BLAW Exam 4
Acme Corp hires Ike to buy gems and precious metals from various sources on its behalf. In this relationship, I. Acme Corp is the principal. II. Ike is an employee but not an agent. Select one: a. I, only. b. II, only. c. Both I and II. d. Neither I nor II.
a. I, only.
Based on Rochel's conduct, Marcus reasonably believes that Andrew has the authority to act on Rochel's behalf even though Andrew does not have the actual authority to do so. In this circumstance, Andrew has Select one: a. apparent authority. b. no authority. c. express authority. d. implied authority.
a. apparent authority.
What is the maximum number of shareholders an S-Corporation may have? Select one: a. 100 b. 36 c. 50 d. 75
a. 100
Mack's Manufacturing, Inc., grants its agent Teona an exclusive territory in which to sell Mack's products. Mack's cannot compete with Teona in that territory under the principal's duty of Select one: a. indemnification. b. cooperation. c. reimbursement. d. compensation.
b. cooperation.
Katherine employs Flash Delivery Agency as an agent under a written agreement that describes the rights and duties of both parties. This is Select one: a. implied authority. b. express authority. c. apparent authority. d. equal authority.
b. express authority.
Ethan is employed by Montana Energy Company. His duties include negotiating the purchase of mineral rights for future mining projects. Ethan secretly buys some of the property and sells it to Montana Energy at a profit. Ethan has breached Select one: a. the agent's duty of accounting. b. the agent's duty of loyalty. c. no duty. d. the principal's duty of compensation.
b. the agent's duty of loyalty.
Which of the following business entity(ies) is managed by a Board of Directors elected by Shareholders: Select one: a. Limited Liability Partnership b. Corporation c. Limited Liability Company d. Partnership
b. Corporation
Under the employment-at-will doctrine, an employer can end an employment relationship at any time. Select one: True False
True
Acme Pipe, Inc., employs Eduardo as a sales agent for a trial period. At the end of the period, Acme and Eduardo disagree on the amount of the commissions Eduardo is due for sales that he made. Eduardo may demand a constructive trust. Select one: True False
False
Blast-Off Company wants to genetically test its workers for potentially significant, future health problems. Blast-Off may, but is not required to, deny group health insurance for its employees who test "positive." Select one: True False
False
Whistleblower statutes protect employers who report their employees' wrongdoing. Select one: True False
False
In a general partnership, profits are split equally between the partners. Select one: True False
True
To hire employees from other countries, an employer must first obtain the approval of the U.S. Immigration and Customs Enforcement. Select one: True False
True
Dan is a limited partner in XYZ partnership. Which of the following is true: Select one: a. Dan has limited liability but cannot participate in management b. None of the above. c. Dan has unlimited liability. d. Dan can participate in management.
a. Dan has limited liability but cannot participate in management
Which of the following statements is true: I. A key employee is defined as an employee whose pay falls within the top 10 percent of the firm's workforce. II. Under federal law, only key employees who take temporary family or medical leave are entitled to job reinstatement. Select one: a. I, only. b. II, only. c. Both I and II. d. Neither I nor II.
a. I, only.
Which of the following statements is true: I. For an employee to recover wokers' compensation, the employee must have been injured during the course of employment. II. An employee can usually recover workers' compensation for injuries occurring on the commute to and from work. Select one: a. I, only. b. II, only. c. Both I and II. d. Neither I nor II.
a. I, only.
Which of the following statements is true: I. A whistleblower is an employee who reveals confidential information about a fellow employee to the employer. II. Whistleblower statutes protect employees from retaliatory discharge. Select one: a. I, only. b. II, only. c. Both I and II. d. Neither I nor II.
b. II, only.
What formal requirements are required to start a sole proprietorship? Select one: a. File Articles with the Secretary of State. b. None. c. $75 filing to the Secretary of State. d. Formal written business agreement.
b. None.
Betty, an employee of Longbow, Inc., is covered by federal overtime provisions. Betty may earn overtime only after she has worked more than Select one: a. one year for Longbow. b. forty hours in a week. c. eight hours in a day. d. 160 hours in a month.
b. forty hours in a week.
Cindy is Stan's agent; however, Cindy is not authorized to enter into contracts on Stan's behalf. Nevertheless, Cindy contracts to have Edward paint the interior and exterior of Stan's home. Stan ratifies the contract. Later, Stan tries to rescind the part of the contract relating to the exterior. This attempt will be Select one: a. partly successful. b. c. totally unsuccessful. d. totally successful.
c. totally unsuccessful.
What is the minimum number of members an LLC can have? Select one: a. 12 b. 5 c. 1 d. 3
c. 1
Which of the following statements is true: I. If an employee dies in a work-related incident, the employer must notify OSHA within eight hours. II. Employees who report suspected health and safety violations cannot be fired by their employers for doing so. Select one: a. I, only. b. II, only. c. Both I and II. d. Neither I nor II.
c. Both I and II.
If you and a friend decide to go into business as a partnership and you put up $2,000 and your friend puts up $1,000, how will management decisions be made? Select one: a. You will make 2/3 of the decisions while your friend makes 1/3. b. None of the above. c. Management decisions will be made by both partners. d. You will make all decisions because you contributed more money.
c. Management decisions will be made by both partners.
Melinda is a purchasing agent for Candy Crush Company (CCC). She enters into a contract with Delmar on CCC's behalf. But she only indicates to Delmar that she is acting as an agent on behalf of an unidentified client. Under these circumstances CCC is Select one: a. an apparent agent. b. a disclosed principal. c. an undisclosed principal. d. a partially disclosed principal.
d. a partially disclosed principal.
Amanda works at Montana Water Company. Amanda is a sales representative who works with Montana Water's customers, including restaurants, grocery stores, and other businesses, as well as individual consumers. Montana Water closely supervises all of its sales reps, and dictates their schedules. With respect to third parties, Amanda is Montana Water's Select one: a. employee, agent, and independent contractor. b. employee but not agent. c. independent contractor. d. employee and agent.
d. employee and agent.
Paul hires Charles, a real estate broker, to act as his agent to sell his land for $150,000. Oil is discovered beneath the land, causing its market value to increase considerably. The agency agreement is likely Select one: a. continued unless Charles tells prospective buyers of the discovery. b. continued with a proportionate increase in Charles' sales commission. c. terminated by act of the parties. d. terminated by operation of law.
d. terminated by operation of law.
Which of the following are pros of a corporation? Select one: a. Transferable ownership. b. Limited Liability. c. Structured management. d. All of the above.
d. All of the above.
In which of the following entities do all owners have limited liability for all business debts? Select one: a. Corporations b. Partnerships c. S-Corporations d. Both a and c
d. Both a and c
Which of the following entities does not have "pass-through" taxation? Select one: a. S Corporation b. Limited Liability Company c. Partnership d. C Corporation
d. C Corporation
John is seventeen years old. Under the Fair Labor Standards Act, he Select one: a. cannot work during school hours. b. must obtain a permit to work. c. must be directly supervised by an adult. d. cannot work in a hazardous occupation.
d. cannot work in a hazardous occupation.
