Chapter 16: Legal Guidelines and Business Considerations

Question 1

Contract

Answer 1

A binding agreement between two or more persons that is enforceable by law composed of an offer, acceptance, and consideration (or what each party puts forth to make the agreement worthwhile).

Question 2

Risk Management

Answer 2

Minimizing the risks of potential legal liability.

Question 3

Employees

Answer 3

A person who works for

another person in exchange for financial compensation,

Question 4

Standard of care

Answer 4

Appropriateness of an exercise professional’s actions in light of current professional standards and based on the age, condition, and knowledge of the participant,

Question 5

Sole proprietorship

Answer 5

A business owned and operated by one person,

Question 6

Corporation

Answer 6

A legal entity, independent of its owners and regulated by state laws; any number of people may own a corporation through shares issued by the business.

Question 7

Partnership

Answer 7

A business entity in which two or more people agree to operate a business and share profits and losses.

Question 8

Limited Partner

Answer 8

An individual who retains no legal liability beyond his or her initial investment and does not have any formal input regarding partnership operations.

Question 9

Limited Liability Company

Answer 9

A company that limits investors’ personal financial and legal liabilities but provides flow-through taxation for investors.

Question 10

Limited Liability Partnership

Answer 10

A partnership in which some or all partners (depending on the jurisdiction) have limited liability; exhibits elements of both partnerships and corporations.

Question 11

Subchapter S-Corporations

Answer 11

A corporation that does not pay any income taxes.

Question 12

C-corporation

Answer 12

A corporation that is designed to operate in multiple countries and with various types of investors.

Question 13

Double taxation

Answer 13

The imposition of taxation on corporate earnings at both the corporate level and again as a stockholder dividend.

Question 14

License

Answer 14

Any business, organization, or individual that has been granted legal permission by another entity to engage in an activity.

Question 15

Affiliate

Answer 15

A facility or business that is connected or attached to a larger organization or company.

Question 16

Negligence

Answer 16

Failure of a person to perform as a reasonable and prudent professional would perform under similar circumstances.

Question 17

Certification

Answer 17

A credential attesting that an individual or organization has met a specific set of standards.

Question 18

Informed Consent

Answer 18

A written statement signed by a client prior to testing that informs him or her of testing purposes, processes, and all potential risks and discomforts.

Question 19

Corporate Veil

Answer 19

Shields individual investors in a corporation from financial or legal liability beyond their initial investment.

Question 20

Liability

Answer 20

Legal Responsibility

Question 21

Agreement to participate

Answer 21

Signed document that indicates that the client is aware of inherent risks and potential injuries that can occur from participation.

Question 22

Waiver

Answer 22

Voluntary abandonment of a right to file suit; not always legally binding.

Question 23

Exculpatory Clause

Answer 23

A clause within a waiver that bars the potential plaintiff from recovery,

Question 24

Gross Negligence

Answer 24

A form of negligence

that is worse than normal negligence.

Question 25

Group Waiver

Answer 25

Waiver that includes lines for multiple signatures.

Question 26

General Partnership

Answer 26

A type of business arrangement in which each partner assumes management responsibility and unlimited liability and must have at least a 1% interest in profit and loss.

Question 27

Contributory Negligence

Answer 27

A legal defense used in claims or suits when the plaintiff's negligence contributed to the act in dispute.

Question 28

Comparative Negligence

Answer 28

A system used in legal defenses to distribute fault between an injured party and any defendant.

Question 29

Inherent Risks

Answer 29

Risks that can occur through normal participation in the stated activity. Inherent risks can only be avoided by declining to participate.

Question 30

Statute of Limitations

Answer 30

A formal regulation limiting the period within which a specific legal action may be taken,

Question 31

General Supervision

Answer 31

A method of supervision where the worker (or trainee) does not require the constant attendance of the supervisor (or trainer).

Question 32

Specific Supervision

Answer 32

A method of supervision where the worker (or trainee) requires direct involvement of the supervisor (or trainer).

Question 33

Anorexia

Answer 33

An eating disorder characterized by refusal to maintain body weight of at least 85% at expected weight.

Question 34

Bulimia

Answer 34

An eating disorder characterized by recurrent episodes of uncontrolled binge eating.

Question 35

Binge Eating Disorder

Answer 35

An eating disorder characterized by frequent binge eating (without purging) and feelings of being out of control when eating.

Question 36

Keyman Insurance

Answer 36

insurance that compensates a company for the loss of a representative of the company who was performing unique and valuable functions.

Question 37

Professional Liability Insurance

Answer 37

Insurance to protect a trainer/instructor against professional negligence or failure to perform as a competent and prudent professional would under similar circumstances,

Question 38

Umbrella Liability Policy

Answer 38

insurance that provides additional coverage beyond other insurance such as professional liability, home, automobile, etc.

Question 39

Product Liability Insurance

Answer 39

insurance that covers damages occurring due to product failure.

Question 40

Royalty

Answer 40

A payment made to the owner of a copyright, patent, or trademark in exchange for use of the protected intellectual property; typically a percentage of each sale.