Review Bus Law
A corporate charter is filed with: a. a state's Secretary of State office. b. a state's Treasury and/or Revenue Division. c. the United States Department of Commerce. d. All the above.
A
An employer is in the process of negotiating a new contract with its union. During negotiations, the employer changed the workweek from a five-day, eight-hour-per-day week to a four-day, ten-hour-per-day week. Which statement is correct? a. This is a violation of the National Labor Relations Act. b. This is not a violation of the NLRA because the employer is bargaining with the union. c. This is not violation of the NLRA because the total number of work hours per week has not changed. d. Whether or not this is a violation of the NLRA will depend on the relevant state statutory law.
A
Cameron, editor of the local newspaper, assigned to Jim the writing of a story about pollution of a nearby stream. Although Jim used reasonable care in gathering and checking his information, un-known to Jim, the story contained a defamatory statement about Maureen. Maureen reads the story and sues Jim for libel. Cameron, who read and published the story: A.must indemnify Jim for Maureen's claim. B. need not indemnify Jim for Maureen's claim because Jim should have checked his facts more carefully. C. need not indemnify Jim for Maureen's claim because Jim breached his duty to obey instructions. D. can recover damages from Jim for any injury to the newspaper resulting from Jim's story.
A
E. I. James is a writer with a best selling novel. He wishes to create a corporation called "James, Inc." He will be the only shareholder. Can James incorporate his business of writing? a. Yes, this would be the incorporation of a sole proprietorship. b. No, the law requires at least two people to be shareholders of a corporation. c. No, the law does not permit a person to, in effect, incorporate himself. d. Only if he forms an S Corporation.
A
An agency will be terminated in all but which one of the following situations? a. The principal and agent agree on an agency relationship to sell a boat, and the boat is sold. b. A travel agent files for individual bankruptcy under Chapter 13. c. The agent violates his duty of loyalty. d.An electrician, an agent of a contractor, has her license revoked.
B
Corporate stock can be divided into categories called ________, which can be further divided into ________. a. authorized shares, classes. b. classes, series. c. equity, assets. d. debentures, classes.
B
In 1932, Congress passed what legislation prohibiting federal court injunctions in nonviolent labor disputes, thereby declaring that workers should be permitted to organize unions and use their collective power to achieve legitimate economic ends? a. The Sherman Act. b. The Norris-LaGuardia Act. c. The National Labor Relations Act. d. The Labor-Management Relations Act.
B
James was a partner in a large firm. He died unexpectedly. His son, Frank, wanted to take over for his father in the partnership and was well qualified to do the work his father had done. Which statement best describes Frank's rights in the partnership if he inherits the interest? a. Frank has a right to take over for his father in the partnership. b. Frank is entitled to the value in the partnership, but not to become a full partner. c. Frank has no rights to his father's partnership interest. d. None of the above.
B
Jessup asks the union to file a grievance against his employer. The union believes the grievance is without merit and refuses to file it. Jessup claims the union has violated its duty to him as a card-carrying, dues-paying union member. Is he right? a. Yes. b. Yes, but only if it is later proven that Jessup had a valid claim. c. No, provided the union acted in good faith. d. No. A union never has an affirmative duty to file a grievance if it does not wish to do so.
C
Chance is a traveling marketing representative for a publishing company. He is an independent contractor. One afternoon while driving to a meeting, he negligently runs a stop sign and causes an accident. Judy is injured. Judy can: A hold both Chance and his company liable for her injury. B hold the company but not Chance liable. C hold Chance but not the company liable. D not hold Chance or his company liable for her injury.
C
Linda borrowed $2,500 from Tonya. They agreed that Tonya could take a grouping of Linda's antiques as collateral. If Linda could not pay, then Tonya could sell the antiques to recover her money. When Linda could not pay off the loan, Tonya sold the antiques and paid Linda the proceeds after deducting the balance of the loan. Which of the following statements is correct? This is an irrevocable agency relationship. This is a power coupled with an interest. Linda has neither the power nor the right to terminate the relationship. All the above are correct.
All of the above
Factors influencing whether a servant is acting within the scope of employment include all but which of the following? The act is similar to the one the principal authorized. The act is not seriously criminal. The act took place during hours that the servant is generally employed. All of the answer choices are factors in determining if an act is "within the scope of employment."
All of the answer choices are factors in determining if an act is "within the scope of employment."
A "hot cargo" clause, prohibiting an employer from doing business with a specified company in order to increase bargaining pressure, is legal.
True
A corporation by estoppel is based on fairness rather than strict legal rules
True
A limited liability company, unlike a Subchapter S corporation, can have members that are corporations, partnerships, or nonresident aliens.
True
Generally, either party to an agency relationship has the power to terminate it at any time.
True
If a principal accepts the benefits of a whole unauthorized contract, the principal is deemed to have ratified the contract and is bound as if the act had been originally authorized.
True
If a whistleblower successfully brings suit against a company that defrauds the government, the whistleblower can receive 30 percent of the damages awarded to the government.
True
If apparent authority is present, the principal is liable for even the unauthorized acts of the agent.
True
Kaiya is a sales representative of TriColor. Kaiya owes a fiduciary duty to TriColor
True
Owners of preferred stock typically have a preference in liquidation
True
Since 1900, the number of workplace injuries and deaths has decreased, partly due to the OSHA, even though the size of the workforce has increased fivefold.
True
The case of Apcar v. Gaus illustrates that it is essential to comply with all the technicalities of a limited liability partnership statute.
True
The workers at Thom Trucking went on strike over wages. Thom Trucking may hire permanent replacement workers.
True
All of the following might be in the same collective bargaining unit except: a. secretarial workers. b. clerical workers. c. the executive secretary. d. the department manager. e. Both c and d.
E
A business corporation can be incorporated under either state law or federal law.
False
A closed shop means the employer must hire only union members. Federal law expressly allows closed shops.
False
A corporation must have a registered agent within the state of incorporation only if the corporation maintains an office in that state.
False
A partnership is a taxable entity, separate from the partners.
False
A principal must indemnify an agent for any expenses incurred in carrying out agency responsibili-ties, but the principal will not be responsible for indemnifying an agent for any unauthorized pur-chases.
False
Alan, a dentist, and his wife Martha, an attorney, can protect their personal assets with limited liability from their business dealings by creating and operating a professional corporation together.
False
As a general rule, employers have a legal obligation to disclose information about former employees to potential future employers.
False
Corporations have a distinct advantage over other forms of business organization in the area of taxation.
False
Franchise fees can be costly, but they are usually payable over a number of years, after profits are generated from the business.
False
Incorporators are required to sign the charter, deliver it to the proper state officials, and purchase a certain percentage of the initial stock offering.
False
Which of the following transactions would be considered by the IRS to be a taxable sale of assets? Changing the form of business from: a. a corporation to an LLC. b. a partnership to an LLC. c. an LLC to a corporation. d. All of the above.
A
Exec-Pac, Inc. is extremely opposed to having its employees organize. The union attempting to organize a collective bargaining unit filed an unfair labor practices claim with the National Labor Relations Board (NLRB), alleging that Exec-Pac illegally interfered with its unionization drive. The NLRB, convinced that an election would be pointless, waived the requirement of an election and certified the union as the exclusive representative of Exec-Pac's workers. Which statement is correct? a. The NLRB had to be convinced that the employer's interference with the union's attempt to organize the workers was outrageous. b. The NLRB has the authority to waive the requirement of a union election if it believes the employer has shown anti-union bias. c. The NLRB may waive an election if the employer has distributed written materials stating it is opposed to a union. d. None of the above.
A
Fashions, Inc. has 12 shareholders. There is no shareholder agreement concerning the board of directors. The company is subject to the Model Act. How many directors is Fashions, Inc. required to have? a. None. b. One. c. Two. d. Five.
A
In incorporating E-prise, the promoter gave an incorrect ZIP Code for the registered agent. All of the other requirements for incorporation were met. E-prise is a(n): a. de jure corporation. b. de facto corporation. c. corporation by estoppel. d. indemnified corporation.
A
Jim agreed to show Donna's car to a potential buyer. Donna was not able to be home since she had to attend a meeting. After showing the car, Jim left the keys in it and the car was stolen. Which statement is correct? A Since Jim is a gratuitous agent, he will only be liable for the loss of the car if his conduct constitutes gross negligence. B Since Jim is a gratuitous agent, he will be liable for the loss of the car if his conduct constitutes ordinary negligence. C Since Jim is a gratuitous agent, he has no liability for the car. D Since Jim is a gratuitous agent, he is strictly liable for the loss of the car.
A
Laura intends to file a Title VII lawsuit against her employer. Which of the following is true? a. Laura is required to first submit her claim to the Equal Employment Opportunity Commission. b. Laura must first submit her claim to a state civil rights commission before she may proceed with her lawsuit. c. If the EEOC determines Laura has no case against her employer, she may not file a lawsuit. d. Laura may initiate a lawsuit or file with the EEOC as she so elects.
A
Mike is planning on incorporating his business in the state of Delaware. The corporate name of Mike's business must be different from: a. that of any corporation that already exists in Delaware. b. that of any limited liability company in Delaware. c. the name of any sole proprietorship in Delaware. d. all of the above.
A
Ron is the business agent for Kansas Sunshine, a rock band. He is also the agent for another popular Midwestern rock group, City Sand. Ron negotiates a deal with a Kansas City promoter to have City Sand play after a professional football game. The promoter was willing to pay $250,000 for both groups to play after the game; however, Ron talked her into booking just City Sand for $175,000. Given his contract with City Sand, Ron made more money under this arrangement. Has Ron violated his fiduciary duty to Kansas Sunshine? A. Yes. It appears that Ron put his own interests ahead of his principal's interests. B. Yes. Ron cannot, under any circumstances, act as an agent for both groups. C. Both a and b are correct. D. Neither a nor b is correct since it is very common for rock band agents to represent several groups at the same time.
A
The Fair Labor Standards Act: A wage provisions do not apply to professional or managerial employees. B limits the number of hours an employer can require a person to work in any given week. C does not apply to children. D preempts any state wage regulation.
A
The Federal Trade Commission requires franchisors to: a. give prospective franchisees an offering circular at least 14 business days prior to the signing of a contract or payment of any money. b. disclose the exact amount of the initial investment required. c. disclose any litigation the company has ever been involved in d. disclose how many franchisees have gone out of business in the prior five years.
A
The corporate form of business: a. was first known and used by the Greeks and then spread through the Romans to England. b. was not known until about 1737 when Sir Francis LaRue developed the concept. c. was first allowed in the State of New York around 1811 and is considered to be an American creation. d. None of the above.
A
The duty of fair representation created by the NLRA and the LMRDA requires that: a. a union represent all members impartially and in good faith. b. a union must pursue any member's grievance against the employer. c. an employer, in communications with employees during a union organizing effort, must fairly represent the effects it believes a union will have on the company. d. the NLRB certify only proposed bargaining units that it thinks the union can properly represent.
A
The officers of a corporation are: a. chosen by the board of directors. b. appointed by the president of the company. c. elected by shareholders. d. appointed by the Secretary of State.
A
The term "S Corporation" comes from: a. the Internal Revenue Code. b. the FTC rules. c. the U.S. Constitution. d. state corporation law.
A
Under most state statutes, a corporation may: a. include in its charter a provision indemnifying directors unless they have engaged in intentional misconduct or bad faith. b. include in its charter a provision indemnifying directors under any circumstances in the conduct of their duties for the corporation. c. not include in its charter a provision indemnifying directors who engage in negligent conduct of their duties. d. not include in its charter any provisions regarding indemnification of directors.
A
Under the federal legislation known as OSHA: a. employers must keep records of all work-place injuries. b. employers must keep records of positive results of workplace drug tests. c. employees must keep their work area free from recognized hazards. d. employers may monitor workers' e-mail messages if the monitoring is done in the ordinary course of business and the em-ployer provides the e-mail system.
A
Which of the following is an unfair labor practice for a union? a. To encourage an employer to discriminate against a particular employee because of a union dispute. b. To bargain collectively. c. To engage in a legal strike. d. All of the above are unfair labor practices by a union.
A
Jeremy was terminated by his employer for violating company rules. He challenged the termination by filing a grievance. Eventually, the matter went to arbitration and Jeremy's termination was ruled to have been improper. The employer filed a claim in court to have the arbitrator's ruling overturned since it claimed the facts clearly demonstrated Jeremy had violated the express rules of the company. The employer claimed that the arbitrator had ignored the obvious and had committed a serious mistake of fact. A court may refuse to enforce an arbitrator's ruling if: a. it is proven that the arbitrator made a serious error of fact. b. the court finds the ruling is contrary to public policy. c. Both of the above are correct. d. Neither of the above is correct.
B
Maxine lost her job as an electrical engineer with a large company which had provided health insurance benefits for Maxine and her family. She now: A must try to find insurance on her own or try to find another job with health insurance benefits. B is protected under COBRA, which allows her continued health insurance coverage for 18 months as long as she pays the cost. C is protected under COBRA, which requires her employer to continue her health insurance coverage for six months under whatever copayment arrangements she had while she was employed. D has some protection under the NLRA, which requires her employer to pay for continued health insurance for three months following her termination if she did not leave the company voluntarily.
B
MegaCorp is incorporated under Delaware law. It is registered to do business in New York. Legally, in New York MegaCorp is known as what kind of corporation? a. Domestic. b. Foreign. c. Alien. d. Cumulative.
B
Preemptive rights are: a. not legal in the majority of states. b. designed to prevent dilution of a shareholder's ownership in the company. c. required to be offered to shareholders by the Model Act. d. designed to indemnify managers who act in good faith.
B
Roxanne was fired from her job when her employer instituted a new policy that prohibited employees from smoking cigarettes. This requirement applied to off-duty time as well as job-related time. Roxanne claimed that she could not quit smoking and that she was wrongfully fired since she did not smoke in the workplace -- only when she was outside the building and during off-duty time. a. The company has wrongfully fired Roxanne and is liable to her for damages. b. The company would be liable to Roxanne only if there is a state statute prohibiting employers from passing such job-related requirements. c. The company is not liable to Roxanne since the nonsmoking requirement is reasonable given the high cost of treating smoking-related illness. d. The company is not liable to Roxanne since the United States Supreme Court has expressly ruled such a company policy does not violate the worker's right to privacy.
B
Stacy believes her rights as a union worker have been violated by her employer. If the specific rights are addressed by both state and federal law: a. the state law will apply. b. the federal law will apply. c. both state and federal law will apply. d. she may choose which law, state or federal, will govern her rights.
B
The Teresa Harris v. Forklift Systems, Inc. case held: A for there to be sexual harassment, the conduct must affect an employee's psychological well-being. B conduct need not affect an employee's psychological well-being to constitute sexual harassment. C Title VII does not apply to sexual harassment cases. D Title VII does not apply to same-sex harassment.
B
The form of business ownership that is the most easily transferable is the: a. general partnership. b. corporation. c. limited liability company. d. limited partnership.
B
The importance of a Subchapter S corporation is: a. its organizational structure. b. its treatment of shareholders for income taxation purposes. c. its requirement of restrictive transfer rights of the shares. d. its small cost of formation.
B
What is meant by the term "piercing the corporate veil"? a. Corporate directors and/or officers may be held personally liable to a person damaged by an act of the corporation. b. Corporate shareholders may be held personally liable to a person damaged by an act of the corporation. c. Both of the above. d. None of the above.
B
Jill was a limited partner in a retail business that was sued by a customer who fell in the store. The customer claimed the business was negligent in caring for its floors. Which statement best describes Jill's potential liability? a. Jill has no potential liability to the customer. b. Jill can be held personally liable to the customer since she is a partner. c. Jill can only be liable to the amount of her investment. d. Jill is personally liable, but the woman must first collect from the general partners before collecting from Jill.
C
Kelly is upset with her supervisor and believes his conduct violates the terms of her union's collective bargaining agreement (CBA). The union filed a grievance on Kelly's behalf. Who will conduct the grievance hearing? a. The U.S. Court of Appeals. b. The National Labor Relations Board. c. A member of the company's management team. d. A replacement worker.
C
LLCs have become popular for all except which of the following reasons: a. management flexibility. b. tax status as a partnership. c. uniformity of law. d. limited liability.
C
Mega Corp is negotiating a collective bargaining agreement with a union. The company claims it is not financially able to pay the wage increase the union is demanding. Which statement is correct? a. The union has a legal right to inspect the financial records of the company to verify that the employer cannot pay the proposed wage increase. b. It is an unfair labor practice if the employer claims it cannot pay the higher wages but refuses to allow the union to inspect its financial records. c. Both of the above are correct. d. None of the above.
C
MegaCorp is incorporated in the state of Delaware and is registered only in Delaware. Jolene purchased a MegaCorp product from a company's sales representative following a presentation in Michigan. Jolene was seriously injured by the product in Michigan. Under the Model Act, if Jolene sues in Michigan, can MegaCorp defend the suit there? a. MegaCorp may only defend against a lawsuit in Michigan if it first registers by paying back fees, taxes, and penalties. b. Yes, MegaCorp can bring or defend against a lawsuit in any state regardless of whether the corporation is registered to business in that state. c. Yes, MegaCorp can defend against a lawsuit in Michigan regardless of whether MegaCorp is registered to do business in that state. d. No. Jolene must sue and MegaCorp may defend a lawsuit only in Delaware.
C
MegaCorp purchased 10,000 shares of its own stock that had previously been owned by private investors. The stock MegaCorp repurchased is called: a. authorized and unissued. b. authorized and issued. c. treasury stock. d. repurchased stock.
C
Pamela hired Lena to sell her business. Lena: a. can buy the business as long as the price is fair. b. can buy the business as long as she qualifies for financing. c. can buy the business only with Pamela's permission. d. cannot buy the business under any circumstances.
C
Ron and several fellow workers of Vicy, Inc., a small manufacturing company, wished to organize a union. When Vicy learned of this activity, it issued a bulletin to all workers stating that a union will only hurt the company and that "we are a family that can solve any problems ourselves -- we do not need union activists from outside our company trying to tell us what to do!" Which statement is correct concerning the bulletin issued by Vicy? a. Vicy has committed an unfair labor practice. Vicy must remain neutral during the organizing drive. b. Vicy has committed an unfair labor practice. The bulletin constitutes outrageous interference with the union organizing campaign. c. Vicy has not committed an unfair labor practice. An employer may vigorously present anti-union views to its employees. d. Whether Vicy has committed an unfair labor practice depends on whether the bulletin was approved by the NLRB.
C
The business form that is taxed as a partnership and gives all owners limited liability, is: a. a close corporation. b. a limited partnership. c. a limited liability company. d. a general partnership.
C
The landmark federal labor statute that requires financial disclosures by union leadership and guarantees union members free speech and fair elections is the: a. NLRA. b. Labor-Management Relations Act. c. Labor-Management Reporting and Disclosure Act. d. Norris-LaGuardia Act.
C
The management and union representatives of Prime Manufacturing are bargaining a new CBA. Management: a. may use a lockout at any time to pressure the union into compromise. b. may never use a lockout as a tactic to pressure the union. c. may use a lockout if the parties have reached an impasse in their bargaining and management notifies the union before locking the employees out. d. may use a lockout only as a retaliatory measure if and when the union has threatened a strike.
C
Wizardry Corporation's purpose clause in its charter states, "To operate a home-cleaning service business." After a few years of successful operation, Wizardry is offered the challenge of landscaping a neighboring business. If Wizardry accepts the offer, it would be violating its charter under: a. the de jure doctrine. b. the de facto doctrine. c. the ultra vires doctrine. d. an estoppel theory.
C
Which of the following is not required of an agency relationship? Consideration Fiduciary Relationship Consent of the parties to act as agent or principal Control of principal over agent conduct
Consideration
Seventy farmers in Morgan County joined together to gain the advantages of purchasing seed and fertilizer in bulk and of obtaining better prices when distributing and selling their crops. These farmers have formed a:
Cooperative
Wrongful discharge claims are generally based upon all EXCEPT: public policy. criminal law. contract. tort law.
Criminal Law
A company's collective bargaining agreement has expired and negotiations are underway for a new one. After one exhausting session, union leaders have decided management will not bargain in good faith. The union declares it will be going out on strike the following midnight if an agreement is not reached. The union: a. is allowed to go out on strike the following midnight. b. must give the employer at least seven days' notice before going out on strike. c. must give the employer at least 30 days' notice before going out on strike. d. must give the employer at least 60 days' notice before going out on strike.
D
A union declares its workers are going on strike. The employer states the collective bargaining agreement is still in force for another eight months and that it contains a no-strike clause. The union claims the CBA's no-strike provision is not binding since new union leadership is in place. Which of the following statements is correct? a. The union can strike since new leadership is now in control. b. The union can strike since no-strike provisions have been ruled by the courts to be unenforceable. c. The union cannot strike, as strikes to exert economic pressure on management are prohibited by the NLRA. d. The union cannot strike because of the no-strike clause in the contract.
D
Carey decided to incorporate her business under the name yStar Inc. Before yStar was incorporated, Carey signed a contract in the name of yStar, Inc. to have some office space remodeled. Which statement is correct? a. yStar is liable on the contract because the contract was signed in its name. b. yStar becomes liable on the contract as soon as it is incorporated. c. yStar is liable on the contract if the contractor knows that the corporation does not yet exist. d. yStar will be liable on the contract only if the corporation adopts the contract.
D
Employees of Mega Corp. have gone out on strike seeking better pay. Mega Corp. announces that if the union does not end the strike it will begin hiring replacement workers. Which statement is correct? a. Hiring replacement workers during a strike is an unfair labor practice. b. Mega Corp can only hire replacement workers if the collective bargaining agreement expressly gives the company the right to do so. c. Mega Corp can only hire replacement workers if it gives the union 14 days' notice prior to actually bringing in the replacement employees. d. Mega Corp can hire replacement workers at any time during a strike.
D
Hank owns 100 shares of cumulative preferred stock in Wayside Transport, Inc. Kelsey owns 50 non-cumulative preferred shares, and Oleg owns 120 shares of common stock. Wayside does not pay dividends in 2007. In 2009: a. Hank and Kelsey must receive their 2009 dividends before Oleg is paid any 2009 dividends. b. Oleg cannot receive any 2009 dividends until Hank is paid for the 2007 dividends. c. Kelsey cannot receive the dividends Wayside could not afford to pay in 2007. She will just lose them. d. All of the above.
D
In Delaware, lawsuits involving corporations are tried in a special court called: a. corporate court. b. CEO's court. c. common court. d. chancery court.
D
Jim was a mechanic. One day when he attempted to weld a car's gasoline tank, it exploded and he was hurt. He filed to collect workers' compensation. His employer resisted on grounds that Jim had been negligent and had also violated the express regulations of the company when he attempted to weld a gasoline tank. Which statement is correct? A Jim cannot recover if it is shown that his negligent conduct caused the explosion. B Jim cannot recover if it is shown that he violated the express regulations of his employer. C Workers' compensation doesn't apply in situations like this. D Jim can recover even if he was negligent and violated the employer's rules.
D
Laurie is incorporating her business. Laurie's home state is Wisconsin. Business will be conducted in California, Michigan, Pennsylvania, and Virginia. Laurie: a. must incorporate the business in Wisconsin, the home state. b. must incorporate the business in Wisconsin, California, Michigan, Pennsylvania and Virginia. c. must incorporate in Delaware. d. can incorporate the business in any state.
D
Mega Corp. hired permanent replacement workers when its union went out on strike seeking better medical and retirement benefits. After the strike is over, Mega Corp.: a. must give the striking employees their jobs back since this was an economic strike. b. must give the striking employees their jobs back since this was an unfair labor practices strike. c. may hire additional workers without considering the striking employees who want their jobs back. d. does not have to give the striking employees their jobs back since this was an economic strike.
D
Megan was employed by a large company. Her supervisor told her to falsify government reports. She refused and was fired. She sued for wrongful discharge. Her employer claimed that, since Me-gan was an at-will employee, she had no legal right to claim the company was liable for damages. Is the employer right? A Yes. An at-will employee does not have a legal right to claim wrongful discharge of employment. B Yes. As an employee, Megan owes a duty of loyalty to her employer. If the company was found to have acted illegally by falsifying the reports, it (not Megan) would be liable. C No. Even though Megan was an at-will employee, such employees may not be fired without just cause. D No. Though at-will employees do not have extensive rights relative to job security, they may not be legally fired for refusing to perform an illegal act.
D
Secondary boycotts: a. are generally legal provided the boycott is peaceful. b. are generally legal provided the boycott does not involve public employees such as nurses or school teachers. c. are not expressly permitted nor prohibited under federal law. d. are generally illegal.
D
Which of the following statements is correct? a. Bonds are long-term debt secured by company assets. b. Debentures are long-term unsecured debt. c. Notes are short-term debt and may be secured or unsecured. d. All the above are correct.
D
Incorporators of Maizey Co. signed and delivered the corporate charter to the proper office, but due to inefficiencies in the government office, the filing was delayed. During the period between the delivery of the charter and the filing, a promoter of Maizey Co. entered a contract for the delivery of goods using the corporate name. The supplier, if it finds out the filing had not been completed when the contract was entered, may hold the promoter personally liable on the contract.
False
It is illegal for shareholders to transfer their stock to a trust and give the trustee the power to vote the shares.
False
Joan was unhappy with her union's decision not to file a grievance about one of her complaints. Consequently, she publicly criticized the union officials. Since Joan went public with her criticism, the union can discipline her.
False
Limited liability is a major advantage of a partnership as compared to a corporation
False
Rob agrees to act as an agent for Diane in selling her car. Diane has a duty of loyalty to Rob.
False
Terminating a corporation is a three-step process: dissolution, winding up, and termination.
False
The Federal Trade Commission will not allow the sale of franchises that are unfair to the franchisee
False
The NLRA requires the union and the employer to reach an agreement through good-faith collective bargaining.
False
The management of Northeastern Manufacturing may not close one of its manufacturing plants without bargaining that issue with the union if its workers are represented by a collective bargaining unit.
False
The union representing workers at Blue Ridge Co. were unable to reach a collective bargaining agreement with management. The union may legally stage a strike in which members stop working but remain at their job posts, physically blocking replacement workers from taking their places, so the strike is more effective.
False
To be a close corporation, the business must be small, with no more than 20 owners and no more than $500,000 in gross annual income.
False
To form an LLC, a charter and an operating agreement must be filed with the Secretary of State in the jurisdiction where the business will operate.
False
Under corporate law, a corporation that officially states its purpose is "to engage in any lawful activity for which corporations may be organized under the General Corporation Law of Idaho" is too broad. A corporation's purpose must be more narrowly defined.
False
Under the Family and Medical Leave Act, an employee can take up to 12 weeks of paid leave each year for certain personal and family illness situations.
False
Mark was refused employment at a Christian Bookstore because he was not a "born-again Christian." If Mark brings a Title VII action against the bookstore, its best defense would be: they did not discriminate against a protected category. Title VII doesn't apply to private businesses. being a "born-again Christian" is a bona fide occupational qualification. they could not reasonably accommodate Mark.
being a "born-again Christian" is a bona fide occupational qualification.
An agent may not engage in inappropriate behavior that reflects badly on the principal. This rule applies to conduct: during working hours. during off-duty time. during both working hours and off-duty time. only by public officials.
during both working hours and off duty time
When a principal is partially disclosed: the agent and principal will be jointly and severally liable on the contract. the agent and principal will be only jointly liable on the contract. only the principal can be liable. only the agent is liable.
the agent and principal will be jointly and severally liable on the contract.
