1. An agent can perform legal acts that bind the principal. –
2. An agent must keep separate accounts for the principal’s funds.
3. Any information or knowledge obtained through an agency relationship is confidential. –
4. A disclosed principal is liable to a third party for a contract made by an agent acting within the scope of authority.
5. Generally, a principal whose agent commits a tort in the scope of his or her employment is not liable to persons injured. –
6. An agent is always liable for a contract he or she enters into on behalf of an undisclosed principal. –
7. Both parties to an agency have the power and the right to terminate the agency at any time.
8. The only way a principal can ratify a transaction is by a written statement.
9. When an agent enters into a contract on behalf of a principal, the principal must ratify the contract to be bound.
1. In some circumstances, the Constitution allows employers to test their employees for drugs.
2. Employment considered to be “at will” means that employers only with good cause.
3. Employers are required by federal statute to establish health-insurance and pension plans.
4. Under the FLSA, all nonexempt employees who work more than forty hours per week must be paid at least 1.5 times their regular pay rates for all hours over forty. True
5. Whistleblower statues penalize those who report wrongdoing on the part of their employers.
6. In most states, an employer is justified in firing an employee who refuses to do something illegal.
7. Workers’ compensation laws set up administrative procedures through which employees recover for work-related injuries.
8. Qualifying employers must provide employees with up to twelve weeks of family or medical leave during any twelve-month period.
9. Any employer can monitor any employee business or personal telephone conversation during working hours.
1. Employers can agree with unions not to handle, use, or deal in non-union-produced goods.
2. Management serves as the representative of workers in bargaining with the union over the rights of employees.
3. Peaceful strikes, picketing, and boycotts are provided under federal law.
4. Employees have no right to engage in collective bargaining through elected representatives.
5. Discrimination complaints under federal law must be filed with the Equal Opportunity Employment Commission.
6. All employers are subject to title VII of the Civil Rights Act of 1964 regardless of the number of their employees.
7. Disparate-treatment discrimination occurs when an employer intentionally discriminates against an employee.
8. In a sexual-harassment case, an employer cannot be held liable if an employee did the harassing.
1. In a sole proprietorship, the owner and the business are entirely separate.
2. A partnership is an association of two or more persons to carry on, as co-owners, a business for profit.
3. A general partnership cannot exist unless a certificate of partnership is filed appropriately in a state.
4. The sharing of profits from joint ownership of property is usually enough to create a partnership.
5. A writing is always necessary to form a partnership.
6. Unless partnership agreement specifies otherwise, each partner has one vote in management matters.
7. Unless a partnership agreement specifies otherwise, profits are shared in the same ratio as capital contributions.
8. In a limited partnership, the liability of a limited partner is limited to the amount of capital he or she invests in the partnership.
9. A limited liability company offers the limited liability of a corporation and the tax advantages of a partnership.