Business Law test

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1. Diagram and/or describe the parties involved in an Agency Relationship: (3 pts)

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2. The Employer generally has the right of over all aspects of the
the employee’s work. (2 pts)

3. Name 5 criteria used by courts to determine whether an individual is an Employee or an
Independent Contractor: (10 pts / 2 pts each)

4. Name 2 duties an Agent owes to a Principal: (4 pts)

5. Name 2 duties a Principal owes to an Agent: (4 pts)

6. The common law doctrine where either party may terminate an employment relationship is
called: (4 pts)

7. The most important federal statute prohibiting discrimination in employment is called: (4 pts)

8. Name the 5 protected classes / or categories under the federal statute above: (10 pts)

9. Name the 5 exceptions to “at-will” employment that we discussed in class: (10 pts)

10. Name 2 defenses to employment discrimination claims and describe them: (6 pts)

11. This doctrine generally holds an employer liable for the wrongful acts of agents and
employees: (2 pts)

12. The one element that distinguishes an agency relationship from a contract is: (2 pts)

13. Describe the difference between “Frolic” and “Detour” as applied to scope of employment.
(4 pts)

14, Name 7 different business entity forms: (7 points)

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15. This business form is the oldest form and the owner is the business: (2 pts)

16. This business form may have investors, but they must stay arms length
away from the management of the business or they may be treated as
partners and have unlimited liability: (2 pts)

17.All businesses that have 2 or more partners have this high duty of care that they
owe to one another and the business: (2 pts)

18.This rule protects good faith mistakes in judgment by boards of directors:(2 pts) _

19.Identify 5 business entity forms and provide a definition for the form of
business you select, one pro, one con, and one type of business that will work for
that form of business. (20 points/4 pts each)

Business Form / Definition PRO CON Type of Business

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