would be easier for the company to employ noncitizens. In this circumstance, it is legal for a U.S. employer to

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

none of the choices.

Deb and Elle are partners in Foundations, a counseling clinic. Deb manages the business. For this service, unless the partnership agreement states otherwise, she is entitled to pay in proportion to her

none of the choices.

Vern is one of three partners in Waffles Food Truck. Concerning all aspects of the partnership business, Vern is entitled to information

on a complete basis.

Sara believes that she was rejected for a position at Tour Agency on the basis of her race. Sara files a suit against Tour under the Civil Rights Act. To establish a prima facie case of employment discrimination, Sara must show all of the following except that

other persons of her race hold similar positions with similar employers.

Steel Mill Inc., employs five hundred workers. For the Occupational Safety and Health Administration, Steel must do all of the following except

pay employees higher wages for working in more dangerous areas.

Jon, a paraplegic, applies for a broadcaster's job with a radio station. The manager says, "You meet all our requirements. But we need someone who can move around the studio without accommodation." Most likely, Jon could recover from the station under

the Americans with Disabilities Act.

Compliance with Title VII of the Civil Rights Act is monitored by

the Equal Employment Opportunity Commission.

Ceramic Workers Union represents the workers of Delta Tile LLC. The union fails to hold elections for union officers. This most likely violates

the Labor Management Reporting and Disclosure Act.

Bea is one of three partners in Commercial Custodial Service. With respect to Bea's interest in the firm, when she dies, her heirs are most likely entitled to

the buyout price paid by the firm for the interest.

Retail Company is located in Seattle, Washington, where the city and the state have minimum wage laws. Retail pays its starting employees the legal minimum rate, which, among the governing laws, is

the highest minimum wage.

Marv files a suit against the state of New Hampshire, alleging employment discrimination under the Age Discrimination in Employment Act. The state asks the court to dismiss the suit. The court is most likely to rule that

the state is immune from the suit.

Pipeline Corporation requires its employees to have a high school diploma. In a suit against Pipeline under the Civil Rights Act, the employer shows a connection between a high school education and job performance. Most likely, this is a.

a business necessity defense

Mechanical Engineering Inc. may be liable for the sexual harassment of an employee if the company knew or should have known about the harassment, failed to take immediate action, and the harassment was committed by

a company supervisor.

Laura is the only female employee in the maintenance department of Motor Service Inc. Her supervisor teases and plays tricks on her so relentlessly that she feels compelled to quit. This is most likely

a constructive discharge.

Health Clinic Inc. has no written employment manual or oral discharge policy, avoids abusive treatment of its staff, and acts to prevent illegal and unsafe activities. The clinic freely hires and fires its employees, who are similarly free to quit at any time. With respect to the employment-at-will doctrine, this is

an example of the doctrine.

Frank is an employee of Guitar Makers LLC. Guitar's employee manual states that workers, such as Frank, will be dismissed only for good cause. With respect to the employment-at-will doctrine, this is

an exception based on contract theory.

Bhat and Cho do business as Day Glow Paints, a partnership. In most states, for the purposes of collecting judgments and having accounting performed, this firm would be treated as

an independent entity.

Mai-Lin's Martial Arts, Inc., grants a franchise to Naomi to operate a Mai-Lin's school. Mai-Lin's may require Naomi to pay the franchisor a percentage of her

annual sales or volume of business

Beal, a member of a protected class, applies for a job with Coffee Brew Corporation, but fails the company's employment test and is not hired. Beal believes that the test has an unintentionally discriminatory effect. If so, this is

disparate-impact discrimination.

Giso applies for a job with Hobby Company. The employer does not hire him because of his ethnicity, or national origin. This is

disparate-treatment discrimination.

Investment Corporation wants to monitor business communications on phones that the employer provides to the employees. The employer's best course of action to avoid liability under laws related to employee monitoring is to inform

its employees.

Olive is a supervisor for Pasta!, a restaurant. Qua is a Pasta! employee. The owner announces that some employees will be discharged. Olive tells Qua that for sexual favors, she will give him an excellent performance review and recommend a raise. This is

quid pro quo harassment.

Inez files an employment discrimination suit against Jiffy Delivery Inc. under the Civil Rights Act, based on Jiffy's discharge of Inez. Possible relief includes

reinstatement.

Good faith in collective bargaining between a union and an employer does not include

rejecting a proposal without offering a counterproposal.

Fizz and Guy are partners in Home Decor, a furniture store. Fizz dissociates from the business. This ends Fizz's

right to participate in the partnership business.

A business organizational form that limits its owners' liability allows the firm to lawfully

take risks

Donuts Whole Inc. offers an entrepreneur the opportunity to operate a franchise bakery under the Donuts Whole trade name. Before a franchise contract is signed, Donuts Whole must explain

the contract's termination provisions.

Nora and Owen do business as Property & Profit, a real estate investment partnership. In acting on the firm's behalf, Nora takes advantage of an opportunity to make a secret profit. To her firm, Nora is liable for a breach of

the duty of loyalty.

Food Market Company employs workers, including Gina, at six locations in two states. Food Market's discharge of Gina outside the terms of an implied employment contract may result in

the employer's liability for breach of contract.

Interstate Commodities Inc. keeps a file of I-9 verifications forms, which are required by the Immigration Reform and Control Act. To monitor compliance with the act, random audits and enforcement actions are conducted by

the federal government.

Rena establishes and operates Sweet Homes, a construction-contracting outfit, as a sole proprietorship. In the course of doing business, the outfit fails to pay some of its debts. To satisfy the obligations, the firm's creditors can go after

the firm's assets and the owner's personal assets.

Vim applies for a job at Welding Inc. She passes a test to determine which applicants are eligible for hiring, but Welding discards the results, and Vim is rejected. To successfully defend against a claim for discrimination under Title VII of the Civil Rights Act, the employer must show that

the practice in question was justified.

Olin is a partner in Precision Plumbing. When the partners decide to dissolve the firm, Olin collects and distributes the assets. This results in

the termination of the firm's legal existence.

Olav starts Power Cells to make and sell batteries. Later, Olav contracts with Quinn to invest additional capital in the firm in exchange for 25 percent of the profits. Olav and Quinn are not partners in Power Cells because

they do not have joint control over the business.

Dain is a limited partner in Eco Baits, a pest control service organized as a limited partnership, which cannot pay its debts. Dain is liable for the debtsa. in proportion to the number of partners in the firm.

to the extent of his capital contribution to the firm.