MORT 275 - Mortuary Law I - Quiz 4
Lisa was a sales agent for DRG. By contract, DRG agreed to pay Lisa a $1,500 monthly salary plus a commission of 10% of the price of goods sold by her. Prior to her discharge (1) Lisa was owed one month's salary; (2) Lisa sold goods for $10,000; and (3) Lisa incurred $50 phone charges in making sales. Prior to her discharge, Lisa had been negotiating a $20,000 sale of goods, but the sale was never completed. How much does DRG owe Lisa?
$2,550
Benito is a shareholder in Benco Inc. Benito purchased 5,000 shares of $10 par-value common stock from the corporation. Benito paid for the stock with real estate that was clearly worth only $20,000. Later, the corporation became insolvent and it failed to repay a $100,000 loan to creditor. Under these fact Benito may be personally liable to Creditor for
$30,000
Principal
* a party who appoints a second party to serve as an agent * person who appoints another to contract with third parties * party primarily liable to third person or creditor
Agent
* the party appointed by the principal to enter into a contract with a third party on behalf of the principal * person appointed to contract on behalf of another
Stock Options
- right to purchase shares at a set price during a set time
The Federal Securities Act was passed in ________
1933
The Age Discrimination in Employment Act prohibits arbitrary age discrimination by employment agencies, employers, and labor unions against persons aged ________ or above
40
Duke is an agent for Rork Co. Unknown to Rork Co., Duke also represents a competitor and disclosed Rork Co.'s confidential marketing strategy to the competitor. Under these facts:
A and C - Duke violated his duty of loyalty and good faith to Rork Co. Rork Co. can sue Duke for damages that it may suffer as a result of Duke's conduct.
Katherine Frick is a general manager for C&C Clothing Co., which owns a clothing sore. On behalf of C&C, Katherine agreed to buy from Seller all of the assets of another clothing store that was quitting business. Katherine had no authority to make this contract. Under these facts:
A and C - Katherine is liable to seller for damages. C&C Clothing Co. is not obligated to perform the contract with Seller.
Glenn, Jane, and Shelli are partners in a partnership whose sole business is making Styrofoam containers. Which event may cause a dissolution of the partnership by operation of the law?
All of the above. Glenn files for bankruptcy and receives a discharge in bankruptcy. - Jane dies - the federal government passes a law making it illegal to make Styrofoam containers.
Owner hired Jack as manager of a florist shop. Managers of such stores can customarily hire employees. But, Owner told Jack not to hire employees without Owner's consent. Dan applied for a job. Owner referred Dan to Jack, misleadingly stating "Jack handles all employment matters." Jack hired Dan without Owner's consent. Dan did not know that Jack's authority had been limited. Jack had what type of authority to hire Dan?
Apparent authority
Kit was a partner in a general partnership that sold hospital supplies. Which action by Kit would breach a duty that she owed to the partnership?
B and C - Kit set up a company that sold goods to the partnership. Kit did not disclose that she owned the company. Kit personally profited from sales made to the partnership. - the partnership agreement required that each partner work at least 40 hours per week. Over an extended period of time, Kit worked only 20 hours per week on partnership business.
Jerry and Jill were partners in a partnership that bought and sold plumbing supplies. The partnership was dissolved due to Jerry's proper withdrawal. After dissolution, Jill contracted on behalf of the partnership to buy a shipment of supplies from Manufacturer who had previously dealt with the partnership. Manufacturer did not know of the dissolution. Jill intended to sell the supplies to new customers that she hoped to solicit on behalf of the partnership. In this case:
B and C. - Jill was not entitled to make the contract on behalf of the partnership. - The partnership is liable on the contract.
Bayer, a partner in the firm of Bayer and Black, without the consent of Black, used firm money in a speculative venture in her own name and realized a profit. Billingsley is the attorney who sets the venture up and files all the paperwork. Who would bear the loss if Bayer's venture failed?
Bayer
Ben's employment contract with Employer states that Ben can be terminated only for "good cause." Under these facts, Ben cannot be fired for which of the following reasons?
Ben participated in lawful union activities.
In which situation is there a violation of the Civil Rights Act of 1964?
Best Inc. engages in interstate commerce and employs fifty workers. best refused to hire Stella as an electrician because she is a woman. Stella was qualified for the job.
Cal, Oscar, and Len are partners in a general partnership. Cal's creditor has obtained a court order against his partnership interest. Oscar wants to sell his interest in a truck that is owned by the partnership. Len sold his interest in the partnership to Third Party. Under these facts:
Cal's creditor can force a sale of Cal's interest in the partnership.
Phyllis and Rod are the only shareholders of P&R Inc., which was incorporated in Iowa. P&R Inc. sells corn (for profit) to wholesalers and to the public in Arizona. P&R Inc. is a
Close corporation
Don and Rene are partners in a general partnership that owns a retail liquor store. Under these facts, Don would NOT have customary or implied authority to make which of the following contracts on behalf of the partnership?
Contract to sell the entire store.
Cooper, Tex, and Chien are the partners in CTC, a general partnership. Cooper contributed $50,000 to the partnership, and Tex and Chien each contributed $25,000. The partnership agreement is silent regarding the partners' right to manage the partnership. Under these facts:
Cooper, Tex, and Chien are each entitled to an equal vote regarding partnership matters.
W-4 Form
Employees' Withholding Allowance Certificate
Read the choices and select the correct answer
Employer is a government agency that makes nuclear weapons. In this case, Employer may require employees who make the weapons to take reasonable drug tests.
Select the correct answer.
Employer is a government agency that makes nuclear weapons. In this case, Employer may require employees who make the weapons to take reasonable drug tests.
In which situation does a partnership exist between Felix and Art?
Felix and Art co-own a furniture store. Felix and Art jointly control the business and they share the net profits and losses derived from the store.
Frances owns and operates Fran's donut Shop as a sole proprietorship. the business has failed to pay the rent. Frances is considering terminating the business. Under these facts:
Frances has unlimited personal liability for the unpaid rent.
Betty and Dan agreed to pool their resources, and they formed a particular type of business organization to own and operate a catering business. betty and Dan jointly own and manage the business, and they each have unlimited personal liability for the obligations of the business. Under these facts, what type of business organization did Betty and Dan create?
General Partnership
Nanco Inc. has three shareholders, Amy, Branson, and Count. Each sharholder owns 10,000 shares of common stock. The articles grant preemptive rights. Under these facts
If Nanco Inc. is authorized to sell 15,000 new shares of common stock, then Amy, Branson, and Count each have the right to buy 5,000 shares of this stock when it is offered for sale
When the National Labor Relations Board finds an employer guilty of refusing to bargain collectively with employees, usually the NLRB first does what?
Issues a cease and desist order.
Jesse and John plan to form a limited partnership to engage in real estate development. John will be a general partner, and Jesse will be a limited partner. Under these facts:
Jesse's liability for partnership obligations will be limited to his investment in the partnership.
Select the answer that is correct under the federal Social Security Act.
John is 45 years old. John cannot work due to a permanent illness. John's illness is expected to last for the rest of his life. In this case, John is entitled to disability benefits.
Which federal act protects union members from improper conduct by union officials?
Landrum-Griffin
Lee and Mindy are partners in L and M Partnership. The partnership agreement states that the partnership will continue until June 1, 2009. In which situation can Lee request a court to enter a decree dissolving the partnership prior to June 1, 2009?
Lee and Mindy repeatedly disagree on all important business decisions. As a result, the partnership cannot carry out its business.
Lee and Mindy are partners in L&M Partnership. The partnership agreement states that the partnership will continue until June 1, 2014. In which situation can Lee request a court to enter a decree dissolving the partnership prior to June 1, 2014?
Lee and Mindy repeatedly disagree on all important business decisions. As a result, the partnership cannot carry out its business.
Acme Inc employs Marsha as a welder. Marsha is covered by worker's compensation. One day, Marsha is injured in an accident that occurred while she was performing a welding job for Acme. In which situation would Marsha be denied worker's compensation?
Marsha was intoxicated and her intoxication caused the accident.
A union wishes to represent the employees of Karsten Co. Karsten believes that its employees would be better off without union representation. What action can Karsten take to discourage employee approval of the union without violating the Labor Management Relations Act?
Meet with employees to discuss the disadvantages of union representation.
Necco Inc. has one class of stock. Necco sold 2,000 shares of stock to Alice. Later, Alice sold 1,000 shares to Jeff. Alice sold the other 1,00 back to Necco and Necco resold these shares to Larry. Under these facts
Necco was legally obligated to sell the 2,000 shares to Alice for at least $20,000.
Nordic Sporting Goods Store employes Joe. Joe's employment contract does not state a fixed term of employment. Joe is paid on a weekly basis. Joe works in a state that does not imply a period of employment from terms of compensation. Under these facts:
Nordic can discharge Joe at any time. Nordic does not need good cause to discharge Joe.
OSHA stands for
Occupational Safety and Health Act.
Bruce, Mark, and Erwin are partners in B-MER Partnership. The agreement states that the partnership will continue until January 1, 2016. The partnership agreement allows any two partners to expel another partner at any time. Which even would NOT cause a dissolution?
On May 1, 2011, Bruce sold his partnership interest to Harold.
Polly wishes to incorporate Polly's Pets Inc. In this case, select the correct answer
Polly must file articles of incorporation with a state officer to form the corporation
R&V Corp. is planning to issue and sell 1 million shares of common stock. The stock will be sold for a total price of $50 million. The stock will be offered to the public in every state. Under these facts, what most R&V do to comply with the Securities Act of 1933?
R&V must file a registration statement with the SEC and provide a prospectus to purchasers of the stock
Bob was hired by Ramco Inc. as a tool and die maker. Bob's employment contract did not mention inventions. Bob was neither hired nor instructed to work on new products. However, during working hours and using Ramco's equipment, Bob invented a new piece of equipment that was applicable to Ramco's business. What rights does Ramco have to Bob's invention?
Ramco has a shop right to use the invention in conducting its business.
Hee Haw Inc. owns and operates a fun house. Which transaction can be authorized by the Hee Haw Inc. board of directors without obtaining shareholer approval?
Remodeling of the funhouse
Wholesome Foods engages in interstate commerce in connection with several farms and grocery store chains that it operates. The company has been informed that it must comply with the National Labor Relations Act. Which employees are covered by the Act?
Retail clerks int he company's store.
Tosco Mfg. hired Roadway, Inc. to build a road at Tosco's plant. Roadway was to build the road in accordance with basic plans stated in the contract. Roadway was to use its own tools, employees, and methods; Tosco did not have the right to control the manner by which Roadway built the road. During construction, Roadway negligently injured a third party. In this case
Roadway is an independent contractor.
Alex is starting a home repair business. Alex wants to control the entire business, and he does not want to have to do anything to create the business organization. These are Alex's only concerns. Under these facts, which form of business organization is most appropriate for Alex?
Sole Proprietorship
Sue was a director of Money Corp., a commercial lender. Sue voted in favor of three actions that each caused a loss to the corporation. In which situation is Sue liable to the corporation?
Sue voted in favor of a loan to Lynx Co. Lynx Co. was investigated and found to be solvent, and the loan was secured by collateral. Lynx Co. failed to pay due to a recession
Sunshine Bakers sells bakery products throughout the United States. Sunshine wants to hire additional workers, and it wants to extend the hours for some existing employees. Sunshine does not want to violate the Fair Labor Standards Act. Under these facts, select the correct answer.
Sunshine must pay its bakers at least minimum wage.
Without any authority to do so, Avery contracted to buy a printer on behalf of his principal, P&P Printing. After making the contract, Avery told P&P about the contract and explained the terms. P&P told Avery that the contract was acceptable, and P&P kept and used the printer. at all relevant times, P&P was capable of contracting, and the contract was legal. Under these facts:
The contract was binding on P&P. P&P ratified the contract.
Sylvia planned to form a corporation to own and operate a food store. Prior to incorporation, Sylvia leased a store, signing the contract in her individual name and on behalf of the corporation to be formed. The corporation has now been incorporated. In most states
The corporation is liable on the contract even if it does not adopt the contract
Milco Corp. has retained earnings of $1 million. On June 1, the board of directors declared $500,000 dividend. The dividend has not been paid. After hearing several objections to this dividend, the board of directors is now reviewing the legality and desirability of the dividend. Under these facets, the board of directors should determine that
The dividend is legal, and the board of directors can rescind the dividend
Juan Martinez is a purchasing agent for Viper Inc. ON behalf of Viper, Juan contracted to buy a truck from Cory Truck Sales. Juan had express authority to make the contract. Juan signed the contract "Viper Inc. by Juan Martinez, purchasing agent." Under these facts:
Viper Inc. is obligated to perform the contract.
Perry (a minor) signed a contract authorizing Allied Inc. (a licensed real estate corporation) to sell and convey title to land that belonged to Perry. In many states, this contract of agency is
Voidable. Perry is a minor and he can disaffirm the contract of the agency.
W-2 Form
Wage and Tax Statement; a report furnished by the employer for each employee indicating gross earnings and deductions for income and F.I.C.A taxes
XYZ Inc. has common stock and cumulative preferred stock. In 2007, the board of directors of XYZ did not declare a dividend even though it made a profit and had retained earnings sufficient to pay a dividend. In 2008, the directors intend to declare a dividend. Under these facts
a & b - Preferred stock must be paid a dividend for 2007 before common stock is paid a dividend. & Common stock must be paid a dividend before preferred stock is paid any dividends.
Board of Directors
a body of persons elected by the stockholders to define and establish corporate policy, to act on behalf of the corporation, and to carry out the board's policies
Sole Proprietorship (Proprietorship)
a business owned and operated by one person an owner's financial interest in a business a business owned by one person who is subject to claims of creditors
The Family and Medical Leave Act does not allow an employee to take an unpaid leave of absence for:
a child's state soccer tournament
Private corporations
a corporation formed by individuals to carry out some non-governmental function
Public corporations
a corporation formed to carry out government functions
Subchapter S corporations
a creation of the United States tax codes shareholders elect to be taxed as a partnership (no double taxation) without losing corporate status
Close corporation (closely held corporation)
a designation which applies to a corporation in which outstanding shares of stock and managerial control are held by a limited number of people (often members of the same family) corporation that has a very small number of shareholders
Federal Insurance Contributions Act
a federal act which requires most employers and employees to pay taxes to support the federal social security program
Occupational Safety and Health Act
a governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees; an individual state OSHA agency may supercede the U.S. Department of Labor OSHA regulations a governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most employees
Occupational Safety and Health Act
a governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most employees
Piercing the corporate veil
a judicial ignoring of the corporate entity
Accounting
a language of business employed to communicate financial information based upon analyzing, recording, classification, summarization, reporting, and interpretation of financial data
The employer's right to use an employee's invention without the payment of royalty is called ________.
a shop right
Articles of partnership
a written document that states explicitly the rights and duties of partners in a partnership written partnership agreement
Freedom Corp. buys and sells stocks. Freedoms article prohibit the corporation from buying stock of any company that does business in a country that allows racial discrimination. The board of directors of the corporation authorized a purchase of stock that violated this restriction, and the sale has been completed. Under these facts
a&c - The contract is binding on Freedom Corp. & Freedom Corp. shareholders can sue the directors for authorizing this ultra vires contract
F.I.C.A.
abbreviation for Federal Insurance Contributions Act
Agency by estoppel
agency arising when person leads another to believe third party is the first person's agent
Agent coupled with an interest
agency in which agent has financial stake in performance of agency because of having given consideration to principal
Broker
agent with job of bringing two contracting parties together
A corporation can perform business transactions only through its ________.
agents
Hot cargo agreement
agreement between a union and an employer that the employer will not use nonunion materials
A corporation formed in one country but operating in another country is called a/n ________ corporation.
alien
Hostile work environment
alteration of terms or conditions of employment by harassment and abuse based on employee's membership in a protected class
Implied authority
an agent's authority to do things not specifically authorized in order to carry out express authority
Corporations
an artificial being, invisible, intangible and existing only in contemplation of law a business entity created by statutory law and owned by individuals known as stockholders association of people created by law into an entity an entity that is something that has a distinct existence separate and apart from the existence of its individual members a legal form of organization whereby a legal entity is authorized by a state to operate a business under the entity's charter or articles of incorporation
Silent partner
an individual who takes no active part in the management of a partnership, but has capital invested in the business partner who takes no active part in the management of a firm, whether known to the public or not
Power of attorney
an instrument in writing authorizing one person to act as agent for another. principal's writing appointing an agent power of attorney is revoked on death of principal by operation of law. power of attorney can be general (full) or special (limited)
When the principal behaves in a way or makes statements that mislead a third party into mistakenly believing that the agent has authority, this authority is called ________ authority
apparent
Proxy wars
attempt by competing sides to secure majority of stockholders' votes
Secondary boycott
attempt by employees to stop third party to a labor dispute from dealing with employer
Customary authority
authority an agent possesses by custom
A stockholder's execution of a proxy:
authorizes another to vote for the stockholder
Factor
bailee seeking to sell property on commission
If an agent was negligent in the course of employment and caused injury to a third party
both the agent and principal are liable
Unlimited liability
business debts payable from personal assets
Joint venture
business relationship similar to partnership, except existing only for a single transaction
Rules enacted by the board of directors to govern the conduct of the corporation are the ________.
bylaws
The declared money value of a corporation's outstanding stock is its ________ stock.
capital
Limited liability
capital contribution is maximum loss
Dividends are paid by:
cash, stock, or other property
Dissolution of a Partnership
change in relation of partners by elimination of one partner
A corporation with a very small number of shareholders is a ________ corporation
close
Consolidation
combining two corporations to form a new one
The stock that entitles its owner to vote for members of the board of directors is called ________ stock
common
Payment to the agent set on a contingent basis is called ________
compensation
Ratification
confirming an act which was executed without authority or an act which was voidable adult indicating contract made while a minor is binding approval of unauthorized act
Combining two corporations to form a new one is called a/n ________.
consolidation
The shareholders of ACME Corp. and Belco Corp. have voted in favor of combining their corporations. Pursuant to this combination, ACME Corp. and Belco Corp. will be terminated, and a new corporation, Cactus Inc., will be created. This combination is
consolidation
Ultra Vires Contracts
contract exceeding a corporation's powers
Agency
contract under which one party is authorized to contract for another
An association of people created by law into a separate legal entity is called a ________.
corporation
Stock corporation
corporation in which ownership is represented by stock
Piercing the corporate veil means:
courts will sometimes ignore the corporate entity protection
A general agent has authority that one in his or her position usually possesses. This authority is known as ________ authority.
customary
Capital stock
declared value of outstanding stock
Foreign corporation
designation that applies when a corporation operates in any state other than where it is chartered corporation chartered under the laws of another state
Voting trust
device whereby stock is transferred to trustee to vote its shares for two or more shareholders
Prospectus
document giving specified information about a corporation
Articles of incorporation
document stating facts about a corporation as required by law and for issuance of a charter
Among the common duties that partners owe to each other include
duty to exercise loyalty and good faith.
Fellow-servant
employee with the same status and working with another worker
Shop right
employer's right to use employee's invention without payment of royalty
When an employer-employee situation has an indefinite length for the contract and either the employer or employee may terminate employment for any reason or for no reason at all, it is called:
employment at will
Employment at will
employment terminable by employer or employee for any reason
Joint-stock companies
entity that issues shares of stock, but investors have unlimited liability association where the stock shares are transferable and control is delegated to a group or board
An agency which arises when a person leads another to believe a third party is an agent is an agency by ________.
estoppel
When the conduct of people who are not partners seems to mislead others into thinking they are partners, there is a partnership by ________
estoppel
Prima facie evidence
evidence sufficient on its face, if uncontradicted
An employer has the duty of:
exercising reasonable care.
Durable power of attorney
exists when a person executes a power of attorney which will become or remain effective in the event he or she should later become disabled written appointment of agency that survives incapacity of principal
What three types of powers does a corporation have?
express, incidental, and implied
A bailee who seeks to sell the bailed property on commission is a/n ________
factor
Factor del credere
factor who sells on credit and guarantees price will be paid
Disparate impact
fair policy disproportionately affecting a protected class of persons
A corporation may be created by an informal agreement by private individuals - t/f
false
A corporation must be bound by all the contracts made by the promoter - t/f
false
A minor may not be a partner - t/f
false
A partnership must be formed by a written agreement - t/f
false
A person can delegate anything to an agent - t/f
false
A principal has the right to terminate the agency at any time. - t/f
false
A public corporation is one that is traded publicly on the New York Stock Exchange - t/f
false
A special agent is one authorized to carry out the principal's business. - t/f
false
ADA stands for Americans with Dysfunctional Aptitudes - t/f
false
All children under the age of 16 are prohibited from being employed. - t/f
false
All corporations must file with the Securities and Exchange Commission - t/f
false
All federal laws apply to all employees. - t/f
false
All partnership decisions are made by majority vote. - t/f
false
Articles of partnership hardly ever state how partners will share profits and losses. - t/f
false
Bankruptcy of a principal has no effect in the continuation of an agency - t/f
false
Because of labor legislation, union contracts, employee handbooks, and at-will employment laws, employees have little job security - t/f
false
By definition, a partnership must be comprised of at least four people - t/f
false
Common law governing the relationship between employers and employees has not been modified much by statute - t/f
false
Destruction of the subject matter usually does not destroy the agency relationship. - t/f
false
Directors can vote by proxy - t/f
false
Discretionary instructions must be carried out to the exact letter. - t/f
false
Dissolution relieves partners from their duties to each other - t/f
false
Employers are not required to keep records of work-related injuries or illnesses. - t/f
false
Gilmon was a partner in G and S Partnership, and he properly withdrew from the partnership. By withdrawing, Gilmon forfeited his right to be paid his contributions and share of undistributed profits due him before his withdrawal - t/f
false
If Juan and Sebastian want to form a partnership, they must draw up a written partnership agreement if the partnership is to be enforceable - t/f
false
If insufficient assets are in the company's coffers to pay creditors upon dissolution, all stockholders are personally liable - t/f
false
Immediately after dissolution of a partnership, the business must close its doors. - t/f
false
In a discrimination case, a short person could recover if she was discriminated against because of her height while interviewing for a department store sales clerk position. - t/f
false
It is always necessary to terminate the partnership business when a partner is expelled - t/f
false
It is illegal for a corporation to issue shares of stock without par value - t/f
false
Most businesses can operate without the use of agency - t/r
false
Nobody needs to know when a partnership is dissolved; it is nobody else's business but the partners involved. - t/f
false
One of the objectives of the federal Fair Labor Standards Act is to ensure that all people are employed. - t/f
false
Owners of a corporation are called stakeholders. - t/f
false
Preferred stockholders can vote at the annual stockholders' meeting - t/f
false
Restrictive smoking legislation is uniform around the country - t/f
false
Similar to a partnership, a corporation need not have a corporate name. - t/f
false
Stockholders must be present at a stockholders' meeting in order to vote. - t/f
false
The ADA requires employers to provide reasonable accommodation for employees who use illegal drugs. - t/f
false
The FLSA pertains to all businesses - t/f
false
The Occupational Safety and Health Act applies to all private and governmental employers - t/f
false
The Securities Investor Protection Act of 1970 prevents fraud through the sale of worthless stocks and bonds - t/f
false
The Uniform Partnership Act requires that a partnership register a company name. - t/f
false
The management of a corporation may solicit proxies by any means possible. - t/f
false
The partnership is the simplest and most common form of business - t/f
false
The preferred stockholders manage the corporation - t/f
false
Title 18 of the Civil Rights Act of 1948 applies to employers and labor unions - t/f
false
When two partners decide a third partner is mentally incompetent to perform her duties, the two partners can expel the third partner, claiming she is insane. - t/f
false
Immigration Reform Act
federal legislation requiring employers to check job applicants' papers to be sure they are either U.S. citizens or aliens authorized to work in the U.S.
Civil Rights Act of 1964
federal legislation that prohibits discrimination on the basis of race, color, religion, sex, or national origin
Age Discrimination in Employment Act
federal legislation that requires employers to treat applicants and employees equally regardless of age
An employee with the same status and working with another worker is called a ________.
fellow servant
The failure of a partnership to make a profit is known as ________
futility
Attorney in fact
general agent appointed by a written authorization
Agents may be classified as ________.
general and special
Protected class
group protected by anti-discrimination laws
Federal income tax withholding
he amount that an employer must withhold from an employee's pay for income tax purposes
An agreement between a union and an employer in which the employer will not use nonunion material is a ________.
hot cargo agreement
Partnerships are dissolved by operation of the law in cases of ________
illegality
The right of the agent to be reimbursed by the principal for a loss incurred by the agent while carrying out his or her agency duties is the right to ________
indemnification
A/n ________ is one who contracts to perform some tasks for a fixed fee.
independent contractor
Disparate treatment
intentional discrimination against a particular individual because of membership in a protected class
A business relationship in which two or more people combine their labor or property for a single undertaking is called a ________.
joint venture
Fictitious name registration statute
law requiring operator of business under assumed name to register with the state
Americans with Disabilities Act
legislation that guarantees disabled people equal access to employment, as well as access to public places
Polygraph
lie detector
A partnership in which at least one partner's liability is fixed at the amount of the capital contribution is called a/n ________ partnership.
limited
A business organization similar to the partnership but without the disadvantage of unlimited liability is called a ________.
limited liability company
Directors may be held personally liable for:
losses on loans of corporate funds to officers or directors
The duty of an agent to promote the principal's interests to the utmost is ________.
loyalty
Partners
member of partnership
Quorum
minimum number of shares required to be represented to lawfully transact business
One reason a partnership may be dissolved by court decree would be ________ of a partner.
misconduct
Limited Liability Companies
newest form of business ownership recognized in the United States combines features of both a corporation and partnership partnership-type organization with limited personal liability
Stock to which no face value has been assigned is called ________ stock.
no-par
A partnership devoted to professional services is called a ________.
nontrading partnership
The duty of an agent to carry out the principal's instructions is called ________.
obedience
Insiders
officer, director, or owner of more than 10 percent of stock or any other class of securities of a corporation
Prima facie
on the face of it
How often must corporations hold a meeting of the stockholders?
once a year
Special agents
one authorized by the principal to execute specific act(s) agent authorized to transact specific act or acts
Merger
one corporation absorbed by another
Trading partnerships
one engaged in buying and selling merchandise
Not-for-profit corporations
one formed by private individuals for charitable, educational, religious, social, or fraternal purposes
For profit corporations
one organized to run a business and earn money
Alien corporation
one that is incorporated in a foreign country corporation chartered in another country
Domestic corporation
one which operates in the state that granted the charter one chartered in the state of incorporation
Subscribers
one who agrees to buy stock in proposed corporation
Independent contractor
one who contracts to perform certain tasks for a set fee, but who is independent of the control of the contracting party as to a means by which the contract is executed, except for specifications established in the contract one who contracts to do jobs and is controlled only by specifications of contract
General agents
one who is authorized to execute the principal's business of a particular kind, or all the principal=s business at a particular place, if not all of one kind agent authorized to carry out particular kind of principal's business or all of a principal's business at a certain place
Promoters
one who takes initial steps to form corporation
Equal Pay Act
outlaws discrimination in pay based on the sex of the worker
The Fair Labor Standards Act
outlaws discriminatory practices in pay; requires employers to pay a minimum wage to employees and to pay a minimum of one and one-half of the regular wage rate for any hours beyond forty worked in a week
Proprietor
owner of sole proprietorship
Tenancy in Partnership
ownership of a partner in partnership property
Secret partner
partner active in a business but unknown to the public
Dormant partner (sleeping partner)
partner unknown to public with no part in management
Limited partner
partners who have their liability for the firm's debts limited to the amount of their investments partner who takes no active part in management and whom the public knows as a partner
Nontrading partnerships
partnership devoted to professional services
Ordinary partnerships (general partnerships)
partnership with no limitation on rights and duties of partners
Limited partnerships
partnership with partner whose liability is limited to capital contribution and who is not viewed as an active business manager
Incorporators
people initially forming a corporation
Employees have a duty to employers to:
perform the job honestly and ethically.
Proxy
person authorized to vote for another written authorization to vote for another
Whistle blower
person who exposes wrongdoing in an organization
Nominal partner
person who pretends to be a partner or permits others to represent him or her as a partner
A lie detector device is called a ________
polygraph
When new stock is issued by a corporation, the right to subscribe to the shares in proportion to the shares already owned is called a ________.
preemptive right
When evidence is proof of something in the absence of other evidence, it is said to be ________ evidence.
prima facie
A person who appoints another to enter into contracts with third parties is called a ________.
principal
Collective bargaining
process by which employer and union negotiate and agree on terms of employment
Short-swing shift
profits ma
Quasi-public corporations
public body with powers similar to a corporation's
A public body that is not a true corporation but has powers similar to a corporation is called a/n ________ corporation
quasi
A ________ is a minimum number of shares that must be represented in order that business in a stockholders' meeting may be lawfully conducted
quorum
The approval by one person of the unauthorized act of another done in the former's name is called ________.
ratification
Preemptive right
right to purchase new shares in proportion to shares owned
The two types of instructions an agent may receive from the principal are ________
routine and discretionary
Bylaws
rules enacted by directors to govern a corporation's conduct
An attempt by employees to stop third parties in dealing with the employer is called a/n ________.
secondary boycott
Profits made by an insider buying and selling a corporation's stock in six months is called ________ profits
short-swing
A partner who takes no part in the firm is called a ________ partner.
silent
Blue-sky laws
state laws to protect the public by preventing the sale of worthless stocks and bonds
Preferred stock
stock giving special advantage as to payment of dividends, upon liquidation, or both
Cumulative preferred stock
stock on which all dividends must be paid before common dividends can be paid
Noncumulative preferred stock
stock on which current dividends must be paid before common dividends are paid
Nonparticipating preferred stock
stock on which maximum dividend is stated percentage of stock
Watered stock
stock paid for with property of inflated value stock issued by a corporation as being fully paid when in fact, it is not
Treasury stock
stock reacquired by a corporation
Common stock
stock that entitles owner to vote
Participating preferred stock
stock that shares with common stock in extra dividends
Par-value stock
stock with an assigned face value
No-par-value stock
stock without face value
Cumulative voting
stockholder votes for directors of corporation and has votes equal to company shares owned times the number of directors to be elected
A temporary, concerted action of workers to withhold their services from their employer is a ________
strike
What would not be considered a major life activity for ADA purposes?
swimming
Winding up
taking care of outstanding obligations of a partnership and distributing remaining assets
Strike
temporary, concerted action of workers to withhold their services from an employer
In a/n ________ in partnership, each partner owns and can sell only a pro rata interest in the partnership as an entity
tenancy
Dissolution
termination of corporation's operation except activities needed for liquidation of the corporation
Equal Employment Opportunity Act
the absence of employment discrimination based on race, color, religion, sex, or national origin
Apparent authority
the authority an agent is believed by third parties to have because of the behavior of the principal
Express authority
the authority of an agent, stated in the document or agreement creating the agency
Revocation
the omission, annulment, or cancellation of an instrument, act, license, or promise by one doing or making the offer
Employer
the party who employs employees to do certain work
Employee
the person hired to perform work and who is obligated both as to the work to be done and as to the manner in which it is to be performed one who is under the control and direction of an employer with regard to the performance of employment
Authority
the power to act for someone else
Partnership
the voluntary association of two or more people who have combined their resources to carry on as co-owners of a lawful enterprise for their joint profit
Corporation charter
the written application for permission to incorporate that is approved by a state official
Respondeat superior
theory imposing liability on employers for torts of employees
Shareholders (stockholders)
those having title to one or more shares of stock in a corporation combined, they represent ownership of the corporation person who owns stock
General partner
those individuals actively and openly engaged in the business and held out to everyone as a partner
Notice of dissolution is not necessary to ________
those who were partners in the past
A commission merchant who sells on credit and guarantees to the principal that the purchase price will be paid is called a factor del credere. - t/f
true
A corporation can sue and be sued. - t/f
true
A corporation has a right to exist continually for the length of time stated in the state charter or until dissolved - t/f
true
A foreign corporation would be a company that was chartered in Arizona but did business in Colorado, New Mexico, and Utah - t/f
true
A major breach of the partnership agreement may justify dissolution of the partnership - t/f
true
A partnership can act as an agent. - t/f
true
A principal's money should be deposited in a bank account separate from the agent's account - t/f
true
A sole proprietorship has one owner but can have one or more employees - t/f
true
A stock certificate indicates the manner in which the stock may be transferred to another party - t/f
true
After dissolution, existing contracts must be performed as originally planned. - t/f
true
An employee who is paid commission cannot earn less than the minimum wage. - t/f
true
An ordinary partnership has no limitation on the rights and duties of the partners - t/f
true
At common law, an employee who suffered an injury because the employer failed to provide enough employees to safely perform a job could sue an employer. - t/f
true
Corporations need to use a corporate seal when executing written instruments that require the use of a seal when executed by natural individuals - t/f
true
Cumulative preferred stock is preferred stock on which dividends must be paid before the common stocks receive any dividends. - t/f
true
Each partner has the duty to inform the other partners about matters relating to the partnership. - t/f
true
Every agency relationship involves at least three parties. - t/f
true
For safety reasons, the courts have allowed companies to perform random drug testing. - t/f
true
Incapacity of the principal does not terminate all agencies. - t/f
true
Myers, Jackson, and Mimbahtu form a partnership. Jackson wants to withdraw for personal reasons. Jackson can withdraw without liability if the partnership agreement did not set a dissolution date - t/f
true
Par value stock has a certain price assigned to and printed on the stock - t/f
true
The Equal Pay Act prohibits employers from discriminating on the basis of sex by paying female employees at a rate less than the rate at which male employees are paid for equal work. - t/f
true
The FSLA does not cover executives and administrators. - t/f
true
The Federal Employers Liability Act applies to common carriers engaged in interstate commerce - t/f
true
The LMRA prohibits unions from picketing an employer to force bargaining with an uncertified union - t/f
true
The SIPC administers a fund that pays certain customer claims against stockbrokers and dealers who are members of the SIPC - t/f
true
The agency relationship imposes upon both principal and agent certain duties and obligations to third parties. - t/f
true
The bill of rights provision of the Labor-Management Reporting and Disclosure Act guarantees union members the right to express any views or opinions at union meetings - t/f
true
The board of directors is primarily a policy-making body. - t/f
true
The board of directors selects the corporate officers - t/f
true
The contract of agency determines the compensation due an agent - t/f
true
The length of the contract of employment is not always implied by the terms of compensation. - t/f
true
Title VII provides protection from unwelcome sexual advances that create a hostile work environment. - t/f
true
Two popular types of stock are common stock and preferred stock. - t/f
true
Workers' compensation laws allow recovery by an employee for injuries that arise within the course of the work from a risk involved in that work regardless of negligence - t/f
true
A contract entered into by a corporation that goes beyond its powers is a/n ________ contract.
ultra vires
Renunciation
unilateral act of holder giving up rights in the instrument or against a party to it
A work setting in which all employees must be union members is called a/n ________.
union shop
Share
unit of stock
Union shop
work setting in which all employees must be union members
