Other Federal Laws and Regulations

Question 1

Title VII protects against what types of discrimination?

Answer 1

Religion
Race
Gender
National Origin

Question 2

What are features of the Self-Employment Contributions Act’s (SECA) provisions?

Answer 2

The base rate upon which self-employed persons must pay is the combined rate for employer and employee under FICA.
The base rate is reduced by any “wages” earned during the year, given that FICA taxes will be paid on those.
Self-employed persons can deduct 50% of FICA from their taxes, as employers of others would.

Question 3

how does one qualify for unemployment compensation?

Answer 3

Involuntarily terminated
Available and looking for work
Not receiving disqualifying income (such as retirement or disability benefits)

Question 4

Taxes payable under the Federal Unemployment Tax Act (FUTA) are

Answer 4

Deductible by the employer as a business expense for federal income-tax purposes.

Question 5

under what circumstance must a return be filed under FUTA

Answer 5

if there are ANY employees during a substantial portion of the year.
If a full OR part-time employee is around for over 20 weeks in a given year, a return must be filed.

Question 6

COBRA

Answer 6

provides health insurance in some circumstances for those after a job loss. Applies if EE loses health benefits due to termination (also quit) or reduced hours. EE PAYS FOR THIS

Question 7

what is the coverage period under cobra?

Answer 7

18 months, or 29 if person is disabled

Question 8

FMLA

Answer 8

Family medical leave act - to balance EE’s workplace demands with family needs. Entitled to 12 weeks unpaid leave w/o losing job (if EE worked 1250 during last year and has been employed over a year)

Question 9

Quid pro quo

Answer 9

employees cannot sue boss except for intentional torts, gross negligence

Question 10

OSHA does NOT apply to:

Answer 10

the federal gov
state gov
certain industries that are subject to other safety regs

Question 11

what are the 2 federal agencies that enforce the antitrust laws

Answer 11

Federal Trade Commission

DOJ’s Antitrust division

Question 12

work for hire lasts how long?

Answer 12

the shorter of 95 years from the date of publication or 120 years from the date of creation

Question 13

how long does a utility patent last for?

Answer 13

20 years from the date of filing

Question 14

how long does a design patent last for?

Answer 14

14 years from the date of filing

Question 15

Money laundering

Answer 15

the process by which one conceals the existence, illegal source, or illegal application of income and disguises that income to make it appear legitimate. Ie drug dealing, terrorism, income tax evasion

Question 16

Bank secrecy act of 1970

Answer 16

requires record keeping and reporting by banks and other financial institutions to trace the movement of currency into and out of the US or deposited into banks

Question 17

what is the maximum number of shareholders in a subchapter S corp?

Answer 17

100

Question 18

What type of corps are subject to double taxation

Answer 18

C-corps

Question 19

are partners in LLPs protected from the tort liabilities of the firm?

Answer 19

yes

Question 20

what types of orgs do not require formal filing?

Answer 20

general partnerships

sole propreitorship

Question 21

what must the articles of incorporation include?

Answer 21

Name of the corp
Number of shares authorized
The street address of its registered office and the name of its agent at that address
The name and address of each incorporater

Question 22

Novation

Answer 22

Following the formation of a corporation, the process by which the promoter is released from, and the corporation is made liable for, pre-incorporation contractual obligations?

Question 23

Piercing the corporate viel

Answer 23

reach into shareholders pockets to satisfy corp obligations. Unusual for courts to do but can happen when courts believe such is necessary to prevent the corp form from being used to defeat public convenience, justify wrong, protect fraud, or defend crime.

Question 24

what factors might induce courts to pierce the corp veil

Answer 24

when shareholders use a corp for their own (usually fraudulent) personal use.
Thin capitalization - which endangers the legitimate interests and expectations of third party corp creditors.
Commingling of funds, diversion of corp assets, failure to maintain formalities

Question 25

What is the purpose of an LLC’s operating agreement?

Answer 25

designed to forestall and resolve disputes among the owners

Question 26

in the absence of agreement to the contrary, how are general partnership P/L shared?

Answer 26

equally

Question 27

what is the nature of the relationship between the Board and a company, what kind of duty

Answer 27

Fiduciary duty - the duty of highest loyalty

Question 28

Pre-emptive rights

Answer 28

shareholders of close corps may maintain their original proportions of control they are granted pre-emptive rights if the corp issues additional shares if may invest addl money to buy shares to maintain their control.

Question 29

without specific provisions in the articles of incorp, BOD have authority to

Answer 29

repeal the bylaws, declare dividends, fix the compensation of directors.
They do not have the ability to amend the articles of incorp. (shareholders must approve such a change)