UMaine BUA 220 Exam 3

Urban Loan Company extends credit to consumers. Urban is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on​ which of the following

gender

secondary boycott

A union's refusal to work for, purchase from, or handle the products of a secondary employer, with whom the union has no dispute, in order to force that employer to stop doing business with the primary employer, with whom the union has a labor dispute.

articles of incorporation

The document that is filed with the appropriate state official, usually the secretary of state, when a business is incorporated and that contains basic information about the corporation.

Roy, a director of Service & Sales Corporation, does not attend a board meeting for three years. During that time, Terry, the firm's president, makes improper loans that cost the company $10 million. Roy is most likely liable for the breach of

The duty of loyalty

Faye and Grant are shareholders of Hearthside Hotels, Inc. As stockholders, they must approve

a merger (with a new corporation)

Beth participates in an investigation into possible violations of the Civil Rights Act of 1964 at Fabrication Foundry, Inc., where she works. As a result, Beth's employer demotes her. Beth can file

a retaliation claim

Nominal Damages

a small monetary award granted to a plaintiff when no actual damage was suffered or when the plaintiff is unable to show such loss with sufficient certainty

The FLSA applies to

full-time and part-time workers in the private sector and in Federal, State, and local governments.

corporations can be fined for the criminal acts of its agents under the

"responsible officer" doctrine

For military caregiver leave, the employee may take up to ______ weeks of leave within a twelve-month period.

26

FMLA requires employers that have_____ or more employees to provide unpaid leave for specified reasons.

50

plea bargaining

A bargain struck between the defendant's lawyer and the prosecutor to the effect that the defendant will plead guilty to a lesser crime (or fewer crimes) in exchange for the state's promise not to prosecute the defendant for a more serious (or additional) crime.

unconscionable

A contract or clause that is void on the basis of public policy because one party, as a result of his or her disproportionate bargaining power, is forced to accept terms that are unfairly burdensome and that unfairly benefit the dominating party.

public corporation

A corporation owned by a federal, state, or municipal government—not to be confused with a publicly held corporation.

Defacto Corporation

A corporation that was formed in a good faith effort to comply with the law. It is formed under a statute and is generally not subject to collateral attack.

Midigation of Damages

A rule requiring a plaintiff to have done whatever was reasonable to minimize the damages caused by the defendant.

intended beneficiary

A third party for whose benefit a contract is formed; an intended beneficiary can sue the promisor if such a contract is breached.

Creditor Beneficiary

A third party to whom one or both contracting parties owe a continuing debt of obligation arising from a contract.

benefit corporation

A type of for-profit corporation, available by statute in a number of states, that seeks to have a material positive impact on society and the environment.

ultra vires

Acts of a corporation that are beyond its express and implied powers to undertake (the Latin phrase means "beyond the powers").

corporation formed in another country

Alien corporation

Strike

An action undertaken by unionized workers when collective bargaining fails. The workers leave their jobs, refuse to work, and (typically) picket the employer's workplace.

Non-Profit Corporation

An organization that does not pay taxes and does not exist to make a profit.

For FMLA, how long do you have to work for your employer?

At least a year

Artur, who has a disability, is an employee of Banquet & Event Facilities & Services, Inc. After the installation of new doors on the entrance to Banquet's hall, Artur finds it nearly impossible to enter and exit. For repeatedly failing to be on time, Banquet replaces Artur with Carter, who does not have a disability. To succeed with a claim against Banquet under the Americans with Disabilities Act, Artur will have to show that

Banquet cannot make changes to the door without undue hardship

Gavin is a shareholder of Houseboats inc. with preemptive rights. With these rights, he can

Buy a prorated share of a new issue of stock before other buyers

What are incidental damages?

Damages that compensate for expenses directly incurred because of a breach of contract, such as those incurred to obtain performance from another source.

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

Emily

Brad is a shareholder of Cloud Servers & Routers Inc. Brad will be deemed to have a fiduciary duty to Cloud and its minority shareholders if he has a sufficient number of shares to

Exercise de facto control

Corporation from X state does business in Z state

Foreign corporation

Ellen and Fred work on the loading dock for Grange Storage. Ellen, who has a disability, requests a transfer, which would represent an accommodation for her disability. But when an opening occurs, Grange transfers Fred on the basis of seniority. In Ellen's suit against Grange for discrimination, most likely

Fred's seniority is a good defense.

Limited liability of shareholders

Generally, shareholders are not personally liable for corporate acts. But in certain situations, the corporate "veil" of limited liability can be pierced, holding the shareholders personally liable

FMLA reason- illness occurs

If the employee suffers from a serious health condition and is unable to perform the essential functions of her or his job.

Elise and many other consumers complain to the Federal Trade Commission (FTC) that a Faux Diamonds Company ad is deceptive. The FTC's first step is to

Investigate

Home Products Inc. and it's advertisements makes false claims about its own products and about the products of its competitors. The firm may be subject to sanctions for false claims about

Its products and competitors products.

What is a task of the board of directors?

Makes Policy decisions, hires officers to run the corporation on a daily basis.

third party beneficiary

One for whose benefit a promise is made in a contract but who is not a party to the contract.

collective bargaining

Process by which a union representing a group of workers negotiates with management for a contract

Shipping, LLC, provides its employees with an e-mail system. The company notifies them that it will monitor their communications over the system. Some employees file a suit against their employer, claiming a violation of privacy. The court is most likely to hold that, with respect to communications over the e-mail system,​

The employees did not have a reasonable expectation of privacy

liquidation

The sale of the nonexempt assets of a debtor and the distribution of the funds received to creditors. occurs when a business closes and sells its assets to pay creditors

Assignment

The transfer of a contract right from one person to another.

Delegation

The transfer of a contractual duty.

FMLA reason- birth

To care for a newborn baby within one year of birth

FMLA reason- adoption

To care for an adopted or foster child within one year of the time the child is placed with the employee.

FMLA reason- to care

To care for the employee's spouse, child, or parent who has a serious health condition.

Lockout

When management closes the doors to the place of work and keeps the workers from entering until an agreement is reached

Lawncare Company and Mowers, Inc. make yard tools. Both companies use only steel produced in the United States. Lawncare's ad claims, "We use only U.S. steel, while our competitors use inferior foreign steel!" This statement is

a false claim about a competitor's product

Disparate Impact

a condition in which employment practices are seemingly neutral yet disproportionately exclude a protected group from employment opportunities

Laura is the only female employee in the maintenance department of motor vehicle sales & service inc. her supervisor and co-workers tease and play tricks on her so relentlessly that she feels compelled to quit. this is

a constructive discharge on the basis of gender discrimination

closed corporation

a corporation whose stock is owned by relatively few people and is not sold to the general public

Corporation by Estoppel

a defective corporation that has conducted business with a third party and therefore cannot deny its status as a corporation to escape liability

Lenny works for Mechanical Engineers, P.A. While working on a Mechanical Engineers project, Lenny is injured. Under state workers' compensation laws, Lenny will be compensated only if his injury was

accidental

Pipes & Plumbing Corporation is a private employer involved in an employment discrimination suit under Title VII of the Civil Rights Act. Punitive damages may be recovered only if the employer

acted with malice or reckless indifference

Ivy is an alcoholic who has completed a supervised substance-abuse rehabilitation program. Jerold is morbidly obese. Kim has heart disease. Considered to have a disability under the Americans with Disabilities Act is

all of the choices (all of them)

Harry and Ilene want to market a new line of kayaks and related gear under the brand name Journeys as a corporation—Journeys Inc. To avoid income taxes at the corporate level, they should form

an S corporation

FMLA reason- dealing with an issue

an employee can take leave to arrange for child care or to deal with financial or legal matters when a spouse is being deployed overseas.

Anna is an employee at Bento Food Mart. Anna is called for jury duty and as a result cannot work her scheduled shift. Bento fires Anna. She successfully sues Bento for reinstatement. With respect to the employment-at-will doctrine, this is

an exception based on public policy

Blair and Chanel are holders of common stock in Discount Retail Stores, Inc. Like other holders of common stock, they have a residual position in the overall financial structure of Discount Retail, because they

are the last to receive returns for their investment

after a corporation is ______ it can do business

chartered (created)

Ginny takes temporary family leave from her job at Home Sales Company to care for a new born baby. With respect to the employee's health-care coverage, during the leave, under the Family and Medical Leave Act, the employer must

continue it

publicly held corporation

corporation that sells stock on the open market

Liquidated Damages

damages that parties to a contract agree in advance should be paid if the contract is breached

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

disparate-impact discrimination

A corporation that does business within the state of incorporation

domestic corporation

Investment Sales Corporation wants to monitor its employees' electronic communications. Investment Sales's best course of action to avoid liability under laws related to employee monitoring is to notify

its employees

Data Accountants, a private employer, handles bookkeeping for small employers. In most circumstances, with exceptions, federal law clearly prohibits Data from subjecting its employees to

lie-detector tests

The FLSA establishes...

minimum wage, overtime pay, recordkeeping, and child labor standards

Kip opens an account at a Lotsa Goodies Store, and buys a digital music player and other items, but makes no payments on the account. To collect the debt, Mako, the manager, contacts Kip's parents. This violates

no federal law

dian takes out a loan from equity bank. when she fails to make the scheduled payments, Equity advises her of further action that it will take. This is a violation of

no federal law

Bay City Merchants Corporation has six shareholders, four of whom are members of the same family. All of Bay City's shareholders agree in writing to operate without shareholders' meetings. Under the Revised Model Business Corporation Act, this most likely warrants

no penalties or sanctions

An ad for Running Shoes Inc. states that its products are "The Athlete's Choice." Because of this ad, the Federal Trade Commission is most likely to issue

none of the choices

Sara believes that she was rejected for a position at Trek n' Travel Agency on the basis of her race. Sara files a suit against Trek n' Travel under the Civil Rights Act of 1964. To establish a prima facie case of employment discrimination, Sara must show all of the following except that

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

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

pay employees higher wages for working in more dangerous areas.

What is in the articles of incorporation?

pertinent information such as the firm's name, street address, agent for service of process and the amount and type of stock to be issued.

Created for profit

private corporation

Formed by the government for some purpose (like the US postal service)

public corporation

Nina is a director of Outback Outfitters, Inc. Under the standard of due care owed by directors of a corporation, Nina's decisions must be informed and

reasonable

Inez files an employment discrimination suit against Jiffy Delivery Service, Inc., under the Civil Rights Act of 1964, based on Jiffy's discharge of Inez. Possible relief includes

reinstatement

steps to secure a corporation

secure the name (subject to state approval), articles of incorporation, explain number of shares and file them publicly

Spicy Salsa, Inc., complains to the Federal Trade Commission (FTC) about an ad broadcast by Tangy Taco Sauce Company, Spicy Salsa's competitor. The FTC investigates and concludes that the ad is deceptive. The FTC's next step is to

send a formal complaint

Corporate shareholders can

sue the corporation and be sued by the corporation

The FMLA does not

supersede any state or local law that provides more generous protection.

Ernie is a director of Five-Star Properties, Inc. Ernie is a property appraiser. Five-Star makes several purchases in which it pays too much. Ernie approves all the transactions without evaluating them. He is most likely liable for breach of

the duty of care

Carlo is a director of Desserts Italiano, Inc. Carlo opposes a tender offer that is in the company's best interest because its acceptance would cost his position as a director. Carlo is most likely liable for a breach of

the duty of loyalty

Tim works for University Food Service inc. the employers discharge of Tim outside the terms of an oral employment contract may result in

the employer's liability for breach of contract

Reciprocity

the exchange of resources, goods, and services among people of relatively equal status; meant to create and reinforce social ties

The board of Management Consultants, Inc., can delegate some of its responsibilities to

the firm's officers

Craig applies for a job at Dispatch Transportation & Warehousing, Inc., for which he is well qualified. He passes a test to determine which applicants are eligible for hiring, but the employer discards the results, and Craig is rejected. Dispatch continues to seek applicants. To successfully defend itself against Craig's suit, Dispatch must articulate

the practice in question was justified

indecorous voice

the symbolic framing by some public officials of the voices of others as inappropriate or unqualified for speaking in official forums and their belief that ordinary people may be too emotional or ignorant to testify about chemical pollution or other environmental issues

Teri borrows $10,000 from USA National Bank to remodel a room in her home. This transaction is subject to

the truth-in-lending act

An eligible employee may take up to

twelve weeks of leave within a twelve-month period

Carly applies for a job at Data Applications LLC for which she is qualified, but for which she is rejected. The employer continues to seek applicants and eventually fills the position. To succeed in a suit against Data for discrimination under the Americans with Disabilities Act, Carly must show that she

was not hired solely because of a disability