Blaw Exam 3

Front 1

A business owned & operated by a single person

Back 1

Sole proprietorship

Front 2

Generally, how do you form a sole proprietorship?

Back 2

Only need to obtain a general business license from local municipality.

Front 3

Advantages of a sole proprietorship?

Back 3

1. Owner has complete authority (within the law)

2. All profits generated will flow directly through owner.

3. Owner pays taxes at his/her personal rate.

4. Owner owns all assets of the business.

Front 4

Disadvantages of a sole proprietorship?

Back 4

1. Owner has unlimited personal liability.

2. Difficulty raising the $$$ to finance business operations.

Front 5

What is "unlimited liability"?

Back 5

When the owner is personally liable for all debts, torts, etc.

Front 6

A business operated by 2+ entities or individuals.

Back 6

Partnership

Front 7

What is "joint and several liability"?

Back 7

a person w/ a claim against the P/S can choose to sue all partners or individual partners.

Front 8

How is taxable income allocated in a partnership?

Back 8

It is allocated to partners at their individual income levels.

Front 9

TRUE/FALSE:

In an LLP (Limited Liability Partnership), all partners can be sued for individual negligence/lawsuits.

Back 9

FALSE

--> Note: LLP is NOT a limited partnership (LTD, LP)

Front 10

Investors in oil and gas deals would form what type of partnership?

a) LLP

b) LP

c) LLC

d) Dude, where's my car?

Back 10

b) LP

--> Limited Partnership: made up of 1+ general partners & 1+ limited partners. (AKA LTD.)

Front 11

A type of liability where all legal debts/obligations of business are limited to individual partner's investment in a business.

Back 11

Limited Liability

Front 12

Advantages of Corporations (Inc. Corp.)

Back 12

1. limited liability of shareholders

2. free transferability of shares

3. Perpetual Existence

4. Centralized MGT

Front 13

What does "perpetual existence" mean in corporations?

Back 13

In company law, perpetual succession is the continuation of a corporation's or other organization's existence despite the death, bankruptcy, insanity, change in membership, or an exit from the business of any owner or member, or any transfer of stock, etc.

Front 14

Advantages of Corporations?

Back 14

1. ease of raising capital (selling shoes)

2. limited liability to shareholders

Front 15

Disadvantages of Corporations?

Back 15

1. DOUBLE TAXATION

--> "Sub S" corporations taxed as a partnership

Front 16

Advantages of an LLC (Limited Liability Company)?

Back 16

1. provides all members w/ limited liability, while allowing them to participate in the MGT of the business

2. Members can avoid double taxation

Front 17

Disadvantages of an LLC (Limited Liability Company)?

Back 17

1. Difficulty raising additional $$$ to expand or maintain business.

2. May be times when the members may disagree on how the business should be run (like a partnership)

Front 18

Land and everything attached to it.

Back 18

Real property (AKA "Real estate")

Also: Fixtures - become so attached to the property that it becomes a part of it.

Front 19

Property that can be moved.

Back 19

Personal property.

Front 20

Requirements of a GIFT:

Back 20

1. Donor must intend to make the gift.

2. Gift must actually be delivered to the donee.

3. Donee must accept the gift.

Front 21

Ownership by 2+ people; a form of joint ownership. Interest can be sold, transferred, or inherited. Shares do NOT have to be equal. (pie chart example in lecture)

Back 21

Tenants in Common

Front 22

2+ owners own equal shares in the property as ______ __________s.

Back 22

Joint Tenants.

--> MUST be created at the time the property is required

--> w/ RIGHT OF SURVIVORSHIP

Front 23

Any property acquired during a marriage (or income) is presumed to be _________ property.

Back 23

Community property.

Front 24

Property owned by someone before marriage.

Back 24

Separate property.

Front 25

Freehold Estate:

- Def: when an owner of an estate (freehold) holds it absolutely.

Back 25

Fee Simple

Front 26

Freehold Estate:

- Def: a freehold estate in which a person has ownership interest only for his/her life ("Life of the Grantee")

Back 26

Life Estate

Front 27

TRUE/FALSE:

Leasehold estate involves an ownership interest in real property.

Back 27

FALSE

Front 28

An instrument (doc.) that conveys an interest in real property b/w parties.

Back 28

Deed

Front 29

The legal process that occurs when property is taken by the government against the will of the property owner.

Back 29

Condemnation

Front 30

TRUE/FALSE:

When private property is taken by eminent domain, compensation is made at the fair market value of the property.

Back 30

TRUE

(but NOT by condemnation)

Front 31

When title to land is acquired by a person's exclusive, continuous, open, known, and hostile use of the property over a period of time.

Back 31

Adverse possession

Front 32

TRUE/FALSE:

If land is held with hostility and the use of the land is NOT known to the owner, then adverse possession exists.

Back 32

FALSE.

(the use of the land MUST be known to the owner to classify as adverse possession)

Front 33

What is the type of deed that transfers whatever interest a grantor has in real property, if any?

Back 33

Quitclaim deed

Front 34

Which tax form is provided to employees?

a) W-2

b) 1099

c) FLSA

d) **** YO TAXES

Back 34

a) W-2

Front 35

Which tax form is provided to independent contractors?

a) W-2

b) 1099

c) FLSA

d) I just really, really hate taxes

Back 35

b) 1099

Front 36

A legal doctrine that holds that the acts of an employee committed while performing employment duties are considered the acts of the employer.

Back 36

Respondeat superior

Front 37

TRUE/FALSE:

An independent contractor can sue the person w/ whom he or she made the contract.

Back 37

TRUE

Front 38

TRUE/FALSE:

Arbitration clauses in employee contracts are NEVER enforceable.

Back 38

FALSE

(They are enforceable if the employee meets the req. provided on pg.125)

Front 39

A current or former employee may sue his/her employer for _________ if the employer provides info to a 3rd party that is untrue, irrespective of whether it relates to the employee's job performance.

a) Invasion of Privacy

b) Defamation

c) Negligent Misrepresentation

d) Being a dick

Back 39

Defamation

Front 40

Arbitration clauses in employment contracts are enforceable provided the employee:

Back 40

1. Has signed the agreement.

2. has a reasonable time to file a claim.

3. Has access to the same remedies that a court could provide.

4. Has access to an arbitrator with expertise in employment law.

5. Has the right to be represented by an attorney.

6. Does not have to pay the cost of arbitration.

Front 41

If an employer includes highly personal info irrelevant to job performance on references, the employee can sue for:

a) Invasion of Privacy

b) Defamation

c) Negligent Misrepresentation

d) Peace

Back 41

a) Invasion of Privacy

Front 42

Defamation that is written is considered (libel/slander).

Back 42

Libel

Front 43

Defamation that is spoken is considered (libel/slander).

Back 43

Slander

Front 44

TRUE/FALSE:

OSHA agents can make unannounced inspections in your workplace.

Back 44

TRUE.

They don't give a ****.

Front 45

The Civil Rights Act of 1964 identified which protected classes? (6 classes)

Back 45

Race, creed, color, gender, sex, and national origin.

Front 46

TRUE/FALSE:

According to the Equal Pay Act of 1963, there must be equal compensation for both sexes, regardless of seniority in the company.

Back 46

FALSE

(seniority is the one exception)

Front 47

A physical or mental impairment that substantially limits one or more of the major activities of life (def. by the ADA)

Back 47

disability

Front 48

TRUE/FALSE:

The Civil Rights Act of 1991 gave injured parties the right to collect punitive damages, including for emotional distress.

Back 48

TRUE

Front 49

TRUE/FALSE:

Federal law requires that employers establish employee assistance programs.

Back 49

FALSE

(Many employers have it, but it is not required by law)

Front 50

What is "featherbedding"?

Back 50

Hiring unproductive workers.

Note: Employees are protected from featherbedding

Front 51

TRUE/FALSE:

In the event a collective bargaining agreement b/w a union and an employer is not reached, the employer has the right to engage in a lockout.

Back 51

TRUE

Lockout = not allow employees to return to work