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Business Law MGT 330 > Law Quiz 4 > Flashcards

Law Quiz 4 Flashcards

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1
Q

Limited liability company definition

A

group of people who come together for the purpose of reducing their responsibility/their financial risk

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2
Q

what is the minimum number of people to form an LLC

A

1

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3
Q

why do LLCs have to have LLC in their name

A

so that the other company knows what they are working with, they would want a large insurance policy If they know that your liability is limited

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4
Q

an LLC is made up of ___
an LLC is run by ___

A

made up of members
run by managers

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5
Q

an LLC is made up of ___

A

members

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6
Q

an LLC is run by ____

A

managers

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7
Q

in an LLC, all ___ are ___, but not all ____ are ____

A

all managers are members but not all members are managers

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8
Q

what can determine each member’s percentage ownership in an LLC

A
  1. amount of money contributed
  2. amount of property/equipment contributed
  3. ideas contributed
  4. experience/skills
  5. time/effort
  6. contacts (who they know)
  7. what they all agree on/want/decide on (someone could provide 90% of the $ but have minority ownership share)
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9
Q

members of an LLC share in ___ and ___

A

members of an LLC share in profits and losses

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10
Q

operating agreement definition

A

a written contract signed by the members which sets out their rights and duties and describes how the LLC is to be run or managed
most important part: list of members and their percent shares

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11
Q

T/F: members of an LLC can sell or transfer their interests to non-members

A

true

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12
Q

steps of member transferring interests to non-member

A
  1. person leaving would need to tell everyone that they wanted out, give them the opportunity to buy their shares (the right of first refusal)
  2. B can always get out, but E can only get in if ACD approve of it
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13
Q

passive LLC member

A

doesn’t participate in meetings but does share in profits or loss

may happen when ACD didn’t let in E but B gave them their interests

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14
Q

characteristics of corporations

A
  • they are a separate and distinct entity from their shareholders
  • they can sue and be sued
  • they can enter into contracts
  • they can buy and sell property
  • they are created under state, not federal, law
  • shareholders in a corporation have limited liability (their liability is limited to the value of their shares at a particular point in time)
  • they exist forever (until they are dissolved, merged, etc.)
  • they are considered a person under the law (i.e. what rights they are entitled to)
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15
Q

can nonprofit corporations make a profit

A

legally, they can make a profit, but they must retain or reinvest them in the company

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16
Q

examples of subsidiary corporations

A

pepsi, P&G, disney
parent company, subsidiaries, more subsidiairies

17
Q

what’s good about subsidiary companies for the parent company

A
  1. diversity risk
  2. marketing/differentiation
  3. easier to manage
18
Q

discrimination definition

A

treating people differently based upon some characteristicl

19
Q

legal workplace discrimination

A
  • role/responsibility/tenure
  • education/certifications
  • skills/effort
  • age (younger end)
  • criminal record
  • appearance (voluntary appearance only)
20
Q

illegal workplace discrimination

A
  • race/ethnicity
  • gender/pregnancy status
  • religion
  • disability
  • age (40+)
  • national origin
  • veteran status
  • sexual orientation
  • transgender status
  • genetic information
21
Q

rules about age and appearance discrimination

A

can’t discriminate about age if they’re over 40

can’t discriminate about appearance if its involuntary

22
Q

union definition

A

groups of workers who organize together to advance their collective interest on issues such as
wages, working conditions, benefits, hours

23
Q

where do unions usually occur

A

public service jobs where there are big power imbalances

Manufacturing
Construction/labor
Education
Truckers
Healthcare
Food service
Sports
Public safety (police/fire)

24
Q

sexual harassment

A

conduct of a sexual nature that is so pervasive and severe that it impacts the victims ability to do their job

2 types
1. quid pro quo (do this, get that)
2. hostile work environment (more common)

25
Q

disability definition

A

a physical or mental impairment which significantly impacts one or more major life activities

26
Q

disability rule

A

if an employee has a disability, the employer must provide the employee with reasonable accommodations

27
Q

if an employee has a disability, the employer must provide the employee with ____ _____

A

reasonable accommodations

28
Q

family medical leave act FMLA

A

federal law that allows employees to take up to 12 weeks of UNPAID leave off each year to deal with a serious medical condition of their own, their spouse, their child, or their parent

it guarantees that they will have a job waiting for them when they return (usually the same job)

29
Q

whats the catch with FMLA
how many weeks off

A

its unpaid time
up to 12 weeks off

30
Q

Chapter 7 bankruptcy

A

For individuals and businesses
Liquidation: selling assets to pay creditors

31
Q

Chapter 9 bankruptcy law

A

Only available to cities and towns

32
Q

Chapter 11 and 13 bankruptcy law

A

Reorganization
11: businesses
13: individuals

In situations where the individual debtor (or a company) earns a good income but still cannot pay their debts in full, they can file a chapter 11 (business) or 13 (individual). In those cases, they pay all of their excess monthly cashflow to their creditors for a 60 month period. Whatever debt is left after this 60 month period is discharged (goes away).

If you make too much money to file a 7, you have to file an 11 or 13

33
Q

Negotiable instruments

A

piece of paper that could be turned into something worth something, like cash. Most common form of a negotiable instrument
Is a check

34
Q

Who uses bylaws and who uses operating agreements

A

Corporations have bylaws, Limited Liability Companies have operating agreements

35
Q

Bylaw definition

A

Written internal rules that corporations adopt and follow that govern their affairs and activities

Business Law MGT 330 (4 decks)

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