Q&A Hero

Q: Jody owns KuppaJava Kiosks, a sole proprietorship. Jody's liability is a. limited by state statute and varies from state to state. b. limited to the extent of capital expenditures. c. limited to the extent of his or her original investment. d. unlimited.

Q: Kelly, the owner of Llama Farms, a sole proprietorship, wants to obtain additional busi­ness capital but to maintain control. This can best be ac­complished by a. borrowing funds. b. bringing in partners. c. issuing stock. d. selling the business.

Q: Workers cannot both receive workers' compensation and sue their employers in court for damages.

Q: Workers' compensation insurance does not cover stress and mental illness that are employment-related.

Q: Bernie wants to go into the business of construction contracting. Among the reasons that would probably convince Bernie to set up his business as a sole proprietorship would be a. its greater flexibility. b. its limited liability. c. its perpetual existence. d. the ease of transferring the business to other family members.

Q: For an injury to be compensable under workers' compensation, the claimant must prove that he or she was harmed by an employment-related injury.

Q: Jim organized, and owns and operates, Jim's Landscaping Service in the simplest form of business organization. This is a. none of the choices. b. a limited liability company. c. a partnership. d. a sole proprietorship.

Q: Employees are required to purchase workers' compensation insurance from private insurance companies or state funds.

Q: Carl sells Direct Marketing Enterprises, a sole proprietorship, to Eve. This is a transfer of a. a license. b. a trade name. c. the formula to make a product. d. the ownership of the business.

Q: Under common law, employees who were injured on the job could not sue their employers for negligence.

Q: Normally, a dissociated member of an limited liability company (LLC) has the right to force the LLC to dissolve.

Q: Workers' compensation benefits are usually paid according to preset limits established by statute or regulation.

Q: In which of the following situations can an employee sue an employer in civil court to recover damages for employment-related injuries? A) The employer is self-insured. B) The employer unintentionally injures an employee covered under workers' compensation. C) The employee suffers an injury on work premises that is not work-related. D) The employer intentionally injures an employee covered under workers' compensation.

Q: Jorge, a forklift truck operator for the retail chain Hanes Ridge, was injured when the forklift he was operating toppled over. The forklift truck was designed and manufactured by Ionic Machines, Inc. Jorge received workers' compensation benefits for his injury. It was later determined that the forklift truck was not designed to be used to lift as much weight as Ionic Machines claimed it could. To which of the following legal rights is Jorge entitled? A) sue Hanes Ridge in civil court for his work-related injuries B) sue Hanes Ridge in federal court for violation of the Fair Labor Standards Act (FLSA) C) sue Ionic Machines in civil court for damages D) Jorge cannot sue either Hanes Ridge or Ionic Machines, since he has already received workers' compensation benefits

Q: When a member dissociates form a limited liability company, the member's duty of loyalty continues.

Q: What is the employer's advantage in offering workers' compensation? A) The employer need not pay for workers' compensation insurance. B) The employer is exempt from having to offer paid medical leave. C) The employer can avoid a civil lawsuit by an injured worker. D) The employer can offer lower basic pay to workers.

Q: Some states provide that in the absence of an agreement to the contrary each member of a limited liability company has one vote.

Q: Which of the following is true of workers' compensation? A) A worker must file a complaint with the police before claiming workers' compensation benefits. B) Workers' compensation is a provisional remedy, not an equitable remedy. C) A worker who receives workers' compensation cannot sue his or her employer in civil court. D) Workers' compensation is generally awarded as punitive damages in a civil lawsuit initiated by the injured employee.

Q: Most limited liability company statutes have no provisions regarding members' meetings.

Q: Workers' compensation is a(n) ________ remedy. A) exclusive B) cumulative C) provisional D) equitable

Q: A limited liability company must be managed by non-member managers.

Q: If an employee is injured in an automobile accident while she is driving to an off-premises restaurant during her personal lunch hour, the injury is ________. A) covered by workers' compensation insurance B) not covered by workers' compensation C) covered by the employer's self-insurance fund D) not covered by the employee's medical insurance

Q: Which of the following must be proven by a claimant pursuing compensation for an injury under workers' compensation? A) The claimant was harmed intentionally by the employer. B) The claimant was harmed when he or she was employed by the employer. C) The claimant was harmed by an employment-related injury. D) The claimant was harmed unintentionally by the employer.

Q: In many states, an operating agreement is not required for a limited liability company to exist.

Q: States usually require employers to purchase ________ insurance from private insurance companies or state funds to cover workers' compensation claims. A) employee B) relief fund C) provident fund D) workers' compensation

Q: The liability of the members of a limited liability company is limited to the amount of their investments.

Q: Which of the following is true of workers' compensation? A) Families of workers cannot claim workers' compensation despite the death of the worker. B) Workers' compensation is only awarded for injuries resulting from the job. C) The claim for workers' compensation must be filed with the employer. D) Workers' compensation is a fixed amount throughout the country.

Q: A limited liability company is not a citizen of any state.

Q: A limited liability company (LLC) formed in one state but doing business in another state is referred to in the second state as a foreign LLC.

Q: Explain the concept of reasonable accommodation of physically challenged employees. When is an employer not obligated to provide such accommodation?

Q: Limited liability companies (LLCs) are governed by state LLC statutes.

Q: Discrimination based on information from which it is possible to determine a person's propensity to be stricken by diseases is called ________.

Q: ________ is discrimination against a group which is usually thought of as a majority.

Q: A limited liability company can be taxed as a partnership.

Q: ________ refers to a policy which provides that certain job preferences will be given to minority or other protected class applicants when an employer makes an employment decision.

Q: Any event that makes its unlawful for a partnership to continue its business will result in dissolution.

Q: Discriminating against a possible job applicant because of his or her family history of heart ailments is forbidden under ________.

Q: On a partner's dissociation, his or her duty of loyalty to the partnership ends.

Q: Title I of the ADA requires employers to make ________ to assist employees with disabilities that do not cause undue hardship to the employer.

Q: A partner always has the power and the right to dissociate from the partnership.

Q: An affirmative-action plan provides that certain job preferences will be given to members of minority racial and ethnic groups, females, and other protected-class applicants when making employment decisions.

Q: In a general partnership, the partners are personally liable for the debts of the partnership.

Q: Federal antidiscrimination laws prohibit employers from engaging in retaliation against an employee for filing a charge of discrimination.

Q: A partner who pursues his or her own interests automatically violates the partner's fiduciary duties to the partnership.

Q: The Americans with Disabilities Act Amendments Act (ADAAA) is a federal statute that makes it illegal for an employer to discriminate against job applicants and employees based on genetic information.

Q: A partner owes to the partnership and the other partners a duty of loyalty.

Q: Title I forbids an employer from asking a job applicant about the existence, nature, and severity of a disability.

Q: In a general partnership, all partners have equal rights in managing the partnership.

Q: Title I of the ADA covers employers with three or more employees.

Q: Under no circumstances can a non-partner be regarded as an agent whose acts are binding on the partnership.

Q: The Americans with Disabilities Act (ADA) is a federal statute that imposes obligations on employers and providers of public transportation, telecommunications, and public accommodations to accommodate physically challenged individuals.

Q: Withdrawal from a partnership for a term prematurely does not constitute a breach of the partnership agreement.

Q: A(n) ________ provides that certain job preferences will be given to members of minority racial and ethnic groups, females, and other protected-class applicants when making employment decisions. A) retaliation B) affirmative defense C) affirmative action plan D) reasonable accommodation plan

Q: A partner's profit from a partnership is taxed as income to the firm.

Q: The ________ is a federal statute that makes it illegal for an employer to discriminate against job applicants and employees based on genetic information. A) ADA B) GINA C) ADAAA D) OWBPA

Q: Which of the following is considered a major physiological impairment by the ADAAA? A) undergoing mental stress B) a history of surgery C) nursing a temporary but contagious ailment D) having cancer

Q: Federal law permits a partnership to be treated as an entity in suits in federal courts.

Q: The ________, as amended by the Veterans' Benefits Act of 2010, is a federal statute that applies to all civilian and government employers in the United States and U.S. employers operating in foreign countries. A) EEOC B) FEPA C) USERRA D) OWBPA

Q: A sharing of profits from the ownership of property creates a presumption that a partnership exists.

Q: Under the ________, an employer can maintain an employment practice whereby it gives preferential treatment to older workers over younger workers when they are both within the 40 years and older category.

Q: The Uniform Partnership Act governs the operation of partnerships.

Q: In raising capital, a sole proprietor is limited to his or her personal fundsa personal loan is not possible.

Q: The ________ is a federal statute that prohibits age discrimination in employee benefits.

Q: A sole proprietor has unlimited liability for all obligations that arise in doing business.

Q: The Age Discrimination in Employment Act (ADEA) is a federal statute that prohibits age discrimination practices against employees who are 40 years and older.

Q: The ________ imposes obligations on employers and providers of public transportation, telecommunications, and public accommodations to accommodate physically challenged individuals. A) ADEA B) OWBPA C) ADA D) FEPA

Q: An association cannot be a partnership without an express agreement.

Q: The ________ is a federal statute that prohibits age discrimination regarding employee benefits. A) FEPA B) OWBPA C) ADEA D) EEOC

Q: A sole proprietorship lacks continuity on the death of the proprietor.

Q: The ________ is a federal statute that prohibits age discrimination practices against employees who are 40 years and older. A) FEPA B) OWBPA C) ADEA D) EEOC

Q: A sole proprietor owns the entire business but does not receive all of the profit.

Q: The simplest form of business is a sole proprietorship.

Q: Distinguish between sex-plus discrimination and gender identity discrimination.

Q: Pete's Pizza employs Quincy as a delivery driver. Pete's guarantees that an order will be delivered within thirty minutes or there is no charge, and insists that its drivers meet the limit. One night, while making a de­livery, Quincy is caught in a traffic jam. To deliver the pizza within the thirty-minute time limit, Quincy drives onto a sidewalk and hits Ruth, a pedes­trian. Is Pete's li­able to Ruth for her injuries? Is Quincy liable to Ruth? Why or why not?

Q: When is an employer required to prove a bona fide occupational qualification? Explain with an example.

Q: Harbor Bay Development hires Guthrie to act as its agent to buy a 100-acre waterfront tract of land from Frankie for $1,000 per acre. Harbor Bay does not want Frankie to know that it is the principal or that Guthrie is its agent. Harbor Bay wants the land for a new marina, and believes that Frankie may not sell the land for that purpose or may demand a premium price. Guthrie makes the purchase, signing only his name on the contract as the buyer and not disclosing to Frankie the agency relationship. Harbor Bay gives Guthrie the amount to pay for the land, but Guthrie absconds with the funds. Frankie soon learns of Harbor Bay's identity. Can Frankie enforce the contract against Harbor Bay? against Guthrie?

Q: The ________ protects both sexes from pay discrimination based on sex.

Q: Tropical Vittles, LLC, hires Sophie to act as its agent to buy a ten-acre tract of land from Rico for $1,000 per acre. Tropical Vittles does not want Rico to know that it is the principal or that Sophie is its agent. Tropical Vittles wants the land for a new fast-food restaurant, and believes that Rico may not sell the land for that purpose or may demand a premium price. Sophie makes the purchase, signing only her name to the contract as the buyer and not disclosing to Rico the agency relationship. The transfer of the deed is to occur on May 1. Rico learns of Tropical Vittles's identity on April 15. Can Rico legally refuse to deed the property on May 1? Explain.

Q: Discrimination based on protected classes, other than race or color, is permitted if it is shown to be a(n) ________.

Q: Arnold is the chief executive officer of Beta Corporation. Arnold's re­sponsibilities include decisions on product development, marketing, and other significant business directions. Arnold is subject to the approval and oversight of Beta's board of directors. Carol is a Beta manager whose duties include the firm's day-to-day hiring, firing, purchasing, and sell­ing. Dave is a Beta salesperson, whose daily activities are con­trolled by Carol. Erin writes technical manuals for Beta products ac­cording to Arnold's instructions and subject to Beta's control, but has no dealings with Beta custom­ers or sup­pliers. Fred edits the manuals on a contract-per-manual basis and is not otherwise subject to Beta's control. Who is a principal? Who is an agent? Who is an employee? Who is an independent contractor?