mgmt exam 3 study guide

The Electronic Fund Transfer Act concerns liability limits for stolen ATM cards. Which statement is correct about maximum consumer liability?:

$50 if the financial institution is notified within 2 days

Four Elements for a Partnerships

-A sharing of profits and losses -A joint ownership of the business -An equal right to be involved in the management of the business -Can be oral,written, or implied by conduct

Corporations

-Corporations are recognized as legal "persons" -Corporations can have one or more shareholders -Owners can be natural persons or other businesses -Corporation substitutes itself for shareholders

Liquidation

-Debtor is unable to pay debts -Discharge of most debts after sale and distribution of the sale proceeds of the debtor's non-exempt assets to the creditors -A trustee is appointed -Business or Individual

The Federal Trade Commission regulates:

-Deceptive business practices -False advertising claims -Unfair business practices

Rights of Partners

-Management- have equal rights in the managing the partnership -Interest in partnership- profits are shared equally unless contracted differently -Compensation- usually none -Inspection books- accessible to all -Accounting of Partnership Assets-required Property Rights- property acquired by a partnership is the property of the partnership

If a consumer's application for credit is denied, the creditor must provide written notice to the consumer containing what information?

-The name and address of the federal agency regulating compliance by the creditor -The basic provisions of the Equal Credit Opportunity Act -Either the specific reasons for the action taken or disclose the applicant's right to receive a statement of reasons A, b and c

Franchises

-The owner of a trademark, trade name, or copyright licenses the franchisee to use it in the selling of goods or services -an independent business owner

sole proprietorships

-The simplest form of business, in which the owner is the business. -The owner reports business income on his personal income tax return and is legally responsible for all debts and obligations incurred by the business -The sole proprietor has unlimited liability for all obligations incurred in doing business

The Truth-in-Lending Act applies to which of the following transactions?

-Your friend loans you $4,000 -You purchase and get a $45,000 loan for a new Lexus -Your company, Shoes Inc., borrows $10,000 to buy more inventory None of the above

types of corporations

-domestic:the corporation does business in and is organized under the law of that state -foreign:the corporation does business in the state without being incorporated therein -alien:the corporation was formed in another country but doing business in the United States -public: forbed by the government. Ex-Amtrak -private: created in whole or part for private benefit -nonprofit: hospitals,charities, churches -close:one whose shares are held by members of a family or few persons

The Family and Medical Leave Act gives employees the right to take:

12 weeks of unpaid leave per year for health and family-related reasons

For the NLRB to oversee a representation election, at least what percent of employees must request an election?

30%

A limited liability company:

A and b

Disparate treatment (under Title VII) refers to:

A and c

Surety

A contract for a suretyship is an unconditional promise by a third party (the surety) to be responsible for the borrower's payment obligations, or performance, to a creditor.

Guarantor

A guarantor provides a conditional guarantee of payment to a creditor should the principal debtor fail to pay.

Limited Liability Companies

A hybrid form of business enterprise that offers the limited liability of the corporation but the tax advantages of a partnership

Limited Partnerships—LP

A partnership consisting of one or more general partners and one or more limited partners. Needs a certificate of limited partnership

Which of the following are public-policy exceptions recognized by most states as limits to the employment-at-will doctrine allowing termination of employees?

A, b, and c

The average cost of developing a new drug and clearing all FDA regulations to get the drug to market are:

About $500 million and are paid by the drug companies

This ad was seen in a publication: "Wanted: assisntant to the President. Great opportunity for bright, young, hard working person to work with President of a major private university." This ad is most likely to violate:

Age discrimination laws since "young" is probably not over the age of 40

Mandatory subjects which Congress requires unions and management to bargain in good faith concerning include:

All of the above

The Food and Drug Administration does not have which of the following powers?

All of the above are FDA powers

Which of the following is not part of the FTC policy statement for determining if a practice is deceptive?

All of the above are a part of the deception standard

Which of the following is not procedural requirement for judicial review of an agency's action?

All of the above are procedural requirements

Which of the following is not a right guaranteed to workers by the National Labor Relations Act?

All of the above are rights guaranteed

Unless otherwise stated by contract, the law of partnership presumes which of the following not to be true?

All of the above are true

Reorganization

Allows businesses to keep operating, without liquidation of assets Available only to businesses not individuals

A place of employment where all employees are represented by a union and most employees are union members, but non-union workers must pay fees to the union, is called:

An agency shop

A partnership can begin with:

An implied agreement that can be inferred from the conduct of the parties doing business A written agreement An oral agreement

A consumer buys living room furniture. The store gives the consumer $2,000 credit to be paid back over two years. The store fails to disclose the interest rate that it charges for credit. Under the Truth-in-Lending Act, the store is wrong for not listing the interest:

And may have to pay the consumer up to $1,000 (civil damages) plus attorney fees

To create a corporation:

Articles of incorporation and an application must first be filed with the federal government

You want to open a Playboy club in DeKalb. You place an advertisement in the newspaper seeking only women as Business. A man with great legs and a winning smile applies for the job but you reject him because of his sex. He sues. Your best defense would be;

Bona fide occupational qualification

Dissolution of a partnership takes place, unless otherwise provided for by contract, in the following instances except;

Change in financial conditions of a partner

The Fair Debt Collection Practices Act applies to;

Debt collection agencies

A principal's duties toward an agent do not include;

Duty of obedience

An agent's duties do not include:

Duty to reimburse

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;

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

Each general partner shares equally in the profits

The workers at a meat packing plant are on strike. They picket the banks in town to put pressure on the meat packing plant to come to a settlement. The pickets at the banks are:

Illegal secondary boycotts

Surveys show that people may prefer to deal 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:

Illegal segregation under Title VII

Which of the following is a function of the Food and Drug Administration?

Inspections of food and drug producing establishments Drug evaluation studies Food additive studies Classifying unsafe foods

Which of the following sanctions (punishments) cannot be imposed by an administrative agency after an adequate hearing?

Jail time

In a formal adjudicatory hearing, which of the following due process requirements is not required or permitted?

Jury trial

Which of the following are afforded limited liability for the debts and torts of a business?

Limited partners

The business organization that has at least one general partner and other investors who have limited liability is a;

Limited partnership

Which of the following is not a feature of the Fair Credit Billing Act:

Maximum liability for unauthorized charges is $100 if the creditor is notified

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 most likely to result?

No discrimination even though disparate impact because the diploma requirement is a business necessity

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:

No more than minimal expenses to accommodate an employee's religious requirements

A collective bargaining agreement ends and the union and management continue to bargain for a new contract while the workers go on strike. Management hires new workers to replace the union workers on strike. By law, when the strike ends:

None of the above are true

Which of the following is always required when an administrative agency makes legislative/substantive rules?

Notice and comment

Comparing regulation drugs to other countries, the U.S. is:

One of the strictest nations and has large impact on the world market

A _________________ is an association of two or more persons to carry on a business as co-owners for profit

Partnership

A promise of reward, such as a promotion or pay raise, for providing sexual favors being demanded is called:

Quid pro quo harassment

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?

Refusing to hire a job applicant because an assembly line for automobiles cannot accommodate workers in wheelchairs

The Franchise Rule

Required to disclose certain material facts such as termination, cancellation, and renewal provisions of the franchise contract

The "Mail Order Rule" states that if a company'

Sells products through the mail it must have a reasonable basis for expecting to ship the products within the time advertised

Suppose a debt collector has been calling an sending notices of a debt you owe. If you wish to end further notification from the debt collector, you must:

Send the debt collector a letter requesting they stop contact

Which of the following is not prohibited employer conduct by the NLRA?

Submission of labor/management disputes to arbitration

The environmental Protection Agency (EPA) wants to establish a list of air polluntants and make rules defining their permissible levels. These rules would be characterized as;

Substantive/legislative rules

Collateral

The debtor's assets to secure debt

General partner

a partner who assumes responsibility for the management of the partnership and liability for all partnership debts

limited partner

a partner who contributes capital to the partnership but has no right to participate in the management and operation of the business

joint and several liability

a third party can sue the partners individually or the partnership

General Partnerships

an agreement by 2 or more persons to carry on, as co-owners, a business for profit

A partnership can....

be backed into unintentionally

Which of the following was not outlawed by the Taft-Hartley Act?

company unions

In Whirlpool v. Marshall, employees refused to perform work on a screen suspended twenty feet over the floor of a manufacturing plant. The employees were punished by their employer. The Supreme Court ruled at under OSHA:

employees may refuse to obey orders that pose an immanent risk of death or serious injury

revolving account

ex-credit cards

T/F-Under the requirement of good-faith bargaining, both parties are required to come to an agreement despite their differences. -

false

t/f-A "right-to- work" law eliminates union shops. -

false

t/f-An employer is liable for the torts of an independent contractor he has hired. -

false

t/f-It is necessary to demonstrate the employer's negligence in order to recover for a workplace injury under workman's compensation.

false

t/f-The Age Discrimination in Employment Act permits the mandatory retirement of most employees at age 75. -

false

Piercing the Corporation Veil

hold the shareholders personally liable for corporate debts and obligations

open account

must pay within fixed time period

joint liability

partners share liability for obligations and debt

installment account

regular payments

Lien

security obtained by a creditor

T/F-A contract between a principal and an agent establishing an agency relationship need not be in writing nor need it be supported by consideration.-

true

T/F-An agent may create apparent authority by assuring a third party of his authority to perform contractual acts on behalf of his principal.

true

T/F-Death of either the principal of the agent terminates the agency by operation of law.

true

T/F-If not otherwise agreed, either a principal or an agent may terminate an agency relationship at- will.-

true

T/F-If the court "places the corporate veil" shareholder(s) have unlimited personal liability for corporate debts.-

true

T/F-In a few situations, such as modeling clothing, an employer may discriminate on the basis of race as a bona fide occupational qualification.

true

T/F-Limited liability companies are taxed like partnerships, but have the liability rules of a cooperation-

true

t/f-Agents who commit torts during the course of employment are nonetheless liable for that tort even though they were directed to do the tort by their principal.-

true

t/f-Agents who sign a contract beyond their actual authority are personally liable on the contract. -

true

t/f-An agent is personally liable on a contract she enters into with a third party on behalf of an undisclosed principal unless the third pary elects to hold the principal liable.

true

t/f-If Drugs-R- Us agrees to settle a complaint that the company engaged in deceptive advertising, the agreement is called a consent decree.

true

t/f-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

t/f-In cases of affirmative action, the courts have held that discrimination in favor of qualified women or minority workers may be legal. -

true

t/f-Independent contractors are one type of employee. -

true

t/f-It is likely that a company has the legal right to require the passing of a drug test as part of a pre-employment screening.

true

t/f-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

t/f-The Americans With Disabilities Act requires employers to make reasonable accommodations for employees with disabilities.

true

t/f-The Norris-Laguardia Act generally prohibits federal court injunctions is labor disputes.

true

t/f-The Taft-Hartley Act was an "anti-union" statute. -

true

t/f-The purpose of the Landrum-Griffin Act was primarily to regulate internal affairs between union management and union membership. -

true