Exam 2 Flashcards
Larry decided to relocate to Germany. Larry hired Happy Homes, Inc. to find a buyer and contract for the sale of his house in the U.S. The agency relationship between Larry and Happy Homes must be evidenced with a written agreement.
True
If Denise is hired to work as a cashier, she has the implied authority to do acts reasonably necessary to carry out her job.
True
Erica’s supervisor told her to arrange for a conference room at the Kelly Inn. Erica has express authority to contract for the room.
True
An agent must obey all instructions of the principal.
False
Jolene hired Lacy to find a buyer for her house. Adam was interested in buying the house. If both Jolene and Adam agree, Lacy, a real estate agent, may represent both parties.
True
As a general rule, an agent is liable on contracts entered into on behalf of a fully disclosed principal.
False
You cannot be held liable for the actions of your agents if the agents are violating your instructions.
False
If apparent authority is present, the principal is liable for even the unauthorized acts of the agent.
True
The death of an agent automatically terminates an agency relationship.
True
Generally, either party to an agency relationship has the power to terminate it at any time.
True
Rob agrees to act as an agent for Diane in selling her car. Diane has a duty of loyalty to Rob.
False
Kaiya is a sales representative of TriColor. Kaiya owes a fiduciary duty to TriColor.
True
A principal must indemnify an agent for any expenses incurred in carrying out agency responsibilities, but the principal will not be responsible for indemnifying an agent for any expenses not expressly authorized.
False
An agent cannot disclose nor use for their own benefit any information they learn during the agency
True
An agent is always liable for his or her own torts committed within the scope of the agency relationship.
True
A fundamental aim of the National Labor Relations Act is the establishment of industrial peace and the preservation of the flow of commerce.
True
The five members of the National Labor Relations Board are appointed by the President.
True
The NLRB guarantees the employees the right to talk among themselves about forming a union.
True
The National Labor Relations Act guarantees employees the right to join unions.
True
Union members earn, on average, $200 more per week than non-union members.
True
The NLRA requires the union and the employer to reach an agreement through good-faith collective bargaining.
False
Valley Mart told its employees that they would be fired if they actively supported a unionizing effort. Valley Mart has committed an unfair labor practice.
True
If employees wish to organize a union, the employer is prohibited from distributing written notices to employees stating it is opposed to union activity within the company.
False
At one point in American history, American courts regarded any coordinated effort by workers as a criminal conspiracy, and courts convicted workers merely for the act of joining together, even if no strike took place.
True
Management is entitled to tell the employees that it is opposed to a union and why.
True
The management of Northeastern Manufacturing may not close one of its manufacturing plants without bargaining that issue with the union if its workers are represented by a collective bargaining unit.
True
A union shop means the employer can hire anyone they choose but once hired an employee must join a union.
True
The union representing workers at Blue Ridge Co. were unable to reach a collective bargaining agreement with management. The union may legally stage a strike in which members stop working but remain at their job posts, physically blocking replacement workers from taking their places, so the strike is more effective.
False
The management and union at TriColor have bargained for two years without reaching an agreement. After notifying the union, TriColor prohibited the workers from entering the factory to work. This is a lockout.
True
The workers at Thom Trucking went on strike over wages. Thom Trucking may hire permanent replacement workers.
True
Corporations have perpetual existence.
True
The most dominant form of business ownership is the corporation.
True
To be a close corporation, the business must not have publicly traded stock.
True
Limited liability is a major advantage of a partnership as compared to a corporation.
False
Shareholders of S corps have the tax status and advantage of a corporation but non of the protection from liability.
False
Alan, a dentist, and his wife Martha, an attorney, can protect their personal assets with limited liability from their business dealings by creating and operating a professional corporation together.
False
A partnership is a taxable entity, separate from the partners.
False
Corporations have a distinct advantage over other forms of business organization in the area of taxation.
False
Franchise fees can be costly, but they are usually payable over a number of years, after profits are generated from the business.
False
A limited liability company, unlike a Subchapter S corporation, can have members that are corporations, partnerships, or nonresident aliens.
True
To form an LLC, a charter but not an operating agreement must be filed with the Secretary of State in the jurisdiction where the business will operate.
True
Filings are required to form and operate a limited liability partnership.
True
Nicholas and Holly are partners in a toymaking shop. If Rudolph obtains a judgment against Nicholas for injuring Rudolph while Nicholas was on partnership business, Rudolph must try to collect from the partnership before going after Nicholas’ personal assets.
True
Alicia and Ted have a written agreement wherein they will share the losses of their joint business. This agreement is strong evidence they are partners.
True
The dissolution of a partnership means the same as its termination.
False
