BUSN201 - M06 Quiz
A foreign corporation that has not obtained a certificate of authority to do business in a state can nevertheless maintain an action in the state's courts.
F
A partner can be held liable for a partnership obligation only if he or she participated in, or knew about, whatever it was that gave rise to the obligation.
F
A whistleblower is an employee who publicly reveals a co-worker's unsafe or illegal activity.
F
An express employment contract cannot protect an employee from discharge without good cause.
F
Disparate-impact discrimination occurs when a protected class is adversely affected by the practice or procedure of an employer who intended that result.
F
During an employee's leave under the Family and Medical Leave Act, an employer must continue to compensate the employee to avoid the potential negative effect of unpaid leave on interstate commerce.
F
In states that require a minimum wage that is higher than the specified federal minimum wage, employees are entitled only to the lower federal amount.
F
Like the partners in a partnership, the shareholders in a corporation cannot change without affecting the continued existence of the firm.
F
The Americans with Disabilities Act defines disability to include a physical or mental impairment that causes "undue hardship."
F
The Immigration Reform and Control Act makes it legal to hire, recruit, or refer for a fee someone not authorized to work in this country.
F
To avoid permitting a key employee to take family or medical leave, an employer must show that the leave would cause "substantial injury" to the employer.
F
An employer can avoid liability under Title VII by showing that the employer's standards for hiring and promoting have a substantial, demonstrable relationship to realistic qualifications for the job at issue.
T
An employer cannot discharge a worker who, in good faith, refuses to work in a high-risk area if bodily harm or death might result.
T
As in a partnership, a limited liability company may pay no taxes—profits can be passed through to the members, who pay personal taxes on the profits.
T
Because a franchisor's termination of a franchise can adversely affect a franchisee, much franchise litigation involves claims of wrongful termination.
T
Directors and officers whose failure to exercise due care results in harm to the corporation or the shareholders can be held liable for negligence unless the business judgment rule applies.
T
If the members of a limited liability company want to reinvest profits in the business, they may opt for the firm to be taxed as a corporation.
T
In many instances, agency law governs the relationships among partners.
T
Individual state laws should be relied on to determine corporate law because, despite the existence and use of model corporation acts, there is considerable variation among the states.
T
Shareholders' assumption of personal liability, as guarantors, for the obligations of a corporation can enable the firm to obtain credit.
T
To make informed decisions and supervise corporate officers and employees, the directors need an unrestricted right to inspect corporate books and records.
T
Health Food Inc. coordinates the purchase, sale, and delivery of organic products. The stated corporate purpose is to make a profit and to have a material positive impact on society and the environment. Health Food is
a benefit corporation.
Integrated Devices, Inc., is a private, for-profit corporation that is owned by seven shareholders who are members of the same family. Integrated is
a close corporation.
Lin is an employee at Manufacturing Plant Inc. Lin is called for jury duty and as a result cannot work her scheduled shift. The plant fires Lin, who subsequently successfully sues her employer for reinstatement. With respect to the employment-at-will doctrine, this is
an exception based on public policy.
Kay and Leo form Metro Delivery Inc. Responsibility for all policymaking decisions necessary to the management of corporate affairs rests with Metro's
board of directors.
Beri owns and operates City Delivery Service as a sole proprietorship. When she dies, the business will automatically
dissolve.
Oil Industries Inc. is a private, for-profit corporation that is owned by five shareholders who are members of the same family. Po, the majority shareholder, misappropriates company funds. The shareholders whose interests are injured by Po's misconduct should
have their shares appraised and be paid the fair market value for them.
Devon takes temporary family leave from her job at Equipment Sales Company to care for a newborn baby. With respect to Devon's health-care coverage, during the leave, under the Family and Medical Leave Act, Equipment
must continue it.
Brea and Colin do business as Dig Excavators. In acting on the firm's behalf, Brea makes an honest error in underestimating the cost of a certain project. In this situation, to her firm, Brea is liable for a breach of the duty of
none of the choices.
Nevis and Olsen want to do business as a corporation—Pastries & Pies Inc. The procedure for forming this firm is prescribed by
state law.