QUESTION 13

1. In many states, including New York, an operating agreement is required for a limited liability company to exist.
2. True
3. False

QUESTION 14

1. Beth is a shareholder of Cotton Clothes, Inc., whose management is considering a merger with Denim Jeans Corporation. Beth does not want to become a shareholder of this new corporation and demands that she receive the fair value of her shares from Cotton Clothes.This is known as
2. a.ultra vires acts
3. b.a tender offer.
4. c.appraisal rights
5. d.proxy

QUESTION 15

1. Laura is the only female employee in the maintenance department of Motor Vehicle Sales & Service Inc. Her supervisor and co-workers tease and play tricks on her so relentlessly that it becomes intolerable for her to continue working there and she feels compelled to quit. This is
2. a.a constructive discharge on the basis of gender discrimination.
3. b.disparate impact discrimination
4. c.quid pro quo sexual harassment
5. d.no discrimination

QUESTION 16

1. An employer may be requiredto accommodate an employee's request to not work on Saturdays due to his religious beliefs unless doing so would made an undue hardship for the employer.
2. True
3. False

QUESTION 17

1. Marla is an at will employee at Healthy Bowls.Marla often calls in sick, is rude to the customers and her fellow employees find her difficult to work with.Accordingly, the owner of Healthy Bowls would like to terminate her employment.
2. a.Healthy Bowls may fire Marla under federal whistleblower laws
3. b.Healthy Bowls may fire Marla but only if Marla agrees
4. c.Healthy Bowls does not have the legal right to fire Marla under any circumstances
5. d.Healthy Bowls may legally fire Marla in this situation

QUESTION 18

1. XYZ Corp. has 100 outstanding shares which are owned by 7 shareholders. For purposes of a shareholder meeting, a quorum exists if a majority of the 100 outstanding shares, as opposed to a majority of the 7 shareholders, are present.
2. True
3. False

QUESTION 19

1. Paddle & Portage Tours Corporation is poised to issue securities that, under the Securities Act of 1933, are "exempt." This means that the securities can be sold
2. a.on the basis of false and misleading information.
3. b.on the basis ofprivatenonpublic information.
4. c.within any six-month period by certain insiders.
5. d.without filing a registration statement.

QUESTION 20

1. Robyn owns one share of stock in SportBoards Corporation, as evidenced by a stock certificate. Her dog eats her stock certificate. Her ownership of the stock is
2. a.forfeited within thirty days if she cannot find the certificate
3. .b.forfeited unless she can repair the certificate.
4. c.not affected.
5. d.forfeited immediately.