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Business Law
Q:
Limited liability companies (LLCs) are governed by state LLC statutes.
Q:
In a limited partnership, a limited partner is personally liable to the partnership's creditors.
Q:
Any partnership can be dissolved by the partners' agreement.
Q:
A limited liability partnership allows its partners to avoid personal liability for the malpractice of other partners.
Q:
On a partner's dissociation, his or her duty of loyalty to the partnership ends.
Q:
A partner always has the power and the right to dissociate from the partnership.
Q:
In a general partnership, the partners are personally liable for the debts of the partnership.
Q:
A partner who pursues his or her own interests automatically violates the partner's fiduciary duties to the partnership.
Q:
A partner owes to the partnership and the other partners a duty of loyalty.
Q:
Each partner is an agent of the partnership in carrying out the usual business of the firm.
Q:
In a general partnership, all partners have equal rights in managing the partnership.
Q:
Under no circumstances can a non-partner be regarded as an agent whose acts are binding on the partnership.
Q:
Withdrawal from a partnership for a term prematurely does not constitute a breach of the partnership agreement.
Q:
A partner's profit from a partnership is taxed as income to the firm.
Q:
Federal law permits a partnership to be treated as an entity in suits in federal courts.
Q:
Joint ownership of property in and of itself creates a partnership.
Q:
An association cannot be a partnership without an express agreement.
Q:
A sharing of profits from the ownership of property creates a presumption that a partnership exists.
Q:
The Uniform Partnership Act governs the operation of partnerships.
Q:
In raising capital, a sole proprietor is limited to his or her personal funds-a personal loan is not possible.
Q:
A sole proprietor has unlimited liability for all obligations that arise in doing business.
Q:
A sole proprietorship lacks continuity on the death of the proprietor.
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:
An employer can be liable for an employee's sexual harassment of a member of the same gender.
Q:
It is not unlawful for an employer to retaliate against an employee who has opposed a discriminatory employment practice.
Q:
An employer is not liable for the sexual harassment of an employee by the employee's supervisor.
Q:
A small difference in job content can justify higher pay for one gender.
Q:
Under the Equal Pay Act of 1963, all of the women on an employer's staff must be paid the same as all of the men.
Q:
Gender can be a determining factor in an employer's decision to hire, fire, or promote an employee.
Q:
Disparate-impact discrimination occurs when an employer intentionally discriminates against an employee who is a member of a protected class.
Q:
All employers in the United States are subject to federal employment discrimination laws.
Q:
An employer with fewer than fifteen employees is automatically shielded from federal employment discrimination laws.
Q:
The Civil Rights Act of 1964 does not prohibit job discrimination at all stages of employment.
Q:
Only state law governs drug tests of private-sector employees.
Q:
Most employees can continue the group health benefits provided by their employers for a limited period of time after the loss of employment.
Q:
An employee can continue the health benefits provided by his or her employer for a period of time only on an involuntary loss of employment.
Q:
Employers who provide pension plans for retired workers must comply with certain standards in managing the plans.
Q:
Once an employee receives workers' compensation, he or she can maintain a suit against the employer for negligence.
Q:
To recover workers' compensation, an employee must prove that an injury was the fault of the employer.
Q:
Employer who willfully violates safety regulations can be prosecuted under state laws.
Q:
Certain employers must provide their employees with up to twelve weeks of family or medical leave during any twelve-month period.
Q:
All employees are entitled to overtime pay.
Q:
Whistleblower statutes protect employers who retaliate against their employees for "blowing the whistle."
Q:
Firing a worker who refuses to perform an illegal act violates public policy.
Q:
An oral promise that an employer makes to employees regarding discharge policy may be considered part of an implied contract.
Q:
There are no exceptions to the employment-at-will doctrine.
Q:
Healthy Harvest Company runs a candy and fruit processing and packaging plant. Most of Healthy Harvest's business is done during holiday seasons, especially between Halloween and New Year's Day, and in the spring. The company hires a large temporary workforce during its busiest times. Occasionally, a position opens for an individual with highly specialized skills, particularly to operate and maintain the company's inventory and sales control systems. Can Healthy Harvest hire noncitizens for its temporary, seasonal work? Can the company hire a noncitizen with special skills for certain jobs? If so, what procedures must the employer follow in both situations to do this hiring? If not, how can Healthy Harvest be assured that it is hiring only citizens?
Q:
For twenty years, Ozzie works for Players Paradise, a destination for vacationers from across the United States, maintaining golf carts. After a steady stream of positive job evaluations and merit pay raises, Ozzie is promoted to the position of supervisor of golf-cart maintenance at three of Players's courses. Five years later, a new employee, Quentin, is hired to oversee operations at all ten of Players's courses. Quentin demotes Ozzie, who is now over the age of forty, to running only one of the three cart facilities, and freezes his salary. Quentin demotes five other employees over the age of forty and places one of Ozzie's former facilities under the supervision of Richie, who is twenty-three. Ozzie overhears Richie say, "We're going to have to do away with these old, senile men." Less than a year later, Quentin reconsolidates the three cart facilities' operations under Richie's charge. Ozzie quits and files a suit against Players for employment discrimination. Should he prevail? Explain.
Q:
Dag is an employee of Eagle Mining Company. Under federal labor law, Dag and other employees have the right to
A.bargain collectively with Eagle through their representatives.
B.insist that Eagle require union membership as a condition of work.
C.interfere with the efforts of others to form labor organizations.
D.refuse to bargain with Eagle through their representatives.
Q:
Link and Meryl are employees of Natural Resources, Inc. (NRI). When Odel, the president of NRI, learns that Link and Meryl are active in union activities, he discharges them. Link and Meryl may bring an action against NRI under
A.federal labor law.
B.federal or state unemployment law.
C.state workers' compensation law.
D.the employment at-will doctrine.
Q:
Detail Designs Company, an architectural firm, wants to hire Eduardo, a noncitizen. A temporary work visa is most likely to be set aside for a noncitizen who is
A.a "person of ethnic similarity to the employer's workforce."
B.a "person of extraordinary ability."
C.a "person of ordinary ability and ambition."
D.a "person with an extraordinary work ethic."
Q:
General Packaging Corporation, a U.S. employer, may hire Hilo, a noncitizen, if Hilo is
A.a lawful permanent resident of the United States.
B.an unlawful but hopefully permanent resident in the United States.
C.an unlawful but only temporary resident in the United States.
D.any of the choices.
Q:
Socrates Software Corporation wants to hire Tomas, a noncitizen. To hire Tomas, Socrates must petition
A.Citizenship and Immigration Services.
B.the U.S. Department of State.
C.Immigration and Customs Enforcement.
D.the National Labor Relations Board.
Q:
Seafood Canning Corporation keeps a file of I-9 verifications forms. To inspect this file, the appropriate government officer must obtain
A.a subpoena and a warrant.
B.a subpoena or a warrant, but not both.
C.not a subpoena, a warrant, or the employer's consent.
D.the employer's consent.
Q:
Hong, Ivan, and Juana apply to work for King Meatpacking Company. These individuals' identities and eligibility to work must be verified by
A.the employer.
B.the individuals.
C.the individuals' countries of origin.
D.the U.S. Citizenship and Immigration Services.
Q:
Unity Production Company is suspected of employing illegal immigrants. The government conducts random compliance audits and other enforcement measures against those who might violate immigration laws through
A.the CIS.
B.the H1-B.
C.the ICE.
D.the NLRB.
Q:
Mineral Mining Corporation is a U.S. employer. Mineral, and other U.S. employers, must perform I-9 verifications for new hires who work under the employer's direct supervision
A.excluding contractors and day workers.
B.excluding contractors but including day workers.
C.excluding day workers but including contractors.
D.including contractors and day workers.
Q:
Southwestern Foods Corporation operates a packaging plant near the border between the United States and Mexico. Due to the location, it would be easier for Southwestern to employ noncitizens. It is legal for a U.S. employer to
A.hire persons not authorized to work in the United States.
B.recruit persons not authorized to work in the United States.
C.refer for a fee persons not authorized to work in the United States.
D.none of the choices.
Q:
Machine Corporation requires its employees to have a high school diploma, claiming a definite connection between a high school education and job performance. In a suit against Machine Corporation under Title VII, this requirement is shown to have a discriminatory effect. The employer has
A.an after-acquired evidence defense.
B.a bona fide occupational qualification defense.
C.a business necessity defense.
D.no defense.
Q:
Eton files a suit in a federal district court against Florida, alleging employment discrimination under the Age Discrimination in Employment Act of 1967. The state asks the court to dismiss the suit. The court is most likely to rule that
A.the state is immune from the suit.
B.the suit can proceed.
C.Eton is immune from any defense the state might offer.
D.the court is immune from such request.
Q:
Svetlana, a fifty-five-year-old member of a racial minority with a disability, believes that she is a victim of employment discrimination. Potentially the most widespread form of discrimination is based on
A.age.
B.disability.
C.gender.
D.race.
Q:
Mold & Dye Corporation is a private employer involved in a Title VII employment discrimination suit. Punitive damages may be recovered against Mold & Dye only if the employer
A.acted with malice or reckless indifference.
B.can easily afford to pay the amount.
C.has one hundred or more employees.
D.none of the choices.
Q:
Rona is Stu's administrative assistant and both work for TriCounty Labor Inc. Stu tells Rona that for sexual favors, he will give her an excellent performance review and recommend a raise. This is
A.harassment on the basis of sexual orientation.
B.hostile-environment harassment.
C.not harassment.
D.quid pro quo harassment.
Q:
Greta is the only female employee in the maintenance department of Hydraulics Inc. Greta's supervisor and co-workers tease and play tricks on her so relentlessly that she feels compelled to quit. This is
A.a constructive discharge on the basis of gender discrimination.
B.a harassing discharge on the basis of treatment discrimination.
C.a voluntary discharge on the basis of impact discrimination.
D.not a discharge or discrimination.
Q:
Lloyd and Milly are employees of NuTech Corporation. They have the same job. Under the Equal Pay Act, NuTech can legitimately pay Lloyd more than Milly on the basis of
A.Lloyd's greater production only.
B.Lloyd's greater production or seniority.
C.Lloyd's greater seniority only.
D.neither Lloyd's greater production nor his greater seniority.
Q:
Research Statistics Corporation uses a merit system to pay its employees according to their job performance. Suki, a female, and Troy, a male, are Research employees with comparable jobs. Due to superior performance, Suki is paid more than Troy. This is
A.disparate-impact discrimination.
B.gender discrimination.
C.not discrimination.
D.reverse discrimination.
Q:
United Industrial Corporation gives preferential treatment in hiring and promotion to the members of all protected classes. This treatment results in discrimination against members of the majority. This is
A.a bona fide occupational practice.
B.a business necessity.
C.constructive discharge.
D.reverse discrimination.
Q:
Olly applies for a job with Petro Company. Petro does not hire Olly because of his ethnicity, or national origin. This is
A.desperate-measure discrimination.
B.disparate-impact discrimination.
C.disparate-treatment discrimination.
D.not discrimination.
Q:
Lew, a member of a protected class, applies for a job with Mit-E Construction Company, but fails Mit-E's employment test and is not hired. Lew believes that the test has an unintentionally discriminatory effect. If so, this is
A.desperate-measure discrimination.
B.disparate-impact discrimination.
C.disparate-treatment discrimination.
D.not discrimination.
Q:
Hu believes that he is a victim of a form of employment discrimination that falls under Title VII of the Civil Rights Act. Compliance with this statute is monitored by
A.employees and job applicants, not an administrative agency.
B.employers and businesses, not an administrative agency.
C.the courts and Congress, not an administrative agency.
D.the Equal Employment Opportunities Commission.
Q:
Cody believes that Delta Corporation has discriminated against him on the basis of gender. Cody files a suit against Delta under Title VII. To establish a prima facie case of employment discrimination, Cody must show that
A.Cody is a member of a protected class.
B.Delta has no legal defenses against the claim.
C.discriminatory intent motivated Delta's act.
D.other firms in Delta's industry have committed discriminatory acts.
Q:
Personnel Staffing Corporation meets all of the requirements to be subject to the federal employment discrimination laws. Among these, the most important statute prohibiting discrimination against members of protected classes is
A.the Age Discrimination in Employment Act of 1967.
B.the Americans with Disabilities Act of 1990.
C.the Pregnancy Discrimination Act of 1978.
D.Title VII of the Civil Rights Act of 1964.
Q:
Staffing Solutions Corporation is subject to the Social Security Act, which
A.covers only employees who do not receive employer-paid pensions.
B.governs state unemployment compensation funds.
C.provides retirement, survivors, and disability insurance.
D.regulates disputes between unions and management.
Q:
Over a forty-year period, Ewa worked in a variety of jobs. She was also occasionally unemployed, briefly hospitalized, and suffered a temporary disability. She retired last year. The key law on all of these subjects is
A.the Consolidated Omnibus Budget Reconciliation Act.
B.the Employee Retirement Income Security Act.
C.the Federal Insurance Contributions Act.
D.the Social Security Act.
Q:
Hoppy, who works as an employee for Imperial Power Corporation, suffers an injury in an accident. Hoppy will be compensated under state workers' compensation laws
A.only if the injury occurred during working hours.
B.only if the injury occurred off the job.
C.only if the injury occurred on the job.
D.whenever and wherever the injury occurred.
Q:
Eduardo is an employee of Free-Flo Plumbing Corporation. With respect to the workplace, under federal health and safety statutes, Free-Flo has
A.a general duty to keep it safe and to meet specific standards.
B.no general duty to keep it safe but must meet specific standards.
C.no general duty to keep it safe or to meet specific standards.
D.only a general duty to keep it safe.
Q:
Cash is an employee of Drowsy Resort, Inc., covered by federal overtime provisions, which apply only after an employee has worked more than
A.eight hours in a day.
B.forty hours in a week.
C.160 hours in a month.
D.one year for the same employer.
Q:
Uri is an employee of Verity Security Services. For Uri to obtain the benefits of federal wage-hour requirements, Verity must be engaged in
A.business activity.
B.employment at will.
C.international commerce.
D.interstate commerce.
Q:
Frida is an employee of Green Recycled Products Company. A state statute protects Frida from Green's retaliation if Frida reports to state officials, or others, that Green is involved in unsafe or illegal activity. With respect to the employment-at-will doctrine, this is
A.an example of the doctrine.
B.an exception based on contract theory.
C.an exception based on public policy.
D.an exception based on tort theory.