Question

Please answers the below True/False and Multiple choice questions from Business Law. (Please provide a brief explanation to answers if possible)

Chapter: Agency Relationships

1. “By definition, independent contractors are not employees.” True/False

2.   John lies and tells Bill that he, John, is Mike's agent, when he is not. Bill enters into a contract with John for the benefit of Mike. Mike can still ratify the contract John entered into for him. True/False

3. In #2 above, when John lied, he created an agency by estoppel. True/False

4. As a general rule, death of a principal terminates an agency as a matter of law. True/False

5. Employers are generally liable for all intentional torts committed by their employees if they occur on the job, even if they have no relation to their employment. True/False

6. A power of attorney is a special type of agency relationship where the agent must be a licensed attorney. True/False

7. Actual authority of an agent may be express, implied, or apparent. True/False

8. Respondeat superioris a type of vicarious liability. True/False

9.   An agency can be terminated by:

                a.             agreement of the parties

                b.             impossibility

                c.             bankruptcy

                d. all of the above

10. An alleged principal's ratification of a contract entered into by a person who was not her agent can only be express, it may not be by implication. True/False

12. When an agent has paid for the right to exercise authority for a business, the agency created is called an agency coupled with an interest. True/False

13. A special agency is open-ended and not limited to a particular transaction or series of transactions; it is an agency where continuous service by the agent is expected. True/False

14. An agent can have two general classes of authority, actual and apparent. True/False

15. In a disclosed agency situation where the third party knows who the principal is, the third party can sue the principal or the agent if the principal breaches the contract. True/False

16. John is an employee of XYZ Co. While making a delivery, he stops at the 7-11 store to get a cup of coffee. While pulling out of the store's parking lot (back on his way to make his delivery) he negligently causes an automobile accident. His employer is not liable because he was not at the 7-11 to further his employer's business. True/False

17. Employers are generally liable for the negligence of their independent contractors that causes injury to innocent third parties. True/False

Chapter: Business Organizations

1.   The business judgment rule does not immunize members of boards of directors from liability to stockholders that come about from the bad business decisions of those directors. True/False

2. Corporations are not required to incorporate under the law of the state where their corporate headquarters is located. True/False

3. The portion of a corporation’s profits that has not been paid out as dividends to shareholders is known as retained earnings. True/False

4. An S Corporation can have no more than five hundred shareholders. True/False

5. The president and other top officers of a corporation are elected by its shareholders. True/False

6.   A corporation is not effectively organized until its Bylaws have been filed with the Secretary of State. True/False

7. A corporation must be incorporated in the state where it is headquartered. True/False

8.   The term “ultra vires” means

                a.             highly toxic

                b.             extremely profitable

                c.             beyond the powers

                d.            none of the above

9.   The federal disclosure rules that regulate franchising are created by the Food and Drug Administration (the FDA). True/False

10. Limited liability companies essentially have the same tax treatment as partnerships. True/False

11. Limited partners are investors who do not generally participate in managing the business. True/False

12. All partners in a limited partnership have limited liability. True/False

13. The severance of the relationship between a partner and a partnership is called dissociation. True/False

14. Limited liability companies are created by agreement of the parties, no filing of documents with the state is required. True/False

15. In their relations with one another partners are fiduciaries. True/False

16. The simplest form of business organization is the

                    a.             sole proprietorship

                    b.             general partnership

                    c.             limited partnership

                    d.            limited liability company

17. Franchises fall into the following categories:

                a.             distributorships

                b.             chain-style business operations

                c.             manufacturing or processing plant arrangements

                d.            all of the above

18. Shareholders vote on matters that change the corporation's structure or existence, such as a merger with another firm. True/False

19. A written authorization to cast another shareholder's vote is called a quorum. True/False

20. Directors, but not managers, are subject to a duty of loyalty to the corporation. True/False

21. To help ensure federal taxation as a partnership, state LLC statutes:

                    a.             place restrictions on transferability of member interests

                    b.             provide for continuity of life

                    c.             provide for unlimited liability

                    d.            all of the above

22. Limited partners are investors who may not participate in managing the business. True/False

23. The withdrawal or death of a partner causes the partnership to be dissolved, but many partnership agreements have provisions to allow the partnership to continue despite such events. True/False

24. Partners in a general partnership owe a fiduciary duty to one another. True/False

25.   The corporation is the oldest and simplest form of business organization. True/False

26. A general partnership is a separate legal entity distinct from the owners for all purposes. True/False

Answer 1

11. “By definition, independent contractors are not employees.” - true

2. .   John lies and tells Bill that he, John, is Mike's agent, when he is not. Bill enters into a contract with John for the benefit of Mike. Mike can still ratify the contract John entered into for him. true

3.n #2 above, when John lied, he created an agency by estoppel.

false

4.As a general rule, death of a principal terminates an agency as a matter of law. true

5.Employers are generally liable for all intentional torts committed by their employees if they occur on the job, even if they have no relation to their employment. false

7.Actual authority of an agent may be express, implied, or apparent.true

8.

The term “ultra vires” means

                a.             highly toxic

                b.             extremely profitable

                c.             beyond the powers

                d.            none of the above

c

10.Limited liability companies essentially have the same tax treatment as partnerships - false

11.Limited partners are investors who do not generally participate in managing the business -true

12.All partners in a limited partnership have limited liability- true

13 The severance of the relationship between a partner and a partnership is called dissociation- True