Chapter 8, Bus structure, Agency, employer-employee law

Question 1

do partnerships dissolve when partners die?

Answer 1

NO

Question 2

under worker’s comp can employer challenge suit based on employee negligence?

Answer 2

NO, employer must pay due to strict liability

Question 3

Under Federal Age discrimination in Employment Act what is prohibited? what is not?

Answer 3

Compulsory retirement is generally prohibited before age 70.
termination of an employee for ANY AGE (including 65-70) for CAUSE is not prohibited.

Question 4

FUTA taxes are

Answer 4

DEDUCTIBLE for employer for tax purpose
Not payable for casual employers
Not withheld from employee wages

Question 5

WHen do directors need shareholder approval?

Answer 5

when they will fundamentally change the way the corporation operates (Mergers, consolidation, dissolving voluntarily)

Question 6

who needs unanimous consent to add new member or partner?

Answer 6

LLC
General Partnerships
Limited partnerships