Q1: In the Enron scandal, who created SPEs?

Jeff Skilling

Andy Fastow

Ken Lay

Lou Pai

Q2: Three small restaurant suppliers with little market power decide together that they will not sell supplies to a national chain restaurant looking to locate in the area.This is a per se antitrust violation.

False

True

Q3: Ordinarily, shareholders are not held personally liable for the torts of a corporation.An exception to this rule occurs with

shareholder derivative suits

piercing the corporate veil

respondeat superior

ultra vires

Q4: Stan falls off a ladder while on the job, hurts his back, gets admitted to the hospital, and takes a leave from work on workers' compensation benefits.While in the hospital, Stan is approached by a personal injury lawyer, who convinces Stan to sue his employer, arguing that the injury occurred during "the course and scope of his employment."If the company is sued, the court will most likely dismiss (throw out) the law suit without a trial.

True

False

Q5: Typically, it's in the employer's interest that a worker is an "employee" and in the worker's interest to be an "independent contractor."

Group of answer choices

True

False

Q6: Under the Family Medical Leave Act (FMLA), "key employees" are not legally entitled to be restored to their original position or a comparable position after taking FMLA leave.A "key employee" is determined by

the percentage of time spent on management duties

the employee's job title

the value the employee adds to the organization

the pay of the employee

Q7: Out of Bounds Company, a maker of outdoor equipment covers, sells its products to retail establishments. It charges one price to small, family-owned hardware stores and a different price to national chains. Under the Clayton Act, these price differences are

not illegal if they are justified by different production or transportation costs.

illegal per se.

not illegal if they are intended to protect smaller businesses.

illegal if the national chains have monopoly or near monopoly poweR

Q8: Bayside Restaurant LLC is a limited liability company. Its sole member is Conrad. For federal income tax purposes, unless the firm indicates otherwise, it will automatically be taxed as

a partnership

a sole proprietorship

a person

a corporation

Q9: Albert, aged 53, is terminated from his mechanic job at Skyhigh Airlines.After he learns that a 30-year-old employee is hired to replace him, Albert sues for age discrimination.In the investigation that follows, Skyhigh airlines discovers evidence that Albert routinely took company tools home over weekends, which is against company policy and grounds for termination.In its defense in the age discrimination case, Skyhigh Airlines can

argue that violating company policy was a sufficient reason to terminate him

ask for reduced damages if they're found liable for age discrimination

offer the policy violation as an absolute defense

not use the evidence of policy violation

Q10: When an agent's acts create the appearance of an agency that does not in fact exist, the principal is estopped to deny the agency relationship.

Group of answer choices

False

True

Q11: Jones and Smith jointly own farmland which they lease to a farmer for a share of the profits the farmer makes.Jones, Smith, and the farmer are likely to be considered partners under the law.

False

True