The Legal Environment of Business Exam #3

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Deb is a director and Erv is an officer of Fast Food Inc. Liability for the firm's intentional disregard of consumer-protection statutes may extend to

Deb and Erv

Heber, Irma, and Jon apply to work for Kitchen Chicken Inc. in Louisiana. These individuals' eligibility to work must be verified by

Kitchen Chicken

Kyla replaces Lomax in his job at Motor Corporation. Lomax believes that he has been discriminated against on the basis of his age. For the Age Discrimination in Employment Act to apply

Lomax must be forty years of age or older

Miklos employs Nathalie to handle a list of financial transactions on Miklos's behalf. This power will terminate on

Miklos's death or incapacity

Fitness Club employs only female staff to assist its female-only members in the club. Greg, a forty-one-year-old male, applies for a staff job, but is not hired. In his suit against the club under the Civil Rights Act, the club most likely has

a bona fide occupational qualification defense

Because it may result in a piercing of the corporate veil, shareholders' continuous use of corporate property should most especially be avoided by

a close corporation

To be certain to transact business in states other than its state of formation with no limitations, Real Estate Investment Trust should choose as its form of business organization

a limited partnership

Luis hires Mieko to act as his agent to buy Ngoc's Southeast Asian Café. Luis tells Mieko to reveal only that she is buying the restaurant on behalf of a third party, without telling Ngoc's seller who that third party is. Luis is

a partially disclosed principal

Diamonds & Gold Inc. hires Esmé to buy gems and precious metals from various sources on its behalf. In this relationship, Diamonds is

a principal

With the exception of malpractice, liability for torts committed by others in a firm cannot be imposed on the shareholders of

a professional corporation

Beth participates in an investigation into possible violations of Title VII of the Civil Rights Act at ChemCo Inc., where she is an employee. As a result, the employer demotes her. Beth can file

a retaliation claim

To hire a qualified foreign worker for a "specialty occupation," under the Immigration Act, an employer must

agree to pay wages equal to the pay of other similarly qualified workers

An affirmative action plan may be found to be constitutional if it

attempts to remedy past discrimination

Lisa brings a successful suit against her employer Mold & Die Corporation for employment discrimination. Lisa may be awarded

back pay, retroactive promotions, and damages

Corporate Enterprises Inc. provides its employees with a closed, in-house, e-mail system, which the company expressly restricts to business-related interactions. Employees who use the system

cannot reasonably expect their interactions to be private

A state law prohibits employers from causing employees "to work more than six days in seven." An employee who works a seventh consecutive day filling in for another worker is most likely

eligible for overtime wages

With respect to immigration law, fines and imprisonment, and a bar from government contracts, may be imposed on an employer who

engages in a "pattern or practice of violations"

Because, to a substantial degree, the immigration debate concerns the employment environment, Congress enacted

legislation to prohibit employers from hiring illegal immigrants

Financial Accountants P.A. is a private employer. In most circumstances, federal law generally prohibits Financial from subjecting its employees to

lie-detector tests

Data Analytics LLC is a limited liability company. Unless the firm's articles of organization specify otherwise, it will most likely be assumed that the firm is

member-managed

Clark hires Dell, a real estate broker, to sell his beach house. The house is destroyed in a storm before it can be sold. Dell is Clark's agent

no more

Maia, a limited partner in Nano Investors, consults with Odet, the firm's general partner, regarding partnership business. For this activity, Maia is

none of the choices

Vehicle Assembly Inc. operates a plant near the border between the United States and Mexico. Due to the location, it would be easier for the company to employ noncitizens. In this circumstance, it is legal for a U.S. employer to

none of the choices

A key provision of the Employee Retirement Income Security Act (ERISA) concerns vesting. Vesting gives an employee who stops working a legal right to receive

pension benefits

To prevent a majority shareholder from dominating the management and operation of a close corporation, the firm should

require more than a majority of directors approve any board action

A corporation's authority to act and its liability for those actions is, with respect to the firm's owners,

separate and apart

A business organizational form that limits its owners' liability allows the firm to lawfully

take risks

Energy Company employs Fred to negotiate the purchase of mineral rights for future mining projects. Fred secretly buys some of the property and sells it to Energy at a profit. Fred has breached

the duty of loyalty

Interstate Commodities Inc. keeps a file of I-9 verifications forms, which are required by the Immigration Reform and Control Act. To monitor compliance with the act, random audits and enforcement actions are conducted by

the federal government

Analytic Data Inc. wants to hire Benazir, a noncitizen. A work visa is most likely to be set aside for a noncitizen if

there is a shortage of qualified U.S. workers capable of doing the work

Devlin is thirteen years old. Under the Fair Labor Standards Act, he cannot

work in a hazardous occupation

Motor Parts Sales Inc. hires Nolly to work on its shipping dock, accepting deliveries, and dispatching trucks, and dealing with customers and drivers. With respect to Motor Parts, Nolly is most likely

an agent

Ferris is an employee of Guitars LLC. Guitars' employee manual states that workers, such as Ferris, will be dismissed only for good cause. With respect to the employment-at-will doctrine, this is

an exception based on contract theory

Leah is an at-will employee of Mortgage Mart LLC. She is fired for refusing to falsify credit applications for her employer's clients. Leah successfully sues Mortgage Mart for wrongful discharge. With respect to the employment-at-will doctrine, this is

an exception based on public policy

Denny, a certified public accountant and an investor, and Ethel, an insurance salesperson and a realtor, may create an agency relationship for

any legal purpose

Nell is considering forms of business organization for Optic Center, a medical eye clinic. An advantage of a limited liability partnership is that, depending on the applicable state statute, partners can avoid personal liability for

any partnership obligation

Ensure Care LLC's owners are Fez and Guan. As a limited liability company, Ensure Care enters into contracts

as a legal entity apart from its owners

Brent and Char are limited partners in Dental Center, a limited partnership. In terms of the firm's books and information regarding partnership business, Brent and Char are entitled to

complete access

Curly Fries Inc. grants its agent Dian an exclusive territory in which to sell its products. The company cannot compete with Dian in that territory under the duty of

cooperation

To help small businesses raise capital, the Securities and Exchange Commission allows the companies to advertise investment opportunities to the public. This most likely encourages

crowdfunding.

Gobi is an employee of Haz-Mat, Inc. He refuses a transfer to a Haz-Mat department in which several employees suffered serious injuries from exposure to hazardous materials. Under the Occupational Safety and Health Act, Gobi may be

entitled to protection from discharge

Like other limited liability companies, for federal jurisdictional purposes, Rodeo Productions LLC is most likely a citizen of

every state of which its members are citizens

Romero employs Supply Procurement Service as an agent under a written agreement that describes the rights and duties of both parties. This is

express authority

With respect to taxes imposed on limited liability companies, most states

follow the federal rules

Under the Immigration Act, specialty temporary work visas are not available for

foreign workers whose hiring will adversely affect domestic workers

Federal employment discrimination laws restrict the ability of employers to discriminate against workers on the basis of

gender

With respect to governing the workplace, statutory law

has displaced common law doctrines to a large extent

Oren believes that Plumbing Contractor discriminated against him on the basis of race. He files a suit against Plumbing under the Civil Rights Act. To establish a prima facie case of employment discrimination, Oren must show that

he is a member of a protected class

Kathy is a director of Line Production Inc. As a director, with respect to the corporation, Kathy is expected to subordinate

her personal interests to the corporation's welfare

Myra, a female, and Neil, a male, are employees of Operation Business Corporation. Myra regularly e-mails sexually explicit images via Operation's network to Neil, who finds the images offensive. This is most likely

hostile work environment harassment

Paolo, Quito, Reyes, and Sari form Toda el Mundo LP, a limited partnership to import and sell clothing made in remote global locales. In the absence of an agreement among the partners to the contrary, profits will be shared

on the basis of percentages of capital contributions

With increasing industrialization, workers came to believe that to counter the power and freedom of employers, and to protect themselves, they needed to

organize into unions.

Afton wants to go into business as Boom! to make and market fireworks. When deciding which form of business organization would be most appropriate, Afton would normally take into account all of the following except

the forms of competitors' business organizations

Singh, a member of Trucking LLC, ceases to be associated in the carrying on of the business of the firm. Despite the dissociation

the member's duty of care continues with respect to prior events

Vim applies for a job at Welding Inc. She passes a test to determine which applicants are eligible for hiring, but Welding discards the results, and Vim is rejected. To successfully defend against a claim for discrimination under Title VII of the Civil Rights Act, the employer must show that

the practice in question was justified

Welding Corporation makes a good faith attempt to incorporate but there is a defect in its incorporation. Welding undertakes business as a corporation. In this circumstance, the firm's existence may be challenged by

the state

Berry Farm Inc. employs hundreds of seasonal and permanent workers, both skilled and unskilled, in three states. Under federal immigration law, Berry Farm can hire illegal immigrants

under no circumstances

Salsa Inc. employs three hundred workers at four locations in two states. Under federal law, Salsa must provide each employee, during any twelve-month period, family or medical leave of

up to twelve weeks

Levon, an agent for Milled Grains LLC, executes an unauthorized contract with National Grocers Inc. The deal is highly advantageous to Milled Grains, and the company ratifies the contract. The contract is

valid

To succeed in a suit against a potential employer for discrimination under the Americans with Disabilities Act, a job applicant must show that he or she

was not hired solely because of a disability


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