Question 1 1.5 pts To pierce the corporate veil means to ignore the corporate structure, exposing the shareholders to personal liability. True False...

Question 1

1.5 pts

To pierce the corporate veil means to ignore the corporate structure, exposing the shareholders to personal liability.

True

False

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Question 2

1.5 pts

Lauren, Kathryn and Emily close their medical business, pool their assets and open a surf shop. The state where they reside assesses corporations at an 8% tax rate and 12% on individuals, regardless of income. The sole requirement the girls are considering is finding the most tax advantageous business entity. For the foreseeable future the girls are not going to take dividends from the profits but reinvest profits back into the business. The wisest business entity would be

S corporation.

professional corporation.

C corporation.

limited liability corporation.

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Question 3

1.5 pts

Theresa, a female, and John, a male, are employees of Equipment Leasing Corporation. Theresa regularly e-mails sexually explicit images to John via Equipment Leasing's computer network. John finds this offensive. This is

not harassment or any form of discrimination.

reverse discrimination.

hostile-environment harassment.

quid pro quo harassment.

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Question 4

1.5 pts

Horton takes temporary family leave from his job at Seussland Inc. to care for a new baby. On Horton's return from the leave, Seussland must

promote Horton to the status of a key employee.

restore Horton to his original position.

reimburse Horton for his expenses while on leave.

do nothing.

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Question 5

1.5 pts

Tedium Accounting Corporation, a private employer, handles bookkeeping for small employers. In most circumstances, with excep­tions, federal law clearly pro­hibits Tedium from subjecting its employees to

lie-detector tests.

drug tests.

genetic tests.

electronic monitoring of business communications.

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Question 6

1.5 pts

Donna signs a one-year lease with Bob to occupy an apartment in Ames, Iowa, near the Iowa State University. Donna needs the apartment only for two terms and may have to sublet it for the rest of the term. Donna's tenancy is

a periodic tenancy.

a tenancy by the entirety.

a fixed-term tenancy.

a tenancy at will.

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Question 7

1.5 pts

Kermit sells his real property to Beaker using a special warranty deed. Therefore, Kermit conveyed to Beaker whatever interest Kermit had in the real property providing Beaker the least amount of protection amongst the forms of conveyance deeds.

True

False

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Question 8

1.5 pts

Lennie is a member of Mice and Men Trucking LLC. Lennie's relationship to Mice and Men ends, but the firm continues to do business. This is

dissociation.

dissolution.

winding up.

wrongful.

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Question 9

1.5 pts

Stephanie, Louree, Jack and Andrew want to form a corporation and become shareholders in said business. In order to do so they must file __________ with the proper state authority in their state.

articles of incorporation

no form or forms are necessary to be filed in a state unless they elect to be treated as an S Corporation

articles of organization

bylaws

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Question 10

1.5 pts

Bono was kicked out of the band U2 for failing to attend rehearsals on time and constantly cutting the strings of Adam Clayton's bass guitar. For the purposes of this question Bono was an employee of U2 which is an American company. Bono applies for unemployment insurance. Provided that he is actively attending auditions to display his willingness and ability to seek future employment he will receive state administered unemployment benefits.

True

False

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Question 11

1.5 pts

Ryder, an employee of Slipstream, Inc., claims that he nor any reasonable person could endure the sexual harassment environment at Slipstream. Further he claims Slipstream knew or should have known of the harassment but failed to correct the working environment. Even though he quit his job, due to the intolerable working conditions, Ryder can claim a tangible employment action in holding Slipstream liable for Ryder's damages. 

True

False

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Question 12

1.5 pts

Ava buys an exclusive territory in which she is authorized to set up a plant to make Black Hills Dairy, Inc., products. After receiving the formula, Ava begins making Mt. Rushmore-brand ice cream and other Black Hills prod­ucts. This is

a chain-style franchise.

a manufacturing franchise.

no franchise.

a distributorship franchise.

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Question 13

1.5 pts

Kate and Kevin are shareholders of Sernett's, a highly successful chain of stores. Kevin owns 12% of the outstanding shares while Kate owns 14%. Neither wants to lose their ownership proportion when Sernett's issues new shares. The mechanism to protect their voting strength is

preemptive rights.

stock certificates.

dividends rights.

stock warrants.

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Question 14

1.5 pts

Stale and Outdated Fruit-of-the-Month Company (SOFM) currently employs five hundred full-time workers and two hundred part-time seasonal workers. Because business has declined - for unknown reasons related to marketing - SOFM plans to close a plant that employs more than fifty full-time workers. Advance notice of the layoff must be sent to

no one.

affected workers or their union representative.

all workers, even those who are not being laid off.

potential customers and suppliers.

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Question 15

1.5 pts

In a limited partnership, a limited partner has full responsibility for the partnership and for all its debts.

True

False

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Question 16

1.5 pts

Amy, who has a disability, is an employee of Taxidermy Supplies Company (TSC). After the installation of new doors on TSC's building, Amy finds it nearly im­possible to get in and out. For repeatedly failing to be on time, TSC replaces Amy with Colleen, who does not have a disability.

To successfully defend against Amy's claim, TSC will have to show that

Amy consistently failed to meet the essential requirements of her job.

the doors were not installed as an act of intentional discrimination.

TSC cannot make changes to the doors without undue hardship.

Colleen is qualified for Amy's position.

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Question 17

1.5 pts

Kevin and Kate live in the same neighborhood. There is a convenience shop and a golf course which separate their respective properties. Kate has given Kevin the right to fish in the pond on Kate's land. Kevin's right is

an easement in gross.

a profit in gross.

an easement appurtenant.

a profit appurtenant.

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Question 18

1.5 pts

Jeff is a member of Go Big Red, LLC. Jeff decides he does not like the color red, preferring instead the colors black and gold. Jeff leaves the LLC for that reason. Upon dissociation all of the following apply to Jeff except

duty of care immediately ceases in all regards.

right to have his interests to be bought out.

loses the right to manage the LLC.

duty of loyalty immediately ceases in all regards.

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Question 19

1.5 pts

Hard Shoe, Inc., develops a new series of choreographed dance steps to be used in future Irish musicals. The dance steps are most likely pro­tected by

copyright law.

patent law.

trade secrets law.

trademark law.

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Question 20

1.5 pts

Venture Capital, LP, is a limited partnership. Its limited partners include more than 150 sophisticated investors and investment professionals. A Venture limited partner loses his or her limited liability if he or she

invests in Unified Fund, one of Venture's competitors.

does not participate in the firm's management.

acts as the firm's manager.

votes on the firm's sale or dissolution.

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Question 21

1.5 pts

Dorothy, the Tin Man, the Cowardly Lion and the Scarecrow seek patent protection for ruby red shoes. For patent protection which of the following is not a requirement

necessity.

novelty.

usefulness.

not obvious.

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Question 22

1.5 pts

Protection against retaliation under the Civil Rights Act of 1964 does not extend to an employee who answers questions during an employer's in­ternal investigation of another employee's complaint.

True

False

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Question 23

1.5 pts

Bottas wants to protect the unique sound of his Formula One racing engine. Under the American Invents Act his patent protection commences on the date he files his patent application not when the US Patent and Trademark Office issues the patent.

True

False

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Question 24

1.5 pts

Amy, Ryan and Colleen are directors of Old Market Taxidermy, Inc. At a recent Board of Director's meeting they approve a proposal that causes harm to the corporation and the value of shareholder's ownership interests. All the directors argue that they made an honest mistake. To avoid liability for their decision, the directors would argue ___________ protects them from liability. 

one of the directors cast a dissenting vote that appears in the minutes of the Board of Director's meeting.

the business judgment rule

the equal dignity rule

a quorum was present at the Board of Director's meeting

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Question 25

1.5 pts

Kenny starts up eSouthPark, an Internet service, and leases office space in a building owned by Cartman. The lease requires Kenny to pay Cartman a base rental of $1,250, plus 10 percent of eSouthParks' profits, each month. The term is two years. Kenny hires Stan to work at eSouthParks' tech support desk at an hourly wage of $12.50, plus a commis­sion of 10 percent of the prof­its. The term is also two years.

Kenny and Cartman are

partners in a partnership for two years.

not partners, because Cartman does not have an ownership interest or management rights in eSouthPark.

not partners, because the rent includes only 10 percent of the profits.

not partners, because the lease includes a "base rental."

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Question 26

1.5 pts

Amy, who has a disability, is an employee of Taxidermy Supplies Company (TSC). After the installation of new doors on TSC's building, Amy finds it nearly im­possible to get in and out. For repeatedly failing to be on time,TSC replaces Amy with Colleen, who does not have a disability.

To succeed with a claim against TSC under the Americans with Disabilities Act, Amy will have to show that

Colleen is unqualified for Amy's position.

Amy has seniority.

TSC refused to make reasonable accommodation for Amy.

Amy meets a bona fide occupational qualification.

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Question 27

1.5 pts

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

True

False

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Question 28

1.5 pts

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

True

False

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Question 29

1.5 pts

Milhouse is a franchisee of Krusty Burger, LLC Their contract gives Krusty Burger the right to control virtually all aspects of Milhouse's op­eration, including the hiring of employees. One of the employees, Nelson commits a tort against Ralph, one of Milhouse's customers. Ralph files a suit against Krusty Burger. Krusty Burger is most likely

liable because Krusty Burger exercises control over Milhouse's operation.

not liable because Milhouse is responsible for the employees.

liable because Ralph was Krusty Burger's customer.

not liable because Ralph was Milhouse's customer.

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Question 30

1.5 pts

Saucers Full of Secrets, Inc., (SFS) sells scopes with distinctively designed and made lenses and mirrors to scientists. Astronomy Domine Corp. later begins to sell scopes with identical set-ups of lenses and mirrors, without SFS's permission, to consumers. This is most likely

an awesome reference to Pink Floyd songs 

(hint - though a correct statement not the right answer).

trademark infringement.

copyright infringement.

patent infringement.

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Question 31

1.5 pts

Kelly is a current employee of Big Tent, Inc. LeAnne, a former Big Tent, Inc. employee who is currently unemployed, collects unemploy­ment benefits. This is provided by a tax on

Big Tent, Inc. only.

Kelly and LeAnne only.

none of these parties.

Kelly, Big Tent, Inc., and LeAnne.

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Question 32

1.5 pts

Eminent domain is the right of a property owner to exclusive use of his or her property, with certain exceptions, and the ability to convey the property to whomever he or she wishes.

True

False

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Question 33

1.5 pts

Lauren, Kathryn and Emily are doctors seeking to form a business entity. The only two requirements the girls are considering are limiting liability as much as possible and that they all may operate the business. Lauren and Kathryn are concerned about Emily's competence. From Lauren and Kathryn's perspective the best business entity would be

professional corporation.

general partnership.

limited liability partnership.

limited partnership.

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Question 34

1.5 pts

Phil's Canoe Company terminates Jay, a forty-five-year-old employee, and replaces him with Chris. Jay files a suit against Phil's Canoe Company under the Age Discrimination in Employment Act of 1967. To establish a prima facie case, Jay must show, among other things that he is

qualified for the position.

generally more dependable than Chris.

deserving of higher pay than Chris.

older than Chris.

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Question 35

1.5 pts

Monty originated a humorous choreographic work that is performed on stage. He registered the work under the Copyright Act. Professor Python has used much of said work in his classroom as a criticism regarding the decline of modern culture. In determining whether a copyrighted work was infringed under the "fair use" doctrine, one factor to consider is whether such use by Professor Python was of a commercial nature or for a nonprofit educational purpose.

True

False

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Question 36

1.5 pts

Some states and the Federal Government (FTC) require franchisors to provide presale disclosures to pro­spective franchisees.

True

False

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Question 37

1.5 pts

Jeff leases from National Theater Corporation a theater in which to stage a series of concerts. Liz buys a ticket to the series. What distin­guishes Jeff, a tenant, from Liz, a licensee, is

the right to commit waste.

the temporary nature of possession.

the title to the property.

the exclusivity of possession.

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Question 38

1.5 pts

A corporation formed in another country but doing business in the United States is referred to in the United States as a foreign corporation.

True

False

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Question 39

1.5 pts

Dave owns Heavy Metal T's, a sole proprietorship. Dave's liability is

limited by state statute and varies from state to state.

limited to the extent of capital expenditures.

unlimited.

limited to the extent of his or her original investment.

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Question 40

1.5 pts

Red Swedish Snow will receive trademark protection for a particular product if

it acquires a secondary meaning.

if there is a catchy jingle included in its advertising.

the trademark owner of Blue Belgian Hail does not object.

it can be proven that snow in Sweden is red.