Legal Aspects Test

Question 0

What is common law?

Answer 0

Body of law derived from judicial decisions rather than from statutes.

Question 1

What are the two Internet sources you can use to locate case law?

Answer 1

Google scholar

The UCO library/ LexisNexis

Question 2

What is statutory law?

Answer 2

Body of law derived from statutes rather than from constitutions or judicial review

Question 3

What are the five factors to consider when deciding how to structure your business?

Answer 3

Legal liability
Tax implications 
Cost of formation and record keeping
Flexibility
Future needs

Question 4

How do you obtain finances for a general partnership?

Answer 4

Two or more people raise money.

Much easier to obtain finances for general partnership than sole proprietor

Question 5

How do you obtain finances for sole proprietor?

Answer 5

Have to raise it yourself.

Much harder than general partnership

Question 6

What is the fundamental difference in general partnership vs. A limited partnership?

Answer 6

In limited partnerships, one person is in charge of the day to day tasks and limited partner contributes money

General- both partners do everything

Question 7

What is the most common form of business structure?

Answer 7

Sole proprietor

Question 8

Who are owners of a corporation?

Answer 8

Shareholders or stockholders

Question 9

T/F:

A partnership is extremely simple to end/dissolve, legally and financially speaking

Answer 9

False

Question 10

What are two disadvantages of a sole proprietorship

Answer 10

You are personally liable for all business debt
Success depends on you
No unemployment benefits
Difficulty obtaining long term financing
Illness or injury threatens business
Limited tax savings for the cost of fringe benefits

Question 11

T/F a corporation has same rights/privileges and liability as an individual

Answer 11

True

Question 12

One advantage of forming a corporation

Answer 12

Has a lifespan independent from its stockholders

Personal assets are protected

Question 13

Disadvantage of corporation

Answer 13

Subject to more state and federal legislation

Profits subject to dual taxation

Question 14

Negligence def.

Answer 14

Unintentional tort that injures a person, property, or reputation

Question 15

T/F

The greatest number of lawsuits brought against sport and recreation providers are based in negligence liability

Answer 15

True

Question 16

Act of omission

Answer 16

Something one should have done, but did not do

Question 17

Act of commission

Answer 17

Something that one did, but should not have done

Question 18

4 elements of negligence

Answer 18

Duty
The act/ breach of duty
Proximate cause
Damage or harm

Question 19

Three sources of duty

Answer 19

A relationship inherent of the situation
A voluntary assumption of the duty
Mandated by statute

Question 20

Three questions considered when determining a breach of duty

Answer 20

What are the types of risks
What is reasonable care
Was the risk foreseeable

Question 21

Two types of risks

Answer 21

Inherent risks

Negligent behavior

Question 22

What is an inherent risk?

Answer 22

Rock climbing, lifting weights, snowboarding, etc

Risks that come with the activity

Question 23

Best defense against negligence is

Answer 23

Statutory law
Contract law
Common law

Question 24

Three elements of assumption of risk

Answer 24

Risks must be inherent to the activity
Plaintiff must know and understand the risks
Plaintiff choice to incur the risk must be free and voluntary

Question 25

What is ultra vires

Answer 25

Act that is not within the authority or scope of responsibility of the employee

Question 26

Respondeat superior

Answer 26

Employer can be held liable when the employee is acting within their scope of practice

Question 27

Three ways to strengthen an assumption of risk document

Answer 27

Signed by both participant and staff
Describes inherent risks associated with activity and other non specific risks
Sufficient info to know, understand, and appreciate the inherent risks
Consequences of misuse of equipment, failures to follow instructions
Periodic evaluation of staff and service delivery

Question 28

What is a waiver

Answer 28

A contract in which the participant or user of a service agrees to relinquish the right to pursue legal action against the service provider in the event that negligence of the provider results in an injury to the participant

Question 29

T/F

Waivers are enforceable against minors

Answer 29

False

Question 30

Tips for preparing a waiver

Answer 30

Title should be capitalized, bold, large letters and descriptive

Question 31

What does the exculpatory clause look like?

Answer 31

Bold, easy to read, includes “ordinary negligence”

Question 32

What does the assumption of risk language look like

Answer 32

Talks about nature if activity, risks encountered through participation, expected participant behavior