The Legal Environment of Business Exam #3
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